Financial Results Briefing for the
2nd quarter of FY2020(FY2020:From April 1, 2020 to March 31, 2021)

Dec. 3, 2020

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

Financial Results for the
2nd quarter of FY2020(FY2020:From April 1, 2020 to March 31, 2021)

President and CEO, Takashi Kubo

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

1. FY2020 2Q Summary
Economic Market Trends➢ The global economy was on a gradual recovery trend, with people, goods, and money finally
starting to move, due to China's quick return to normal economic activity, the lifting oflockdowns in Europe and the United States, and deregulation in the Asian region.
➢ However, there are concerns about the second wave of the spread of COVID-19 infection,such as the re-implementation of the lockdown in Europe, and the situation is unpredictable.
At the same time, economic uncertainties such as the trade friction between the U.S. andChina remain, and countries around the world continue to take a cautious approach toinvestment activities.
➢ In the material handling equipment market, although there was a slight upward trend in themarket due to the resumption of economic activities in various countries since June, it ismuch harder to forecast those market trends for the future will continue to be unpredictable
for a while.

Summary of FY2020 2Q Results➢ Despite the consolidation of Equipment Depot, Inc. (hereinafter “EQD”) in the Americas, net
sales decreased by △10.4% YoY, due to the stagnation in economic activities caused by the
expansion of COVID-19 pandemic.
➢ Operating profit decreased △53.7% YoY (before amortization of goodwill, etc.). Despite efforts
to reduce labor costs and other fixed costs, this was not enough to offset the decrease ingross profit due to the decline in sales.
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

3

2. Financial Highlights
Unit: Hundred million JPY

Profit and Loss
Statement

FY2019 1H

FY2020 1H

YOY Change

2,070.9

1,854.6△216.3△10.4％

93.7（4.5％）

43.4（2.3％）△50.3△53.7％

Amortization of
Goodwill

42.7

48.0*

―

―

Operating Profit

50.9

△4.6

―

―

―

―

―

―

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

Ordinary Profit（2.5％）（△0.2％）

47.9

△7.0

(Ordinary profit margin)（2.3％）（△0.4％）

Profit Attributable to
Owners of Parent

20.9

△19.6

(Net income margin)

Balance Sheet（1.0％）FY2019（△1.1％）FY2020 1H

YOY Change

Total Assets

3,736

3,493

△243

△6.5％

Total Liabilities

3,163

2,961

△202

△6.4％

573

533

△40

△7.0％

Net Assets*Amortization of goodwill increased due to amortization of goodwill related to the acquisition of EQD.
(EQD's P/L was not consolidated in the same period of the previous fiscal year.)© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

FY2019 2Q actual FX rates: USD = JPY108.63, EUR = JPY128.41, CNY = JPY16.54
FY2019 actual FX rates: USD = JPY108.74, EUR = JPY120.82, CNY = JPY15.60
FY2020 1H actual FX rates: USD = JPY106.92, EUR = JPY121.30, CNY = JPY15.26

4

3. Business Results by Segment
Net Sale: Domestic sales declined by approximately 9%, while overseas sales declined by double digits,
mainly in the Americas, Europe, and Asia, due to stagnant economic activity in the COVID-19.

Net Sales

Unit:
Hundred million JPY

Domestic Business

2,500

Overseas Business

2,071

1,855

2,000
1,500

1,181

1,047

1,000
500

890

807

FY2019 1H

FY2020 1H

FY2020 1H Sales by Region

China& AsiaEurope 5%
16% (8%)(18%)

Americas
35%

Japan
44%
(43%)

(31%)

0
()=previous year

Operating profit (*) : Despite efforts to reduce fixed costs in all regions, it was not sufficient to recover the decrease in

Operating Profit*

gross profit caused by the significant downturn in sales in Japan, the Americas, and Europe.
Unit:
Hundred million JPY

Domestic Business

100.0

Overseas Business

FY2020 1H Operating Profit by Segment

93.7

80.0
60.0

56.7

43.4

40.0
20.0

22.2
37.0

Overseas
Business
51.3%(60.5%)

Domestic
Business
48.7%(39.5%)

21.1

0.0* Operating Profit before amortization of goodwill

FY2019 1H© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

FY2020 1H()=previous year5

4. Sales by Region
Japan

Americas(Unit: Hundred million JPY)

