Logisnext Transform 2026
Mitsubishi Logisnext Medium-Term Plan (FY2024 to FY2026)

Broad-line providerof logistics equipment
headquarteredin Kyoto, Japan.

Logisnext solutions are supporting logisticaloperations throughout the world.
March 22, 2024
Mitsubishi Logisnext Co., Ltd.

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

Contents

1. Review of the Current Medium-Term Plan
2. Business Conditions
3. Vision 2035
4. Medium-Term Plan
“Logisnext Transform 2026”
4.1 Core Strategies
4.2 Financial and Non-Financial Targets© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

2

1. Review of the Current Medium-Term Plan
“Logisnext Solutions 2023” Medium-Term Management Plan (abbreviated “LS23”)
Build up BusinessResilience

Further Develop
Our Global andRegional Branding Strategies

Accelerate Growth
Strategy Net sales of 500 billion yen
 Operating profit* of 30 billion yen and operating profit margin* of 6%(*before amortization of goodwill, etc.)

 Capital adequacy ratio of 20% or more

Net Sales

Net sales
alreadyachieved(Units: B Yen)

690

◼
8.0%

615.4

(revised
estimate)

Net Sales

20%

465.4

55.0

(revised
520.9 estimate)

Operating
Profit Margin
2.8%

Capitaladequacyratio◼

The “LS23” target of 500 billion yen
was significantly exceeded in FY2022.
690 billion yen estimated for FY2023,
due to promotion of shipments in theAmericas

15.6%

(3Q
actual)

4.1%

◼

43.6

15.9%

(3Q actual)

24.9
◼

13.0

FY22

“LS23”© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

“LS23” target is expected to besignificantly exceeded due to increased
sales, appropriate pricing, andexchange rate effects.

Capital adequacy ratio

Operating Profit
FY21

Operating Profit and Operating Profit Margin

FY23
Outlook

20% target achieved due to higher
retained earnings from increased
profits and exchange rate effects.
31. Review of the Current Medium-Term Plan
Current “LS23” Medium-Term Plan Accomplishments and Challenges

Accomplishments◼ In terms of numerical targets, net sales were achieved ahead of schedule in
FY2022 and both operating profit and operating profit margin results are
expected to significantly exceed targets.
◼ In terms of core strategies, profitability was improved in North America due
to growth, reorganization, and other factors at EQD*1 direct-sales businesses,
implementation of growth strategies by the Solutions Business, andincreasing brand strength by establishing the long-term management visionand expanding/improving public relations functions.
◼ Major changes in business conditions caused by the pandemic wereappropriately addressed.
*1 EQD: Equipment Depot, Inc. (direct-sales company in the United States)◼

Challenges

Sales and profit targets were successfully achieved, but FCF improvements
and total asset reductions were inadequate and improving fundamental
financial health continues to be a challenge.

◼ Broken down by region, challenges include improving the operating profit
margins of businesses in Japan, mitigating the risk of being overly dependent
on business in North America, and improving the profitability in Europe,
China, and APAC businesses.
◼ Also, due to the steady market penetration by Chinese forklifts in newly
emerging market, Europe, and the United States, urgent countermeasuresneed to be implemented.

4

2. Business Conditions
Competitor

Customer and Society◼ Reduce CO2 emissions in response to global climatechanges.
◼ Shrinking labor forces in developed economies due todeclining birth rates and aging populations.
◼ Logistics safety and security needs are expanding due to
growing demands for working condition improvements.
◼ Increasing needs for connected logistics with greater
emphasis on inter-machine and human-machine cooperation.

◼ Release of new electric forklifts as an alternative toengine-powered models in response to environmental
regulations and the transition to a decarbonizing society.
◼ Technology development needs to be urgently accelerated
due to intensifying competition from many new startups
entering the logistics automation market in Japan and othercountries.
◼ Chinese forklifts are making steady market inroads innewly emerging economies, Europe, and the United States.

Needs Related in Logistics Equipment
Safety /Security

Automation /Autonomy

Decarbonization

Current Status of Mitsubishi Logisnext◼

Despite deploying sales networks globally for a full line of products, total assets are being expanded by M&A andthe Capital adequacy ratio is low.

