Mitsubishi Logisnext Co., Ltd.

Mitsubishi Logisnext

Integrated Report 2023

Introduction / Contents

Our Purpose

We positively impact the lives ofpeople around the world bydemonstrating a pioneering spirit andusing emerging technologies to deliversafe, automated and decarbonizedlogistics solutions.
In December 2022, to clarify the significance of our presence in the logistics industry, we reiterated
our purpose by presenting it in new terms.
As a comprehensive manufacturer of logistics equipment that contributes solutions to societal
issues through our business, we remain committed to devising optimal solutions to the logistics
challenges faced by our customers around the world.

Our Value Creation
Strategy

Our Value
Creation Story

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

01

Table of Contents
Chapter.

1

Chapter.

3

Our Value Creation Story ....01

Value Creation in Practice .....23

01. Introduction / Contents
02. Corporate Philosophy / Management Policy
03. Our Value Creation Model
04. Advantage 1: Our Robust Technological
Platform
05. Advantage 2: Our Extensive Product Line
06. Advantage 3: Our Global Network
07. Financial Highlights
08. Non-Financial Highlights

24. Message from the Head of the Engineering
Headquarters
26. Message from the Head of the Administration
Headquarters
28. Overview of Sales in Japan
29. Overview of Sales Outside Japan

Chapter.

2

Our Value Creation
Strategy ........................................................09
10. Establishment of “Vision 2035”
11. Message from the President
15. Overview and Progress of Medium-TermBusiness Plan “LS2023”
16. Our Approach to Sustainability Management
19. Special Feature 1: Contributing to Workstyle
Reforms at Logistics Sites
20. Special Feature 2: Initiatives to Enhance Job
Satisfaction
21. Message from the CFO

Chapter.

4

The Foundationof Our Value Creation ...............31
32. Environmental Initiatives
37. Societal Initiatives
42. Governance Initiatives
46. Directors and Audit and Supervisory Board
Members
50. Message from Our External Director
52. ESG Summary of Activities
Chapter.

5

Corporate Data ..................................60
61. Five-year Financial Summary
62. Chronology
64. Corporate Pro­file / Network

Our Value Creation
Strategy

Our Value
Creation Story

Corporate Philosophy / Management Policy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate Philosophy
Moving the world forward as theleading provider of innovative logistics
and material handling solutions

Management Policy
We always behave
ethically as a good
corporate citizen.

Environment

QualityCompliance

We preserve the global
environment and contribute toongoing development in local
communities.

We provide world-classquality — it is a mindset andexpectation that guides allof our business processes
and customer interactions.

Technology

Customers

SafetyWe promise the safety ofpeople and our products is thefoundation of our success.

Employees

We respect theindividuality, creativity,and initiative of all
employees, and empower
them to deliver on our
promises to our customers
and partners.

We form long-lasting partnerships withour customers by helping them solve
their material handling challenges with
our innovative products and services.

We apply leading edge technology to solve
the next generation of logistics challenges.

Corporate
Data

02

Our Value
Creation Story

Our Value Creation Model

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

As a comprehensive manufacturer of material handling equipment, wecreate value for society by providing solutions in the global logistics market.
Inputs : Accumulated capital
Financial Capital

Global Logistics
Challenges

Total assets: 475.4 billion yen
Net assets: 76.0 billion yen

Human Capital
Number of employees(consolidated): 12,056

Building asustainablelogistics network

Small-lot,segmented, andaccelerated
delivery networks

Intellectual Capital
Number of patents held
In Japan: 920
Outside Japan: 269
R&D Expenditures
5.04 billion yen

Manufacturing Capital
Production bases
In Japan: 6 plants
Outside Japan: 8 plants
in 6 countries

Advantages

1

A technologicalplatform derived frommultiple manufacturersof material handlingequipment

In Japan: Approximately 400
sales and service locations
Outside Japan: Sold to morethan 100 countries from 39
locations in 15 countries

Natural Capital
Water consumption (Kyoto,
Shiga, and Azuchi Plants)
88,000 m3

Outputs

Logisnext SolutionS
2023
Growth Strategy

2

A broad productline combining
hardware & software
Page 05

Page 15

With an integrated system
encompassing upstream anddownstream operations, we canrespond to issues arising in the
global logistics market in a timely
and agile manner.
Sales

Service

A Foundation for Sustainable Growth3

An extensive
network to identify
local needs aroundthe worldPage 06

Sales volume: 26,000 units
Net sales: 176.32 billion yen
Operating pro­fit: 0.51 billion yen
Operating profi­t before
amortization of goodwill, etc.:
5.34 billion yen
Page 28

Outside Japan

Design &Quality
Production
Development
Assurance

Outcomes

In Japan

FY2021–23 Medium-TermBusiness Plan

Page 04

Social and Related Capital

Declining laborpool in thelogistics industry

Business Operations

Environmental/Social/Governance(ESG)• Reducing environmental impacts andimproving the social environment forsustainability

Sales volume: 86,000 units
Net sales: 439.09 billion yen
Operating pro­fit: 14.2 billion yen
Operating profi­t before
amortization of goodwill, etc.:
19.65 billion yen
Page 29Natural Capital
CO2 emissions(Kyoto, Shiga, and Azuchi
Plants)12,144 tonnes

Provide additional
assistance options to help
operators perform theirmaterial handling tasks

Contributing labor-saving
solutions throughautomation technology

Contributing to energy
efficiency and reduced
CO2 emissions withenvironment-friendly
products

Contributing to achievementof the SDGs through ourbusiness operations• Relationship with society (customers,
business partners, employees, local
communities, and shareholders)• Corporate governance, compliance, andrisk management
Page 32

Page 16

Our Purpose

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.

03

Our Value
Creation Story

Advantage 1: Our Robust Technological Platform

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Our technological platform is derived from multiple material handling equipment
manufacturers that have created many “Japan firsts” and “world firsts.”
Origins of
Our Advantages

Establishing a solid footing in the Japanese market
A
Japan
first

1937–

NipponYusoki Co.,
Ltd.

1970–

Forklift
Division,
Mitsubishi
Heavy
Industries,
Ltd.

Brands for theJapanese market

A
world
first

A
Japan
first

1939
Electric forklift
developed.

1958
PLATTER stand-on electricreach forklift developed.

PLATTER

PLATTER Auto

A
world
first

2017–
ERSIS

Advantages in large vehicles forhandling specialized cargoes

TCM
Corporation

Completed Japan’s first engine-powered forklift (certified
in 2010 as an element of Japan’s Mechanical Engineering
Heritage by the Japan Society of Mechanical Engineers).

2008
Hybrid transfer crane wins the second Japan
Material Handling Grand Prize.

NissanForkliftCo., Ltd.

A
world
first

1975
Nissan Motor starts production at the
Murayama Plant (following a transfer fromthe Nissan Shatai Kyoto Plant).

DIESELENGINE

GK21/25 GASOLINE/LPG
ENGINE

1986
Production and sales of H01 and H02 Series small
engine vehicles with full floating cabs begins.

SafetyGood Finder,
an AI-powered humandetection system forlarge forklifts

Accumulated expertise in incorporating automotive technology
and in-house engine innovations in product development

1957–

Key components of our in-housegroup development
D04EG

FX
1949

Environmental
performance

Environment-friendly clean engines, Models D04EG and
GK21/25

A
Japan
first

1949–

Technology for
automation andunmanned operation

New rubber-tired
gantry craneMitsubishi Logisnext

2009
4- and 5-tonne hybrid forklifts
introduced.

Our Technological Advantage

ΣSynX autonomous andintelligent solutions

1971
Automated guided forklift
developed and introduced.

Focused on Europe and North America

Brands for theinternational market

Transfer crane

Incorporating development anddesign innovations targetingenhanced functionality andease of use

04

Advantage 2: Our Extensive Product Line

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

An extensive product line supporting
all aspects of logistics by combining hardware and software
Transportation

Storage

Management

We support the safe and efficient transportation of a variety of materials and products in and between
various locations, including indoor environments such as warehouses and low-temperature storage, andoutdoor environments such as ports and in-between factories.

We contribute to not only the space efficiency,
but also the time efficiency through work
process improvement, such as location
management based on the frequency of
warehouse utilization, and the automation ofroutine operations.

Reach-type forklift

Automated warehouse

Reach Stacker

By real-time monitoring of various data
including product storage and forklift
operational status, we enhance operational
efficiency and performance.

LVS
Forklift operation management system

L-SAS
Service-based troubleshooting system
Automated guided vehicle

Rubber-tired gantry crane

Order picker

Lateral stacking truck05

Our Value
Creation Story

Advantage 3: Our Global Network

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Our global network identifies the local logistics needs of countries around theworld and responds with local production for local consumption.
Global Network and Regional Strategies
Japan
Japan
28.7%

We have established a strong sales and service network that is positioned as astable and secure market because it rests on a stable business base, with highreliability and high customer recognition of our products.

Americas• Focusing on resolving delays in forklift truck shipments due to parts shortages in fiscal2022• Pursuing joint development of the logistics solutions business in collaboration with
Mitsubishi Heavy Industries, Ltd. and other companies

Sales ratio
by segment●

Outside Japan
71.3%

●

Americas●●●●●

Europe

Japan
●

●●
● ● ●
●
●

China
2%

Japan
24%

●

• Strengthening the EQ Solutions and rental business of Equipment Depot• Investing in strong independent and direct distribution channels• Accommodating the rapidly growing demand for automation

Ordersby region

Europe(incl. Middle East ＆ Africa)
16%

●

●

• Pursuing increased market share by promoting sales of new models introduced in fiscal
2022• Differentiating our product offerings through mixed-fleet solutions (forklifts and AGVs) for
markets where advances in decarbonization and automation are in demand●

APAC (Asia and the Pacific)●

Americas46%

Maintenance & Information Markets

Europe is at the forefront of logistics. With our ability to develop products thatmeet customer needs, we emphasize steady growth as we pursue our global
operations.

●●●●

Our Most Important Markets

The markets of the Americas lead the world economy. In the Americas, where
demand is high, we have built a strong sales and service network and havedeveloped diverse alliances. We position these as the most important markets
because they drive our international operations.

EuropeAPAC
12%

A Stable and Secure Market

China
APAC

Markets with Potential

The Asia-Pacific region is expected to exhibit a high growth rate in the future
due to the supply chain transition away from China. We will position ourselvesto capture market growth in these promising markets.
•P romoting production and shipping while focusing on standardization of lead times

China

A Market Undergoing Strategic Restructuring

China’s material handling equipment market is expanding rapidly. Amid the riseof local manufacturers who use low prices as a weapon, we will rebuild oursales network by reviewing our strategies.
• Capturing demand for alternatives to engine-powered forklifts by expanding sales ofsmall electric forklifts in markets where the adoption of electric forklifts is accelerating
due to emissions regulations

06

Our Value Creation
Strategy

Our Value
Creation Story

Financial Highlights

Net Sales / Ratio of Outside Japan

Operating Profit / Operating Profit Margin

Operating Profit / Operating Profit Margin

Net sales (millions of yen)

(Before amortization of goodwill)(After amortization of goodwill)

Ratio of outside Japan (%)

Operating profit (millions of yen)

Operating profit (millions of yen)

Operating profit margin (%)

Operating profit margin (%)

615,421448,381465,406

448,918

71.3

391,496

24,995

4.9
21,981

14,70960.1
59.1

Earnings per share (yen)

66.48

4.1

1.8

717

8,288

10,990

6.73

3,592

57.0

2.8

0.8

1,594

2.8

-25.19-50.63

0.4
2018

2019

2020

2022

2021

6,913
64.82

7,077

2.4

13,013
62.6

（FY）

2018

2019

2020

2021

2022 （FY）

Corporate
Data

Profit Attributable to Owners of Parent /Earnings per Share

13,156

4.1

The Foundation of
Our Value Creation

Profit attributable to owners of parent (millions of yen)

2.9

18,182

Value Creationin Practice

2018

2019

2020

2022 （FY）

2021

2018

-2,683-5,392
2019

2020

2021

2022 （FY）

Sales outside Japan amounted to 439.095 billion yen
due to increased unit sales in the Americas, Europe, andAsia, as well as tailwinds from the yen’s depreciation.
Moreover, consolidated sales reached a record high.

Despite the impact of soaring raw material and transportation costs, operating profit and operating profit before amortizationof goodwill reached record highs due to increased sales and the significant contribution of price optimization.

Profit attributable to owners of parent was 6.913 billion
yen and earnings per share were 64.82 yen due to anincrease in operating profit.

ROA/ROE (%)

Capital Expenditure (millions of yen)

Capital Adequacy Ratio (%)

ROAInterest-bearing Debt / Interest-bearing
Debt Ratio

ROE

Interest-bearing debt (millions of yen)

45,698
11.2

Interest-bearing debt ratio (%)

10.0
167,424
27,084

1.9

-0.7

1.2

1.6

0.2

-1.5

17,844

183,627

182,695

229,665
18.0

188,182

26,710

14.7

15.1

15.6

15.9

2021

2022

50.3

18,128

49.2

48.3
46.4

45.5
-4.9

-8.9
2018

2019

2020

2021

2022（FY）

ROA was 1.6% and ROE was 10.0% due to an increasein profit attributable to owners of parent.

2018

2019

2020

2021

2022

（FY）

Our capital expenditures were 45.698 billion yen. Our bookvalue investments consisted of the following: 9.547 billion
yen was attributable to our business in Japan, mainly
investments in forklift vehicles by sales subsidiaries forleasing and rental, while 62.371 billion yen was attributableto our business outside Japan, mainly investments in forklift
vehicles by sales subsidiaries for leasing and rental as well as
the purchase of machinery and equipment.

2018

2019

2020

2021

2022

（FY）

2018

2019

2020

（FY）

In fiscal 2016, we took on a large amount of debt to acquire shares of UniCarriers Corporation, so interest-bearing debt
remains high compared to the scale of our business. We intend to increase free cash flow in order to improve our capital
adequacy ratio as we continue to focus on strengthening our financial base.

07

Percentage of Female Hires (Recent
University Graduates) and Female Managers

Personnel
Number of employees

10,689

Kyoto, Shiga, and Azuchi Plants
Fiscal Fiscal Fiscal Fiscal
2018 2019 2020 2021

50.0

56.6

Mitsubishi
Logisnext

2.44
2.37

52.1

2.33

48.6

17.0

2020

2022

2021

(FY)

2.33
Our affiliates

26.0

21.0

Direct sales
companies in
Japan

13.0

1.4

1.4

1.7

2.6

3.0

2019 ＊

2020 ＊

2021＊

2022 ＊

2023 ＊ (FY)Corporate
Data

Occurrence of Occupational Accidents
Percentage of Employees with Disabilities (%)

54.2

2019

The Foundation of
Our Value Creation

Percentage of managerial positions filled by female employees (%)

12,056

11,775

11,41654.9

2018

Value Creationin Practice

Percentage of female hires (recent university graduates; %)Percentage employed outside Japan (%)

12,029Our Value Creation
Strategy

Our Value
Creation Story

Non-Financial Highlights

2.02
2018

2019

2020

2021

2022 (FY)

Production
bases outsideJapan

Fiscal2022

Accidents withlost time

1

5

5

1

0

Accidents without
lost time

17

11

12

8

21

Accidents withlost time

*-

1

0

1

0

Accidents without
lost time

*-

7

9

6

6

Accidents withlost time

9

12

12

14

18

Accidents without
lost time

41

26

47

39

32

More than
accidents without
lost time

*-

33

34

46

56

 ata related to our affiliates and our production bases outside Japan have*Dbeen collected only since fiscal 2019.

We remain focused on promoting diversity, which includes theactive participation of our female employees. Under our Action Plan,
which is related to Japan’s Act on Promotion of Women’sParticipation and Advancement in the Workplace, we have adopted
a target of at least 3.4% for female managers and at least 20% for
new female hires. We are committed to achieving these targets.

The company employed 5,234 in its businesses in Japan and 6,822
employees in its businesses outside Japan, indicating that 56.6%
are employed outside Japan.

We are focused on creating a workplace in which individuals,
regardless of their disability, can play an active role in accordancewith their wishes and abilities.

We remain focused on ensuring a safe and secure workplaceenvironment in a multifaceted manner by adhering to our Group’s
safety credo: “Safety is the foundation of all that we do.”

CO2 Emissions from Plants in Japan

Water Consumption at Plants in Japan*As of April 1

Number of Patents Held

R&D Expenses (millions of yen)

(Kyoto, Shiga, and Azuchi Plants) (tonnes-CO )Number of patents held in Japan
Number of patents held outside Japan

1,105 ＊1

970

＊1

987

＊1

5,528
942

＊1

920

5,292

＊1

4,362

4,649

5,040

15,4882018

291 ＊22019

284 ＊22020

3

123
14,78012,650277 ＊2(Kyoto, Shiga, and Azuchi Plants) (1,000 m )2

293 ＊2
2021

120
108

13,877

12,144

85

88

2021

2022 (FY)269 ＊22022 (FY)We have established a rewards system that motivates our
employees to be inventive, and we are working to acquire
intellectual property and enhance our intellectual creativity.
 atents filed by the company in Japan and patents owned by the*1 P
company in Japan atents filed by the company outside Japan and patents owned by the*2 P
company outside Japan (Patents filed and held by group companies
outside Japan are not included.)