(Unit: Hundred million JPY) *Newly consolidated EQD: +20.6 billion yen

889.5

1,000

807.4

800
423.5

400
422.5

200

636.2

649.0

302.8

325.5

333.3

323.4

FY2019 1H

FY2020 1H

600

466.9

600

800

383.8

0

400
200
0

FY2019 1H

FY2020 1H
1Q

2Q

1Q

EuropeChina and Asia

(Unit: Hundred million JPY)

(Unit: Hundred million JPY)

382.3

500

200

297.5

400
300

162.8
100.6

150
77.8

172.8
150.1

200
209.5

100

2Q

147.3

0

100
49.9
50

84.9

50.6

0
FY2019 1H() : previous year

FY2020 1H
1Q

2Q© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

FY2019 1H

FY2020 1H
1Q

2Q

6

5. Net Sales FY2019 1H vs FY2020 1H
Net sales decreased by △10.4% YoY due to a decrease in sales volume in all
regions, reflecting the stagnation of economic activities caused by the expansionof COVID-19 pandemic.
※Excluding the impact of EQD consolidation, net sales decreased by △20.4% YoY.
FX
impact△12.4(Unit: Hundred million JPY)

Japan

Americas

EQD

△80.5
△182.82,071

FY2019 1H© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

206.1

Decreaseby 21.6 billion JPY(△10.4%)

Europe△84.9

China & Asia

△61.7

1,855

FY2020 1H
7

6. Operating Profit FY2019 1H vs FY2020 1H
Operating profit declined by △53.7% YoY as the decrease in gross profit
due to lower sales was not fully offset by countermeasures such as
reducing headcount and other fixed costs.
Gross profit
decreasedue to sales
decrease/Mix

Amortizationof goodwill(Unit: Hundred million JPY)

Operating profit decreased
by 5.03 billion JPY (△53.7%)(Before amortization of goodwill)△42.7

Decreasein
EQD
Expense acquisition consolidated
cost ofdecrease
contribution
EQD(Freight /labor costs, etc.)

93.7

5.2

50.9

2.4

FX
effects

Others

0.9

1.7

Amortizationof goodwill

43.4

Decline insales prices

△4.6
△48.0

△101.4FY2019 1H

FY2019 1H(Beforeamortizationof goodwill)△15.8© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

56.7

FY2020 1H△11.5
FY2020 1H(Beforeamortizationof goodwill)87. Consolidated Balance Sheet
Total assets and liabilities decreased due to a lowering in working capital such asaccounts receivable and accounts payable as a result of lower sales. (Unit: Hundred million JPY)
3,736

3,493

Item

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

Current assets

Assets(Tangible fixed assets)

1,936

1,758

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

Total fixed assets

Total assets

1,801

1,735

FY2020
1H
1,758
977
585
173
1,735
3,493

Change
△ 178
△ 37
△ 47
+19
△ 65
△ 243

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

Fixed assets: Decrease
FY2019FY2020 1H

Liabilities/
Net Assets

3,736

3,493

3,163

Liabilities
decreased by
20.2 billion JPY

573

Net assets
decreased by
4.1 billion JPY

Decrease due to amortization of goodwill

Item

FY2019Current liabilities
Fixed liabilities
Total liabilities
Total net assets

2,961

Total liabilities and net assets

1,544
1,619
3,163
573
3,736

FY2020
1H
1,361
1,600
2,961
533
3,493

Change
△ 184
△ 19
△ 202
△ 41
△ 243

Liability: Decrease

FY2019Decrease in accounts payable and short-term debt

Net assets : Decrease

533

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

FY2020 1H© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

98. Cash Flow
Operating C/F decreased by 1.3 billion yen (15.3 billion yen in the same period last year).
Decline in earnings due to the COVID-19 pandemic impacted the results.
Free cash flow increased by 1.82 billion yen in real terms (4.1 billion yen after deducting
the impact of the acquisition of EQD in the same period of the previous fiscal year) due toreduced and deferred capital expenditures.

