Mitsubishi Logisnext Co., Ltd.
FY2024 - FY2026 Medium-Term Management Plan Briefing
March 22, 2024

Event Summary[Company Name]

Mitsubishi Logisnext Co., Ltd.

[Company ID]

7105-QCODE[Event Language]

JPN[Event Type]

Medium-term Management Plan Announcement[Event Name]FY2024 - FY2026 Medium-Term Management Plan Briefing[Date]March 22, 2024

[Time]

16:00 – 17:02(Total: 62 minutes, Presentation: 27 minutes, Q&A: 35 minutes)[Venue]Webcast[Number of Speakers]

3
Yuichi Mano
Takatoshi Uno

Hiroyuki Sugiura

Representative Director and President
Director, Executive Officer, CFO, Division
Head, General Manager, Corporate Strategy
and Planning OfficeMember of the Executive Team, Head ofEngineering Headquarters

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Presentation
Moderator: Thank you for your patience. We will now begin the briefing on Mitsubishi Logisnext Co., Ltd.’s
new medium-term management plan, “Logisnext Transform 2026.” Thank you very much for taking time outof your busy schedule to attend the briefing on our new medium-term management plan.
Today, we would like to review the current medium-term management plan, explain the businessenvironment surrounding our company, and present our long-term management vision 2035 and the new
medium-term management plan. I would now like to introduce today’s attendees. Representative Director
and President, Yuichi Mano.
Mano: I’m Mano. Thank you.
Moderator: Director, CFO, Division Head, General Manager, Corporate Strategy and Planning Office, Takatoshi
Uno.
Uno: I’m Uno. Thank you.
Moderator: Head of Engineering Headquarters, Hiroyuki Sugiura.
Sugiura: I’m Sugiura. Thank you.
Moderator: That is all. As for today’s proceedings, Mr. Mano, Representative Director and President, and Mr.
Uno, Division Head, General Manager, Corporate Strategy and Planning Office, will explain about the new
medium-term management plan, “Logisnext Transform 2026.”
We will now move on to the explanation of the new medium-term management plan. President Mano, pleasebegin.
Mano: I’m Mano, the president. Thank you very much for joining us today at this very busy time for thepresentation of our medium-term management plan.
Today, I will present our new medium-term management plan, “Logisnext Transform 2026,” which covers thethree-year period from FY2024 to FY2026. Thank you very much for your cooperation.

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The content of today’s event is as shown.
I would like to begin in chapter one with a review of the current medium-term management plan.

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See page three.
The current medium-term management plan, LS23, which covers the period from FY2021 to FY2023, has threebasic strategies, build up business resilience, accelerate growth strategy, and further develop our brand andregional branding strategies. In the final year of the plan, we targeted net sales of JPY500 billion, operating
profit before amortization of goodwill of JPY30 billion, operating margin of 6%, and capital adequacy ratio of
20% or more.
As you are aware, we have already achieved our sales target of JPY500 billion in FY2022 ahead of schedule,
and our forecast for FY2023 is JPY690 billion, a figure far exceeding our target.
Operating profit before amortization of goodwill is expected to be JPY55 billion, well above the target, due tothe contribution of increased sales, price optimization, and the impact of foreign exchange rates, andoperating profit margin is expected to be 8%.
The capital adequacy ratio is also expected to achieve the target of 20%, and all numerical targets are expected
to be exceeded.

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On page four, I will explain the achievements and challenges of LS23.
First of all, as achievements, amid the major changes in the business environment due to COVID-19,
profitability improved, including efforts to optimize prices in response to cost increases, and all numericaltargets are now expected to be achieved. In addition, we believe that we were able to grow our direct sales
business in North America, strengthen our corporate resilience by reorganizing our bases, promote growthstrategies in the solutions business, and enhance our brand power by establishing a long-term management
vision and expanding our public relations function.
On the other hand, as challenges, cash flow and working capital have not improved sufficiently, andimprovement of the financial structure remains a challenge. By region, the challenges include improving the
profitability of the domestic business, eliminating the risk of overemphasis on the North American business,and strengthening the profitability of the European, Chinese, and APAC businesses.
In addition, Chinese products are perceived as a major threat here. After the pandemic, China’s economy has
modulated and has been largely steered toward decarbonization. The growth of Chinese-made forklift trucks
has been remarkable worldwide against the backdrop of the dominance of Chinese-made lithium-ion
batteries in the market.