◼

Revenue is skewed by North America market and brand presence in European and Chinese markets is low.

◼

The corporate culture that enables a diversity of human resources from the former companies with access to a
cumulative wealth of technology and expertise from those companies and the use of technologies available from
Mitsubishi Heavy Industries.

◼

The PMI process is close to completion but financial health needs to be improved by additional
reorganization/rationalization of operating sites, improvement of operating efficiencies, and so on.

53. Vision 2035
Values Based on the Corporate Mission and Purpose
Corporate Vision“Moving the world forward as the leading provider of innovative logistics andmaterial handling solutions”
Our Purpose
We positively impact the lives of people around theworld by demonstrating a pioneering spirit and using
emerging technologies to deliver safe, automated anddecarbonized logistics solutions.

Market Conditions Affecting Logistics(up to 2035)◼ Market conditions affecting logistics in 2035 will include amajor shift toward decarbonization and general advancements
in automation and autonomous operability, but manned
forklifts will continue to be widely used.

The Values We Support
Employee satisfaction: Each employee can think
independently, attempt new challenges and takethe risk of making mistakes without fear of
failure, while growing day to day.

Business Scale and Numerical Targets in
2035◼ To fulfill our purpose, we will achieve additional growthby 2035 based on the slogan “Transition from integration
to growth”.

◼ That will result in increasing needs for connected logistics withgreater importance placed on inter-machine and humanmachine cooperation and logistics safety/security.

2035 Business Scale

Net Sales: 1 trillion yen

2035 Solutions Business Net Sales

Net Sales: 200 billion yen
2035 Ratio of Electric Forklift Ratio

90% or higher

63. Vision 2035

Promoting Sustainability Management◼ Basic policies for SDGs were revised to reflect the principles underlying our
purpose. The following 4 basic policies have been specified.
(1) Conserve the global environment.
(2) Ensure customer safety and security and offer automation and autonomy (revised).
(3) Promote diversity and engagement (revised).

(4) Strengthen corporate governance.

Materiality

Basic
Policies(1) Conserve the global
environment.

(2) Ensure customer safety andsecurity and offer automation
and autonomy.

(3) Promote diversity andengagement.

(4) Strengthen corporate
governance.

Reduce environmental
impact(Reduce scopes 1 and
2)Offer safe and secure logistics
equipment to customers

Ensure diversity inhuman resources

Corporate governance

Offer environmentallyfriendly products(Reduce scope 3)

Offer automated andautonomous systems tocustomers

Train human resources

Compliance

Job satisfaction and laborproductivity

Risk management

Occupational safety andhealth© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

7

4. Medium-Term Plan
“Logisnext Transform 2026”

8

4.1 Core Strategies

94.1 Core Strategies

Expand scope of measures (value chain)Core Strategies in the Medium-Term Plan
Vision 2035
◼ Strengthen logistics solutions

Net sales:
1 T JPY◼ Strengthen service business◼ Strengthen direct sales(Japan, Americas, and Europe)◼ Strengthen leasing/rental business

Additional growth

FY26 Net sales:
700 B JPY
Values toemphasize

Operating profit margin:
8%✓ Improve fixed and variable cost
✓ Global management capabilities✓ Emphasize job satisfaction

Industrial
vehiclesMedium-term plan key concepts

◼
◼
◼
◼

Provide support for customer safety/security
Develop automated/autonomous products (using ΣSynX*1)
Expand/improve the line of electric forklifts(address decarbonization needs)
Deploy business in newly industrializing economies*1 ΣSynX: Mitsubishi Heavy Industries “Sigma Synx” concept forautonomy and intelligence-based logistics solutions

Market Share and Product Competitiveness Expansion“LS23”:up to
FY23

Medium-term plan up to FY26

Vision 2035

10

4.1 Core Strategies
Mitsubishi Logisnext Medium-Term Plan (FY2024 to FY2026)~We Transform Customers’ Logistics, Society, and Ourselves~“Logisnext Transform 2026” (abbreviated “LT26”)
Three Core Strategies

Further Growth in Industrial Vehicles◼ Release new products for decarbonizing society.
◼ Expand/improve line of high value-added products that
help ensure safety and security.
◼ Accelerate deployment of business in new markets.