2018

2019

2020

2021

2022 (FY)

Looking to our R&D activity for fiscal 2022 under our medium-termbusiness plan, Logisnext SolutionS 2023, while maximizing thestrengths of our Engineering Headquarters, we worked closely with
our development bases outside Japan to launch new products onto
the market as planned. R&D expenses by segment were 3,076
million yen for our business in Japan and 1,963 million yen for ourbusiness outside Japan.

2018

2019

2020

2021

2022 (FY)In fiscal 2022, CO2 emissions were 2,540 tonnes-CO2 from the
Kyoto Plant, 6,461 tonnes-CO2 from the Shiga Plant, and 3,143
tonnes-CO2 from the Azuchi Plant, with all three plants posting aslight decrease in CO2 emissions compared to the previous year.

2018

2019

2020

In fiscal 2022, water consumption decreased at the Kyoto Plant due
to a decrease in production; increased at the Shiga Plant due to anincrease in production; and increased slightly at the Azuchi Plant
due to an increase in production.

08

Our Value Creation Strategy

Chapter.

2

Our Value
Creation
Strategy
The EDiA XL is a mid-sized electric forklift launched in
the European and Americas market. Ample cargohandling, acceleration, and slope-climbing capabilities
make this model an ideal choice for usage
environments typically served by engine forklifts. It
also contributes to the emergence of a society
committed to decarbonization. Its modern design and
excellent performance enabled us to win the Red Dot
Design Award 2023.

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

09

Our Value
Creation Story

Establishment of “Vision 2035”

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

The two growth strategies propelling our vision toward 2035
The Future of Logistics in a Changing
Business Environment
As a comprehensive manufacturer of material handlingequipment with operations around the globe, the Mitsubishi
Logisnext Group is working to address a variety of issues. These
include contributing to the safety of customers at logistics sites;
mitigating labor shortages through automated and autonomous
systems; and responding to climate change by taking steps
toward decarbonization.
As we look even further ahead, we expect that the urgency
to implement solutions to these issues will increase further by
2035 due to ongoing shifts in both society and the businessworld. While further progress is certain to be achieved in termsof automated and autonomous systems, manned forklift trucks
will continue to fill a variety of needs across a wide range ofuse cases.
In light of these circumstances, we expect that the
adoption of automated and autonomous systems will drive a
growing need for more links between manned forklifts and otherequipment and facilities. Moreover, in addition to pursuingcoordination between devices as well as interconnections
between people and equipment, we believe that ourcontributions to safety and security — which are a prerequisite
for all aspects of progress — will continue to grow in importance.
Decarbonization/Compliancewith environmental regulations

Electrification/
Digitization

EconomyPolitics
Block economy/
Social fragmentation

Logistics efficiency/
Support forelectronic commerce

Coordination between
humans and machines/
Safety & security

Changes in customer
contact points

Technology

Automation &autonomous operation

Labor shortages/
Outsourcing

Society

Our Guidelines for 2035

Our Purpose
We positively impact the lives of people around theworld by demonstrating a pioneering spirit and using
emerging technologies to deliver safe, automated anddecarbonized logistics solutions.
At the Mitsubishi Logisnext Group, we continue to operate ourbusiness according to our corporate philosophy. However, inlight of the major changes occurring in the business environment,
we have reexamined the rationale for our participation in themarket and have clarified it in the form of Our Purpose.
(See page 16.)

The Values We Support
Employee satisfaction: Each employee can think
independently, attempt new challenges and take therisk of making mistakes without fear of failure, while
growing day to day.
In order to realize our stated purpose in light of the many
emerging societal issues as well as an economy in transition,
each one of us must have the freedom to develop anddemonstrate our abilities to the fullest. To outline the premise ofthis effort, we have also clarified what we call “the values
we support.”

Vision 2035
Since its founding in 2017, the Mitsubishi Logisnext
Group has remained focused on promoting its
business according to our medium-term business planthat emphasizes growth and expansion. However, as
we expect major changes to emerge in theenvironment surrounding the logistics industry, we
have formulated a plan we call “Vision 2035” as a
guideline for achieving this future growth. This planentails the following:
Supporting decarbonization as well as safety
and security in the market for forklifts andother industrial vehicles
Provision of automated and autonomous
equipment to fulfill the second pillar of ourbusiness, which is to meet the twin needs of“connectivity” and “automation andautonomous operation.” We will also provide
solutions to link these technologies andimplement them in a safe and secure manner.

Business Scale as of 2035

Sales of1

trillion JPY

10Our Value
Creation Story

Message from the President

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

To build on our record high sales andoperating profit, we are fostering a
new corporate culture targetingsustainable growth.

Yuichi Mano
President

Corporate
Data

11

Message from the President

Growing demand leads to record high sales andoperating profit
In fiscal 2022 (ended March 31, 2023), the material handlingequipment market continued to experience long lead times due
to delays in the supply of various parts as well as soaring raw
material and transportation costs, continuing the challenges
experienced during the previous fiscal year. Overall demandremained strong, and orders for our Group companies remained
stable in general.
As a result, consolidated sales increased significantly to615.4 billion yen (up 32.2% from the previous year), setting arecord high. In terms of profits, although we were affected bysoaring costs, operating profit reached a record high of 14.7
billion yen (up 309.4%) due to the effects of increased sales,
streamlined production and shipping inside and outside Japan,
and efforts to optimize selling prices around the world. Profit
attributable to owners of parent also increased significantly by
6.9 billion yen (up 864.0%). Furthermore, operating profit before
amortization of goodwill, which is an important indicator of
profitability, reached a record high of 24.9 billion yen (up 92.1%
year-on-year).

Our Value
Creation Story

As part of this strong performance, we achieved our sales
target of 500 billion yen one year ahead of schedule. This was
one of the numerical targets outlined in Logisnext SolutionS
2023, the three-year medium-term business plan that has beenin effect since fiscal 2021. Although some gaps still remain
between the other numerical targets and our actual
performance, the semiconductor shortages and shortages ofvarious other parts are gradually resolving in fiscal 2023 (ending
March 31, 2024). In the months ahead, the backlog of ordersthat has accumulated mainly in the North American market islikely to be cleared, and we expect that we can effectively aligncurrent pricing with products costs.
Going forward, we will continue to focus on further
streamlining production and shipping products while continuing
to manage fixed and variable costs in each business tostrengthen profitability. In fiscal 2023, we forecast 690 billion yen
in consolidated sales, 40 billion yen in operating profit, 23 billion
yen in profit attributable to owners of parent, and 50 billion yen
in operating profit before amortization of goodwill. We expect toachieve the numerical targets outlined in our current mediumterm business plan.

Formulating a purpose and long-term businessvision focused on the future of the GroupIn light of these business conditions, our company has set out
to reexamine the rationale for our Group’s participation in society.
We have clarified the results of this effort as “Our Purpose.”
Furthermore, we have established our “Vision 2035” as aconcept the company is to achieve by 2035; both of these
initiatives are incorporated in this Integrated Report. Since ourGroup’s inception in 2017, one of the challenges facing us after
our corporate integration has been to establish a stableorganizational structure. While our first medium-term business

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Our Purpose

We positively impact the lives of people
around the world by demonstrating apioneering spirit and using emerging
technologies to deliver safe, automatedand decarbonized logistics solutions.

plan achieved a measure of success, we are also beginning tosee challenges emerge to our next stage of growth. We havebeen considering this issue since the second half of fiscal 2022,with the aim of presenting a vision that will serve as a guideline
for the future, both inside and outside of our Group.
Since assuming the position of president in June 2022, I
have visited our manufacturing and sales bases in Japan as wellas our Group companies and agencies around the world, and I
have enjoyed many conversations with numerous colleagues
through one-on-one conversations and townhall meetings. What
I came to realize anew was the fact that our Group had many
employees who all displayed diverse skills and personalities. In
order to ensure the diversity of our personnel could benefit us asa strength and lead to our sustainable growth as a global
company, it is essential that everyone be able to focus theirdiverse skills and personalities toward common goals with aneye on the future.

12

Message from the President

This is precisely the reason we have formulated our
purpose and vision. In addition to being able to look at year-onyear comparisons and consider targets for a period three years
from now, we need to have a vision and identify aspirations thatlook beyond that. In this way we can clarify where we want to
be in 10 or 20 years. Through a backcasting exercise thatconsiders that future vision, we can outline the path we shouldtake, which includes a new medium-term business plan.
To formulate our purpose and vision, we first formed aselect team in each department comprising mainly mid-career
employees in their 40s who would be serving as the next
generation of management, and we asked them to create a
draft plan. For example, we borrowed phrases from our
purpose, such as “pioneering spirit” and “power of ourtechnology,” that were derived from meetings of the selectteams. From this draft plan, we reached a final decision after
repeated discussions at board meetings that included outside
directors.
Of course, formulating this purpose and vision was not theend of the process. I remain committed to using every
opportunity to raise awareness and disseminate this effort
throughout the Group, formulate specific growth strategies
based on these, and, through implementation, eventually realize
our vision.

Expanding the social footprint of
the Logisnext brandFor the past two-and-a-half years, our current medium-termbusiness plan has been based on three pillars: building up
business resilience; accelerating growth strategy; and further
developing our global and regional branding strategies. The firstpillar encompasses strengthening our resilience by continuing to
expand sales, profits, and profit margins as mentioned above,

Our Value
Creation Story

as well as forging a business structure for the future, such as
optimizing sales prices in overseas operations and reorganizing
production systems in Europe. I am confident that this part ofthe project is progressing smoothly.
Regarding the second pillar, although we have achieved
certain results through the reorganization of sales networks
around the world in an effort to accelerate the Group’s growthstrategy, we require a clearer direction for an overall strategy thattakes advantage of integration synergies. In particular, in oursolutions business, which we have positioned as the core of ourstrategy, I will continue to focus on compiling concrete measures
such as business concepts, profit models, and promotion
systems. In our next medium-term business plan that isscheduled to begin in fiscal 2024, which we are currently
formulating, we will go even further in making this plan evenmore specific. At the same time, we will formulate a growthstrategy that responds quickly to changes in the businessenvironment and establish an organizational structure to put it
into practice. Specifically, we launched the LogisNext Solutions
Preparation Office at our corporate headquarters in October
2023. The purpose of this initiative is to prepare for the launch ofa new organization that will oversee our solutions business both
inside and outside Japan. As we look to the expansion of
warehouse logistics arising from the growth in global
e-commerce, as well as demand for automation due to labor
shortages, we aim to build a system that effectively provides theautomated and autonomous equipment, systems, and services
developed and sold by our Group.
Regarding the third pillar, in October 2022 we established a
new public relations department intended to further develop ourglobal and regional branding strategies. As a specializedorganization, this department will play a central role instrengthening information dissemination both internally andexternally. We remain focused on increasing awareness of the
Logisnext brand and strengthening our internal branding.

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Promoting initiatives intended to reduce GHG
emissions and strengthen our human resources
In line with the formulation of our purpose and our long-termbusiness vision, we have also reorganized the material issues
that were established in 2020 to better align with our business(see page 17). One material issue on which we have placed
particular emphasis is the reduction of greenhouse gas
emissions (GHGs). Regarding GHG emissions attributable to the
supply chain, known as Scope 1 and Scope 2, we are working
toward our goal of reducing CO2 emissions by 40% (relative tofiscal 2017 levels) across the entire Group by 2030 with theobjective of achieving Net Zero by 2040. We will dedicate
ourselves to strengthening our response in this area.
Furthermore, regarding Scope 3 emissions (GHG emissions
attributable to the provision of products and services tocustomers), we have adopted a policy of proactively contributing
to climate change solutions by expanding sales of electric forklift
trucks and automated and autonomous systems around theworld. We plan to present specific numerical targets in our next
medium-term business plan.

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Our Value
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Message from the President

Another material issue that I am emphasizing is thenecessity of strengthening our human resources (human capital).
The COVID-19 pandemic, while unfortunate, has presented ourcompany with an opportunity to advance system reforms thatenable employees to work flexibly, such as the introduction of aflexible work-from-home system. Moreover, we are currently
promoting reforms that focus on job satisfaction. In order tofashion ourselves as a company that is easy to work in as well
as rewarding for its employees, we are taking steps to expand
our educational and training systems and programs that
contribute to the growth of our employees. We are also focusing
on revising career paths so that employees can gain a variety ofwork experience according to their wishes (see page 20).
The support of management is the key to reform initiatives
that enable our employees to gain more experience and engage
in an unprecedented scope learning opportunities through theirwork. For department managers, it can be difficult to transfer
out an employee who has achieved much success in his or her
current assignment. However, enabling such an individual togrow further through the experience gained in a newenvironment and workplace will doubtlessly be beneficial to thecompany as a whole while creating value. Therefore, I always tell
the heads of our various business headquarters to consider
personal growth as more important than workplace
circumstances. Through this approach, we are creating anenvironment in which the greatest possible number of
employees can experience diverse work within the company
and gain additional opportunities for growth.
It is also important to note that such opportunities for
employee growth are not limited to positions within thecompany. Interacting with people from other companies andother industries also provides exceptional opportunities to gain
new knowledge and awareness. We intend to increase suchopportunities for interaction with various individuals outside thecompany at various levels.

Fostering a new corporate culture
To add to my observations above, another management issue
that I believe to be of great importance going forward is thefostering of a new corporate culture. This theme is deeply
related to not only strengthening our organization, but also theaforementioned pillars of further developing our global andregional branding strategies and strengthening our human capital.
I have always felt that the employees of our Group generally
demonstrate the exceptionally high ability to carry out theirduties in their respective areas of responsibility, and I believe thisis one of the greatest strengths of our organization. In today’s
world having rapid change in every aspect, I believe that ourcompany will continue to grow sustainably only if each one of
our employees continues to feel rewarded and takes pride in thebusiness they are involved in.
In these uncertain times, organizations that fear failure andthat avoid new challenges will find it difficult to survive. As they

Our Value Creation
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Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

will fail to devise and implement solutions to the various issues
that are constantly emerging. For this reason, ever since I
became president, I have called out to everyone in the company
to “catch the ball between third and short.” This baseballanalogy is intended to inspire all to keep trying new things andattempting the unknown, rather than limiting ourselves to the
known limits of our current tasks. Even when a baseball infielder
jumps toward the ball but ends up missing the catch, it is nottreated as an error; on the contrary, the fans tend to value theplayer’s courage and initiative. This is the type of organizational
culture that I want to create.
Of course, creating a new culture will take some time.
Toward this end, I intend to provide all employees with
opportunities to gain a variety of experiences and makediscoveries as early as possible.
By fostering a corporate culture in which all employees canpursue their own personal growth while engaging in rewarding
daily tasks, we will be able to further demonstrate the true valueof our Group’s inherent strength in diversity. In that sense,
Mitsubishi Logisnext clearly holds great potential. I am confident
all our stakeholders look forward to our Group fulfilling that
potential in the years ahead.

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Our Value
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Overview and Progress of Medium-Term Business Plan “LS2023”

Our Value Creation
Strategy

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The Foundation of
Our Value Creation

Corporate
Data

Since fiscal 2021, Mitsubishi Logisnext has been working on implementing its first medium-term business plan, titled “Logisnext SolutionS
2023.” Fiscal 2023 marks the final year of this project, which is positioned as the culmination of the final phase, “completion and evolution.”

Basic Policy

1 Build up business resilience2 Accelerate growth strategy

Improve variable and fixed cost

Expand our solutions portfolio to meet the growing
market requirements

In addition to reducing procurement and transportation costs, we will
promote comprehensive cost reductions by producing parts in-house andre-examining labor costs.

Strengthen the existing businessIn addition to increasing both sales and profits in all territories, we will
strengthen our ability to withstand major economic fluctuations byreorganizing our businesses and managing fixed costs.

In addition to providing manned forklifts, we have expanded our offerings toinclude solutions to our customers’ logistics challenges in terms of both
hardware and software. This approach responds to specific needs in the areasof automation and unmanned vehicles, with a special focus on AGVs/AGFs.

Improve our profitability via enhancements to the
distribution networks
We are maximizing the benefits of consolidation by devising regional
strategies for Japan, the Americas, Europe, China, and Asia and the Pacific

Grow market share with an expanded product andservice portfolio
Through collaboration with Mitsubishi Heavy Industries, Ltd., we have
implemented rapid development of products and technologies.

615.4

Billion JPY

391.4

Capitaladequacy
ratio

④

4.1%

2.8%
15.1%

FY202020%

Numerical Targets for Fiscal 2023

15.9%

15.6%

50.0 ②24.9

13.0
FY2021

Utilize “Logisnext” brand and improve brand awareness forall of our brands
Taking advantage of the strengths of our category brands*, we aim to raiseawareness of Logisnext as a comprehensive manufacturer of logistics
solutions.