5In chapter two, I will explain the business environment, which is the premise for the formulation of the new
medium-term management plan.
Based on the recent environment of our customers and society, the competitive environment, and our own
situation, we recognize that there are three needs surrounding logistics equipment that we should address,
safety and security, automation and autonomy, and decarbonization, which are the key concepts of the new
medium-term management plan we have formulated.

6See page six. In chapter three, I will explain vision 2035, which is the basis for our medium-term management
plan.
Based on our corporate philosophy of “Moving the world forward as the leading provider of innovative
logistics and material handling solutions,” we have established our purpose and the Values we support.
We then presented a big picture of what the Company should look like in 2035 and examined the next
medium-term management plan backcasting from there. This information is also included in the integrated
report published last year, but the key point is the purpose shown in the upper left corner of the slide: “We
positively impact the lives of people around the world by demonstrating a pioneering spirit and using
emerging technologies to deliver safe, automated and decarbonized logistics solutions”. Our goal is to achieve
further growth under the slogan “Transition from integration to growth” by 2035.
In addition to sales of JPY1 trillion by 2035, we have added new numerical targets of JPY200 billion in sales
from the solutions business and electric forklift ratio of 90% or more, and we aim to achieve these targets.

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Page seven.
As part of the promotion of sustainability management in our long-term management vision, we havereflected the purpose’s approach on the SDGs’ basic policy and revised the second item, promoting customer
safety and security, as well as automation and autonomy, and the third item, promoting diversity andengagement.

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In chapter four, I will explain our new medium-term management plan, “Logisnext Transform 2026,” which
covers the period from FY2024 to FY2026.
First, the basic strategy. On page 10, the basic strategies of the medium-term management plan are
represented in a diagram.
In order to achieve a business scale of JPY1 trillion in 2035, we will work to expand the areas as shown on thevertical axis and increase our market share as shown on the horizontal axis, and we will achieve growth bysupporting these efforts with the values we place importance on. As a first step toward achieving sales of JPY1
trillion in 2035, we aim to achieve sales of JPY700 billion and an operating margin of 8% in FY2026.
To achieve this, we will work on basic strategic priority policies, such as strengthening logistics solutions,
supporting customers’ safety and security, and improving fixed and variable costs.

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On page 11, I will explain the three basic strategies of the new medium-term management plan.
The first is further growth in industrial vehicles. Specifically, we will work to introduce new products for adecarbonized society, expand high value-added products that support safety and security, and accelerate
development in new markets.
The second is breakthrough in logistics solutions business. Specifically, we will introduce automated andautonomous products centered on AGV/AGF, develop systems that support “human-machine cooperation,”and strengthen our ability to connect and solve problems by making the most of our customer contacts.
The Third, continuous improvement for corporate resilience and reform of business management structure.
. Specifically, we will work to further improve fixed and variable costs, establish a truly global management
structure, and promote management that emphasizes work satisfaction.
As shown in the upper part of the slide, we have named our next medium-term management plan, “Logisnext
Transform 2026,” or “LT26”, to mean that we transform customers’ logistics, society, and ourselves throughthese efforts.

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From page 12, we will explain the key measures and major actions in each of the basic strategies.
First, we will discuss regional strategies. On page 12, we have presented the major issues to be addressed ineach region.
We recognize that our main challenges are to improve profitability in Japan, accelerate the shift to electric
forklifts in the Americas, address advanced technologies in Europe, and improve competitiveness and expand
into new markets in APAC and China.
As shown in the upper part of the slide, the key points of the basic strategy by region are to introduce productsthat meet regional characteristics and needs for a decarbonized society, in light of the current shift to electric
forklifts, and to expand the logistics solutions business in Japan, the US, and Europe by maximizing customer
contacts through a direct sales system. In China and APAC, we believe it is necessary not only to strengthen
our management structure but also to restructure our product and sales strategies.

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On page 13, I will explain our priority measure in the industrial vehicles, the first pillar of our basic strategy,
which is to develop and expand sales of products for a decarbonized society, namely new electric forklifts.
With the further shift toward electric forklifts , we need to meet diverse customer needs, from low-priced tohigh-performance vehicles.
We will concentrate our development and sales resources on electric forklifts and promote rapid response
through a development method and development system that transcend regions and models. In addition to
the high-performance products already on the market, we will also enter the low-end market and take on thechallenge of developing next-generation lithium-ion battery-equipped small- and medium-sized electric
forklifts, with performance comparable to that of engine-powered vehicles.