153.4

Other
(Unit: Hundred million JPY)
OperatingAmortization CF
Tangible fixedofasset acquisition
Long-term
Impairment goodwill
borrowings
Depreciation loss
Short-term Other+1.0
Tangible
expensesloan
Investing Short-term decrease
borrowings
Cashfixed decrease
CF
+36.7
+1.4
decrease
dividends
asset sale
FX
payment Other
impact,financial CF
Pre-tax+16.5 △12.0 △3.1
△87.2 +2.1
etc.
165.2
△17.5
profit

△13.8

△14.5

△12.7

△0.2

+115.3

FY2019FY2020 1H

Cash and cash equivalents increase +1.2 BJPY
Cash generated by operating activities+14.0 B (+15.3 B YoY)

Cash used in investing activities△8.1 B (△27.5 B YoY)

Cash used in financing activities△4.7 B (＋13.0 B YoY)Free cash flow +5.9 BJPY (+1.8 B JPY YoY Increase)(Excluding the impact of the acquisition of EQD of △$0.25 B, Previous year FCF in real terms +4.1 BJPY)© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

109. Financial Forecast for FY2020(Unit: Hundred million JPY)

FY2020FY2019(Results)(Forecast)

Units Sold

103,000 units

83,000 units△20,000 units△19.4％Net Sales

4,489.2

3,900.0△589.2△13.1％

183.3（4.1％）

70.0（1.8％）△113.3△61.8％

Amortization of
Goodwill

98.9

90.0

－

－

Operating Profit

84.4

△20.0

－

－

－

－

－

－

－

－

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

Ordinary Profit（1.9％）（△0.5％）

70.5

△25.0

(Ordinary profit margin)（1.6％）（△0.6％）

Profit Attributable to
Owners of Parent

△52.4

△40.0

(Net income margin)（△1.2％）（△1.0％）

Dividend per Share

13 yen

8 yen

YOY Change

FY2020 Plan FX rate: USD=JPY105, EUR=JPY120, CNY=JPY16© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

1110. Operating Profit FY2020 (Forecast) vs FY2019
Operating profit is expected to decline by 61.8% YoY, as the decline in grossprofit due to lower sales is not expected to be offset by lower freight andreductions in headcount and other fixed costs.
Gross profit
decreasedue to sales
decrease/Mix(Unit: Hundred million JPY)

Operating profit decreasedby 11.33 billion JPY (△61.8%)(Before amortization of goodwill)

Expense decrease U.S. tariffrefunds(Freight /for thelabor costs, etc.)
previous year

183.3

△7.5

FX
effects

EQD
acquisition
costs

△7.6

7.1

Others43.4 3.1
70.0

Decline insales prices

FY2019(Beforeamortizationof goodwill)

Cost
reductions

71.2△183.1△12.9

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

FY2020(Beforeamortizationof goodwill)12【Reference】 Key Performance Indicators
Performance

Indicator
Return-on-assets (ROA)

Profitability

Operating profit margin

Asset Efficiency

Return-on-equity (ROE)

Total asset turnover

Net income margin

Receivable turnover

Financial
Soundness

Inventory turnover
Capital adequacy ratio
D/E ratio

Sahre

Earnings 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△ 7.4%

1.9%(4.1％)△ 0.2%(2.3％) loss as a result of deteriorating△ 1.1%

business performance caused the(1.5％) expansion of the COVID-19
pandemic.

(2.5％)

5.5 times

4.6 times

14.7%

14.6%

3.3 times

3.6 times

JPY △49.24

JPY △36.86△17.7 times△25.8 times

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

Earnings per share(12.2％)

5.4 times

Cost of sales

Share value△ 8.7%

5.8 times

Sales

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

This index worsened due to a net(1.3％) loss as a result of deteriorating

1.0 times

Accounts receivable

Comments△ 1.1%

1.2 times

Total assets

Net income(2.8％)(Before amortizationof goodw ill)business performance caused the(5.8％) expansion of the COVID-19
pandemic.

△ 1.2%

Sales

Shares outstanding

FY2020 1H(Before amortizationof goodw ill)

1.7 times

2.0 times

This index worsened due to a net

Although the equity ratio deteriorated dueto the decrease in retained earnings
resulting from the net loss and dividend
payment, the deterioration was limited toa small amount due to the decrease intotal assets.