Create a new corporate culture under “Logisnext”
We will strengthen the sense of unity and the organizational strength of theentire company by focusing on the development of our Group’s humanresources. As the driving force behind our sustainable growth, this approach
will lead to the strengthening of our corporate culture. We intend to contributeto the achievement of the SDGs while enhancing our corporate value andcontributing to the emergence of a society committed to sustainability.
* Mitsubishi Forklift Trucks, Nichiyu Electric Forklift Trucks, Nichiyu Logistics Systems, TCM forklifts,
TCM Specialized Transport Vehicles and UniCarriers Forklift Trucks.

Progress

Overview

Achieved

The target value was already achieved in fiscal 2022.
In fiscal 2023, sales are expected to increase by about 12%
year-on-year, to 690 billion yen.

Projected

We expect to exceed the target of 50 billion yen.

Projected

The operating profit margin before goodwill amortization is
expected to be 7.2%, so we anticipate achieving the target.

Projected

By allocating free cash flow to repayment of interestbearing debt, we expect to achieve the target in fiscal 2023.

① Consolidated sales② Operating profit(Before goodwill amortization)

30 billion yen

2.8%

Operating profit

10.9

③
7.2%

500 billion yen

465.4

Sales

Operatingprofit margin

690.0

①

Numerical Plan and Trends

develop our global and3 Furtherregional branding strategies③ Operating profit margin6%④ Capital adequacy ratio
FY2022

FY2023 Forecast

The period of Logisnext SolutionS 2023

20% minimum

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Our Value
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Our Approach to Sustainability Management

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

We have partially revised our basic policy and material issues in line with
our newly formulated purpose.
Our purpose
We positively impact the lives of people
around the world by demonstrating apioneering spirit and using emerging
technologies to deliver safe, automated anddecarbonized logistics solutions.
In order to implement our corporate philosophy of “Moving theworld forward as the leading provider of innovative logistics andmaterial handling solutions,” we must not only grow ourcompany but also address environmental and societal issues atthe same time. As interest in sustainability and climate change
issues is growing, we believe that contributing to the resolutionof societal issues through our business operations will lead toour sustainability as a company.
To clarify our company’s raison d’être, we have formulated
our stated purpose according to our corporate philosophy andour approach to addressing societal and environmental issues.
This purpose was formulated primarily through discussionsof the Sustainability Council, which was established in 2021 as away to demonstrate the company’s vision and societal value
more clearly. Beginning in 2022, the purpose has incorporated
the opinions of young managers who will be responsible forsteering the company in the future.

Partial revisions to our policies related to
the SDGs
In October 2020, we formulated and adopted our policies
related to the SDGs on the themes of the environment, society,and governance according to our corporate philosophy andmanagement policy. However, following the formulation of
our purpose, which clarifies our raison d’être, we have partiallyrevised our policies related to the SDGs to reflect thisstated purpose.

Key points of the revision
2. Promoting customer safety and security as well as
automation and autonomous operation“Promoting the development of local communities,” which had
been part of our policies related to the SDGs, has been revised
to “promoting customer safety and security as well as
automation and autonomous operation” in keeping with ourstated purpose. We have also clarified the targets that contributeto the resolution of environmental and societal issues in light of
the nature of our business.

3. Diversity and engagement
Similarly, we have replaced “human resource development” inour policies related to the SDGs to “diversity and engagement.”
In addition to our policy of supporting diversity of humanresources, we have announced a policy to increase engagement
by encouraging Group employees to learn independently andexperience growth and job satisfaction through their daily work.

Partial revision of material issues
We have identified material issues in consideration of theirrelevance to our business and their influence on and interest to
our stakeholders. We partially revised our material issues in May
2023 in keeping with the adoption of our stated purpose.
For each material issue, we have set key performanceindicators (KPIs) by which we can evaluate and publicize our
performance at the end of each fiscal year. However, we will also
introduce initiatives during the period that are difficult to evaluatewith KPIs, such as R&D and product-related initiatives.

Policies related to the SDGs
As a comprehensive manufacturer of material handlingequipment that supports logistics operations around theworld, we support the objectives of the SDGs advocatedby the United Nations, offer solutions to societal issues
through our business operations, and contribute to thesustainable development of the planet and society atlarge while helping to build a better future.
1. Conservation of the global environment
We will strive to protect the environment with a global
perspective.
2. Promoting customer safety and security as well as
automation and autonomous operation
We will provide safe and secure products and services toour customers, address societal issues through ourbusiness operations, and contribute to continuous
development.
3. Diversity and engagement
We will respect the human rights, individuality, andcreativity of each and every employee, provide arewarding work environment, support personal growth,and develop personnel who are capable of supporting
our global society.
4. Strengthening corporate governance
We will implement an effective corporate governancesystem to ensure fair and honest business practices
while fulfilling our social commitments as a good
corporate citizen.

16Our Value
Creation Story

Our Approach to Sustainability Management■ Societal issues

Key points of the revision■ Environmental issues
In the past, we identified two environment-related material
issues: “responding to climate change” and “recycling andremanufacturing,” however, these items have been abolishedand replaced with “reducing environmental impacts (reducing
Scope 1 and Scope 2 emissions)” and “providing environmentfriendly products (reducing Scope 3 emissions).”
Through these changes, we are furthering the pursuit ofour stated purpose and specifically addressing decarbonizationof our entire supply chain, which encompasses the procurementof materials, the product manufacturing process, and delivery.

Stakeholder interest and impact■ Reducing environmental load
(Reduction of Scope 1 andScope 2 emissions) NEW■ Providing customers with safe
and secure material handlingequipment NEW■ Providing environment-friendly
products (Reduction of Scope 3
emissions) NEW■ Providing customers with
automated and autonomous
systems NEW■ Corporate governance■ Ensuring diversity of humanresources■ Compliance■ Risk management■ Human resource development■ Job satisfaction and laborproductivity■ Contributing to society and local
communities■ Occupational health and safety

Relevance to our business

Value Creationin Practice

The Foundation of
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Corporate
Data

3. Diversity and engagement

In terms of societal material issues, we have made changes inline with one of our new policies related to the SDGs, “promoting
customer safety and security as well as automation andautonomous operation.” Specifically, the issues of “ensuring
product quality and safety” and “pursuing customer satisfaction”
have been revised as “providing customers with safe and securematerial handling equipment” and “providing customers with
automated and autonomous systems” in our role as acomprehensive manufacturer of material handling equipment.
In addition, “supply chain management,” which had been
identified as one of our societal material issues, has been
integrated into the newly adopted material issues indicatedabove. We remain committed to the ongoing maintenance andimprovement of the quality of our supply chain management inour role as a manufacturing company.

Issues of Material Interest to Our Group■ Environmental issues ■ Societal issues ■ Governance issues

Our Value Creation
Strategy

Our priority SDGs
In formulating our revised policies related to the SDGs and items
related to material issues, we have re-identified the eight material
issues of particular relevance to our circumstances.
1. Conservation of the global environment
7. AFFODABLE AND CLEAN ENERGY
13. CLIMATE ACTION

2. Promoting customer safety and security as well as
automation and autonomous operation
8. DECENT WORK AND ECONOMICGROWTH
9. INDUSTRY, INNOVATION, AND
INFRASTRUCTURE

5. GENDER EQUALITY
8. DECENT WORK AND ECONOMICGROWTH

4. Strengthening corporate governance

16. PEACE, JUSTICE AND STRONG INSTITUTIONS

Our goals as a company supporting the logistics infrastructure
11. SUSTAINABLE CITIES ANDCOMMUNITIES
12. RESPONSIBLE CONSUMPTION
AND PRODUCTION

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Our Value
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Our Approach to Sustainability Management

Establishment of our sustainability system
In 2021, we established our Sustainability Council with the aimof enabling management to oversee all internal sustainability
initiatives. This was intended to enhance the effectiveness of ourinitiatives through intensive discussion and consideration. We
identify material issues; approve policies and responses toissues; formulate, promote, and follow up on company-wide
initiatives related to sustainability; and report the results to our
Board of Directors. We have also established subcommittees foreach field of activity to address the various material issues.
In May 2022, the Sustainability Council began tocontemplate formulating “Our Vision for 2035” after considering
the market outlook for 2035 and other factors, with a view toformulating medium-term and long-term strategies that envision
the future of our Group in society.
In addition, our Carbon Neutrality Committee formulated
initiatives in fiscal 2022 and identified actual CO2 emissions infiscal 2021.
At the Sustainability Council held in November 2022, wereconsidered the discussion of which SDGs we should focus
on. According to the results of this discussion, we redefined ourraison d’être and decided to stipulate our purpose.
In addition, a team comprising mainly young managers,
recognized as those who will take the helm of the company’s
management in the future, submitted recommendations to the
management team on how to formulate the company’s mediumterm and long-term strategies to coincide with the social trends
envisioned in 2035 and the outlook for the material handlingequipment market.

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Board of Directors

Reports

Directs and advises

Sustainability Council

Secretariat

Deliberates, reports and follow-up

Subcommittees
Environmental
preservation

Policies

・Reducing environmental load
(Reducing Scope 1 andScope 2 emissions)

Material Issues

・Providing environment-friendly
products (Reducing Scope 3
emissions)

Promoting customer safety
and security as well as
automation and autonomous
operation
・Providing
・Providing
customers withcustomers with
automated andsafe and secureautonomous
material handlingsystems
equipment

Diversity andengagement
・Ensuring diversity of humanresources
・Human resource development
・Job satisfaction and laborproductivity

Strengthening ofCorporate governance・Corporate governance・Compliance・Risk management

・Occupational health and safety

Subcommittees

DigitalTransformation

External
Communication&
Dialogue

Carbon Neutrality
Committee

Committee of Customer Safety
and Security and Automated andAutonomous Systems

Diversity & Engagement
Committee

Digital Transformation Subcommittee

IR

Investor Relations Subcommittee

PublicRelations/SR

Public Relations Subcommittee

Corporate GovernanceCommittee

18

Our Value
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Special Feature 1: Contributing to Workstyle Reforms at Logistics Sites

Utilizing IoT technology to tackle theissues facing logistics in 2024

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

What are the issues facing logistics
in 2024?

In April 2024, an upper limit on working hours for drivers will be introduced. This is expected to aggravate an
already serious labor shortage crisis. Some are concerned that this regulation will even make it difficult tomaintain the conventional logistics network. In order to improve the efficiency and sustainability of the logistics
industry, we have begun to promote several initiatives, such as demonstration projects incorporating
IoT technology.

In April 2024, an upper limit of 960 hours ofovertime work for truck drivers will be adopted,
which is expected to exacerbate an alreadyserious labor shortage situation. This could
overload the logistics network, resulting indelivery delays and inventory shortages.

Main Initiatives

Visualizing cargo-handling operations through data analysis using
IoT technology: A demonstration project conducted in collaboration
with Shimadzu Corporation and NTT Data Corporation
We participated in a research, development, and demonstration project for implementing logistics
MaaS*1 held from August 2022 to March 2023. This project was aimed at visualizing cargo-handling
operations through the adoption of internet of things (IoT) technology. We were in charge of organizing
the entire demonstration project and compiling and analyzing data on forklift usage.
In the future, we will utilize the data thus obtained to resolve labor shortages, reduce the burden
on drivers and other on-site workers, and improve safety.
*1 “Mobility as a Service” is an initiative aimed at increasing the efficiency of logistics operations — such as optimizing delivery routes
and optimally allocating labor — through the optimal application of IT technology, data, and other elements.

Overview of the Logistics MaaS Demonstration Project
Linking Vehicle Data and Cargo Data
Factory
Location tracking
deviceCarrier

Sales Locations

GPS & dynamic
management tools

Customer

Visualization of operations that burden drivers with data

Practices that reduce the burden on drivers and prevent overloading

Automating logistics through demonstration projects conducted incollaboration with Mitsubishi Heavy Industries, Ltd.
Automation of cargo-handling operations on trucks
While logistics operations inside factories andwarehouses are becoming more automated, outdoor
truck loading and unloading continue to be performed
mainly with manual labor.
At the Logistics Test Center, jointly operated by
Mitsubishi Heavy Industries, Ltd. and our company, weare conducting tests and verifications in order toautomate cargo-handling operations by applying moreadvanced technologies to automated equipment suchas autonomous forklifts.
Automation of picking tasks on the warehouse floor
A large number of workers are typically engaged in thepicking work that takes place in warehouses. In light of
the increasingly severe labor shortage in Japan, we arefocused on overcoming the many challenges in thefield, such as the burden of handling heavy loads andthe occurrence of human error.
Our company and Mitsubishi Heavy Industries,
Ltd. (MHI) have introduced an automated picking
solution incorporating ∑SynX*2 at the LogiQ X Lab,a demonstration facility within the Yokohama
Hardtech Hub.

Logistics Test Center of Research & Innovation Center,
Mitsubishi Heavy Industries, Ltd. in Takasago

The LogiQ X Lab demonstration facility*2 ∑SynX (“sigma syncs”) is MHI’s standard platform for synchronizing and coordinating various types of machinery
systems. It consolidates a lot of digital technologies that enable optimized operation by adding intelligence tomachinery systems.

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Our Value
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Special Feature 2: Initiatives to Enhance Job Satisfaction

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Under Mitsubishi Logisnext’s approach to job satisfaction reforms, thegrowth of each individual leads to the growth of the company.
We remain focused on job satisfaction reforms in the belief that the growth of each employee inevitably leads to the sustainablegrowth of the company as a whole. We are moving forward with the adoption of the three pillars of work satisfaction reform,
which envision further development of the workstyle reforms initiated in the wake of the COVID-19 pandemic, including the
introduction of a flexible work-from-home system. We aim to create a virtuous cycle in which employees feel that their work is
rewarding, which thus increases corporate value and enables our employees to work with even greater motivation.

2

The Three Pillars
and Primary Initiatives

Ensuring diversity

1
Increased engagement• Work style-reforms• Promoting the participation andadvancement of female employees• Sharing of diverse values throughpersonnel exchanges andrecruitment• Strengthening human resource Promoting
development programs
employee• Supporting career development
growth• Improving management andon-site skills• Enhancing “internalbranding” capabilities

Improvingproductivity

Sustainable
Enhancementof Corporate Value• Developing new
businesses

3

Creating a comfortable
work environment• Promoting zero-accident workplace
initiatives• Promoting mental health care
• Instituting clean and hygienic
workplaces

Investing inhuman capital• Developing newtechnologies• Supporting thecustomer• Increasing ourpresence

Corporate
Data

20

Message from the CFO

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Pursuing sustainable growth in both the financial and Non-financial fields
Progress of financial strategies under our
medium-term business planIn fiscal 2021, we began implementing “Logisnext SolutionS
2023,” our medium-term business plan. As part of this effort,
I focused on two main priorities in my role as CFO: toimprove profitability, in other words, to increase our earning
power; and to strengthen our financial position. In terms ofthe targets set out in our medium-term business plan, theformer was specified as “achieving a profit margin of 6% and30 billion yen in operating profit before amortization of
goodwill, etc.” while the latter is “achieving a capital
adequacy ratio of at least 20%.” As we are now halfway
through the final year of our medium-term business plan, weare on track to achieve these targets (see page 15).
However, the process that led us to this point included many
aspects that differed from our initial expectations.

Takatoshi Uno
Director, Executive Officer, CFO, and Division Head, in charge of Corporate
Finance and Accounting Headquarters, Corporate Strategy and Planning
OfficeWhen we formulated this plan, we envisioned a scenario in
which the global logistics market would shrink significantly due
to the COVID-19 pandemic, so we set out to increase ourmanufacturing productivity to secure profits in this difficult
circumstance. However, in reality, market demand recovered
sharply in fiscal 2021, the first year of the medium-term businessplan, as seen in the rapid increase in small-lot logistics due tothe growth of what became known as “stay-at-home demand.”This phenomenon occurred mainly in the Americas and Europe,with the result that orders also increased rapidly. On the other
hand, supply chain disruptions triggered by the shortage ofcontainers and semiconductors, as well as supply constraints,
kept us from achieving planned production levels despite a rapid
increase in orders; moreover, order backlogs emerged in someregions. In addition, the company experienced soaring costs
due to rapid inflation. Although we tried hard to absorb costs
and optimize prices through our own diligent efforts, we did not

see the effects immediately due to production delays. In thesecond half of fiscal 2022, the shortage of parts finally subsided
and product sales began to increase following price optimization,
creating the current situation in which profits have been rapidly
improving along with sales.
Although some aspects differed from the scenario we hadenvisioned, we believe that the Group’s earning power is steadily
growing as a result of increased earnings, the streamlining ofoperations in each division in keeping with the medium-termbusiness plan, the reorganization of the production system, andthe optimization of the sales network. In addition, we have beenable to communicate face-to-face with our customers aroundthe world in the midst of the inflationary situation and optimize
prices in line with costs, which we consider a major achievementthat will lead to a positive future.