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On page 14, I will explain the second priority measure in the industrial vehicles , which is to provide high valueadded products with safety and security functions.
The needs for safety and security in the logistics scene are rapidly expanding due to the shortage of skilledworkers and the global demand for improved working environments. We are expanding our functions andservices to support the safety and security of our customers in all aspects of the logistics field. We will also
actively collaborate with business partners to create added value by combining our vehicle element
technologies.
Please take a look at the video of OmniEye, an AI-human detection system, as an example of our recent
introduction.
[Video Begins]
Company Representative: Collision prevention support system with OmniEye, plus regenerative braking
control. OmniEye automatically detects and monitors two types of human detection areas, warning areas inyellow and danger areas in red.
In the yellow zone warning area, if a person is detected, regenerative braking is activated and the vehicle
automatically slows down to a preset speed. In addition, when the vehicle enters the red zone danger area,regenerative braking is strongly activated to stop the vehicle quickly and automatically, thereby restraining itfrom starting.
[Video Ends]

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Mano: Starting on page 15, I will explain the second pillar of our basic strategy, breakthrough in logistics
solutions business.
The middle of the slide shows an image of future warehouse logistics. The upper half of the image shows amanned cargo handling site, and the lower half shows an unmanned cargo handling site. Assuming
coexistence and mixing of these sites, we believe that needs to connect people and equipment, andequipment and equipment, will emerge under such a cargo handling environment, and that human-machinecoordination, equipment coordination, and safety and security will become more important.
We will expand our logistics solutions business by matching our technology with customer issues, viewing ourcustomer contact points as our group’s strengths. Recently, we have been working with Mitsubishi Heavy
Industries on picking solutions automation in frozen warehouses and loading and unloading trucks jointly withour customers.

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On page 16, we will explain our priority measure to achieve breakthrough in the logistics solutions business.
First, the size of the global automation market is expected to continue to grow significantly, as shown in thegraph in the middle. In this expanding automation market, we will introduce manpower-saving andautomated products with AGVs and AGFs at their core and will promote unique initiatives, such as the use of
MHI’s digital innovation, “ΣSynX” (Sigma Synx) technology, and the development of a new manned forkliftbased AGF.
We will also promote the development and sales expansion of mixed fleet solution, the integrated control
system that support human-machine coordination, and increase the market recognition of Logisnext Solutions.
Please watch a video of what the mixed fleet solution looks like.
[Video Plays]

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Mano: Next, on page 17, I will explain the third priority measure for strengthening the logistics solutions
business, namely strengthening the ability to connect and solve problems by making the most of customer
contacts.
By customer contacts, we mean our sales network, centered on our direct sales system, which is one of ourstrengths. We will make the most of our good relationships with many customers from the past to further
strengthen our ability to connect between logistics processes and solve customers’ logistics issues.
On April 1, we will establish the Logisnext Solutions Office or LogSol Office, an organization to promote these
initiatives in a globally coordinated manner, within our headquarters. This organization will be our first head
office organization with a foreign head and will develop our business globally.
Please take a look at the video of our Logisnext Solutions Fair held last month as an example of our logistics
solution initiatives.
[Video Begins]
Company Representative: Now here in the demonstration area, we are seeing outgoing goods by AGF,
coordination between AGF and AGV, and storing pallets of finished picked goods by AGF. AGF-X is mainly
controlled autonomously by ΣSynX and also controlled remotely in case of trouble. The required tool width isjust 1.8 meters, allowing for increased storage efficiency.
[Video Ends]

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Mano: On page 18, I will explain the third pillar of our basic strategy, which is continuous improvement forcorporate resilience and reform of business management structure.
With regard to improving the corporate structure, we will further promote the work satisfaction reforms
already underway with three pillars, increased engagement, ensuring diversity, and creating a comfortable
work environment.
With regard to reforming our business structure, we aim to establish a truly global management structure inline with our business structure, in which overseas sales account for more than 70% of consolidated net sales.
In addition, we will promote reform of the foundation supporting our business, such as rationalization andupgrading of global production bases, supply chain reinforcement, and ICT strategy, including the closure of
our Swedish plants, which we announced last year, and investment in increased electric forklift production at
our North American plant.
Finally, CFO Uno will explain the financial and non-financial targets.

