FY2016 Consolidated Results. May 15, 2017

Transcription

1 FY2016 Consolidated Results May 15, 2017

2 FY2016 Consolidated Results Contents 1. FY2016 Consolidated Results Summary 2. FY2016 Consolidated Results (Consolidated Statement of Income) 3. FY2016 Consolidated Financial Condition (Consolidated Balance Sheet) 4. Full-Year FY2017 Consolidated Earnings Forecast 5. Miscellaneous Information 1

3 1. FY2016 Consolidated Results Summary 1. FY2016 Consolidated Results Summary 1-1 Business Environment and Policy 1-2 Subsidiaries and Affiliates 1-3 Consolidated Operating Results (by Segment) 1-4 Consolidated Financial Condition 1-5 Consolidated Cash Flows 2

4 1-1-1 Business Environment and Policy Business Environment in FY2016 In the global economy, steady economic recovery continued in the United States while the recovery in Europe remained moderate and there was a sign of recovery in China. Japan sustained a moderate recovery with an improved employment environment and a sign of recovery in consumer spending and capital expenditure. Warehouse and Logistics The competition with other companies has intensified despite the recovery trend seen in cargo movement. Real Estate The rent level did not recovered despite improvement in demand for rental office buildings. 3

5 1-1-2 Business Environment and Policy Our Policy Logistics Real Estate Expansion of distribution operations especially for pharmaceuticals, and expansion reinforcement of operational bases overseas Securing tenants and maintaining and improving rent levels [Misato Warehouse #2, Saitama] [Nihonbashi Dia Building] Thorough cost management and further improvement of efficiency in business operations 4

6 1-2-1 Subsidiaries and Affiliates FY2015 FY2016 Change Subsidiaries Consolidated Subsidiaries Equity-Method Subsidiaries 57 (Logistics 48/ Real Estate 9) 52 (Logistics 44/ Real Estate 8) ー ( ー ) 57 (Logistics 48/ Real Estate 9) 52 (Logistics 44/ Real Estate 8) ー ( ー ) No Change No Change No Change Affiliates 15 (Logistics 15) 15 (Logistics 15) No Change Equity-Method Affiliates 3 (Logistics 3) 3 (Logistics 3) No Change 5

7 1-2-2 List of Consolidated Subsidiaries Logistics Real Estate Consolidated Subsidiaries (44) Consolidated Subsidiaries (8) Tohoku Ryoso Transportation Co., Ltd. Monryo Transport Corporation Dia Buil-Tech Co., Ltd. Sairyo Service Co., Ltd. Hakuryo Koun Co., Ltd. Yokohama Dia Building Management Dia Pharmaceutical Network Co., Ltd. Seiho Kaiun Kaisha, Ltd. Corporation Tokyo Dia Service Co., Ltd. Saryo Service Co., Ltd. Chubo Kaihatsu Co., Ltd. Dia Systems Corporation Mitsubishi Logistics America Corp. Nagoya Dia Buil-Tech Co., Ltd. Ryoso Transportation Co., Ltd. Mitsubishi Warehouse California Corp. Osaka Dia Buil-Tech Co., Ltd. Unitrans Ltd. Mitsubishi Logistics Europe B.V. Kobe Dia Service Co., Ltd. Keihin Naigai Forwarding Co., Ltd. Fuji Logistics Europe B.V. Kobe Dia Maintenance Co., Ltd. Touryo Kigyo Co., Ltd. Mitsubishi Logistics China Co., Ltd. T'ACT Co., Ltd. Fuji Logistics Co., Ltd. Shanghai Linghua Logistics Co., Ltd. Tokyo Juki Transport Co., Ltd. Shanghai Qingke Warehouse SII Logistics Inc. Management Co., Ltd. Fuji Logistics Operations Co., Ltd. Fuji Logistics Support Co., Ltd. Kinko Service Co., Ltd. Chubu Trade Warehousing Co., Ltd. Meiryo Kigyo Co., Ltd. Ryoyo Transportation Co., Ltd. Kyokuryo Warehouse Co., Ltd. Hanryo Kigyo Co., Ltd. Shinryo Koun Co., Ltd. Naigai Forwarding Co., Ltd. Kyushu Ryoso Transportation Co., Ltd. Shanghai Lingyun Global Forwarding Co., Ltd. Fuji Logistics (China) Co., Ltd. Fuji Logistics (Dalian F.T.Z.) Co., Ltd. Fuji Logistics (Shanghai) Co., Ltd. Mitsubishi Logistics Hong Kong Ltd. Fuji Logistics (H.K.) Co., Ltd. Mitsubishi Logistics Thailand Co., Ltd. P.T. Mitsubishi Logistics Indonesia P.T.Dia-Jaya Forwarding Indonesia Fuji Logistics (Malaysia) SDN. BHD. Equity-Method Affiliates (3) Nippon Container Terminals Co., Ltd. Kusatsu Soko Co., Ltd. Jupiter Global Limited 6