Operating Cash Flow, Investing Cash Flow, and Free Cash Flow
FiscalFiscalFiscalFiscalFiscal

2018

2019

2020

2021

2022

Operating Cash Flow

21.9

42.0

33.5

20.6

28.7

Investing Cash Flow

(6.9)

(49.0) (22.5) (19.2) (40.2)

Free Cash Flow

15.1

(6.9)

11.0

1.4

(11.4)

Billion JPY

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Our Value
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Message from the CFO

Aiming for further progress under our next
medium-term business plan
I recognize that the basis of our financial strategy is to ensure
a sound financial foundation while making effective use of
the cash acquired through our business operations toeffectively allocate funds to support corporate growth.
In that sense, I believe that one of the biggest challenges
facing our Group today is determining how to establish a
structure that can accrue a lot of cash.
Our free cash flow in fiscal 2022 was negative due to anincrease in work-in-progress (inventories) arising from theproduction delays mentioned previously as well as the impact of
the adoption of new lease accounting standards in the U.S.A.
However, as the supply chain recovers, the backlog is being
cleared and we are working to improve our free cash flow for
fiscal 2023. From fiscal 2024 onwards, during which time thenext medium-term business plan (spanning fiscal 2024–2026) isscheduled to take effect, we anticipate growing sales and profits
as well as higher levels of free cash flow as the cycle ofproduction, shipping, and sales normalizes.
Another positive financial impact will be the completion ofamortization of goodwill assets associated with the acquisitionof the former UniCarriers at the end of fiscal 2025. When our
financial statements are compared with those of other global
companies, what stands out is our lower level of profit, but amajor reason for this is the burden of goodwill amortization. Thisis also the reason why our company uses “operating profit
before amortization of goodwill” as an important key
performance indicator. Going forward, we will focus on
improving our cash flow, acquiring more free cash flow, repaying
loans, and further strengthening our financial position.Throughthis effort, we will increase our investments in capital,businesses, and development with the goal of achieving
sustainable growth.

Of course, our policy is to further enhance shareholder
returns, which is an important management objective. At thesame time, we will announce other targets as key performanceindicators in areas such as return on equity, which indicates
return on capital, an aspect for which we have not previously
set targets. We remain focused on further improving ourcorporate value in alignment with the interests of shareholders
and investors.

Three key concepts in support ofsustainability management
Beginning in fiscal 2023, I will also oversee company-wide
sustainability initiatives as the general manager of the
Corporate Strategy and Planning Office. As revealed in the
recent release of our stated purpose and our long-termbusiness vision, the concept of “sustainability” has been
positioned at the core of our management approach, interms of both our social responsibility and economic growth.
In promoting sustainability management, we have placed
particular emphasis on three key concepts: safety and security;
automated and autonomous services; and decarbonization. We
are committed to providing hardware measures that utilize
advanced technology, such as digital tools, in order to transformthe environment of logistics sites. Our objective is to facilitate
work in an industry where safety, security, and the reduction ofwork-related accidents are important issues. We will also focus
on software measures such as safety seminars and safety
awareness initiatives. At the same time, by actively providing
domestic and international markets with a variety of products,
systems, and solutions that support decarbonization in thelogistics field, such as energy-efficient electric forklifts, we will
tackle the global challenge of reducing the environmental impactof this industry. We are intent on reducing emissions andrealizing the sustainable growth of our Group’s businesses.

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Fiscal2018

Fiscal
2019

Fiscal
2020

Fiscal2021

Fiscal
2022

21.9

18.1

10.9

13.0

24.9

11.2%

(8.9%)(4.9%)

1.2%

10.0%

Operating Profit(Beforeamortization of
goodwill, etc.)
ROE(Return on equity)(%)

Billion JPY

22

Value Creation in Practice

Chapter.

3

Value
Creation in
Practice
Our PLATTER model exemplifies the Nichiyu ElectricForklift brand. Sixty-five years ago, our predecessor
Nippon Yusoki Co., Ltd. developed this model asJapan’s first electric reach forklift. Having modernized
the logistics industry, the PLATTER has undergone
several model changes to the present day andcontinues to meet the needs of exacting customers.
In fiscal 2014, this highly acclaimed model won
recognition by earning the Good Design Award.

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

23

Our Value
Creation Story

Message from the Head of the Engineering Headquarters

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Creating greater value through our commitment to monitoring thechanging needs of customers

As a result of organizational reforms effected in April 2023, theEngineering Headquarters absorbed the Product Planning Office— which until then had been a separate entity — and reestablished the Product Planning Division under its umbrella.
The main objective of this restructuring effort was to bridge thedistance between the engineers involved in product design,
those engaged in technical research, and the customers who use
our products at logistics sites in Japan and around the world.
In the past, information on our customers had beentransmitted indirectly to the engineering division through various
related departments, including sales departments and sales
companies both inside and outside Japan. The advantage tothis approach was that a variety of information was organizedon the upstream side, and development requirements wereclarified, ensuring that development work could proceed

efficiently. However, as an engineer at a manufacturing company,
I believe that it is never desirable to engage in development workwithout taking the opportunity to hear our customers’ comments
and perspectives through firsthand experience.
When I was responsible for this aspect of our work, I would
frequently travel to various parts of Japan and to other countries
with representatives from our service and quality assurance
departments in order to deal with defects and other issues. I
learned much from these experiences, such as ideas for making
improvements as well as inspiration for new features. I still
remember the joy and sense of accomplishment I felt when acustomer thanked us for working hard to resolve an issue.
Nowadays, a broad range of technical data is readily available
online and from other sources. Development work can now be
carried out efficiently from the comfort of one’s desk. However, I
have misgivings about this approach, fearing that if we become
passive and too complacent, we will be unable to respond to
rapid changes in the market and in customer perspectives.
We are all aware that the material handling equipment
market has had to respond to a series of game-changing events

Existing System

New System in Effect as of April 2023

The focus of our engineering division: Deftly
monitoring market trends while tracking shifting
customer preferences through firsthandexperience

Engineering
Headquarters

Product Planning
OfficeHiroyuki SugiuraEngineering
Headquarters

Member of the Executive Team
Head of Engineering Headquarters

Domestic Sales andMarketing Headquarters

DX BusinessSupport Department

Global Engineering Control Division

Product Planning Division

Component and Advanced
Technology Division

Global Engineering Control Division

Forklift Development Division

New Product, Component andAdvanced Development Division

Test and Evaluation Division

Test and Evaluation Division

Products Design Division

Products Design Division

Material Handling Solution
Engineering Division

Material Handling Solution
Engineering Division

National Account Sales andSpecial Vehicle Sales Support

DX Business
Promotion Department

24

Message from the Head of the Engineering Headquarters

in recent years. Above all, the rise of Chinese manufacturers isremarkable. Until recently, their products were perceived as
inexpensive but not very reliable, so we had managed tomaintain our quality advantage. In recent years, however, they
have greatly improved their manufacturing capabilities, and aseries of new models with new functions have been rapidly
introduced onto the market. As result, these newcomers havebeen able to steadily grow their market share not only in China
but also throughout Southeast Asia, Europe, and North America.
In order to compete with this new trend, our engineering
division must also adjust and modify their conventional mindset.
We need to hear from our customers one-on-one in order toappreciate the full extent of their changing perspectives. I
encourage our staff not to remain in our offices; instead, I urge
them to consciously create opportunities to visit customers
together with sales agents and other departments.

Greatly improving our development capabilities
with the launch of the Technology Development
CenterOur core base for technological development is Technology
Development Center which we opened on the premises of ourShiga Plant in the city of Omihachiman in 2020. This center

Our Value
Creation Story

consolidates the various functions of the experimental facilities
that each company had operated in dispersed locations before
the business merger, and includes a laboratory building withbench testing equipment and an office building with an indoor
test course. Also available is an outdoor test course that allows
experimental runs with a payload of up to 23 ton truck. In
addition to having the capability to conduct verification tests andsimulations for the various products and systems handled by
our Group, we have introduced a 4-axis vibration testingmachine (4-poster) to improve the accuracy of vehicle strength
evaluations. We also employ testing equipment for various
components such as transmissions, steering wheels, motors,
and controllers. Opening this center has greatly increased ourdevelopment capabilities, leading to improved product quality
and operational efficiency as well as shorter development
lead times.
Another major strength of our company is the great
research and development support we have received from the
Mitsubishi Heavy Industries Group. Mitsubishi Heavy Industries,
Ltd. maintains a specialized organization that supports groupcompanies in their technological and product development, andthrough this contact organization we can access the vast
database of information that Mitsubishi Heavy Industries, Ltd.
has acquired. The businesses of the Mitsubishi Heavy Industries
Group include many that operate in fields that have hightechnological compatibility with our business, such astransportation systems and control systems. Moreover, we canobtain advanced technical support services across a variety offields whenever we request such assistance.

Devising a competitive product line by fusing a
range of technological capabilities

Technology Development Center

Since we first undertook our business integration in 2017, wehave been benefitting from the fusion of the strengths of the four
former constituent companies, and we continue to make steady

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

progress in terms of technological development as well. We
also remain focused on training personnel with a multitude of
future-oriented skills; for example, many of the engineers who
were previously involved in the development of internal
combustion trucks are now taking charge of the development ofelectric trucks.
On the product front, over the past six years we havereorganized the product selection that the former four
companies had developed individually and have been building aconsistent and unified product line under the Logisnext brand.
For example, we consolidated all our electric forklift trucks under
the integrated ALESIS brand, while our internal combustion
forklifts have been unified under the ERSIS brand. We remain
focused on developing highly competitive products by skillfully
integrating outstanding elements and superior features of the
products of each of our respective companies.
This restructuring of our product line is expected to becompleted during fiscal 2023. With the launch of our new
medium-term business plan in fiscal 2024, we intend to build on
this foundation and pursue the creation of even greater value interms of both hardware and software by adhering to three key
concepts: safety and security; automation and autonomous
operation; and decarbonization.

25

Message from the Head of the Administration Headquarters

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Developing as a company where every individual gains motivation byleveraging the individuality and abilities of our diverse human resources

Kazuki Tanaka
Executive Officer
Head of Administration Headquarters

Transitioning our reform efforts from “workstyle” to “work satisfaction”

Providing all employees with opportunities for
growth and career advancement

The Administration Headquarters strives to create anenvironment in which each individual employee can work in
comfort while demonstrating diverse perspectives and values.
We also seek to engender a workplace culture in which each
employee can experience growth and pursue fulfillment on adaily basis. Particularly since fiscal 2021, when the current
medium-term business plan “Logisnext SolutionS 2023” waslaunched amid the difficult circumstances of the COVID-19
pandemic, we have been aggressively promoting reform of ourpersonnel system mainly in Japan to accommodate flexible
work styles that suit the varied lifestyles and life stages ofdifferent individuals.
For example, we have introduced a flexible work-fromhome system that allows individuals to work from home up to
four days a week as a means of supporting the balance
between work requirements and family needs such as childcare
and nursing care. We have also improved our flextime system
without setting core times, which allows our employees the
freedom to choose their own starting and ending times between
6:00 a.m. and 10:00 p.m. Employees are also permitted to leave
their desks during working hours. As well, we have introduced“free seating offices” offering unassigned desks in order toencourage cooperation across departments and improve
work efficiency.
In addition to measures such as these that facilitate easierwork situations, we are focusing on work satisfaction reforms
that address the need for all employees to engage in rewarding
work. We seek to create a corporate culture that enables all
employees to think and act autonomously and engage in highly
rewarding work while adhering to the three pillars of job
satisfaction reform: increasing engagement, cultivating diversity,and creating a comfortable work environment. (See page 20.)

In order to increase employee engagement, it is important for
employees to feel that they are growing in their assigned roles
and improving their skills. Toward this end, we are expanding
our education and training systems and programs to expand
opportunities for growth. We now have a variety of educational
programs in place, including rank-specific training andmanagement education, tailored to length of service, type of job,
desired skills, and other variables. Since last year we have beenencouraging employees to take various training programs fromour parent company, Mitsubishi Heavy Industries, Ltd. We arewidening the scope of learning opportunities by significantly
increasing the number of available options.
In order for a company to be a rewarding place to work, it
is important that a system be developed that allows employees
to design their own careers, expand their horizons, and improvetheir skills. To build on this concept, we are expanding systems
that support autonomous career development.
For example, we offer the Career Interview System, whichenables younger employees to clarify their future career vision
through dialogue with their superiors. We are also developing
the Career Challenge System, which offers opportunities forrotation to a different type of job or location based on theindividual’s wishes. By utilizing these systems, we hope toenable young employees to believe in their own potential andtake on various challenges without fear of failure.

26

Message from the Head of the Administration Headquarters

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Promoting a diverse workforce in order toachieve sustainable growth

Creating a safe and comfortable work
environment

Raising awareness of our new systems andprograms

In modern corporate management, employing personnel withdiverse backgrounds, skills, perspectives, and values within acompany is considered a strength that contributes to sustainablegrowth. In recognition of this perspective, our Group is
expanding its efforts to ensure the diversity of our personnel.
In particular, we have positioned female empowerment as
an important issue to support diversity, and we have set specificnumerical targets for the ratio of women hired as new
university graduates and the ratio of women assigned to
managerial positions. We are now promoting initiatives toachieve these targets.
Regarding the balance between work obligations andchildcare, we are committed to devising a system and work
environment that make it easier to take childcare leave and tocreating a work culture in which employees, regardless ofgender, can continue to work while raising their children. In
recognition of our efforts in support of childcare, the Japanese
Ministry of Health, Labour and Welfare awarded us “KuruminMark” certification in July 2023. Going forward, we will continue
to sustain a work environment that makes it easier for
employees to balance both work and childcare requirements byimproving the rate at which men take childcare leave as well as
annual paid leave.
Apart from these initiatives, we are also promoting midcareer hiring as a means of increasing diversity. As a result of
this effort, the ratio of mid-career hires among new hires
increased to 25% between fiscal 2019 and fiscal 2022.

In order to create a safe and comfortable working environment,
we have launched a health and productivity management
initiative that monitors the physical and mental health of ouremployees from a management perspective. The company’s
president, Yuichi Mano, through his commitment to building aneffective organizational structure intended to improve the healthof employees, is clearly disseminating this health andproductivity management philosophy and related policies both
inside and outside the company. We are confident that
implementing this health and productivity management initiative
will revitalize the organization by enhancing employee vitality andproductivity, thereby increasing job satisfaction.
Additionally, a major prerequisite for a comfortable working
environment is the successful establishment of a safe, secure,and hygienic workplace; our Group has instituted rules tofacilitate the execution of duties by ensuring a safe andcomfortable working environment. We have also established amanagement system that establishes various health and safety
conferences. Furthermore, each site and workplace hasdeveloped individual health and safety plans and is implementing
initiatives under this plan.
With regard to employee mental health, which has become
an essential issue in recent years, we continue to implement
varied measures such as self-care training, line-care training forsupervisors, and interviews and counseling with industrial
physicians for highly stressed employees. We will continue tostrengthen efforts to support the mental health of our employees.

Through our efforts to date, we have achieved measurable
progress in implementing reforms aimed at creating systems of
more comfortable work environments, career development
programs, and education and training systems intended toincrease job satisfaction. However, awareness of thesemeasures within the company is still not optimal, so we intend tocontinue increasing the effectiveness of our systems andprograms by further disseminating them within the company.
Moreover, since management’s cognizance is the key to ensuring
diversity, we are dedicated to applying even greater effort to our
in-house seminars and other educational opportunities.
By steadily implementing these measures and increasingawareness of them within the company, we hope to leverage theindividuality and abilities of our diverse personnel and create acompany in which every individual employee feels motivated.

27

Our Value
Creation Story

Overview of Sales in Japan

Sales in Japan

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

In Focus: Initiatives to Drive GrowthOffering sustainable solutions through our exhibits at Logis-Tech Tokyo 2022

Summary of Fiscal 2022 Results
The decline in shipments in Japan in the first half of the fiscal year, attributable to parts shortages,
was offset by an increase in sales of services, resulting in net sales of 176,325 million yen (up 1.4%
from the previous consolidated fiscal year) thanks to strength in orders received. Segment profit
totaled 510 million yen (down 66.8% year on year), as price optimization had a limited effect relative
to rising costs.
Excluding the impact of amortization of goodwill, segment profit declined to 5,341 million yen(down 16.0% year on year).

In September 2022, we exhibited at Logis-Tech Tokyo 2022, the international logistics
exhibition held at Tokyo Big Sight. In order to strengthen our approach of providing
sustainable solutions that satisfy our customers as well as society at large, we collaborated
with Mitsubishi Heavy Industries, Ltd. to introduce examples of products and digitaltransformation initiatives that contribute to the emergence of a decarbonized society,demonstrated actual equipment on-site, and collaborated in the production of videos by
various research facilities. In addition to manning a booth at the venue, we posted videos
online and proposed our solutions to customers across the country.