17Uno: This is Uno, the CFO.
On page 20, I will explain the financial targets of the medium-term management plan.
In the final year of the plan, FY2026, the Company aims for net sales of JPY700 billion, operating profit of
JPY56 billion, operating margin of 8%, and capital adequacy ratio of 30% or more. Furthermore, in order torealize management, conscious of cost of capital, we have added ROE to our target and have set a target of
ROE of 20% or more, which is higher than the 10% cost of shareholders’ equity.
In the table, the forecast figures for FY2023 are shown for your reference, adjusted to the planned rates in
the medium-term management plan, “LT26”, of JPY130 to the US dollar and JPY140 to the euro. 70% of ourconsolidated net sales are generated from overseas operations. Using this value, which eliminates the current
impact of the yen’s depreciation, as a launching pad, the financial target is to achieve approximately 10%
growth in sales for FY2026.
We aim to achieve all items by promoting the basic strategies described in the previous chapters.

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On page 21, I will explain our financial policy and shareholder return policy.
Our financial policy is to firstly achieve sufficient free cash flow by steadily accumulating profits and improving
working capital, and then to allocate this free cash flow in a balanced manner to strategic investments,
improvement of our financial position and shareholder returns, while responding flexibly and appropriately
to changes in the business environment.
With regard to shareholder return, our basic policy is to provide stable and continuous dividends that are notaffected by fluctuations in business performance due to sudden changes in the economic environment. We
plan to continue stable dividend payments with a target DOE of 2% until FY2025, when the amortization of
goodwill associated with the acquisition of the former UniCarriers will be completed.
From FY2026 onward, we will aim to increase stable and continuous shareholder returns with a target DOE of
4%, taking into consideration the balance between investment in growth and improvement of our financial
position.

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Finally, on page 22, we present non-financial targets.
In each of the two areas of decarbonization and automation and autonomy we have set targets as describedin the table. All of these indicators are closely related to the implementation and realization of the basic
strategies of the medium-term management plan, LT26, and we will vigorously promote the initiatives wehave explained today to achieve these goals.
This concludes the presentation of the medium-term management plan. Thank you for your attention.
Moderator: Thank you very much. This concludes the explanation of the material.

20Question & Answer

Moderator [M]: We will now move on to the Q&A session.
[Questioner1]
Q1: Two questions, please. First, in the basic strategy section, you talked about logistics solutions or laborsaving and automation. I understand that other companies in the same industry are also focusing on this area.
If your company can improve its position in the industry, could you tell us again what competitive advantages
you have? This is the first question.
Mano [A]: I understand that everyone is working on automation and labor-saving, and regarding ourpositioning and technological strengths, Mr. Sugiura, Head of Engineering Headquarters, will explain in moredetail later.
Of course, we have strengths in our technical capabilities, but I also understand that one of our strengths is
the solid relationships we have with our customers, besides technical strengths.
Therefore, it is not enough just to have the product, but since we have established a solid relationship withour customers, we are in a position to create various solutions and proposals together with our customers. I
think this is more of a strength on the sales and marketing side.
As for the technical strengths, a little more detail will be explained by Mr. Sugiura.
Sugiura [A]: This is Sugiura of Engineering Headquarters.
As related to what Mr. Mano just explained, the strength of our technology lies in the fact that we are able torealize the ideas that our customers want to see realized by successfully connecting and integrating thetechnologies we have, the technologies around us, and the technologies that are already available in the world.
I believe that our strength lies in the combination of these elemental technologies. We would like to further
promote these creations together with our customers, and we would like to make this more visible andstronger in the future. My understanding is that this is our strength.
Q1: Thank you very much. Second, you have shown the financial targets on page 20 of the document. WhenI look at the sales, excluding foreign exchange effects, the annual growth rate is about 3%, so I don’t think you
are expecting such a large growth. I would like to ask you about the growth rate of the market, your company’smarket share increase, and other factors separately.
In addition, while sales will increase by JPY60 billion in real terms, operating profit will increase about JPY8
billion, so it appears that the growth in profit is small compared to sales growth. I wonder if it could work alittle better in this area, because if the solutions increase as mentioned earlier, it would rather add value.
Could you tell us more about this? This is the last question.
Uno [A]: I would like to answer. First, as for sales, we are showing you today as a comparison from thecorrected value or the converted value that is replaced by the planned rate of the new medium-term plan in
the document on page 20. As those of you who have been following us since last fiscal year understand, thisfiscal year was a year in which we lowered the number of months of backlog by producing and shipping aconsiderable amount of backlog, which had built up in the previous fiscal year, mainly in North America.

