Financial Results for the
1st quarter of FY2020(FY2020:From April 1, 2020 to March 31, 2021)

Aug. 28, 2020

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

1. FY2020 1Q Summary
Economic Market Trends➢ The global economic activities were almost suspended due to the impact of the expansion of
COVID-19 pandemic. Since then, economic activities have gradually been resumed in many
countries as they seek to balance between prevention of COVID-19 infection and recovery of
economic activities, but no major fundamental controls of infection have been establishedand business confidence has been deteriorated. The impact on the logistics equipment
industry is also still serious.
➢ Except for China, where economic activities have been resumed, our group companies arestill struggling to take orders or to provide maintenance services. Although there was a slight
upward trend in the market in June due to resumption of economic activity in many countries,
it still did not lead to strong recovery in the market, and we believe it is much harder toforecast those market trends for future for a while.

Summary of FY2020 1Q Results➢ Despite the consolidation of Equipment Depot, Inc. (hereinafter “EQD”) in the Americas, net
sales were decreased by △13.8% YoY, due to the stagnation in economic activities caused by
the expansion of COVID-19 pandemic.
➢ Operating profit was declined by △77.2% YoY (eliminating goodwill & amortization) as lower
sales were not enough to offset lower gross profit, despite the efforts to reduce fixed costs(e.g., personnel expenses) and to improve variable costs.
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

22. Financial Highlights
Unit: Hundred million JPY

Profit and Loss
Statement

FY2019 1Q

FY2020 1Q

YOY Change

1,050.4

905.3△145.1△13.8％

45.5（4.3％）

10.4（1.1％）△35.1△77.2％

Amortization ofGoodwill

21.9

21.9

―

―

Operating Profit

23.5

△11.5

―

―

―

―

―

―

Net Sales
Operating Profit(Before amortization of goodwill)(Operating profit margin)(Operating profit margin)

Ordinary Profit（2.2％）（△1.3％）

23.8

△13.8

(Ordinary profit margin)（2.3％）（△1.5％）

Profit Attributable toOwners of Parent

6.0△15.8(Net income margin)

Balance Sheet（0.6％）FY2019（△1.7％）FY2020 1Q

YOY Change

Total Assets

3,7363,583△153△4.1％

Total Liabilities

3,1633,041△122△3.9％573542△31△5.5％

Net Assets

FY2019 1Q actual FX rates: USD = JPY109.90, EUR = JPY123.49, CNY = JPY16.07
FY2020 1Q actual FX rates: USD = JPY107.62, EUR = JPY118.48, CNY = JPY15.17© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

33. Business Results by Segment
Net Sales:

Despite the contribution from the consolidation of EQD, net sales were declined in all
regions due to the significant impact of the expansion of COVID-19 pandemic.

Net Sales

Unit:
Hundred million JPY

Domestic Business

1,200

Overseas Business

1,050905

1,000
800

628

522600

FY2020 1Q Sales by Region

China& Asia
Europe 6%
16% (8%)
(20%)

Japan
42%
(40%)

400423200

3840Americas
36%(32%)FY2019-1Q

FY2020-1Q()=previous year

Operating Profit*

Operating profit (*) : Despite the efforts for reduction in fixed cost, it was not enough to make up forthe decrease in gross profit caused by the significant downturn in sales.
Unit:Hundred million JPY

Domestic Business

50.0

Overseas Business

FY2020 1Q Operating Profit by Segment

45.5

40.0
30.0

32.5

20.0
10.0

12.90.0* Operating Profit before amortization of goodwill

FY2019-1Q© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

10.4
5.9
4.4

FY2020-1Q

OverseasBusiness
58%(60%)

DomesticBusiness
42%(40%)()=previous year4

4. Sales by Region
JapanAmericas(Unit: Hundred million JPY)

500

(Unit: Hundred million JPY)

350

422.5

383.8

400

422.5

383.8

323.4

FY2019-1Q

FY2020-1Q

1501005000FY2019-1Q(Unit: Hundred million JPY)

FY2020-1Q

Europe100147.3

150

China and Asia

(Unit: Hundred million JPY)

209.5

200100333.3

300
200100250323.4

250300200333.3

209.5

84.9

80

50.6

60
4084.9

147.3
50

2000
FY2019-1Q

FY2020-1Q© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

50.6

FY2019-1Q

FY2020-1Q
55. Net Sales FY2019 1Q vs FY2020 1Q
Net Sales were down by △13.8% YoY basis due to a decline in sales volume in all regions,
impacted by stagnation in economic activities caused by the expansion of COVID-19pandemic.
※Excluding the impact of EQD consolidation, net sales were decreased by △23.5% YoY.
FXimpact△24.7(Unit: Hundred million JPY)