8 1-3-1 Consolidated Operating Results FY2015 FY2016 YOY *Initial Results Forecast for FY2016 Difference Between the Actual Results and the Forecast Revenue 206, ,718 +1, % 215,000-6, % Operating Income 11,309 12,748 +1, % 12, % Ordinary Income 14,025 16,056 +2, % 14,800 +1, % Profit Attributable to Owners of Parent 9,350 10,665 +1, % 9,600 +1, % Revenue Operating Income Ordinary Income Profit Attributable to Owners of Parent : *Initial Results Forecast for FY2016 was announced on April 28, : Revenue increased by 1% as a whole. In the Logistics Segment, freight handled increased in the warehousing & distribution, land transportation and harbor transportation businesses, although revenue decreased in the international transportation business owing to factors such as a decline in ocean freight and the effects of a stronger yen. In the Real Estate Segment, revenue increased due to an increase in condominiums sold. : 13% increase YOY overall as income increased in both logistics and real estate businesses. : 15% increase YOY due partially to foreign exchange gains at an overseas consolidated subsidiary. 14% increase YOY despite a decrease in gain on sale of marketable securities and investments in securities in extraordinary income, which was offset by lower impairment loss in extraordinary loss and the effects of a decrease in the effective corporate tax rate. 7

9 1-3-2 Consolidated Operating Results 250,000 R e v e n u e 20,000 Operating Income 営業利益 I n c o m e s Ordinary Income 経常利益 Profit Attributable to Owners of Parent 当期純利益 200, , ,718 16,056 15,000 14,025 12, ,000 11,309 10,665 10,000 9, ,000 5,000 50,000 0 FY2015 FY FY2015 FY2016 8

10 1-3-3 Segment Information 1. Revenue FY2015 FY2016 YOY Logistics 169,006 81% 167,907 80% -1, % Real Estate 39,876 19% 42,894 20% +3, % Internal Transactions -2, , Total 206, , , % *The figures in [ ] show the size of the Logistics and Real Estate businesses as percentages (excluding Internal Transactions), and therefore total 100% in both columns. Logistics : 1% decrease YOY as a whole. Although freight handled increased in the warehousing & distribution, land transportation and harbor transportation businesses, revenue decreased in the international transportation business owing to factors such as a decline in ocean freight and the effects of a stronger yen. Real Estate : 8% increase YOY overall. Although In the mainstay real estate leasing business, revenue declined due mainly to a decrease in ancillary revenue such as electrical power fees, Other revenue increased due to an increase in property sales in the condominium sales business. 9

11 1-3-4 Segment Information 1. Revenue Internal Transactions -2,051 Internal Transactions -2,083 Logistics 169,006 Revenue 206,831 Logistics 167,907 Revenue 208,718 Real Estate 39,876 Real Estate 42,894 FY2015 FY

12 1-3-5 Segment Information 2. Operating Income FY2015 FY2016 YOY Logistics 5,579 34% 6,661 36% +1, % Real Estate 10,614 66% 11,719 64% +1, % Parent Company s General Expenses -4, , Total 11,309-12, , % *The figures in [ ] show the size of the Logistics and Real Estate businesses as percentages (excluding Parent Company's General Expenses), and therefore total 100% in both columns. Logistics : Operating income increased by 19% as in addition to a decrease in operational and transportation consignment costs as revenue in the international transportation business decreased, and reduced depreciation and amortization expenses. Real Estate : Operating income increased by 10%. Although in addition to an increase of real estate sales costs from an increase in sales of condominiums, repair expenses in line with property maintenance increased, there was also a decrease in depreciation and amortization expenses. 11

