FY2021－FY2023 Mid-term Plan
「Logisnext SolutionS 2023」
November 27 th, 2020
President & CEO Takashi Kubo

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

Contents
Ⅰ．Recap of the current Mid-term Plan

“Perfect Integration 2020”（Term：FY17-FY20)

Ⅱ．Outline of the new Mid-term Plan

“Logisnext SolutionS 2023”（Term： FY21-FY23）

Ⅲ．Financial Target© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

2

Ⅰ．Recap of the current Mid-term Plan
“Perfect Integration 2020”© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

3

Ⅰ-1 Recap of “Perfect Integration 2020”
Growing by implementing the multi-brand / “glocal” strategies

BasicPolicy

Reinforcing the management infrastructure that can support growth
Sales (Plan) ：4,600

Sales(result)Operating Profit (result, before
goodwill amortization)

Profit (Plan)：
320

4,489

4,484

（unit：100M JPY)

4,331
191

220183(Latestforecast)
3,900 (Latestforecast)

4,000

70

1000

3,600

FY17

FY18

FY19

FY20

Looking ahead to the integration of Mitsubishi Nichiyu Forklift and UniCarriers
Corporation, “Perfect Integration 2020” was established. Among unforeseeable
political and economic situations such as U.S.–China trade friction and raw material
inflation, we have achieved partial results. However, due to world economic
downturn caused by Covid-19, FY20 latest forecast is far lower than the plan.
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

4

Ⅰ-1 Recap of “Perfect Integration 2020”
Growing by implementing
multi-brand, “glocal” strategies
New Electric Forklift
Development

Implementing
Local Strategy
 Restructuring of Japanese
direct sales network （Oct 20）
 Establishment of regional head
offices in US (Apr 18), Europe(Apr 18) and APAC (Oct 17）

 Model consolidation of electric
forklift truck to “ALESIS”（Nov 19）

Solution Business &Advanced Technologies

 Lasernavigation
AGF*(Apr 17)

 Autonomous
mobile robot(May 20)*AGF: Auto Guided Forklift

Reinforcing a management structure that can
support growth
Improvement ofCorporate Function

Reinforce of Sales Network

 Consolidation of corporate
office function to Kyoto(Oct 17)
 Organization restructuring andheadcount reduction

 <U.S.＞Acquisition of Equipment
Depot, Inc (EQD)(Jul 19)
 <Europe> Sales network
enhancement

Supply Chain Optimization
 ＜China＞Sell-off of Hecha(Apr 19) and Closure ofUCCA* （Dec 20)
 Product cost reduction as aresult of larger scale© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Hecha: Anhui Hecha Forklift Co., Ltd
UCCA: UniCarriers China Corporation

5

Ⅱ．Outline of the new Mid-term Plan
“Logisnext SolutionS 2023”© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

6

Ⅱ-1 Strategies and Business Environment《Business Environment》《Continued strategies from thecurrent Mid-term Plan》

Market➢Sales andMarketing
Enhancement

Adoption tochanging
environment

Generatingsynergyfurthermore➢ Review of sales andbranding strategies➢ Solution businessexpansion➢ Accelerate reacting
towards electrification➢ New technologies(Li-ion battery, safetytechnologies,digitalization etc.)➢ Further integration ofbusinesses➢ Enhance employees’engagement(*1) DX = Digital Transformation(*2) ESG = Environment, Society, and Governance
SDGs = Sustainable Development Goals© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

➢➢

Economic downturn and unforeseeable future
Supply chain shift from China due toUS-China trade conflict
Severe competition with Chinese andKorean brandsTechnology➢➢➢

Environment-friendly, new energy
Utilization of AI, big data, and 5G
Practical use of DX (*1), self-driving

Customer➢ E-commerce expansion➢ Efficiency, and Automation➢ Safety requirements

Society➢ Request to ESG・SDGs (*2)
➢ Low carbon society7Ⅱ-2 “Logisnext SolutionS 2023” Concept
We have developed a new Mid-term Plan “Logisnext SolutionS2023”, considering the recent changes in our businessenvironment and strategies from the current Mid-term Plan

Logisnext SolutionS 2023
“SolutionS” The last letter “S” represents ;not only the “Solution” we offer to customers in the logistics field
but also the “Solution” for our sustainable growth to the future.

BasicPolicy

CorporateVision

Build upBusinessResilience

Accelerategrowthstrategy

Further develop
our global andregional
brandingstrategies

Moving the world forward as the leading provider ofinnovative logistics and material handling solutions© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

8Ⅱ-3 Basic Policy「Logisnext SolutionS 2023」
Build up Business Resilience
Strengthen the existing business
Improve variable and fixed cost

Accelerate growth strategy
Expand our solutions portfolio to meet the growingmarket requirements
Improve our profitability via enhancements to thedistribution network
Grow market share with an expanded product andservice portfolio
Further develop our global and regional branding strategies

Utilize “Logisnext” brand and improve brand awarenessfor all of our brands
Create a new corporate culture under “Logisnext”

9Ⅱ-4 Basic Policy– Build up Business Resilience

Strengthen the existing business
Strengthen the organizational resilience to significant environmental
change by improving sales and profitability, reducing cost andpursuing organizational efficiency in each region, etc.