Breakthrough in Logistics Solutions Business◼ Release new AGV/AGF products based on
automation/autonomy.
◼ Develop system that supports human-machine
cooperation.
◼ Strengthen our ability to make connections and solve
problems based on maximum use of customer contacts.
Continuous Improvement for Corporate Resilience and Reform ofBusiness Management Structure◼ Further improve fixed and variable cost.
◼ Build truly global management capabilities.
◼ Manage businesses with emphasis on importance of job
satisfaction.

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

11

4.1 Core Strategies

Regional Core Strategies◼ Release products based on region-specific characteristics/needs that help realize a decarbonizing
society. Expand the logistics solutions business in Japan, the United States, and Europe.
◼ Strengthen management practices and improve the efficiency of service operations by using directsales organizations in Japan, the United States, and Europe to fully utilize customer contacts.
◼ Strengthen management practices at APAC and in China while rebuilding product and sales
strategies at the same time.

RegionSpecific Issues

Japan

Improve profitability

AmericasAccelerate shift toelectric forklifts

EuropeAPAC・ China

Promote advanced
technologies

Improvecompetitiveness anddeploy in newmarkets

Regional Strategies⚫ Expand service revenue by using digital tools to improve work
efficiency.
⚫ Promote automation and saving labor by offering systems that include
peripheral equipment.
⚫ Release new electric forklifts and increase the production capacity ofelectric forklifts.

⚫ Expand AGF/AGV sales and strengthen system engineering capabilities⚫ Develop and release an integrated control system that supports humanmachine cooperation.
⚫ Globally deploy sales of electric forklifts and AGF models developed inEurope.
⚫ Develop new markets by releasing cost-competitive products.
⚫ Significantly improve the efficiency of production and sales functions.
124.1 Core Strategies —a) Further Growth in Industrial Vehicles

Develop and Expand Sales of New electric forklifts
Europe⚫ Develop new medium/large electric forklifts in
response to expanding needs of customers withhigh environmental awareness.
⚫ Promote sales by directly affiliated sales
subsidiaries in Europe by training and improving
sales personnel for electric forklifts.

Americas⚫ Jointly develop U.S.-specific electric forklifts incollaboration with affiliates in Europe/Americas.
⚫ Expand sales of existing models developed byaffiliates in Europe that can satisfy outdoor demand.

Japan⚫ Expand/improve the line of LiB-equippedmodels and establish techniques for expanding
LiB sales.
⚫ Make design changes to existing electric
forklifts to strengthen the product line andreduce costs.

Global⚫ Develop next-generation LiB-equipped models with performance equivalent toengine-powered models.
⚫ Develop low-cost LiB-equipped models for which demand is predicted to expandin newly emerging economies and even developed economies.
© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

13

4.1 Core Strategies —a) Further Growth in Industrial Vehicles
Offer high value-added products with safety and security functionality.
◼ Expand/improve functionality and services for supporting customer safety and security
in all sorts of logistics scenarios.
◼ Actively cooperate with business partners to create
added value in combination with key Mitsubishi Logisnext technologies.
Respondindividually byprioritizing speed(1) Work with customers as a unified team to propose solutions
that help ensure safety and security at each workplace.
(2) Optimize production modules and retrofit modules.

Include optionalsettings in
production models(3) Establish competitive advantages associated with
automation technologies and service tools.

Differentiate withtechnology

AI Camera-Based Human-Sensing System

Remote Vehicle Diagnostic Tool

© MITSUBISHI LOGISNEXT CO., LTD. All rightsFunctionality
reserved.
for Supporting Driving and Loading Operations

144.1 Core Strategies —b) Breakthrough in Logistics Solutions Business
Future Warehouse Logistics◼

Despite major advancements in the use of automation and IoT technologies expected in the future, many logistic
operations will continue to involve both humans and machines.