Major Initiatives for Fiscal 2023
Virtual showroom

In fiscal 2023, the material handling equipment market is expected to remain flat at pre-pandemic
levels, posting only a slight increase compared to 2022.
While the business environment has been impacted by an ongoing rise in costs relative to thepreceding fiscal year, we are beginning to accrue the benefits of price optimization as we streamline
production and product shipments. With our continued focus on securing parts, we will facilitate
shipments by streamlining production while also emphasizing cost reductions.

Showroom at venue Booth layout

Exhibits of Sustainable Solutions

Vehicle Demonstration Area and Virtual Event
We conducted a demonstrationof an AGF vehicle in conjunction
with the virtual events held in our
online showroom.

Review of Fiscal 2022
Sales
in Japan Sales

Segment profit (Million yen)
Before amortization of goodwill, etc.

(Million yen)

After amortization of goodwill, etc.

173,954

176,325

Vehicle Display Corner

6,358

5,341

Share of Sales
by Segment

28.7%

1,537

510
FY2021

FY2022

FY2021

FY2022On the main stage, we introduced examples of
initiatives targeting the digital transformation as
well as products and logistics aimed atcontributing to the emergence of adecarbonized society. We also provided avehicle demonstration on-site and collaborated
in the production of videos by various
research facilities.

In light of the growing need for a
new generation of environmental
response efforts, we exhibited
electric forklifts powered bylithium-ion (Li-ion) batteries aswell as environment-friendly
engine-powered forklifts.

28

Our Value
Creation Story

Overview of Sales Outside Japan

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Sales Outside Japan
Summary of Fiscal 2022 Results

In Focus: Initiatives to Drive Growth
Looking to our businesses outside Japan, sales increased to 439,095 million yen (up 50.7% year
on year) due to a rise in unit sales in the Americas, Europe, and Asia, and as a result of tailwinds
from the depreciation of the yen. Segment profit totaled 14,199 million yen (up 590.7% year onyear) due to an increase in net sales, the effects of price optimization, and the impact of the
yen’s depreciation.
Excluding the impact of amortization of goodwill, segment profit totaled 19,653 million yen(up 195.3% year on year).
In the Americas in particular, the increase in segment profit was attributable largely to a
substantial increase in sales on the back of robust orders and a strong rental business operated
by a sales subsidiary.

Review of Fiscal 2022
Sales

We are proceeding with new initiatives to meet the demand for automation in Europe andthe Americas.
In June 2023, Mitsubishi Logisnext Americas, Inc., our U.S. subsidiary, andJungheinrich AG, an integrated material handling equipment manufacturer in Germany,
agreed to establish Rocrich AGV Solutions, a joint venture in the North American AGV
market. By effectively leveraging our broad expertise in the field of automated material
handling equipment, the new company will satisfy our existing customers while also
cultivating new customers in the North American market by providing timely support.
In addition, we have established AGV demonstration centers in Finland and North
America with the aim of further contributing to the logistics solutions business. In addition toproviding realistic demonstrations in mock warehouse environments, these centers will be
used as training facilities to provide an even wider array of invaluable services.

Segment profit (Million yen)

(Million yen)

Before amortization of goodwill, etc.

439,095

Share of Sales
by Segment

Addressing Demand for Automation in Europe and the Americas

After amortization of goodwill, etc.

19,653

14,199291,451

71.3%

6,655
2,055
FY2021

Sales Outside Japan

FY2022

FY2021

FY2022

AGV Demonstration Center in Finland

AGV Demonstration Center in North America

29Our Value
Creation Story

Overview of Sales Outside Japan

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Major Initiatives for Fiscal 2023
The Americas

APAC (Asia and the Pacific)• Demand should remain strong in fiscal 2023 compared to pre-pandemic levels. However,demand is expected to decline below fiscal 2022 levels due to the recent economic
slowdown resulting from monetary tightening.
• In terms of our current situation, our efforts to optimize prices have been bearing fruit since
the second half of fiscal 2022, and we expect a similar result in fiscal 2023.
• We will focus on reducing our one-year order backlog as we strive to streamline production
and shipments.

Europe (including Middle East and Africa)• We expect market demand to remain at pre-pandemic levels in fiscal 2023. However,demand is expected to decrease compared to fiscal 2022 levels due to the situation in
Ukraine and price increases imposed by various companies.
• Looking to our current situation, our efforts to optimize prices have been bearing fruit since
the second half of fiscal 2022, and we expect a similar result in fiscal 2023.
• We will make an effort to increase market share by promoting sales of the new models
introduced in fiscal 2022.

• The market is predicted to grow in fiscal 2023 amid the post-pandemic recovery phase, but is
expected to decrease compared to fiscal 2022 levels due to slowing economic growth overall.
• We will focus on production and shipments while striving to standardize lead times.

China• The market in fiscal 2023 is forecast to hold steady at fiscal 2022 levels. The introduction of Tier
4 emissions regulations in 2022 is expected to accelerate the shift to electrification.
• With the lifting of restrictions following the relaxation of the zero-COVID policy, we will capture
replacement demand for alternatives to engine-powered vehicles by expanding sales of small
electric vehicles such as the model FB-80.

LFC

NIX-Northern Branch

NIX-HQ
NIX-Central China Branch
NIX-Southern Branch

The ATX model of our AGV was developed by ourEuropean hub. It is also being supplied to our markets
in the Americas.

The EDiA XL, winner of the Red Dot Design Award (See page 9.)

Shanghai

NIX-East China Branch

In September 2022, we reorganized our sales structure in
China. The purpose of this initiative was to facilitate
decision-making by taking full advantage of the respective
strengths of the agency business (Mitsubishi and TCM
brands) and the direct sales business (Nichiyu brand) handled
by the former MLC [Mitsubishi Logisnext Forklift (Shanghai)Co., Ltd.]. The agency business in charge of LFC [Logisnext
Forklift (Shanghai) Co., Ltd.]. and the direct sales business
was spun off into NIX [Nichiyu Forklift (Shanghai) Co., Ltd.].

30

The Foundation of Our Value Creation

Chapter.

4

The
Foundationof Our Value
Creation
The “TCM forklift” and “TCM special transport
vehicle” brands have an overwhelming presence inport logistics and special environments.
The FD240-5 Heavy-Duty Forklift is equipped withan environment-friendly engine that meets theJapanese government’s stringent 2014 emissions
standards. In addition, the Good Viewer all-aroundmonitor system is provided as standard equipment
for enhanced safety.

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

31

Our Value
Creation Story

Environmental Initiatives

E

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Environmental Issues
Initiatives and systems for achieving the goals

Targeting Carbon Neutrality by 2040
The need to achieve carbon-neutrality is a global challenge. Our corporate philosophy is “to move the world
forward as the leading provider of innovative logistics and material handling solutions.” Consequently,
preserving the global environment, as the very foundation of this philosophy, remains our top priority.
As a member of the Mitsubishi Heavy Industries Group, which boasts a proven track record in decarbonization,
we believe it is our mission to take the lead in implementing countermeasures to fight climate change. In
order to achieve carbon neutrality by 2040, the goal of the Mitsubishi Heavy Industries Group, we willcontribute to the decarbonization, electrification, and enhancement of intelligence across all its businesses,
products, and services.

CO2 emissions reduction targets

Target year

2030

2040

Our reduction of CO2 emissions
from business activities-40%(relative to fiscal 2017)

Net Zero

We intend to reduce our global Scope 1 and 2* CO2 emissions
to Net Zero by 2040. As an interim target, we will reduce
emissions by 40% by 2030 (relative to fiscal 2017 levels). We
are taking this approach to reduce CO2 emissions from ourplants and offices in light of our Group’s production-centeredbusiness operations.
In addition, we are contributing to our customers’ efforts
to reduce their CO2 emissions through our products andservices. The Mitsubishi Heavy Industries Group has declaredthat the entire Group will reduce CO2 emissions throughout its
value chain to Net Zero by 2040. We will also take steps toachieve this goal by providing appropriate products andservices in the logistics segment.
* Under the GHG Protocol, Scope 1 and 2 emissions are the international standard forcalculating and reporting greenhouse gas (GHG) emissions.

Our initiatives to reduce CO2 emissions associated with ourbusiness operations include the following:
1. increasing productivity;
2. promoting energy efficiency; and3. introducing innovative decarbonization technologies fromwithin the Mitsubishi Heavy Industries Group.
We will develop the following innovations for incorporation
into our products and services in order to help reduce ourcustomers’ CO2 emissions:
1. energy-efficient electric forklifts;
2. energy-efficient cargo-handling equipment that contributes
to the decarbonization of port logistics; and3. logistics solutions that improve logistics efficiency.
In addition, as forests are believed to play a key rolein achieving carbon neutrality, we will consider additional
initiatives to address the need for forest conservation
and afforestation.
In order to promote such initiatives, we have establisheda Carbon Neutrality Committee under the guidance of thepresident. This is being managed as a climate change
subcommittee to implement these initiatives forcefully under
the Sustainability Council.

32

Our Value
Creation Story

Environmental Initiatives

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Environmental Policy and Environmental Action Guidelines

Environmental Policy

We are committed to protecting the global environment from an international perspective
and contributing to the ongoing development of local communities.
Environmental Action Guidelines
Mitsubishi Logisnext Co., Ltd. and its affiliates are committed to proactively implementing the following action guidelines through our business operations, which
encompass the development, manufacture, sales, and servicing of forklifts and other industrial vehicles, distribution systems, and logistics products. In keepingwith our Environmental Policy, we aim to reduce our environmental impact and improve society on a sustainable basis as an essential part of our business.

1. We recognize that preserving the environment and maintaining harmony with the global ecosystem are among the most importantmanagement issues, and we shall continue to systematically promote environmental initiatives through our business operations.
2. We shall strive to control environmental pollution and promote environmental preservation activities by accurately monitoring
the environment impact of our business operations.
3. We shall strictly comply with all environmental laws, regulations, and ordinances as well as all agreements and other requirements
to which we are party; adopt voluntary standards; and takes steps to preserve the environment.
4. In acknowledging the environmental impact of our business operations, we shall adopt the following important initiatives.
(1) We shall manufacture eco-friendly products.
(2) We shall reduce, recycle, and properly dispose of all industrial waste resulting from our business operations.
(3) We shall become more efficient and reduce our consumption of raw materials, fuel, and energy, and we shall promote environmental preservationin our manufacturing activities.
(4) We shall improve the transportation efficiency of our product and parts distribution, reduce the use of packing materials, and decrease ourenvironmental load.

5. We shall implement in-house training sessions and awareness campaigns to inform all our employees and trading partners of ourenvironmental action guidelines and shall disclose them to the public.
In order to implement the above action guidelines, we shall establish environmental goals and targets within our technical and economic
scope and periodically review our progress. We shall remain committed to continuously improving our environmental management systemand environmental performance.

Corporate
Data

33

Our Value
Creation Story

Environmental Initiatives

Providing environment friendly products(Reducing Scope 3 emissions)
Decarbonization of cargo-handling equipment in ports andcoastal facilities
To contribute to the emergence of a decarbonized society, we
are working to reduce our electricity costs (through reduced
energy consumption) and are expanding our line of electric
forklift products as replacements for our engine-powered
forklifts. This effort is intended to popularize our clean andenergy-efficient electric forklifts.
Sales of our new ALESIS electric forklift series, introduced
in 2019, continue to grow outside Japan. In 2021, we began
production of this model in China.
The series incorporates an environment-friendly Ecomode that contributes to extended operation. By enabling a
reduction in power consumption, this innovation contributes toeconomical and eco-friendly operation.

ALESIS electric forklift

EDiA XL electric forklift

In 2021, we introduced the EDiA XL, a high-performancemid-sized electric forklift, in the European market, where suchelectric forklifts are becoming increasingly popular. This model
boasts lowest-in-class electricity costs while delivering power
and performance comparable to those of engine-powered
forklifts. As a result, the EDiA XL can accommodate thework environment of a comparable engine-powered forklift
truck. In 2022, we introduced this model onto the North
American market.
In addition, this model won the Red Dot Design Award, aGerman international design award, under the Product Design
category in July 2023. This unit earned high praise for its
modern design and excellent performance thanks to its
improved energy efficiency.
At the same time, in order to meet the needs ofcustomers who use engine forklifts in a variety of environments,
we continue to develop engine-powered forklifts that comply
with emissions regulations even as they are becoming
increasingly stringent every year across all our territories. Our
new ERSIS engine-powered forklift, introduced in March 2022,

ERSIS engine-powered forklift

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

can be equipped with a variety of engines manufactured by theGroup. It exhibits excellent environmental performance thatsatisfies the latest emissions standards as well as outstanding
economy thanks to its fuel efficiency.
Moreover, in an effort to work toward carbon neutrality,
we collaborated with Nippon Kensetsu Kogyo Co., Ltd. in ajoint demonstration test of a fuel-cell-powered forklift thatburns no fuel and emits no CO2. It can be recharged withhydrogen in about three minutes, eliminating the need for thelengthy charging cycles typically required by electric forklifts.
Decarbonization of cargo-handling equipment in ports andcoastal facilities
In order to help achieve the goal of carbon neutrality, we havelaunched an initiative with Mitsubishi Heavy Industries toreduce CO2 emissions at ports. We are thus contributing to thecarbon neutrality of ports by developing new models of cargohandling equipment and converting existing equipment tohydrogen fuel cells with the goal of achieving zero carbon
emissions in the future.

Fuel-cell-powered forklift truck undergoing demonstration
testing34

Environmental Initiatives

In September 2022, we delivered the first two units of our
new Rubber-Tired Gantry Crane (RTG) to the Port of Kawasaki.
Compared to conventional cranes, this innovative modelfeatures reduced greenhouse gas emissions andaccommodates future conversion to hydrogen fuel cells. Thismodel uses a smaller diesel generator to reduce the required
engine displacement and output while also accommodating astorage battery with the same capacity as a conventional
hybrid RTG. In addition, thanks to a new engine controller
offering optimal and efficient combustion control, it satisfies the2014 regulatory emissions standards of the Japanese Ministryof the Environment’s Specified Special Vehicle Exhaust Gas
Control Act, reducing fuel consumption as well as emissions ofCO2, NOx (nitrogen oxides), and PM (black smoke particulatematter). What’s more, its diesel generator can be replacedwith a hydrogen fuel cell to respond to the near future in which
an environment-friendly hydrogen supply infrastructure will
be developed.

Our Value
Creation Story

Reducing environmental load (Reducing Scope
1 and 2 emissions)
EMS (Environmental management system)
We conduct internal audits twice a year and undergo an
external examination by a certification body once a year
to confirm that we are effectively using the ISO international
standards as a tool for improving our business by
maintaining and continuously improving our environmental
management system.
In addition, to secure an adequate number of internal
auditors and maintain their high level of competence, we
regularly conduct ISO Internal Auditor Skill Improvement
Training and Internal Auditor Training.
Establishment of our special environmental groups
Initiatives to reduce environmental load — such as reducing
waste, increasing energy efficiency, and developing productsthat improve the environment — typically entail a crossorganizational effort. Tangible progress can be difficult toachieve in this area without collaboration across the entire
company, or at least across multiple departments. Toward thisend, we have identified important issues to be addressed in
our Environmental Action Guidelines and have establishedfour groups — the Environmental Preservation Group,
Environmental Products Group, Energy Efficiency Group,and Logistics & Packing Group — to promote ourenvironmental initiatives.

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

support activities. The Environmental Products Group focuseson the development of environment-friendly products andgreen procurement, such as promoting energy efficiency andthe management of chemical substances contained in our
products. The Energy Efficiency Group is concerned withenhancing the efficiency of our consumption of energy, water,and raw materials and actively promotes eco-friendly
production. The Logistics & Packing Group is concerned withimproving transportation efficiency and reducing the use of
packaging materials. We are engaged in a wide variety ofenvironmental impact reduction efforts through the activities ofeach of these groups.
Moreover, our Environmental Management Committee
manages and summarizes the progress of the activities of thefour subcommittees and conducts management reviews on aregular basis.
Planned environmental investments
Mercury lamps and fluorescent lamps in the plant are gradually
being replaced with LED fixtures offering high luminous
efficiency. In fiscal 2022, we took steps to reduce CO2
emissions further through increased energy efficiency achievedby updating our gas heat pump air conditioners and boilers
and by converting warm air heating units using bunker oil tothe units using gas.

Company-wide initiatives of our special
environmental groups
The Environmental Preservation Group is engaged mainly ininitiatives intended to raise awareness about the environment,such as waste reduction and recycling, as well as community****

Corporate
Data

Plant upgraded with new LED lighting fixtures

35

Our Value
Creation Story

Environmental Initiatives

Environmental initiatives

Kyoto Plant

Shiga Plant

CO2 emissions

The Kyoto Plant is exhibiting a declining volume in this category due
to a decrease in production, while the Shiga and Azuchi Plants areshowing an increase due to growth in production.