13 1-3-6 Segment Information 2. Operating Income Parent Company s Logistics 5,579 Parent Company s General Expenses -4,885 Logistics 6,661 General Expenses -5,633 Real Estate 10,614 Operating Income 11,309 Operating Income Real Estate 12,748 11,719 FY2015 FY

14 1-4-1 Consolidated Financial Condition End of FY2015 End of FY2016 Change Explanation Total Assets 413, , ,089 In addition to an increase of "Land", etc. due to capital expenditure in Japan and overseas, "Investments in securities" increased due to a recovery of stock market. +5.3% Net Assets 257, , , % In addition to an increase of "Retained earnings" from profit attributable to owners of parent, there was an increase of "Net unrealized holding gains on securities" from recovery of stock market. Equity Ratio 61.7% 63.0%

15 1-4-2 Consolidated Financial Condition Total Assets Net Assets 63.0% 64.0% Equity Ratio 61.7% 62.0% 500, , , % 400, % 300, , , % 200, % 100, % 0 End of FY2015 End of FY % Mar. 31, 2016 Mar. 31,

16 1-5-1 Consolidated Cash Flows FY2016 Explanation Balance at the Beginning of Fiscal Year (Apr. 1, 2016) 45,658 Change during the Period -8,736 Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities +21,466-22,270-7,819 Increase of 21.4 billion yen retained from profit before income taxes and depreciation and amortization, etc. Decrease of 22.2 billion yen from acquiring fixed assets, etc. Decrease of 7.8 billion yen due to repayment of borrowings and payment of dividends, etc. Exchange Rate Change -113 Balance at the End of the Fiscal Year (Mar. 31, 2017) 36,921 Decrease of 8.7 billion yen from the beginning of FY

17 1-5-2 Consolidated Cash Flows (YOY) FY2015 FY2016 YOY Explanation Balance at the Beginning of FY Change During Period Cash Flows from Operating Activities Cash Flows from Investing Activities 43,276 45,658 +2,381 +2,021-8,736-10, , ,466 +4,220-7,032-22,270-15,237 Increased YOY mainly due to increased profit Decreased YOY, caused by large expenses from acquiring fixed assets Cash Flows from Financing Activities -7,927-7, Increased YOY, due to redemption of bonds in the previous year, in spite of large expenses for repayment of borrowings Exchange Rate Change Change of Scope of Consolidation Balance at the 45,658 36,921-8,736 End of the FY 16

18 2. FY2016 Consolidated Results (Consolidated Statement of Income) 2. FY2016 Consolidated Results (Consolidated Statement of Income) 2-1 Consolidated Statement of Income 2-2 Breakdown of Revenue 2-3 Breakdown of Cost of Services 17

19 2-1 Consolidated Statement of Income FY2015 FY2016 YOY Revenue 206, ,718 +1, % Cost of Services 185, , % Gross Profit 20,993 23,144 +2, % SG&A 9,684 10, % Operating Income 11,309 12,748 +1, % Non-Operating Income 3,484 4, Non-Operating Expenses Ordinary Income 14,025 16,056 +2, % Extraordinary Income 2, ,909 Extraordinary Losses 1, ,003 Profit before Income Taxes 14,670 15,796 +1, % Income Taxes 5,258 5, Profit 9,412 10,763 +1, % Profit Attributable to Non-controlling Interests Profit Attributable to Owners of Parent ,350 10,665 +1, % 18

20 2-2 Breakdown of Revenue FY2015 FY2016 YOY Explanation Revenue 206, ,718 +1, % Warehouse Storage Warehouse Cargo Handling Land Transportation Port and Harbor Operations International Transportation 23,689 23, % 16,322 16, % 43,967 45,731 +1, % 16,712 17,834 +1, % 48,997 44,026-4, % The handling of pharmaceuticals and beverages increased steadily The handling of container freight increased, etc. Due to drop in ocean freight rates and strong yen rates, etc. Real Estate Rent 32,707 32, % Decrease of ancillary revenue, such as electric power fees, etc. Other 24,434 28,554 +4, % Increased sales of condominiums in condominium sales business 19