◼

That will result in increasing needs for logistics with human-machine or machine-machine connections and agreater importance placed on inter-machine and human-machine cooperation and logistics safety/security.
Loading

Inspection/
MovingStorage/Inventory

Sorting/
Packing

Picking

Inspection/
MovingShipping

DrivingrecorderMaintenanceoptimization

ASRS
Multi-angle
barcode reading

External
AI inspection

AGV

Automatic
packing
machineAGV

AGV

Destinationsorting machine

AGV

AGV

Automatic
barcode assignment

AGV

AGV

Remotecontrol platform

Logistics Solutions intended by Mitsubishi Logisnext◼ Fully utilize customer contacts, considered a strength of Mitsubishi Logisnext, to develop logistics
solutions in close partnership with customers that connect mainly human-powered forklifts and AGF/AGV
units with automation and peripheral equipment based on familiarity with customer processes, scale ofoperations, and needs.
154.1 Core Strategies —b) Breakthrough in Logistics Solutions Business◼ The automation market size is predicted to approximately double from 2020 to 2026 andis expected to expand further after that.
◼ We intend to increase Logisnext presence in the expanding automation market.
Global Automation Market (B USD)

Our hypothesis

Sources: “Markets and Markets” and internal survey

Labor-Saving and Automated Products /Human-Machine Cooperation Support System◼ Release new AGV/AGF-based labor-saving/automated products⚫ Use ΣSynX to develop next-generation AGF platform at Mitsubishi Logisnext.
Achieve both timely development and flexible solutions for customer needs.

◼ Develop and expand sales of an integrated control system forsupporting human-machine cooperation (mixed-fleet solution).
⚫ Also incorporate non-Mitsubishi Logisnext vehicles and equipment that customers alreadyown into the system by integrating the management of manned forklift and unmanned
equipment operations and using software for ensuring customer resources are utilized efficiently
to issue work instructions optimized respectively for humans and machines. That is also expected
to increase demand for replacement with Mitsubishi Logisnext products.
16

4.1 Core Strategies —b) Breakthrough in Logistics Solutions Business
Utilize Customer Contacts from
Strengthening Direct-Sales Capabilities

Establish Organization for Promoting
Logistics Solutions Business◼ With the sales network of mostly direct-salesorganizations defined as “customer contacts”, which isconsidered a strength of Mitsubishi Logisnext, strengthen
our ability to connect logistics process steps and solve
customer logistical challenges by fully utilizing thepresence of customers.

◼ On April 1, 2024, a new Logisnext Solutions Department(LogSol*4 Dept.) was established as an organization for
integrating logistical solution businesses globally.

◼ To strengthen those abilities, ensure adequate
development and engineering-related human resources
and service personnel, cooperate with automationequipment manufacturers and system integrators to
expand our engineering capabilities, and offer systems
that include peripheral equipment.

◼ The department will be headed by Corporate Officer Tapio
Rummukainen*5, who has extensive logistics experience
working in the Logistical Solutions Business within the
Mitsubishi Logisnext Group for many years and is very
familiar with the businesses in Europe and the UnitedStates, where the next battlegrounds are expected to be.
He will be in charge of proposing and implementing
strategies for the business, managing globally integrated
net sales and profits/losses, and ensuring resources are
utilized efficiently.
*4: Pronounced “Log-Sol”*5: Executive Vice-President of coordinating operations in Europe (Mitsubishi
Logisnext Europe B.V.) and the first non-Japanese Division General Manager
at the corporate organization in Japan.

LogSol Dept.
Direct-sales
companies

LN9*1

EQD*2

LBU*3

CustomerContacts*1 LN9: Direct-sales companies in Japan (9 companies)*2 EQD: Equipment Dept., Inc. (direct-sales company in the United States)*3 LBU: Logisnext Business Unit (direct-sales company in Europe)© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

Engineering

Sales inJapan
Overseas
Locations17

4.1 Core Strategiesc) Continuous Improvement for Corporate Resilience and Reform of Business
Management Structure

Profitability Improvements◼ Implement job satisfaction reforms◼ Build truly global management capabilities⚫ Implement additional advancements to previous working
practice reforms already executed and instilled.
Implement job satisfaction reforms based on 3 key themes.