Stock prices：
End of FY2019：JPY 874
End of FY2020 1H：JPY 951

13

【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

1,000
800
600

627.9

553.4

599.8

Overseas Business

EQD

1,142.8
115.6

560.4

905.3

949.2

100.0

106.1

421.5

419.5

400
200

422.5

466.9

434.1

466.7

383.8

423.5

1Q

2Q

3Q

4Q

1Q

2Q

0

FY20193Q

4Q

FY2020※1,2：Excluding EQD acquisition costs

Domestic Business

Unit: Hundred million JPY

Operating
Profit (*)

60
50

45.5

46.7
※1

8.9

40
30

48.2
24.1

32.5

23.9

20
10
0

12.9
1Q

* Operating Profit before
amortization of goodwill

Overseas Business

42.8
0.7※2
8.5
※3

33.5

24.0

13.8

2Q

3Q

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

4Q

EQD

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

32.9

10.4
0.6
5.3
4.4
1Q

1.8
14.4
16.7
2Q

3Q

4Q

FY202014

【Reference】 Stock Price Trend
(JPY)

1800

1600

1400

Closing priceon Dec 2

2020
Year high value: 1,729 yen (Feb 13)
Year low value:
700 yen (Mar 19)

1,257Yen(as of Dec 2, 2020)

Nikkei Average
Logisnext share value

45,000

October 2017
Established“Mitsubishi Logisnext Co.,Ltd”

40,00035,0001200

30,000April 2013
Established “Mitsubishi
Nichiyu Forklift Co., Ltd”

1000

800

(JPY)

25,000November 2012
Announced merger with
Mitsubishi Heavy
Industries Ltd.

20,000600

15,000400

200

July 2015
Announced acquisition of
UniCarriers Corporation
sharesMay 2017
Announced integration
with UniCarriers
Corporation

0

10,0005,000

0

Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2017 Jan 2018 Jan 2019 Jan 2020

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

15

【Reference】 Forklift Market Trends 【Shipping】(Apr.-Sep.)
The forklift market in the 1st half-year of FY2020 was affected by sluggish economic activity
because of the spread of COVID-19 pandemic; but shipments were 6.4% YoY to 792,000 units,
by a rapid recovery of the Chinese market despite this economic downturn. Excluding China,
shipments were down △13.7% YoY to 445,000 units.

Japan

EuropeAmericas(incl. Middle East & Africa)(1,000 units)(1,000 units)

100
43

46

44

(1,000 units)

100.0% 350

41

80

80.0%

300

135

145

151

100.0% 600

150

80.0%

250
60
39

40

44

42

47

60.0%
43

40.0%

200
131

150

136

154

60.0%
151

134

40.0%

20.0%

0

0.0%
FY2016 FY2017 FY2018 FY2019 FY2020

50
0(1,000 units)

500

217
200

400
300
200

164
135

190

100

0.0%

0

229

80.0%
60.0%
40.0%

100

20.0%

0

0.0%

China
43.8％

FY2016 FY2017 FY2018 FY2019 FY2020

219

237

260

261

60.0%
222

40.0%
20.0%
0.0%

(1,000 units)

140
56

120
100

792

80

thousand units(Electric forklifts: Europe(incl. Middle East
61.9%)

28.0％

80.0%

Asia & Oceania

In FY2020 1H& Africa)

100.0%

255

FY2016 FY2017 FY2018 FY2019 FY2020

cas
16.9％
Global Market

100.0%

209
347

237

20.0%

Asia & Japan
Oceania 5.4％
Ameri
5.9％

287

200

FY2016 FY2017 FY2018 FY2019 FY2020

China

261

400
300

100
20

500

241

60

100.0%

62
51

50

80.0%

62
46

53

60.0%
56

46

40.0%

40
20.0%

20
0

0.0%

FY2016 FY2017 FY2018 FY2019 FY2020

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

Percent electric forklifts

16【Reference】 Forklift Market Trends 【Orders】(Apr.-Sep.)➢ Orders have been showing signs of recovery since June as economic activity
resumed (+21.7% YoY to 263,000 units, Excluding the Chinese market :△3.6% YoY to 136 thousand).
➢ In particular, the Chinese market has continued to increase significantly sinceApril (+69.0% YoY to 128,000 units).
(Unit: Thousand units)
Order intake（excl. Class III*）
300.0
250.0

Year-on-year
△4.5％

235.2

216.5

19.7

17.9

200.0
83.2

100.0

58.5

18.7

205.3

224.6

69.2
61.4

18.4

127.7

75.3

53.7

263.5

13.6

16.8

75.5

150.0

232.5

Year-on-year＋21.7％

118.9

50.3

55.2
35.9

50.0
0.0

51.3

48.4

57.6

44.1

37.6

49.1

22.5

20.9

19.5

20.0

18.6

18.1

FY2019-1Q

FY2019-2Q

FY2019-3Q

FY2019-4Q

FY2020-1Q

FY2020-2Q

Japan

Americas

Europe(incl. Middle East & Africa)

China

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

17

FY2021－FY2023 Mid-term Plan
「Logisnext SolutionS 2023」© 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.