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Taking these factors into consideration, I believe that the JPY700 billion for the current fiscal year throughFY2026 actually requires more growth than indicated today. The market on which this is based has been
experiencing a backlash from the COVID-19 pandemic in FY2021 and FY2022, and amidst supply chain
disruptions, we have received a significant number of orders from around the world. The market has also
expanded greatly over the past two years.
We expect the global forklift truck market to dip temporarily in FY2023, when the production side of themarket has been rectified worldwide, including other manufacturers and our company, and in FY2024, which
will be an extension of the rectification process, then we are assuming a gradual recovery for 2025 to 2026,
so unfortunately, the increase in the numbers will be as shown in the figures presented today.
However, even in this environment, we have set a non-financial target of JPY60 billion in 2026 for the solutions
business, which we have designated as a priority area. We believe that growth in this solutions business will
be one of the core growth drivers for the next three years.
Also, operating profit is expected to increase by JPY8 billion, from JPY48 billion to JPY56 billion. In percentage
terms, this means an increase in operating margin of 0.5%, from 7.5% to 8%. In that sense, our company’sbusiness is centered around production, and as I mentioned at the beginning, if we cannot secure the numberof units, our ability to earn profits will be reduced in recovering fixed costs after all.
However, we are trying to cover this by various efforts and growth, and we are trying to improve the operating
margin from 7.5% to 8%. That is the content of the plan. That is all.
Q1: Thank you for the detailed explanation. That’s all from me.
[Questioner2]
Q2: I have a question mainly on page six, in the long-term management vision, where you have newly added
the solution business and electric forklift ratio to the goals. First of all, you have set a target for the electric
forklift ratio to be 90% or more by 2035, but what is the current ratio and what is the target for the electric
forklift ratio for FY2026, three years after the new medium-term plan?
Also, could you tell us again about the purpose or meaning of setting the goal of sales in the solutions
business?
Mano [A]: Thank you for your question. Regarding the first question, the ratio of electric forklifts, for example,
we have the results for FY2022, and the ratio for FY2022 is about 54%.
The current medium-term plan aims to raise this to 65% by 2026. We are aiming to raise this rate faster thanthe market, which is a bit ambitious, but we are aiming for 90% in 2035.
Second, as for the meaning of daring to set a goal for the solutions business, in fact, the current medium-termplan also calls for the expansion of the solutions business as a means of expanding growth areas. However, I
have felt over the past three years that unless we present concrete targets to the world, it is difficult to achieve
growth simply by shouting about it.
This time, JPY60 billion is about double the current amount. We have set a numerical target of JPY60 billion
this time and JPY200 billion by 2035, and we have dared to set a numerical target in order to make our strategy
more concrete. I hope this answers your question.
Q2: Thank you for your explanation.
Mano [M]: Thank you.