Priorities

JapanUS

Lease, rental, used trucks○◎○○Service business◎◎○◎◎◎◎

Product consolidation

Europe APACChina○

Factory rationalization○○Enterprise system○○◎High priority 〇Priority© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

10

Ⅱ-5 Basic Policy– Build up Business Resilience

Improve variable and fixed cost■Material cost reduction*Example１■Transportation efficiency*Example 2■Parts insourcing ■Labor cost saving, etc.
【Example 1】【Example 2】《Inland transportation efficiency》《Material cost reduction》
Expansion to indirect andservice parts
Reduction ofoutflowing costServiceParts

Indirectmaterial

Our
Factory

Procurement
by group
companies

DealerWarehouse

Warehouse

Service van

Warehouse

Factory

Logistic co.

DealerBerthmgmt.
systemBerthmgmt.
systemGPS Mgmt.
tool

Van w/ Mgmt.
drive
tool
recorderCustomer

Production
Parts

Purchased products
Lease, rental,
used trucks

Our activity for achieving “distribution MaaS”

PartnerProfit,
labor cost etc.

Demonstration test is in process

QCD
Improvement※Selected as operators of FY20 efforts for achieving “distributionMaaS,”Governmental project by METI
https://www.meti.go.jp/english/press/2020/0721_001.html© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

11

Ⅱ-6 Basic Policy－Accelerate growth strategy－
Expand our solutions portfolio to meet the growing market requirements••

Offer a complete suite of hardware and software solutions to customers.
Collaborate with Mitsubishi Heavy Industries and/or other third parties toprovide the best optimized solution.
Our product and system lineup

Business Domain【Port】

Automated
Warehouse
Alarm
Failureprediction
Preventivemaint.

【Factory】

ERP/WMS
L-SAS

MIDDLE
WARE

Remotemaintenance
ReportAssociatedmachines【Warehouse,Retail store】

Other companies’
AGV & material
handling products
Operatingdevices

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

Manned trucks

12Ⅱ-7 Basic Policy－Accelerate growth strategy－
Improve our profitability via enhancements to the distribution network
Our MarketPositioningJapan

Stable andensuring••

Optimize operation by restructuring direct sales
Expand special vehicles/material handling equipmentbusiness•Americas

Most
important

Transfer the existing factory stores to EQD (*)
and expand/improve the business
Further expansion of direct sales

EuropeMaintain ourpositionAPAC

ChinaDevelop anew strategy© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

•••

Enhance the existing direct sales territory
Implement new branding strategy based on
the regional brand awareness••Prepare for supply chain shift from China to APAC
Enhance sales network and implement new brandingstrategy••

Restructure sales network incl. direct sales
Introduce products that satisfy with market
needs, enhance product support business(*) EQD = Equipment Depot13

Ⅱ-8 Basic Policy－Accelerate growth strategy－

Grow market share with an expanded product and service portfolio
SEEDS

Collaboration with
Mitsubishi Heavy Industries(MHI)● Electric system● Software● AGV/AGF● MHI’s advanced tech.

NEEDS● Energy efficiency● Safety● Logistics efficiency● Automation

Product development Focus
１．Innovative electric truck
２．IC truck meeting the exhaust emission regulations
３．Product consolidation and rationalization by region
４. Logistics solution with AGV/AGF as a core product５．Expand Telematics businessTechnology development Focus
１. Next generation energy powered truck
２．Middleware controlling hard and software
３．Safety technology© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

14

（Reference）Logistics Technology Center（R&D with MHI）

Established a logistics technology center in Japan with MHI todemonstrate and validate various logistics technologies.
The facility can provide simulations meeting customer specificrequirements and operations.

Outlook（Image）
Operation
room

Mezzanine: customer
viewing area

Temp. storage
area

Truck loading
and unloading

Operation RoomRackstorage

Loading &unloading

Rack loading
and unloading
TestAGF© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

15

Ⅱ-9 Basic Policy－Further develop our global and regional branding strategies－
Utilize “Logisnext” brand and improve brand awareness for all of our brands
Create a new corporate culture under “Logisnext”

Currentissue◆ Necessity of redefining regional branding strategy◆ “Logisnext” corporate culture has not fully developedand shared among the group companies

Objective
Utilize “Logisnext” brandand increase its
awareness

Create a new corporate
culture under “Logisnext”

Action Solution businessbranding strategy
 Redefine the regional
branding strategy
 Strengthen employees’
engagement andorganization
 Adopt SDGsmanagement© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Goal

Increase brandawareness andperception
Empowering
sustainable growth16

Ⅱ-10 Basic Policy－Further develop our global and regional branding strategies－《Contribution to SGDs》
Through the corporate activities, we contribute to sustainable
development of society, world and future.