At the Kyoto Plant, emissions declined due to a decrease in production and adecrease in emissions factors. At the Shiga Plant, despite an increase inproduction and increased load on air conditioning equipment, emissions
decreased due to reductions in emission factors and initiatives to reduce labor
hours. At the Azuchi Plant, emissions decreased due to reductions inemissions factors despite an increase in production.
(Tonnes-CO2)

80

8,000

60

Odor

At the Shiga Plant, we installed wastewater treatment tanks to treat
sewage and wastewater from factory processes before it is discharged
from the plants. This treated wastewater is discharged into thetributaries of neighboring rivers. At the Kyoto and Azuchi Plants,
drainage water is discharged into the drainage system after
appropriate treatment.

We undertake periodic odor measurements at the site boundary.

Plant

0

2018

2019

2020

2021

2022 (FY)

Consumption decreased at the Kyoto Plant due to declining production,
but increased at the Shiga Plant due to higher production and theintroduction of air conditioning equipment to improve the working
environment. Consumption increased at the Azuchi Plant as a result ofhigher production.

Unit

Kyoto
Plant

Biochemical oxygen
demand (BOD)

mg/L

Regulated
value

Observed
value

5-9

7.7

600

40.5

Suspended solids (SS)

mg/L

600

21

N-hexane extracts

mg/L

5

Less than
2.0

6.0-8.5

7.2

20

1.0

2,000

0

Electricity consumption

Measured item
pH

4,000

20

2018

2019

2020

2022 (FY)

2021

pH

Water consumption
At the Kyoto Plant, consumption decreased due to a decline inproduction, while at the Shiga Plant consumption increased due togrowth in production. Consumption at the Azuchi Plant increasedslightly due to higher production levels.

Biochemical oxygen
demand (BOD)

Shiga
Plant

mg/L

Chemical oxygen
demand (COD)

mg/L

20

5.7

Suspended solids (SS)

mg/L

30

0.8

(1,000 kWh)

(1,000 m3)

12,000100

Nitrogen

mg/L

12

0.9

80

Phosphorus

mg/L

1.2

Less than
0.1

10,0008,000

60N-hexane extracts

6,000

mg/L

3.0

Less than
0.5

40

4,000

0

2018

2019

2020

2021

0

2022 (FY)

Summary of environmental impact (fiscal 2022)
Item

Unit

Kyoto
Plant

Shiga
Plant

Azuchi
Plant

Electricity

1,000 kWh

5,607

11,103

4,665

City Gas

1,000 m3

385

1,260

678

Bunker A

kℓ

—

29

84

Kerosene

kℓ

—

18

—

Diesel Oil

kℓ

—

42

—

Gasoline

kℓ

—

19

—

LPG

m3

—

5,629

—

Water

1,000 m3

23

55

10

2020

2022 (FY)2021

OutputMitsubishi Logisnext Co., Ltd.

Input

2019

2018

Item
CO2
Chemical
substances(emissions under
PRTR)

Unit

Kyoto
Plant

Shiga
Plant

Azuchi
Plant

Tonnes

2,540

6,461

3,143

Tonnes

34.6

81

5.9

Generalwaste

Tonnes11

29

9Industrial
waste

Tonnes

497

875

204

Chemical
substances(transferred under
PRTR)

Azuchi
Plant

Plant

Measured item

Unit

Regulated
value

Kyoto
Plant

Tolueneppm

10

Less than 0.1

Xyleneppm

1Less than 0.1

Shiga
Plant

Tolueneppm

10

Less than 1

Xyleneppm

1Less than 0.1

Azuchi
Plant

Tolueneppm

10

Less than 1

Xyleneppm

1Less than 0.1

Measurement dates: September 21, 2022 (Kyoto Plant); July 22, 2022 (Shiga Plant); November 15,
2022 (Azuchi Plant)

Noise
We undertake periodic noise measurements at the site boundary.
Plant

Measured item

Unit

Regulated
value

Observed
value

Kyoto
Plant

8:00-18:00

dB

70

64

18:00-22:00

dB

60

60

8:00-18:00

dB

70

63

18:00-22:00

dB

65

—

8:00-18:00

dB

70

55

18:00-22:00

dB

70

54

Shiga
Plant
Azuchi
Plant

5-9

7.3

Biochemical oxygen
demand (BOD)

mg/L

600

130

Atmosphere

Suspended solids (SS)

mg/L

600

46.0

Nitrogen

mg/L

60

52.1

Phosphorus

mg/L

10

6.0

Measurement dates: January 11, 2023 (Kyoto Plant); March 7, 2023 (Shiga Plant); March 25, 2023
(Azuchi Plant)

We periodically undertake measurement of the concentrations of particulates in theatmosphere around warm air heating units. We also measure for hazardous substances
as stipulated under local ordinances.

Plant
Kyoto
Plant

Shiga
Plant

37

50.1

7.2

Measured item

Unit

Regulated
value

Observed
value

g/m3N

0.10

Less than
0.001
60Warm air
heating unit

Particulate
NOx

ppm

150

Cogeneration
power
generationequipment

Particulate

g/m3N

—

—

SOx

m3N/h

—

—
240

(city gas)Air
conditioning
equipment

Azuchi
Plant
Tonnes36

Observed
value

Measurement dates: February 22, 2023 (Kyoto Plant); July 21, 2022 (Shiga Plant); November 15,
2022 (Azuchi Plant)

pH
20

2,000

Corporate
Data

The Foundation of
Our Value Creation

Water quality

6,000

40

Value Creationin PracticeCompliance with laws and ordinances

Azuchi Plant

Burnable waste (domestic solid waste) generated(Tonnes)Our Value Creation
Strategy

Warm air
heating unit
(fuel oil)NOxvolppm

600

Particulate

g/m3N

0.10

—

SOx

m3N/h

—

—

NOx

ppm

150

24

Particulate

g/m3N

0.20

0.016

SOx

m3N/h

1.2

0.011

NOx

ppm

180

79

Measurement dates: January 6, 2023 (Kyoto Plant); July 15, and October 6, 2022 (Shiga Plant); February 16,
2023 (Azuchi Plant)Our Value
Creation Story

Societal Initiatives

S

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Societal Issues

Providing Automation Systems for Customers
Providing unmanned and labor-saving products
Against the backdrop of rapidly growing labor shortages,
we are developing safe, eco-friendly, and high-performance
automated guided vehicles (AGVs) and automatedguided forklifts (AGFs) to meet the need for automation at
logistics sites.
In June 2022, we jointly developed the PLATTER Auto
Forklift with a freezer warehouse specification (for 1.5 to 3.0
tonne models). This laser-guided automated forklift (laserguided AGF), jointly developed with Nichirei Logistics Group
Inc., can operate in freezer warehouses at temperatures as low
as -25°C.
Because fog and condensation can be obstacles tolaser-guided AGFs in the -30°C class when operating in
refrigerated warehouses, we incorporated specializedcomponents: those that can accommodate a refrigerated
environment, which we developed for our conventional AGFs;
and electrical components and sensors appropriate for -30°C
class equipment. After conducting demonstration tests withvehicles incorporating corrosion-resistance features, weachieved the commercialization of Japan’s first laser-guided
AGF that does not require the laying of magnetic guides on thefloor along the operating route.
In addition, Mitsubishi Logisnext Europe has launched theAutomated Compact Truck (ACT), a new AGV that exhibits
excellent mobility and can transport heavy loads in confined
spaces. Designed on the concept of collaboration in an
efficient, safe, and smart manner, this vehicle is intended towork with AGVs and manned forklifts other than the ACT to
optimize the capabilities of the entire logistics operation.
Using collaborations and alliances to promote andaccelerate the digital transformation
In order to meet the growing need for automation, we are
actively collaborating and forming business alliances with othercompanies.
We are manufacturing automated forklifts by installing
automatic control equipment manufactured by Rapyuta
Robotics Co., Ltd., with whom we have concluded a businessalliance, in our electric forklifts.
Moreover, we are developing automated picking solutions
incorporating the ∑SynX (“Sigma Synx”) solution concept

currently under development by Mitsubishi Heavy Industries,
Ltd. Since AGFs and AGVs do not require large-scale
modifications such as the installation of embedded floor
guidance systems, they can be introduced into multitenant logistics facilities, which are currently becoming
mainstream, and can easily accommodate sudden changes inwarehouse layouts.
Participating in demonstration tests intended to address
societal challenges
We participate in demonstration initiatives as part of thedevelopment of automation systems intended to address
societal issues.
In Yumeshima, Osaka, we are participating indemonstration tests aimed at driving the digital transformation
for ports and container terminals using a local 5G network. In
order to respond to the increasing congestion at container
terminals and the shortage of workers, we established a local
5G network, visualized the congestion in trailer standby areas,
and improved the efficiency of storage operations bytransmitting container scheduling data in real time. This will
demonstrate the benefits of the digital transformation for ports

Venue for Expo 2025 Osaka, Kansai
Neighboring roads

Yumeshima Container Terminal

PLATTER Auto forklift featuring the freezer
warehouse specification (1.5–3.0 tonnes)

The ACT, an AGV from Mitsubishi Logisnext Europe

Our products incorporate an automatic control systemproduced by Rapyuta Robotics Co., Ltd.

Yumeshima37

Societal Initiatives

and container terminals in real-world environments.
Moreover, since November 2022, Mitsubishi Heavy
Industries, Ltd. and the Kirin Group have been participating ina joint demonstration of an automated picking solution. Within
the Kirin Group, automation is steadily being introduced on
production floors, but logistics in the company’s warehouses
continues to rely heavily on manual labor and use of manned
forklift trucks. The need to improve the work environment,
especially through measures for picking heavy loads andrectifying the shortage of logistics operators, posessignificant challenges.
In order to improve efficiency, the MHI Group’s automatedpicking solutions, automation systems, and intelligence can be
introduced into picking processes that were previously
performed by workers themselves. The combination of
optimized engines and an integrated control system, alldeveloped in-house, are enabling efficient coordination ofmultiple automated guided forklifts (AGFs) and automatedguided vehicles (AGVs). This results in fewer picking andtransfer operations, optimized picking processing, andhigher throughput.

Our Value
Creation Story

The demonstration is being conducted in LogiQ X Lab, ademonstration facility located within the Yokohama Hardtech
Hub (YHH), which is operated by Mitsubishi Heavy Industries,
Ltd. (MHI) in Yokohama.

Providing customers with safe and securematerial handling equipment
Quality Management System
We are working to improve the quality of our operations
through the ISO 9001 quality management system (QMS) andother such systems. We conduct internal audits twice a year
and undergo an external examination by a certification bodyonce a year to confirm whether ISO standards are being
effectively used as a tool for business improvement by
maintaining and improving the QMS and continuously
improving it.
In addition, we regularly conduct ISO Internal Auditor Skill
Improvement Training to support the competence of internal
auditors and provide Internal Auditor Training as a means of
securing internal auditors.
Quality Policy
In fiscal 2022, we formulated the following four quality policies
and made them known to all employees working at ourcompany. In keeping with this policy, we strive to ensure thecontinual improvement of the quality of all our operations aswell as the development and manufacture of our products.
1. We will provide safe and secure products and services tocustomers and strive to improve customer satisfaction.
2. We will strive to eliminate non-conforming products and will
always take prompt and effective action should such an
instance arise.

LogiQ X Lab, a demonstration facility located within YHH

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

3. We will raise the quality awareness of all our employees andwork together with related parties to ensure the highest
levels of quality.
4. We will continuously improve our quality management system.
Initiatives for quality improvement
We are working to maintain a global level of quality.
At MLA’s (Mitsubishi Logisnext Americas) Houston Plant
in North America, we have established a quality control
process based on the Japanese system that has reduced
warranty costs by 60%. This initiative earned the Best
Innovation Award 2022 presented as part of the Quality andBusiness Process Awards under the group award system of
Mitsubishi Heavy Industries, Ltd..
Product options contributing to enhanced safety
In the belief that all operations can be performed safely andthat anyone can easily operate our equipment, we provide
products incorporating features carefully selected for safety
and security. In 2022, we launched new S-Assist options for
the ALESIS Counterbalanced Electric Forklift; these featuressafely and comfortably support driving operations for the
benefit of the operator. The two outstanding features of these
options are Hill Stop Assist and Speed Control Assist.
Hill Stop Assist prevents the vehicle from rolling backward
when the operator switches between the accelerator and thebrake, contributing to easy and safe starting on a slope.
Speed Control Assist is a proprietary feature thatmaintains a constant speed as the operator is lightly steppingon the accelerator. We have received positive comments from
customers who praise this feature for enabling the operator toconcentrate on the surroundings without being distracted byaccelerator operation.

38

Our Value
Creation Story

Societal Initiatives

Furthermore, we are offering a second new option:
OmniEye® an AI-powered human detection system. OmniEye®
incorporates a human detection function through two cameras
attached to the front and rear of the vehicle to detect and warnof surrounding workers. These cameras prevent collisions bymonitoring areas that are difficult for the operator to see. As asafe and secure product that can be mounted on all small
forklifts, we provide this innovation in collaboration with its
developer, Regulus Co., Ltd. Two additional enhanced safety
features are also available as options: the Good Running
System, which reduces shock and vibration during bumpoperation; and the LVS Forklift Operation Management
System, which contributes to efficient vehicle operation andsafety visualization.

Won’t rollbackward
on a slope.

S-Assist feature 1: Hill Stop Assist

Providing a complete selection of services
In order to provide our customers with safe, secure, andreliable services, we hold training sessions for our Group
service technicians in Japan and outside Japan.
In Japan, the curriculum includes rank-based training
targeted to specific careers and experience levels as well as
technical training that coincides with product launches. We
also hold meetings for the sharing of defect information andcountermeasures in order to accommodate the increasing
sophistication of technology along with the increasing
complexity of vehicle control systems.
We operate a service technician certification system tocertify the service personnel of our distributors outside Japan.
These service technicians can learn step-by-step at all levels
from basic to advanced, which enables these individuals toacquire the necessary maintenance technical skills withassurance. Service technicians who meet the knowledge andskill requirements are granted new qualifications, which leads
to increased motivation. The number of certified service
technicians is increasing year by year (see graph), supporting
our service technicians in improving their skills and capabilities.

Our Value Creation
Strategy

Safety Seminars Held
Number of events

Participants
60,00050,00046,906

Number of newly certified technicians
Grade 4
Grade 3

Grade 2

Grade 1

Total number enrolled/certified

600
476

160

496

522
480

434
394

OmniEye®

Times
12,00051,42644,88240,00030,000Total number of participants

40,40410,0008,032

31,565
4,269

4,226

5,591

8,000
6,000

4,278

20,0004,000

10,000

2,000

0

0
2019

2020

2021

2022

（FY）

Trend in Number of Certified Service Technicians

200
S-Assist feature 2: Speed Control Assist

Corporate
Data

The Foundation of
Our Value Creation

Safety awareness initiatives
Our sales companies provide safety awareness and safetyenhancement training to our customers in order to prevent
accidents involving forklifts in industrial settings. We havemade available a variety of tools, including our own selfproduced safety DVDs, to promote safety initiatives. In
addition, we are working to increase safety awarenessthroughout society by holding safety seminars tailored tocustomer needs and distributing safety awareness posters inconjunction with the National Safety Week campaign
sponsored by Japan’s Ministry of Health, Labour and Welfare.

2018
Easilymaintains a
steadyspeed.

Value Creationin Practice

120

360

80

240

40

120

0

0
2018

2019

2020

2021

2022

(FY)

Holding driving lessons
Those engaged in the operation of forklifts with a capacity of 1
tonne are required by the Industrial Health and Safety Act tocomplete an operator skills course. As a manufacturer offorklifts and shovel loaders that is registered as a training
organization under the Director of Japan’s Labour Bureau, wehold seminars at two locations in Japan and place the highest
priority on driver safety.

39

Societal Initiatives

Ensuring diversity of human resources, humanresource development
Supporting women’s participation and advancement in
the workplace
To ensure the diversity of our human resources, we believe it isessential to support women’s participation and advancementin the workplace; consequently, we have been implementing
our own action plan. In fiscal 2022, we published a website
highlighting the success of our female employees, which aligns
with our goal of maintaining a female recruitment ratio of atleast 20%.
Further details are available at the website below.
https://www.logisnext.com/recruit/fresh/women-careers/

Work-style reforms(Providing support for raising future generations)
We are working to create comfortable workplaces that enable
all our employees to gain greater satisfaction from their work.
To enable the adoption of more flexible work styles, we haveestablished systems that support telecommuting, flextime, andhourly paid leave. Our short-time work and leave systems forchildcare and nursing care incorporate provisions that exceed
those stipulated by law.