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[Questioner3]
Q3: On page five, status of the company, there is a description of total asset expansion through M&A. I assume
that you will continue to utilize M&A for growth. If you have any thoughts on what kind of targets you areconsidering, the scale, timing, et cetera, please let us know.
Mano [A]: This is Mano. Thank you for your question. In terms of future M&A, in 2019, we made a major M&A
deal with EQD in the US, and since then we have continued to make smaller M&A deals to expand EQD’s
territory, and so on.
However, I believe that we have made considerable progress in the direct sales of major markets in the US. In
that sense, a major M&A to expand direct sales is not currently in the plan. If there is any M&A or investmentin the future, it would probably be in the field of logistics solutions, but we do not have any specific targets atpresent or anything like that.
Also, as a target, we may be asked to invest in various venture companies in the process of starting
relationships with them, so we would like to consider such opportunities. At present, we do not have any
concrete plans for large-scale activities in this area or in this target. That is all.
Q3: Thank you very much. Also, I understand that the target ratio of electric forklifts is over 90%. Basically,
will the engines continue to be used, but will the electric forklifts have a higher growth rate?
Mano [A]: This is Mano. It is true that the market for electric forklifts is growing at a high rate, but we also
believe that engine vehicles will be replaced by electric forklifts as part of the decarbonization initiatives. We
will continue technological development in this area, and we will try electrification to meet the needs of themarket for electric forklifts, with performance comparable to that of engine-powered vehicles, as well as for
medium and large vehicles over 6 tons, which have been covered by engine-powered vehicles in the past. We
are hoping to raise the percentage to 90% through such efforts, so we are thinking that quite a few
conventional engine vehicle positions will be replaced with electric forklifts.
Q3: Understood. Thank you very much.
Mano [M]: Thank you.
[Questioner4]
Q4: As for the establishment of the LogSol Office, which was mentioned in today’s materials, first of all, could
you tell us about the purpose of establishing the LogSol Office, the purpose of appointing a foreigner to the
top position, and some background on the person who was appointed? That is the first question.
Mano [A]: This is Mano. Regarding the aim of the LogSol Office, the solutions business, including automation,
was basically region-specific, Europe for Europe, Japan for Japan, and the US for the US.
We have not had a global strategy where to allocate resources, or in which business to expand, but have been
responding to the customers in each region. That was a good thing in that it allowed us to stay in close contact
with our customers, but if we wanted to expand globally in the future, we felt that we really needed a divisionthat could handle resource allocation and horizontal pass-through of technology and know-how. That is why
we have decided to establish the LogSol Office this time.
However, at the starting stage, this is a rather virtual organization, so with a small number of elite people, weare trying to formulate strategies and optimize the allocation of resources with a bird’s-eye view of the global
situation. It will play the role of a coordinator to facilitate the horizontal pass-through of technology. This kind23

of aim may become a business headquarters if it grows in the future, and this is the reason why we launched
it in the first place.
The person who will be the head of the office, Tapio Rummukainen, is in Finland and he is Finnish. He wasoriginally the head of a company called Rocla, which was acquired by MHI in 2008, I think. He is familiar withthe latest trends in automation technology because he has been the head of Rocla, a company that leads theautomation technology, especially in Europe.
Since he has been with us for more than 10 years, we have built a trusting relationship with him, and he has
a good relationship with Japan, so we decided to have him as the head of this project. It is a bit of a new
attempt. That is all.
Q4: Thank you. I would like to continue with just one more question. This may sound a bit abstract, but what
do you think are the key technologies and key logistics scenes for the automation and autonomy of logistics,
as mentioned today? Even if it is just an image or frequency, I would appreciate it.
Sugiura [A]: Let me answer. See page 15. This is the future diagram of warehouse logistics. The key point isthat automation will, of course, continue to progress in the future, but not all of it at once. For the time being,
the warehouse will be a space where people and machines, and not all the machines, are working together,and where a variety of devices and other things exist individually.
We will let them communicate bidirectionally, coordinate them, and make them work efficiently. Each ofthese devices, of course, has parts that operate autonomously, but the point is to allow them to operateautonomously while also allowing them to communicate and coordinate with each other.
Just the next page, on page 16, we have an introduction in the form of mixed fleet solution. We are currently
developing middleware to support this human-machine coordination. This does not mean that once
developed, it is over. We think we need to develop this in a step-by-step process and grow this by taking steps
to bring it out into the world, have it used, and then evolve it further.
Q4: In relation to that, I’m sorry to be uninformed, but do you have any idea where the mixed fleet solutionfunction would fit into a so-called warehouse system, or will it be something that will come under a different
category?
Sugiura [A]: Basically, you can think of it as the system that controls the entire logistics in this warehouse, as
shown on this page 15.
Q4: Do you mean something like coming into WMS?
Sugiura [A]: Yes.
Q4: I understand. Thank you very much.
Sugiura [M]: Thank you.
[Questioner5]
Q5: My questions are about the JPY1 trillion in sales for FY2035 and this new medium-term plan. Regarding
the amount of capital investment and strategic investment, how much are you planning to spend toward JPY1
trillion, and how much do you plan to spend in this medium-term plan from backcasting? How much of thestrategic investment, including capital investment, research investment, and others, should be considered,and what kind of entities should be involved?