We picked up 14 essential areas to grow sustainably together with thesociety. We support for SDGs by continuously focusing on promoting
them and aim to enhance our corporate value .

Stakeholders’ interests

Environment◼ Developing andpopularizingenvironmentallyfriendly products◼ Reduce environmental
impact◼ Recycling andremanufacturing◼ Corporate governance◼ Compliance◼ Risk management

SocietyGovernanceOur focused SDGs

◼ Pursuit of customer
satisfaction◼ Securing product quality
and safety◼ Supply chainmanagement◼ HR diversification◼ HR development◼ Employees’ satisfaction
and productivity◼ Contribution to society
and local community◼ Occupational safety andhealthImportance to our company business

Focus through the businessContribute to SDGs

Realization of sustainable society and enhancement of our corporate value© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

17

Ⅲ．Financial Target© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

18

Ⅲ-1 Sales and Profit Target
Build Up BusinessResilience

Accelerate Growth
Strategy

Branding Strategy

１）Sales 500B JPY
２）Operating Profit 30B JPY(Before goodwill amortization)
Profit ratio 6％３）Capital adequacy ratio >20%
（Unit：B JPY）

FY23

FY19 results

Variance <%>SalesOperating
Profit(※)

500449+51 <+11.4%>30

18+12 <+63.9%>

（%）

(6%)

(4.1%)

Capital adequacy
ratio>20%

14.7%© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

(+1.9 point）>+5.3 point※Ex-rate：105/USD, 120/EUR19

Ⅲ-2 Sales: Incremental factors （vs FY19）
by ensuring each growth planand creating an organization resilience toenvironment change• New product launch• Product consolidation• Expand lease and rentalbusiness• Expand service business• Expand Port business• Collaboration with MHI andother system suppliers• Expand US solutions business（Unit：JPY100M）

221

170

5,000120• Expand EQD business• Expand direct sales
territory• Strengthen dealernetwork

4,489

FY19ResultsStrengthenresilience© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Expand Solution
businessStrengthen
Sales network

FY23Target20

Ⅲ-3 Profit: Incremental factors （vs FY19）
through the 3 Basic Policy* Before goodwill amortization（JPY21B After good will amortization)• New product launch• Expand lease and rentalbusiness• Expand service business• Fixed cost reduction• Material cost reduction• Transp. cost reduction• Factory and sales
network enhancement• Product consolidation• Port business• Collaboration with MHI andother system suppliers• Expand US solutions business

183330066• EQD business growth• Expand direct salesterritory• Strengthen dealer
network

183

FY19
Results（Unit：JPY100M）

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

Expand Solution
businessStrengthen
Sales network

FY23Target21

Ⅲ-4 Financial target
by lead time(=inventory) reduction and improvement of asset
efficiency（Unit: JPY100M)【FY19】

Current
Asset
1,936

Fixed Asset
1,801【FY23】

Interestbearing
Liabilities
1,759
Other
Liabilities
1,404

Equity573

Capital Ratio：15％© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Reduction of Asset
Inventory
reduction bylocal productionandconsumption

CurrentAsset

Interestbearing
Liabilities

Increase of FCF

OtherLiabilities

Decrease ofInterest-bearing
liabilities

Fixed Asset
EquityCapital Ratio ：>20％

BS improvement22

（Reference） Forklift market forecast
Due to expansion of E-Commerce business all over the world as well as
automated/autonomous logistic market, FY23 world market volume isexpected to exceed that of FY19Europe
AmericasJapan（thousand）
100
90
89

100%

80

80%

60

66.0% 65.3%

40305

301

300

60%

63.4%

200

65.3%

0100%

600

80%

500

60%
40%

20%

1000%

0400

556

100%

524

80%
82.8% 82.7%40%

20020%

10020%0%00%

FY18 FY19 FY20 FY21 FY22 FY23

FY18 FY19 FY20 FY21 FY22 FY23

FY18 FY19 FY20 FY21 FY22 FY23

China

Global Total

APAC

454

438

100%

40080%

300

60%
42.0% 45.3%

2,000
1,500

40%

10020%

00%

100%
1,5201,451
64.9%

1,000

20063.4%

500100%115

10080%

10060%

56.5%
50

52.0%0%FY18 FY19 FY20 FY21 FY22 FY2360%40%
20%20%0© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

15080%40%

FY18 FY19 FY20 FY21 FY22 FY2360%

300

40%20500

40000%

FY18 FY19 FY20 FY21 FY22 FY23

Electric Truck ratio 23© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.