21 2-3 Breakdown of Cost of Services FY2015 FY2016 YOY Explanation Cost of Services 185, , % Operational and Transportation Consignment Costs 86,525 83,840-2, % Decrease of revenue in international transportation business Personnel Expenses 34,877 35, % Facility Rental Expenses 9,028 9, % Depreciation and amortization 13,436 12, % Decrease in both logistics and real estate Other 41,970 44,301 +2, % Real estate sales cost increased following an increase in sales of condominiums 20

22 3. FY2016 Consolidated Financial Condition (Consolidated Balance Sheet) 3. FY2016 Consolidated Financial Condition (Consolidated Balance Sheet) 3-1 Assets 3-2 Liabilities and Net Assets 21

23 3-1 Assets End of FY2015 End of FY2016 Change Explanation Assets 413, , ,089 Cash and Deposits 45,398 37,841-7,557 Payment of income taxes, capital expenditure, repayment of borrowings, payment of dividends, etc. Buildings and Structures 112, ,550-3,691 Decrease due to depreciation and amortization,etc. Land 74,322 86, ,583 Increase due to acquisition of right of using land in Indonesia, acquisition of site for lease office building of Nihonbashi Honcho, etc. Property and Equipment Others 2,867 6,287 +3,420 Increase of leased assets, etc. Investments in Securities 98, , ,308 Increase in market value of stocks 22

24 3-2 Liabilities and Net Assets End of FY2015 End of FY2016 Change Explanation Liabilities 155, ,484 +2,743 Short-term bank loans and current maturities of longterm debt Long-term loans payable Deferred Income Taxes 16,028 20,546 +4,518 27,926 18,053-9,872 14,805 20,424 +5,619 Scheduled repayment of borrowings Increase in deferred tax payment on evaluation difference due to increased market value of stocks Net Assets 257, , ,346 Retained Earnings 172, ,762 +8,562 Reporting profit attributable to owners of parent Net Unrealized Holding Gains on Securities 40,282 51, ,140 Increase in valuation difference after deducting tax effect, due to a rise in market value of stocks 23

25 4. Full-Year FY2017 Consolidated Earnings Forecast 4. Full-Year FY2017 Consolidated Earnings Forecast 4-1 Forecast for Revenue 4-2 Forecast for Expenses 4-3 Income (Forecast) 24

26 4-1-1 Forecast for Revenue FY2016 Results 1H Forecast FY2017 2H Forecast Full-Year Forecast YOY Revenue 208, , , ,000 +3, % Logistics 167,907 86,400 90, ,900 +8, % Real Estate 42,894 18,400 18,900 37,300-5, % Internal Transactions -2,083-1,100-1,100-2, Logistics : We expect revenue to increase from expansion of distribution center operation in both warehousing and land transportation, increase of containerized cargo handled by port and harbor operations, and recovery of cargo of ocean freight and air cargo handled by international transportation business. Real Estate : We expect revenue to decrease from a decrease in sales of condominiums in condominium sales business. Increase of revenue is expected on the whole. 25

27 4-1-2 Forecast for Revenue Internal Internal Transactions Transactions -2,083-2,200 Logistics 167,907 Revenue 208,718 Logistics 176,900 Revenue 212,000 Real Estate 42,894 Real Estate 37,300 FY2016 Results FY2017 Forecast 26

28 4-2 Forecast for Expenses FY2016 Results 1H Forecast FY2017 2H Forecast Full-Year Forecast YOY Cost of Services 185,573 91,600 97, ,800 +3, % SG&A 10,396 5,000 5,300 10, % We expect an overall increase. In logistics, we expect operational and transportation consignment costs to increase following an increase of cargo handling, while in real estate, we expect a decrease in real estate sales cost following a decrease in condominiums for sale and repair expenses. We expect a decrease of SG&A due to a decrease in expenses. 27