Our Value
Creation Story

In this way, by making it possible for all individuals tochoose a workstyle that matches their lifestyle, we will improvelabor productivity and employee satisfaction while employing agreater diversity of personnel.
Job satisfaction reforms
In addition to implementing work-style reforms, we aredeveloping measures to increase worker satisfaction by
adopting job satisfaction reforms.
Strengthening Human Resource Development Programs
We seek to foster an organizational and corporate culture inwhich all employees can develop their careers autonomously
while enjoying a sense of growth. We also offer a system thatenables employees to take courses at the Mitsubishi Heavy
Industries, Ltd. training center.
Improving Management Skills and On-site Skills
In order to improve the management skills and on-site skills ofmanagerial personnel, we have introduced rank-based training
and management training programs.
Supporting Career Development
We introduced the Career Interview System that encourages
employees to share their career aspirations with their superiors
as they consider their medium-term and long-term growthstrategies. In addition, in 2022, we introduced the Career
Challenge System to promote autonomous careerdevelopment and personnel exchanges.
Improving Inner Brand PowerThe president has been convening a series of townhall
meetings with the aim of eliciting the candid opinions of
employees. In fiscal 2022, a total of 15 townhall meetings were
held for managers and general employees.
In the future, we intend to develop an action plan focusedon job satisfaction reforms with the aim of revitalizing
communication.

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Occupational health and safety“Safety is the foundation of all that we do.” represents theGroup-wide health and safety philosophy we have establishedin concert with our three basic policies.
Health and Safety Philosophy and Policies of the
Mitsubishi Logisnext Group
1) Health and Safety Policy of the Mitsubishi Logisnext Group“Safety is the foundation of all that we do.”We remain committed to putting safety first, in keeping with our philosophy that“safety is the foundation of all that we do.”2) Health and Safety Policy of the Mitsubishi Logisnext Group
1. We will make safety awareness a priority.
• We remain actively engaged in health and safety initiatives and strive to raisesafety awareness.
2. We will enforce the policies we have formulated and implement the initiatives
we have approved.
• In addition to complying with laws and regulatory requirements, we will
adhere to all internal rules and regulations.
3. We will maintain safe and secure workplaces.
• We value human health and will remain actively engaged in providing safe
and secure workplaces.

In keeping with this philosophy and our policies, we carryout a variety of initiatives with the aim of creating a safe andsecure workplace.
In terms of safety, we conduct workplace checks, suchas the workplace health and safety patrols we conduct almost
every month.
Regarding physical and mental health, we are
implementing a health management approach that monitors
employee job satisfaction and employees’ physical and mental
health from a management perspective.
Guidelines for Our Health and Productivity Management
Initiatives
1. Promoting employee-directed health maintenance(improvement of health literacy)
2. Creating a workplace where our employees can work withenthusiasm
3. Collaborating with the Health Insurance Society

40Our Value
Creation Story

Societal Initiatives

Initiatives targeting an accident-free workplace
We are actively focused on achieving accident-free workplaces
at all our production sites. At the Shiga Plant, our largest
factory, we have introduced Logistics Vehicle Support (LVS), a
forklift operation management system that provides
visualization of the operation status of our forklifts. Moreover,
we are taking additional steps to visualize the on-siteenvironment by utilizing the improvement methods of Fleet
Management Services (FMS) to streamline operations.
Status of Occupational Accidents

Kyoto
Plant

Accidents withlost time

Fiscal
2020

Fiscal2021

Fiscal
2022

0

1

0

interviews with high-stress employees; and explanations of theresults of group analyses of stress checks.

Job satisfaction and labor productivity
Health and productivity management
We have published a Health and Productivity Management
Declaration stating that we will implement a health andproductivity management initiative that values the physical andmental health of our employees bypromoting a sense of job satisfaction
as well as physical and mental
health. As a result, we haveestablished specific key performanceindicators under the ML Health andProductivity Management Plan
(Action 5); moreover, we are working
with health insurance associations to
obtain certification as a 2024
Poster Promoting the Health
Outstanding Organization for Healthand Productivity Management
Declaration& Productivity Management.
三 菱 ロジ スネクストは 、社 員 が 働きが い を 感じ 、
心 身ともに 健 康 で あ ることを
大 切 にし た 健 康 経 営 に 取り組 みます 。

宣言

1

宣言

疾病予防と健康の

0

1

Shiga
Plant

めた 健 康 づくりを

努めます。

ます。

0

3

健 康 保 険 組 合とともに、ご家族も含できる職場づくりに

物流シーンでお客さまにソリューションを提供し続け
未来創りに貢献します。

Accidents withlost time1

0

0

Accidents without
lost time2

1

5

Accidents withlost time

40

0

Accidents without
lost time10

いきいきと働ける
職場づくり

健康保険組合とのコラボヘルス

Human rights
713

Supporting mental health
The company continues to conduct stress checks on its
employees, including those assigned to Group companies
outside Japan. The purpose of this program is to monitor thelevels of stress that employees are experiencing and toenhance self-care and create a comfortable working
environment. We strive to provide appropriate work
environments through counseling; workplace care; self-careand self-care training; workplace revitalization interviews and

The Foundation of
Our Value Creation

Corporate
Data

Contributing to society and local communities
We engage in a variety of social initiatives with the aim ofcontributing to sustainable growth and problem-solving in local
communities and throughout society at large.
We are actively engaged in sponsoring cultural andsporting activities, including the Kyoto Philharmonic Chamber
Orchestra, the Kyoto Sanga Football Club, and the Mitsubishi
Heavy Industries Sagamihara DynaBoars Rugby Team.
Furthermore, we are a supporter of “A Dream a Day in Tokyo,”which provides support for children with intractable diseases,
and we actively cooperate with volunteer events in the local
communities where our plants and offices are located. In
addition, we have been sponsoring female professional golfer
Ayaka Furue since February 2023.
Further details are available at the website below.
www.logisnext.com/sponsorship

間野裕一

取り組み 指 針

社員が主体的に行う
健康づくり（ヘルスリテラシー向上）

Value Creationin Practice

推進します。

私 たちは、健 康 経 営を基 盤として、世 界 のあらゆる

三菱ロジスネクスト株式会社

AzuchiPlant

宣言

いきいき働くことが保持増進に取り組

Accidents without
lost time2

社員自らが自身のめるように支援し

Our Value Creation
Strategy

Formulation of the Mitsubishi Logisnext Group Human
Rights Policy
Mitsubishi Logisnext Group formulated the Mitsubishi Logisnext
Group Human Rights Policy in order to respect the humanrights of stakeholders involved in our business activities andcontribute to the development of a sustainable society.
This policy clearly demonstrates our stance of respecting
the human rights of all and clarifies guidelines for fulfilling ourcorporate social responsibilities related to human rights. Thisapproach is grounded in the understanding that our Group’s
operations in countries and regions around the world may
directly or indirectly affect local human rights.

We also contribute to the education of future generations
by assisting with the training of maintenance engineers.
Nissan Automobile Technical College is working on a
project to encourage its students to participate as staff
members of a professional racing team, and we are supporting
this initiative. We are also contributing to the development ofmaintenance engineers by supporting collaborations between
industry and academia. This includes initiatives such as holding
job fairs for students and exhibiting vehicles at school festivals.

Kyoto Sanga FC

41

Our Value
Creation Story

Governance Initiatives

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

G Governance Issues
The Board of Directors
Every fiscal year, we continuously strive to improve theeffectiveness of the Board of Directors by evaluating its
effectiveness and formulating policies on addressing issues
related to the Board.
In fiscal 2022, the effectiveness of the Board of Directors
steadily improved due to various new initiatives being
implemented as planned. On the other hand, it was still
deemed necessary to expand efforts to discuss medium- andlong-term strategies, enhance internal controls, and undertake
risk management. In fiscal 2023, we are promoting initiatives toaddress these issues.
Specifically, as part of our discussions of medium- andlong-term strategies, we are working to enhance discussions
on business strategies and reports related to sustainability. To
enhance our internal controls and risk management, we arestrengthening supervision of the Board of Directors regarding

the development of our internal control systems by holding
regular liaison meetings between the Audit and Supervisory
Board and the Internal Control Division. As well, the Board of
Directors meets annually at a business-related facility andconducts inspections as a means of providing data toexternal officers.

appoints and dismisses

General Meeting of Shareholders

appoints and dismisses
recommends and reports

instructs
reports

auditsreports

cooperates

instructs
reports

instructs
reports

reports

Risk Management
and Compliance
Committee

Management
Committee

Sustainability
Councilcontrol activities

instructs

promote activities

Internal
Reporting
Helpline

Executive Officers
Divisionssupervises & advises

audit
accounting

Internal
Control
Department cooperates

Accounting Auditor (Auditing Company)

reports

President

instructs

Audit and Supervisory Board (Auditors/External Auditors)

consults

Nominating
Board of Directors
andCompensation reports
proposes and reports
Committee
selects and supervises

Risk Management and Compliance Committee

audits & advises

Group Companies
cooperates
cooperates

In order to ensure the objectivity and appropriateness of thecompensation of our officers as well as the appointment , wehave established a voluntary Nominating and Compensation
Committee as an advisory body to the Board of Directors.
Comprising the Chairman of the Board, the President and CEOof the Board, and three external directors, this committee
deliberates issues and comes to decisions regarding personnel
affairs and compensation for the company’s officers andreports its decision to the Board of Directors. In fiscal 2022,
the Nominating and Compensation Committee met a total ofnine times and deliberated on the matters outlined below.
Main Undertakings in Fiscal 2022
• Review of current compensation level and mix• Deliberation of payment rates and amounts of annual
bonuses for officers• Deliberation of the details of director compensation• Consideration of the introduction of a new stockcompensation system• Deliberation of officer personnel affairs• Consideration of succession planning

Corporate Governance Structure
appoints and dismisses

Nominating and Compensation Committee

Visit to the Logistics Test Center of Mitsubishi Heavy Industries Research& Innovation Center, located in the Takasago district

We established our Risk Management and Compliance
Committee as the lead entity responsible for risk management
in order to avoid risks with the potential to significantly impact
management and to minimize such risks when they become
apparent. We established a system to centralize and aggregate
risk information and manage it in a uniform manner for theentire Group, as shown in the diagram at the next page. Eachdivision identifies risks every six months and analyzes and42

Our Value
Creation Story

Governance Initiatives

evaluates these risks to determine which are consideredserious. We have prepared an action plan for critical risks thatare assigned a particularly high priority and are developing risk
reduction initiatives on a daily basis. The status of these
activities is reported to the Risk Management and Compliance
Committee, which convenes quarterly, and the status ofserious risks and the effectiveness of countermeasures areevaluated; the results are then reported to the Board of
Directors, as shown in the diagram below. Each of our Group
companies assigns a risk management supervisor to undertake
risk management in a process similar to that adopted by theparent company.

Policy for determining the amounts andcalculation method of officers’ compensation
Basic compensation
The compensation provided to directors (excluding external
directors) is based on the basic compensation (fixed monthly
salary), which is the total amount of compensation for the
position according to the categories outlined below, as
compensation for fulfilling the roles and responsibilities
associated with the execution of duties, which includes
managerial supervision and decision-making. This is paid fromfunds as a fixed salary.
Composition of basic compensation

Risk Management System
Board of Directors

Audit andSupervisory Board

Risk Management and Compliance Committee

Full-time auditors
in attendance

Chairman & executive in charge (President)
Person in charge of risk management(Executive officer in charge of Administration Headquarters)

Secretariat / General
Affairs Department

cooperates

Representativecompensation

Compensation for fulfilling the roles andresponsibilities associated withrepresentation rights (company
representation, conclusion of important
contracts)

Directorcompensation

Compensation for fulfilling the roles andresponsibilities associated with theexecution of duties, including managerial
supervision and decision-making

CXO compensation

Compensation for the role andresponsibilities of the Chief Officer (CXO)

Chairmancompensation

Compensation for fulfilling the roles andresponsibilities associated withmanagement and supervision ofbusiness execution and serving aschairperson of the board of directors

President andexecutive officer
compensation

Compensation for fulfilling the roles andresponsibilities associated with businessexecution

Committee members: Heads of each office, heads of each headquarters,
personnel designated by the chairman

Each Room and Headquarters

Compliance
Liaison Committee

Each Department

Internal audits
Internal Control Division

Group Companies

Risk Control

Risk
Market risk
Financial risk

Disaster risk

Talent risk

Litigation risk

Operational risk
Compliance risk

Performance-linked bonuses
Performance-linked compensation is an annual bonus paid to
directors (excluding part-time directors and external directors)
with the aim of contributing to the achievement of performance

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

targets for a single fiscal year. Payment is 100% performancebased, and in consideration of the balance between expanding
business scale and securing profits, the bonus amount isdetermined based on indicators such as sales (35% allocation)and operating profit before amortization of goodwill (65%allocation) and is determined annually. The bonus is paid in
cash in July of each year.
Stock compensation
For non-monetary compensation, directors (excluding parttime directors and external directors) are granted stockcompensation in the form of stock options in August of eachyear. Regarding the determination of which individuals are to
be allocated this compensation each year and the number ofshares to be allocated, this is calculated based on the standard
amount established for each position and the allocation isdetermined through a resolution of the Board of Directors.
Furthermore, beginning in fiscal 2023, the company will
introduce a restricted stock compensation system with theaim of providing incentives for sustainable improvement ofour corporate value and promoting further sharing of value
with shareholders.

Enhancing internal discussions
on business strategy
In addition to holding Board of Directors’ meetings, thecompany convenes regular Business Strategy Discussions toenhance internal discussions about the company’s businessstrategies and management issues. In fiscal 2022, a total of 11
Business Strategy Discussions were held to discuss 10
themes, including strategies for increasing corporate value anddevising a personnel strategy.

43

Our Value
Creation Story

Governance Initiatives

Adhering to our Compliance Guidelines

Anti-fraud and anti-bribery procedures

To ensure all officers and employees of the Mitsubishi
Logisnext Group adhere to compliance in their daily businessactivities and to further strengthen compliance with laws,
regulations, and corporate ethics, the Mitsubishi Logisnext
Group has compiled Compliance Guidelines covering
particularly important items and published them on wallet cards.
The card has been translated into 11 languages and is distributed
to employees within Group companies around the world.

In order to prevent fraud and suspected acts of bribery, we
have prepared detailed procedures for examining offers ofentertainment and gifts, offers of donations, invitations, andappointment of agents and trading companies.

Establishment of our Internal Reporting Helpline

Compliance training
To ensure all officers and employees carry out their corporate
activities in a fair and appropriate manner, we provide regulartraining intended to impart the necessary knowledge whileraising compliance awareness.

In order to strengthen compliance management and promptly
detect and correct any misconduct, such as violations of laws
and regulations and corporate ethics, the company has
established a helpline to provide contact points forwhistleblowers within the Group. These contact points are
established both internally and at external law firms to ensure
independence. As for Group companies outside Japan, allsubsidiaries have established their own whistleblowing hotlines.
In fiscal 2022, the Group in Japan received 83 whistleblowing
reports in total. We have appropriately investigated each
instance, implementing appropriate responses and formulating
measures to prevent any recurrence.

We established the Information System Security Policy for the
ML Group in order to ensure information security across thebusiness operations of the Mitsubishi Logisnext Group. This
policy applies to intellectual property, technical information,
sales information, and personal information.
In order to respond to the risks arising from the increasing
sophistication and diversification of cyberattacks, we areconstantly strengthening our information security measures withthe goal of improving the security of our information systems.

Compliance checks related toorder optimization

Protecting our information systems
with a security system

We strive to deter any inappropriate order-acceptance activities
while promoting fair transactions. Consequently, we haveestablished compliance check guidelines to be followed whenan order is sought or lost by the company or submitted by agovernment entity for a public demand project in Japan, publicdemand project outside Japan, or construction project.

We established the IT Security Management System of the
Mitsubishi Logisnext Group to clarify roles and responsibilities
associated with IT security management.
In formulating our security regulations, we conduct annual
security audits of each Group company. The results of these

Adoption of our Information Security Policy

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

audits and the status of corrections are reported to thepresidents of Mitsubishi Logisnext and its Group companies.
Any deficiencies detected through the audits are corrected at
an early stage.

Raising awareness of secure
information systems
As part of our effort to raise awareness of information systemsecurity, we published an information security handbook on
our internal portal site as well as processes for identifying
targeted attack e-mails.
As part of our regular educational opportunities, we alsooffer a training program for new employees and managers
regarding information system security. We also provide Group
employees located inside and outside Japan with training
programs twice a year in information security offered throughe-learning. In addition, we send training emails simulatingtargeted attacks to email users twice a year. This offers an
opportunity to alert employees to the presence of such emails
while providing training in appropriate measures for dealing
with such emails.

Evaluating the effectiveness of the Boardof Directors
To ensure the Board of Directors effectively fulfills its roles andresponsibilities, the company regularly verifies whether the
Board as a whole is functioning appropriately through aneffectiveness evaluation, addresses any issues, strengthens
the Board’s capabilities, and continuously improves theBoard’s functions.
In fiscal 2022, we utilized the results of the fiscal 2021
survey to evaluate the effectiveness of the Board of Directors,

44

Our Value
Creation Story

Governance Initiatives

conducted in April 2022, to determine a policy for initiatives forthe current fiscal year and promoted initiatives to enhance theeffectiveness of the Board of Directors. The progress of these
efforts is outlined below.
In March and April 2023, as part of the seventh evaluationof the evaluating the effectiveness of the Board of Directors
effectiveness of the Board of Directors, we conducted a survey
titled “Progress and Current Issues Related to Initiatives in
Fiscal 2022” that covers the seven themes listed below,
deliberated on its results at the Business Strategy Discussion

1. Providing a forum for discussion ofbusiness strategies

To ensure the Board of Directors could fulfill all its roles andresponsibilities, we streamlined the current operation andincreased the number of proposals related to sustainability
and governance.