19

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

20

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

Basic
PolicyReinforcing 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

220
183
(Latestforecast)
3,900 (Latest
forecast)

4,000

100

70

0

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.

21

Ⅰ-2 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 of
UCCA* （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

22

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

23

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, safety
technologies,
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 to
US-China trade conflict
Severe competition with Chinese andKorean brands

Technology➢➢➢

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 society24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.

Basic
PolicyCorporate
VisionBuild upBusiness
Resilience

Accelerate
growthstrategy

Further develop
our global andregional
branding
strategies

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

25

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 growing
market requirements
Improve our profitability via enhancements to the
distribution 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”

26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

Japan

US

Lease, rental, used trucks

○

◎

○

○

Service business

◎

◎

○

◎

◎

◎

◎

Product consolidation

Europe APAC

China

○

Factory rationalization○○

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

27

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 of
outflowing costService
Parts

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”

Partner

Profit,labor cost etc.

Demonstration test is in process

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

28

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

ERP/WMS

L-SAS

Preventive
maint.

【Factory】

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

29

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

Stable andensuring••

Optimize operation by restructuring direct sales
Expand special vehicles/material handling equipment
business•

Americas

Most
important

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

EuropeMaintain our
position

APAC

China

Develop a
new 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 branding
strategy••

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

30

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.

31

（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
Test
AGF

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

32

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”

Current
issue◆ 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 SDGs
management© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Goal

Increase brandawareness andperception
Empowering
sustainable growth33

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 andpopularizing
environmentallyfriendly products◼ Reduce environmental
impact◼ Recycling andremanufacturing◼ Corporate governance◼ Compliance◼ Risk management

Society

GovernanceOur focused SDGs

◼ Pursuit of customer
satisfaction◼ Securing product quality
and safety◼ Supply chain
management◼ 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.

34

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

35

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 <%>Sales
Operating
Profit(※)

500

449

+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/EUR
36

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 rental
business• Expand service business• Expand Port business• Collaboration with MHI andother system suppliers• Expand US solutions business（Unit：JPY100M）

221

170

5,000

120
• Expand EQD business• Expand direct sales
territory• Strengthen dealer
network

4,489

FY19
Results

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

Expand Solution
businessStrengthen
Sales network

FY23
Target37

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 rental
business• 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

18

33

300

66

• EQD business growth• Expand direct sales
territory• Strengthen dealer
network

183

FY19
Results（Unit：JPY100M）

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

Expand Solution
businessStrengthen
Sales network

FY23
Target38

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 by
local production
andconsumption

Current
Asset

Interestbearing
Liabilities

Increase of FCF

Other
Liabilities

Decrease ofInterest-bearing
liabilities

Fixed Asset
EquityCapital Ratio ：>20％

BS improvement

39

（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 FY19
EuropeAmericasJapan（thousand）
100
90
89

100%

80

80%

60

66.0% 65.3%

40

305

301

300

60%

63.4%

200

65.3%

0

100%

600

80%

500

60%
40%

20%

100

0%

0

400

556

100%

524

80%

82.8% 82.7%

40%

200

20%

100

20%

0%

0

0%

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%

400

80%

300

60%
42.0% 45.3%

2,000
1,500

40%

100

20%

0

0%

100%
1,5201,451
64.9%

1,000

200

63.4%

500

100%
115

100

80%

100
60%

56.5%
50

52.0%

0%

FY18 FY19 FY20 FY21 FY22 FY23

60%
40%
20%

20%

0

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

150

80%

40%

FY18 FY19 FY20 FY21 FY22 FY23

60%

300

40%

20

500

400

0

0%

FY18 FY19 FY20 FY21 FY22 FY23

Electric Truck ratio 40

Disclaimer:⚫ This material is prepared for the sole purpose of providing investors with information and
not 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 his
or 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.

41

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