29 4-3-1 Income (Forecast) FY2016 Results FY2017 Full-Year Forecast YOY Operating Income 12,748 12, % Logistics 6,661 8,300 +1, % Real Estate 11,719 10,000-1, % Parent Company s General Expenses -5,633-5, Ordinary Income 16,056 15, % Profit Attributable to Owners of Parent 10,665 10, % Operating Income : Expect to increase YOY as a whole. While income increased in logistic business, it decreased in real estate business.. Ordinary Income : Expect to decrease YOY as we expect a decrease in foreign exchange gains accrued in the previous year. Profit Attributable to Owners of Parent : Expect to decrease YOY. 28

30 4-3-2 Operating Income (Forecast) Logistics 6,661 Parent Company s General Expenses -5,633 Logistics 8,300 Parent Company s General Expenses -5,400 Real Estate 11,719 Operating Income 12,748 Operating Income Real Estate 12,900 10,000 FY2016 Results FY2017 Forecast 29

31 5. Miscellaneous Information 5. Miscellaneous Information 5-1 Volume Handled in Logistics (Parent) 5-2 Warehouse and Real Estate Leasing Area (Parent) 5-3 Capital Expenditure 5-4 Depreciation and Amortization 5-5 New Facilities 30

32 5-1 Volume Handled in Logistics (Parent) FY2015 FY2016 YOY Warehouse Inbound Volume Quantity 2,504 1,000 tons 2,580 1,000 tons +3.0 % Warehouse Outbound Volume Quantity 2,511 1,000 tons 2,578 1,000 tons +2.7 % Warehouse Storage Balance Warehouse Freight Turnover Rate Quantity 582 1,000 tons 563 1,000 tons -3.4 % Amount 382,562 million Yen 378,247 million Yen -1.1 % Quantity 35.9 % 38.2 % +2.3 Land Transport Quantity 12,215 1,000 tons 12,963 1,000 tons +6.1 % Port and Harbor Operations Shore Handling Onboard Handling Quantity 72,958 1,000 tons Quantity 47,053 1,000 tons 71,484 1,000 tons 56,218 1,000 tons -2.0 % % International Transportation Quantity 6,126 1,000 tons 6,153 1,000 tons +0.4 % 31

33 5-2 Warehouse and Real Estate Leasing Area (Parent) FY2015 FY2016 YOY Warehouse Storage Area (Monthly Average) Building Leasing Area (Monthly Average) Real Estate Leasing Area (excludes warehouse leasing) 905 1,000 m ,000 m % 1,047 1,000 m2 1,033 1,000 m2-1.4 % 926 1,000 m ,000 m2-0.9 % March 31, 2016 Sept. 30, 2016 March 31, 2017 Building Leasing Vacancy Rate 2.0% 1.8% 3.3% 32

34 5-3 Capital Expenditure FY2016 Results: Billion Yen (Consolidated Cash Flow Statement Spending on Fixed Asset Acquisition ) [Major Projects] Acquisition of site for distribution center, acquisition of site for lease office building, construction of rental facilities, maintenance and renewal of logistic and real estate facilities, etc. FY2017 Forecast: 24.5 Billion Yen [Major Projects] Construction work of distribution center, maintenance and renewal of real estate facilities 33

35 5-4 Depreciation and Amortization FY2016 Results FY2017 Forecast Explanation Total billion Yen 12.9 billion Yen Logistics billion Yen 6.4 billion Yen Expect to be in line with the previous period. Real Estate billion Yen 6.3 billion Yen Expect to be in line with the previous period due to a gradual decrease by computing on a decliningbalance method, in spite of an increase by full-period operation of rental facilities. Corporate Expense billion Yen 0.2 billion Yen 34

36 5-5 New Facilities P.T. Mitsubishi Logistics Indonesia MM2100 Distribution Center Scheduled for completion in July 2017 Construction of a new distribution center for P.T. Mitsubishi Logistics Indonesia Location: Bekasi, West Java Total Floor Area: Approx. 18,000 m2 Rendering Seishin Distribution Center Scheduled for completion in March 2018 Location: Suma-ku, Kobe-shi, Hyogo Total Floor Area: Approx. 60,500m2 Rendering 35

37 For the Realization of a Rich and Sustainable Society Forecasts in this presentation are based on the information available to the Company s management as of the date of release, and certain assumptions judged rational. Accordingly, there might be cases in which actual results differ from forecasts in this presentation.