JapanAmericas

EQD

△37.5
△105.2102.1

Europe△45.3

China & Asia

△34.6

1,050

Decreaseby 14.5 billion JPY

FY2019 1Q© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

905

FY2020 1Q
6

6. Operating Profit FY2019 1Q vs FY2020 1Q
Operating profit was declined by △77.2% YoY as the decrease in gross profit
due to lower sales was not fully offset by countermeasures such as
reducing headcount, other fixed costs, controlling travel and other expenses.
(Unit: Hundred million JPY)

Gross profit
decreasedue to sales
decrease/Mix

Amortizationof goodwill

Operating profit decreasedby 3.51 billion JPY(Before amortization of goodwill)

△21.9

45.5

Expensedecrease

23.5

FY2019 1Q

FY2019 1Q(Beforeamortizationof goodwill)

Cost
reductions

16.4
△55.8

4.5

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

FXeffects

EQD

Others△0.90.6

0.1

Amortizationof goodwill

10.4

131.6

FY2020 1Q(Beforeamortizationof goodwill)

△11.5
△21.9

FY2020 1Q
77. Consolidated Balance Sheet
Total assets and liabilities were decreased due to lowering in working capital such asaccounts receivable and accounts payable as a result of lower sales. (Unit: Hundred million JPY)
3,736

3,583

Item

FY2019
1,936
1,014
632
154
1,801
3,736

Current assets

Assets(Tangible fixed assets)

1,936

1,802

Assetsdecreased by
15.3 billion JPY(Intangible fixed assets)(Inv estments andother assets)

Total fixed assets

Total assets

1,8011,781

FY20201Q
1,8021,000607
175
1,781
3,583

Change▲ 134▲ 14▲ 25+20▲ 20▲ 153

Current assets: Decrease
Decrease in accounts receivable due to lower sales

Fixed assets: Decrease
FY2019FY2020-1Q

Liabilities/
Net Assets

3,736

3,583

3,163

Liabilities
decreased by
12.2 billion JPY

573

Net assets
decreased by
3.1 billion JPY

Decrease due to amortization of goodwill

Item

FY2019Current liabilities
Fixed liabilities
Total liabilities
Total net assets

3,041

Total liabilities and net assets

1,544
1,619
3,1635733,736

FY2020
1Q
1,415
1,626
3,041
542
3,583

Change▲ 129+7▲ 122▲ 31▲ 153

Liability: Decrease

FY2019Decrease in accounts payable and short-term debt

Net assets : Decrease

542

Decrease in retained earnings due to net loss, payment of dividends, etc.

FY2020-1Q© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

8

【Reference】 Key Performance Indicators
Return-on-assets (ROA)

Operating profit margin

Total asset turnover

Financial
Soundness

Profitability

Return-on-equity (ROE)

Asset Efficiency

PerformanceIndicator

Net income margin

Receivable turnoverInventory turnover
Capital adequacy ratio
D/E ratio

SahreEarnings per share
Price earnings ratio(PER)
Price book value ratio(PBR)

FY2019FormulaNet income△ 1.4%

Total assets
Net income
Shareholders' equity
Operating profit
Sales
Net income

Sales(4.1％)△ 1.3%(1.1％) deterioration of financial△ 1.7%

performance caused by the(0.5％) expansion of the new COVID-19
pandemic.

(2.5％)

4.4 times

14.7%

14.5%

3.3 times

3.5 times

JPY △49.24

JPY △59.24△17.7 times△16.0 times

1.7 times

2.0 times

Shareholders' equity
Total assets
Interest-bearing debt
Shareholders' equity

Share value

1.9%

5.5 times

Inventories

Share value
Book value per share© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

of the new COVID-19 pandemic.
*In the previous year, the company posted a(2.0％) loss due to goodwill impairment.

5.3 times

Cost of sales

index worsened due to the deterioration of(0.5％) Thisfinancial performance caused by the expansion△ 11.8%5.8 times

Accounts receivableComments(12.2％)

1.0 times

Sales

Earnings per share△ 1.7%

1.2 times

Total assets

Shares outstanding(2.8％)(Before amortizationof goodw ill)

△ 8.7%△ 1.2%Sales

Net income

FY2020-1Q(Before amortizationof goodw ill)

This index worsened due to the

The net loss and dividend
payment reduced retained
earnings and worsened theequity ratio.