3 Themes and Key Measures

Empowering
womenSports teamsponsorships

Bus wrap
advertisingInteract withpeople outside
the company

Transition to
open offices

Health Management
Declaration

The Values We Support
Employee satisfaction: Each employee can think
independently, attempt new challenges and takethe risk of making mistakes without fear of failure,
while growing day to day.
© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

Business Structural Reforms⚫ To build global management systems appropriate for acompany with overseas operations currently accounting forover 70% of consolidated sales, expand/improve theappointment of non-Japanese corporate executive officers andsubsidiary presidents.
Kenneth J. Barina

Tapio
Rummukainen

Senior Vice President(as of 4/1)
President of MLAG and MLA

Executive Officer
LogSol Dept. Manager(as of 4/1)
and MLE Executive VicePresident⚫ Rationalize production locations globally, such as by closing
functions at the Sweden plant and investing to increase
production of electric forklifts at North America plant.

◼ Increase supply chain resilience⚫ Establish local procurement practices at production locations
throughout the world and procure common parts frommultiple sources globally.
⚫ To avoid concentrating critical parts in a specific country,
accelerate development of new suppliers in emerging
market.

◼ Execute ICT/DX strategies⚫ Offer new services based on utilizing LVS*1 data.
(such as for detecting dangerous operations, troubleshooting,and mapping vehicle location)⚫ Improve business continuity by integrating the different
core operation systems used at various locations around theworld and by improving IT-BCP and IT security.
*1 LVS: Forklift operation management system that resolves safety, productivity,and cost-reduction problems at logistic workplaces by visualizing data.

18

4.2 Financial and Non-Financial
Targets

19

4.2 Financial and Non-Financial Targetsa) Financial Targets◼ Achieve Vision 2035 by aiming to expand the business more quickly and achieve 700 billion
yen in net sales, 56 billion yen in operating profit, and an 8.0% operating profit marginvalue by FY26.
◼ Diligently improve financial health and aim to achieve a capital adequacy ratio of 30% or
higher.
◼ Specify new ROE targets for establishing management practices based on an awareness of thecost of capital. Aim to achieve an ROE value of 20% or higher that exceeds shareholder costof capital (10%).

Est. FY23 Results(Units: B Yen)

Est. FY23 Results(values converted with
“LT26” plan rates)

FY26 Plan

690

640

700

55

48

56

(before amortization of goodwill)

8.0%

7.5%

8.0%

Capital adequacy ratio

20%–

30% or higher

ROE

30%

–

20% or higher

Net Sales
Operating profit(before amortization of goodwill)

Operating Profit Margin

FY23/3Q actual rate: USD = 143.29 yen EUR = 155.29 yen“LT26” plan rates:
USD = 130.00 yen EUR = 140.00 yen

20

4.2 Financial and Non-Financial Targets
Financial
Policy◼ A steady accumulation of profits and working capital improvements provide
adequate free cash flow that enables a well-balanced allocation of free cash
flow for strategic investments, financial improvements, and shareholder
returns.

Shareholder
ReturnMeasuresb) Financial Policy and Shareholder Return Measures◼ Given the basic policy of issuing consistent and sustained dividends that will
not vary in response to performance fluctuations caused by sudden changes in
economic conditions, Mitsubishi Logisnext will continue to issue consistentdividends based on a target 2% dividend on equity (DOE) until FY2025, whenamortization of goodwill associated with the acquisition of former UniCarriers
is finished.

Dividend per Share and Annual DOE Trend(Units: Yen)

2.2%

2.3%

1.9%
1.6%

1.4%

1.4%

8

8

9

FY20

FY21

FY22

1.2%
11

FY17

13

FY18

20

13

FY19

FY26
and
beyond

FY23（見通し）(est.)

Dividend
配当金

DOE© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

While taking into
consideration thebalance between
growth investments
and financial healthimprovements and atarget DOE of 4%, theaim is to provide
consistent andsustained increases inshareholder returns.
21

4.2 Financial and Non-Financial Targets

Decarbonizationc) Non-Financial Targets
Scopes 1 and 2

Note: Excludes use of new alternative fuels orengine fuel efficiency improvements.

Criterion

2026

2035/40

Emissions Reduction(vs 2017)-33％

2040: C and N
Note: -75%

Scope 3 - (11)Automation andAutonomy

Emissions Reduction(vs 2017)-29％(Electric vehicle ratioof 90% or more)

Net Sales of
Solutions Business

60 B yen

200 B yen

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

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