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Also, I think that local production for local consumption will probably be promoted in the capital investment,
but if you have any concrete plans or ideas in this area, please let us know.
Uno [A]: This is Uno. First of all, we do not have a specific plan for capital investment for 2035, including arough estimate of what it might be like.
On the other hand, as we look toward FY2026, the final year of the medium-term management plan we have
explained, we will basically maintain our current facilities. Meanwhile, our global sales companies also provide
vehicles to customers on a lease-rental basis, so we are considering increasing investment in this area as a
growth area.
Today, I have given a very blurry explanation of that capital allocation aspect in my presentation. I said that
we would allocate the free cash flow we have generated in a balanced manner to strategic investments,
improvement of our financial position, and shareholder returns, while responding flexibly to changes in thebusiness environment.
In that sense, if we decide how much we are going to invest now, it will be fixed there, so that is why we havechosen to use such an expression.
You mentioned the term “local production for local consumption,” and I think you were thinking of production
and sales in Japan, the US, Europe, and Asia, including China, or local production for local consumption inthese four areas. We have already established a system of local production for local consumption, with eachof our regions accounting for 90% or more. We are not thinking of making any particular investment to further
sharpen and promote the local production for a local consumption system.
On the other hand, we have set a long-shot goal of 90% electric forklift ratio, as we intend to increase thenumber of electric forklifts in the future. In this sense, I think it is necessary to invest heavily in the productionof electric forklifts on a global basis. I hope this answers your question.
Q5: I would like to ask a follow-up question to what you just said. Is there already some kind of concrete planin this new medium-term plan to increase the number of electric forklifts?
Uno [A]: It is not easy to suddenly increase the percentage of electric forklifts. In response to the second
question, Mr. Mano said that our shipment of electric forklifts in FY2022 was 54% and that we will raise thepercentage to about 65% by 2026. To this end, for example, in the US, we have already been investing sincelast fiscal year in a plant dedicated to electric forklifts. We are making such investments in the expansion ofeach production facility.
In addition, with regard to the investment in vehicles to be provided to customers on a lease-rental basis, wewill consciously carry a slightly larger fleet of electric forklifts to encourage customers to use more electric
forklifts. We are also working to create such an environment.
Q5: I understand. Thank you very much.
[Questioner6]
Q6: I have two questions. The first is about the mixed fleet solution talked about earlier on page 16. How
much of the resources for the development of these items will have to come from MHI and be used? As for
the LogSol story on the next page, it may be a difficult question to answer, but could you give us some idea of
how much of this can Mitsubishi Logisnext do within its own company?
Also, if I may go ahead and ask one more question since we are running out of time, I think that gradually you
are entering a world where the competition is not just forklifts, but like that “KIVA system”, for example. At

25such times, for example, I wonder if it would be possible to build up a track record by working firmly with amajor client.
On the other hand, I wonder if you don’t need to have a logistics system in order to fight against those whoare building various logistics centers, like the “KIVA system”. I was hoping to hear something from a different
angle. I know this is a bit vague, but I’d like to ask you these two questions.
Mano [A]: This is Mano. First, mixed fleet solution is basically an activity that we started, not MHI.
Sugiura [A]: Originally, this was from the Japanese side, and it was rather driven by the Finn technologies. We
are currently evolving it and developing it in a variety of ways, and in fact, we are integrating some of MHI’s
resources, or rather knowledge, into the development process. However, we, Logisnext, are the main entity.
In terms of ratios, I think this is a very difficult area to answer. In terms of the time frame, it is also not a steadypercentage, so I think it fluctuates quite a bit from moment to moment.
Mano [A]: We have strong technological capabilities in Finland, especially in automation, as is the case with
mixed fleet solution, and we have a considerable technological network in Finland in the form of industryacademia collaboration. I hope you understand that there are some aspects of the project that are notnecessarily with the help of MHI in various ways.
Secondly, in a competitive environment, there are still some things that we don’t have. We would like to work
together with various partners to build up the logistics systems, such as automated driving and horizontaltransport, which we cannot provide on our own. We do not necessarily need to own everything ourselves.
We can work together with people who have various technologies while maintaining strong contact with ourcustomers. I apologize for the vague answer, but that’s all I have to say.
Q6: The question was vague, so that’s good enough. Thank you very much.
Mano [M]: Thank you.
Moderator [M]: Thank you very much. This concludes the presentation of Mitsubishi Logisnext Co., Ltd.’s new
medium-term management plan.
Thank you very much for taking time out of your busy schedule to join us today.
[END]

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