Stock prices：
End of FY2019：JPY 874
End of FY2020 1Q：JPY 950

9【Reference】 Quarterly Financial Results
Domestic Business

Unit: Hundred million JPY

1,275.4

1,400

Net Sales

1,200

1,050.4

1,020.4

241.4

627.9

553.4

599.8

1,000800600

Overseas Business

EQD

1,142.8115.6

560.4

905.3
100.0

421.5

400
200

422.5

466.9

434.1

466.7

383.8

1Q

2Q

3Q

4Q

1Q0FY2019

2Q

3Q

4Q

FY2020※1,2：Excluding EQD acquisition costs

Domestic Business

Operating Profit

Unit: Hundred million JPY

60
50

45.5

8.9
24.1
32.5

23.9

20
10046.7※14030

48.2

12.9
1Q

24.0

Overseas Business

3Q

FY2019© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

※3： 1.5 billion in transfer pricing
adjustments from the Americas

42.80.7※28.5※333.5

10.4
0.6
5.3
4.4

4Q1Q

13.8

2Q

EQD

2Q

3Q

4Q

FY202010

【Reference】 Forklift Market Trends 【Shipping】(Apr.-Jun.)
The forklift market in the 1st quarter of FY2020 was affected by sluggish economic activity
because of the spread of COVID-19 pandemic, but shipments were 387,000 units (0.0% YoY),
by rapid recovery of Chinese market despite this economy downturn in other countries.
JapanEuropeAmericas(1,000 units)(incl. Middle East & Africa)(1,000 units)100646965(1,000 units)

100.0% 3506680

80.0%300200213

227

100.0% 600

22880.0%2506060.0%

4040.0%19202221232200.0%
FY2016 FY2017 FY2018 FY2019 FY2020

40.0%
65294400
300

10040.0%68951200200
1000.0%020.0%

34680.0%37460.0%

China
44.0％

0.0%
FY2016 FY2017 FY2018 FY2019 FY2020

40.0%
11412413414210820.0%
0.0%

FY2016 FY2017 FY2018 FY2019 FY2020

Asia & Oceania(1,000 units)

In FY2020 1Q

170
128

40020.0%

cas
Global Market 16.3％

60.0%

200

63

Asia & Japan
Oceania 5.7％
Ameri
6.1％

80.0%

232500FY2016 FY2017 FY2018 FY2019 FY2020

100.0%319720(1,000 units)

326

67

78

50

China
500

100.0%

374

300

150
10020.0%

60.0%

200

413

140
120
100100.0%

93
72

84

78

80.0%
60.0%

80

387

60

thousand units(Electric forklifts: Europe(incl. Middle East60.0%)& Africa)

27.8％

40

40.0%
2326

31

29

24

20.0%

20
00.0%
FY2016 FY2017 FY2018 FY2019 FY2020

Markets units© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

Percent electric forklifts

11【Reference】 Forklift Market Trends 【Orders】(Apr.-Jun.)➢ Economic activities were slowed down due to the result of measures to prevent thespread of COVID-19 pandemic, and order intake except China was declined
significantly in 1Q (△4.5% YoY,△30.4% YoY excluding China).
➢ In April and May, when strict lockdown and other measures were implemented, orderintake fell sharply, but in June some extent of order intake showed a slight recovery
trend. In China, order received in April-June were increased significantly in reaction to
the lockdown in February-March.
(Unit: Thousand units)

Order intake（excl. Class III*）
250.0

235.2

216.5

19.7

17.9

200.0
83.275.5

150.0

100.0

58.5

53.7

232.5
18.7

205.3

Year-on-year
△4.5％

224.6
13.6

16.8
75.3
69.2

118.9

61.4
55.2
35.9

50.0

0.0

51.3

48.4

57.6

44.1

37.6

22.5

20.9

19.5

20.0

18.6

FY2019-1Q
Japan

FY2019-2Q
FY2019-3Q
FY2019-4Q
Americas
Europe(incl.Middle East & Africa)
China

FY2020-1Q
Asia & Oceania※Class III : Self-propelled electric small lift
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

12

Disclaimer:⚫ This material is prepared for the sole purpose of providing investors with information andnot intended for solicitation of any buying or selling.
⚫ Forward-looking statements in this material are intended as targets or forecasts,
with no commitment or guarantee as to their accuracy.
⚫ Note that actual future business results of Mitsubishi Logisnext may differ from our current forecast.
⚫ 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 hisor her own judgment and responsibility, whatever the purpose of its use may be.
Mitsubishi Logisnext shall not be liable whatsoever, regardless of the results from using this material.

Please direct inquires regarding this material to the following:
Mr. Kariya or Ms. Kashiwagi
Planning Division
Mitsubishi Logisnext Co., Ltd.
1-1, 2-chome, Higashikotari, Nagaokakyo-shi, Kyoto 617-8585
TEL: 075-956-8610 FAX: 075-951-4038
URL: www.logisnext.com© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

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