2. Focusing on enriching and revitalizing
discussions

To secure sufficient time for preliminary deliberation anddiscussion, we took steps to distribute all reference materials
to the Board of Directors as early as possible and succeededin moving up the delivery date sooner than expected.
Furthermore, by compiling an executive summary, we wereable to provide easy-to-understand explanations that were to
the point. As a result, more time was allocated to discussions,and we were able to ensure enriched and energized discussion
through the proceedings prepared by the chairperson.

3. Responding to the increasing
sophistication of internal controls andrisk management

We continued to hold regular liaison meetings between the
Audit and Supervisory Board and the Internal Control Division,
while external directors also participated in these liaison
meetings. We also strengthened supervision of the Board of
Directors by regularly reporting to the Board of Directors theoperating status of the internal control system.

5. Formulating a succession planning

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

in May and at the Board of Directors meeting in June, anddetermined the effectiveness of the Board of Directors in fiscal
2022 and the action policies for fiscal 2023.
Progress on the initiatives undertaken in fiscal 2023 will
be reported in next year’s report.

Fiscal 2022 Survey and Fiscal 2023 Policies

Fiscal 2022 Policies and Progress

4. Providing information and interactingwith external officers

Our Value Creation
Strategy

From the results of the survey, we analyzed the competition as
well as technology trends. A Board of Directors meeting washeld in the Takasago District, where the Research & Innovation
Center of Mitsubishi Heavy Industries is located. In addition toproviding a tour of the Logistics Testing Center in the same
district, we provided a variety of business-related information
to external officers.
The Nominating and Compensation Committee deliberated
on succession planning measures and formulated an
appropriate response.

Themes of the Survey Evaluating the Effectiveness of the Board of Directors(Period covered: July 2022–April 2023)
1. Operation of the Board of Directors
2. Composition of the Board of Directors
3. Management decision-making andsupervision by the Board of Directors

4. Roles of directors and auditors
5. Initiatives for improving the effectivenessof the Board of Directors
6. Provision of information to directors and auditors
7. Voluntary Nominating and Compensation Committee

Results of Fiscal 2022 Evaluation
Initiatives focused on reviewing the operation of the Board of Directors were evaluated highly as laying the groundwork for
improving overall effectiveness. In addition, the capabilities, skills, and diversity of the Board of Directors as a whole have been
ensured, and the effectiveness of the Board of Directors has been steadily improved through the strengthening of the supervisory
function of external directors. On the other hand, it was determined that further improvement measures are needed as an ongoingpriority issue as part of discussions on medium- and long-term business strategies and on the internal controls and risk
management. In light of the above results, we will continue to take steps to improve the effectiveness of the Board of Directors infiscal 2023 according to the following policies.

Fiscal 2023 Policies
1. Enhancing discussions on business strategy• Enhancing discussions on company-wide strategies:
Conducting discussions under Business Strategy
Discussions when formulating the medium-termbusiness plan
• Enhancing sustainability-related reporting:
Regular reports on specific initiatives and plan
progress status• Updating data on industry competition andindustry trends

2. Taking steps to deepen understanding of detailsof the agenda• Securing time for preliminary discussions:
Distributing reference materials at an early dateand continuing to accept questions submitted
in advance• Promoting understanding of agenda materials:
Improving explanatory materials throughillustrations and securing time for a questionand-answer session

3. Responding to the sophistication of internal controls
and risk management• Continuing regular liaison meetings between the Audit
and Supervisory Board and the Internal Control Division:
Ensuring the participation of external directors toprovide objective and multifaceted deliberation• Strengthening the supervision by the Board of Directors
regarding the development of internal control systems:
Enhancing report contents• Domestic and overseas group companies’ status report

4. Providing information and interacting withexternal officers• Enhancing information provision (including inspectionsof business-related facilities, etc.)

45

Our Value
Creation Story

Directors and Audit and Supervisory Board Members

❿

❽

❻

❷

❶ Representative Director and Chairman

Takashi Mikogami❼ External Director

Fumio Kobayashi❹❷ Representative Director and President❸ Director

Yuichi Mano

Takatoshi Uno❽ Audit and Supervisory Board Member❾ Audit and Supervisory Board Member

Shinji Ichihara

Katsutoshi Yuasa

Our Value Creation
Strategy

Value Creationin Practice❶❺❹ Director❺ External Director❾❼

Osamu Ando

❿ External Audit and Supervisory Board Member

Shigeru Yoshimura

Corporate
Data

⓫

❸

Masayuki Suematsu

The Foundation of
Our Value Creation❻ External Director

Kyoko Kobayashi⓫ External Audit and Supervisory Board Member

Kazuhiro Fukuoka

46

Our Value
Creation Story

Directors and Audit and Supervisory Board Members

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Representative Director and Chairman

Representative Director and President

Director

Director

Takashi Mikogami

Yuichi Mano

Takatoshi Uno

Masayuki Suematsu

Biographies
Apr. 1981 Joined Mitsubishi Heavy Industries, Ltd.
Apr. 2011 General Manager of Turbocharger Business
Department, General Machinery & Special
Vehicles Business Headquarters, Mitsubishi Heavy
Industries, Ltd.
Apr. 2012 Deputy Head of General Machinery & Special Vehicles
Business Headquarters, Mitsubishi Heavy
Industries, Ltd.
Apr. 2013 Director, the Company Senior Vice President,
Mitsubishi Heavy Industries, Ltd.
Apr. 2014 Senior General Manager of Quality Control Division,
Deputy Head of the Machinery, Equipment& Infrastructure Domain, Mitsubishi Heavy
Industries, Ltd.
Apr. 2015 Head of Sagamihara Machinery Works, Mitsubishi
Heavy Industries, Ltd.
Apr. 2016 Executive Vice President, Mitsubishi Heavy
Industries, Ltd.
Jun. 2016 Resigned as Director, the Company
Jun. 2017 Representative Director, Senior Executive Vice
President, Assistant to the President, the Company
Oct. 2017 President and CEO, the Company
Apr. 2020 Executive Vice President, President and CEO,
Logistics, Thermal & Drive Systems, Mitsubishi Heavy
Industries, Ltd. (to present)
Jun. 2020 Resigned as President and CEO, the Company
Jun. 2021 Representative Director and Chairman, the Company(to present)

Apr. 1986 Joined Mitsubishi Heavy Industries, Ltd.
Jul. 1996 Assistant to General Manager of Product Support,
Mitsubishi Caterpillar Forklift America Inc.
Apr. 2003 Chief of Planning & Accounting Department, General
Machinery & Special Vehicles Business Headquarters,
Mitsubishi Heavy Industries, Ltd.
Apr. 2004 Chief of Business Strategy Group, Material Handling
Equipment Department, General Machinery & Special
Vehicles Business Headquarters, Mitsubishi Heavy
Industries, Ltd.
Apr. 2009 Deputy General Manager of Material Handling
Equipment Department, General Machinery & Special
Vehicles Business Headquarters, Mitsubishi Heavy
Industries, Ltd.
Oct. 2011 General Manager of Forklift Sales Department, Forklift
Business Division, General Machinery & Special
Vehicles Business Headquarters, Mitsubishi Heavy
Industries, Ltd.
Apr. 2013 Director, Senior Executive Officer, Head of Corporate
Planning Office, the Company
Jul. 2014 Representative Director and President, Mitsubishi
Caterpillar Forklift Europe B.V.
Jun. 2017 Resigned as Director, the Company
Jun. 2018 Senior Executive Officer, Deputy General Manager,
Strategic Planning Office, the Company
Apr. 2019 Senior Executive Officer, General Manager, Strategic
Planning Office, the Company
Apr. 2020 Senior Executive Officer, Head of Overseas Sales andMarketing Headquarters, the Company
Jul. 2020 Senior Executive Officer, Head of Overseas Business
Headquarters, the Company
Apr. 2022 Senior Executive Officer, Division Head, General
Manager, Corporate Strategy and Planning Office,
the Company
Jun. 2022 Representative Director and President, Division Head,General Manager, Corporate Strategy and Planning
Office, the Company
Apr. 2023 Representative Director and President, the Company(to present)

Jul. 2006 Joined the Company
Jul. 2009 Vice President, Shanghai Nichiyu Forklift ManufacturingCo., Ltd.
Oct. 2012 Executive Vice President, Nichiyu Forklift (Thailand)Co., Ltd.
Feb. 2015 Division Head, General Manager, Corporate Financeand Accounting Division, Administration Headquarters,
the Company
Jun. 2018 Assistant to Head of Administration Headquarters,
the Company
May 2019 Member of the Executive Team, Head of Corporate
Finance and Accounting Headquarters, the Company
Apr. 2021 Executive Officer, CFO, Head of Corporate Financeand Accounting Headquarters, Division Head, General
Manager, Corporate Finance Planning Division,
the Company
Apr. 2022 Executive Officer, CFO, Head of Corporate Financeand Accounting Headquarters, the Company
Jun. 2022 Director, the Company (to present)
Apr. 2023 Executive Officer, CFO, Division Head, General
Manager, Corporate Strategy and Planning Office, incharge of Corporate Finance and Accounting
Headquarters, the Company (to present)

Apr. 1986 Joined Mitsubishi Heavy Industries, Ltd.
May 2001 Controller, Mitsubishi Caterpillar Forklift Europe B.V.
Jan. 2009 Deputy General Manager of Planning & Accounting
Department, General Machinery & Special Vehicles
Business Headquarters, Mitsubishi Heavy
Industries, Ltd.
Apr. 2011 Deputy General Manager of Planning & Administration
Department, General Machinery & Special Vehicles
Business Headquarters, Mitsubishi Heavy
Industries, Ltd.
Jan. 2012 Managing Director, Mitsubishi Agricultural MachineryCo., Ltd.
Apr. 2014 Deputy General Manager of Planning & Administration
Department, Business Strategy Division, theMachinery, Equipment & Infrastructure Domain,
Mitsubishi Heavy Industries, Ltd.
Jan. 2016 CEO, President, Mitsubishi Mahindra Agricultural
Machinery Co., Ltd.
Apr. 2019 Senior Vice President, Head of Business Strategy
Office and Senior General Manager of Corporate
Planning Department, Mitsubishi Heavy Industries, Ltd.
Jun. 2019 Director, the Company (to present)
Apr. 2021 Head of Business Strategy Office, Mitsubishi Heavy
Industries, Ltd.
Apr. 2022 Vice President, Logistics, Thermal & Drive Systems,
Mitsubishi Heavy Industries, Ltd.
Apr. 2023 Executive Vice President and CSO, Mitsubishi Heavy
Industries, Ltd. (to present)

✔

✔

✔

✔

✔

✔

✔

✔

Experience and Skills
Corporate Management/
Business Management
Financial Accounting
Legal
Marketing✔

Research & Development✔

International Experience✔

Sustainability
Note: As the above list is not comprehensive, it does not represent all the knowledge and experience of our directors.

✔
✔

✔

47

Our Value
Creation Story

Directors and Audit and Supervisory Board Members

Our Value Creation
Strategy

External Director

External Director

External Director

Osamu Ando

Kyoko Kobayashi

Fumio Kobayashi

Value Creationin Practice

Biographies
Apr. 1979 Joined Shimadzu Corporation
Apr. 1999 Technical Manager, Analytical Instrument Division,
Shimadzu Corporation
Apr. 2000 President, Shimadzu Scientific Instruments, Inc.
Jun. 2007 Director, General Manager, Analysis and Measurement
Division, Shimadzu Corporation
Jun. 2011 Managing Director, in charge of Production, CS, andInformation Systems, Shimadzu Corporation
Apr. 2013 In charge of Production and CS; General Manager,
Aircraft Equipment Division, Shimadzu Corporation
Jun. 2013 Senior Managing Executive Officer,
Shimadzu Corporation
Jun. 2017 President, Shimadzu Access Corporation (to present)
Jun. 2020 Director, the Company (to present)

Apr. 1999 Registered as Attorney Joined Irokawa Law Office(currently Irokawa Legal Professional Corporation)
Sep. 2009 Seconded to Legal Affairs Office, Sharp Corporation
Sep. 2014 Returned to Irokawa Law OfficeJan. 2018 Partner, Irokawa Law OfficeFeb. 2018 External Audit and Supervisory Board Member,
Kawakami Paint Manufacturing Co., Ltd. (to present)
Jan. 2020 Partner, Irokawa Legal Professional Corporation(to present)
Jun. 2020 Director, the Company (to present)
Jun. 2021 External Director, Nippon Pillar Packing Co., Ltd.
(to present)

Apr. 1970 Joined Daifuku Co., Ltd.
Apr. 1997 General Manager, Metropolitan Area Sales Division,
Daifuku Co., Ltd.
Jun. 1998 Director, General Manager, Regional Business Division,
Daifuku Co., Ltd.
Apr. 2003 Managing Director, Chief Operating Officer (COO),
Sales and Marketing Operations, Daifuku Co., Ltd.
Deputy General Manager, FA&DA operations General
Manager, Sales Division, FA&DA Operations, Daifuku
Co., Ltd.
Apr. 2004 Representative Director, Senior Managing Officer, Sales
and Marketing Operations, General Manager, FA&DA
Operations, Daifuku Co., Ltd.
Apr. 2005 Representative Director, Senior Managing Officer, Sales
and Marketing Operations, COO, FA&DA, DTS
Operations, General Manager, FA&DA Operations,
Daifuku Co., Ltd. Representative Director andPresident, Daifuku Logistic Technology Co., Ltd.
Apr. 2006 Executive Vice President, COO, Sales and Marketing
Operations, COO, FA&DA, DTS Operations, Daifuku
Co., Ltd.
Apr. 2015 Director, Adviser, Daifuku Co., Ltd.
Jun. 2015 Adviser, Daifuku Co., Ltd.
Nov. 2016 Managing Director, Japan Material Flow InstituteOct. 2017 Senior Managing Director, Japan Material Flow InstituteJun. 2022 Director, the Company (to present)
Aug. 2022 Adviser, Japan Material Flow Institute (to present)

Experience and Skills
Corporate Management/
Business Management✔

✔

Financial Accounting
Legal

✔

Marketing✔

Research & Development
International Experience✔

Sustainability
Note: As the above list is not comprehensive, it does not represent all the knowledge and experience of our directors.

✔

The Foundation of
Our Value Creation

Corporate
Data

48

Our Value
Creation Story

Directors and Audit and Supervisory Board Members

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Audit and Supervisory Board Member

Audit and Supervisory Board Member

External Audit and Supervisory Board Member

External Audit and Supervisory Board Member

Shinji Ichihara

Katsutoshi Yuasa

Shigeru Yoshimura

Kazuhiro Fukuoka

Biographies
Apr. 1981 Joined Mitsubishi Heavy Industries, Ltd.
Jan. 2009 General Manager of Planning & Accounting Department,
General Machinery & Special Vehicles Business
Headquarters, Mitsubishi Heavy Industries, Ltd.
Jun. 2011 Deputy Head of Sagamihara Machinery Works,
Mitsubishi Heavy Industries, Ltd.
Apr. 2013 Deputy Head of General Machinery & Special Vehicles
Business Headquarters, Mitsubishi Heavy Industries, Ltd.
Jan. 2014 CEO, Mitsubishi Heavy Industries Europe, Ltd.
Apr. 2017 Assistant to Head of Administration Headquarters,
the Company
Jun. 2017 Senior Executive Officer, Deputy Head of
Administration Headquarters, the Company
Jun. 2018 Head of Administration Headquarters, the Company
Apr. 2020 Assistant to President, the Company
Jun. 2020 Audit and Supervisory Board Member, the Company(to present)

Apr. 1986 Joined Nissan Motor Co., Ltd.
Apr. 2013 Manager, Business Development Department,
UniCarriers Corporation
Apr. 2016 Manager, Mitsubishi Heavy Industries Forklift, Engine &Turbocharger Holdings, Ltd.
Mar. 2017 Joined the Company
Oct. 2017 Chief, PMI Promotion Office, the Company
Jul. 2020 Fellow, Deputy General Manager, Corporate Strategy
and Planning Office, the Company
Apr. 2021 Member of the Executive Team, Division Head, General
Manager, Corporate Strategy and Planning Office,
the Company
Apr. 2022 Member of the Executive Team, Division Head, General
Manager, Product Planning Office, the Company
Apr. 2023 Member of the Executive Team, Assistant to President,
the Company
Jun. 2023 Audit and Supervisory Board Member, the Company(to present)

Apr. 1976 Joined Mitsubishi Heavy Industries, Ltd.
May 1997 President, Mitsubishi Caterpillar Forklift Asia Inc.
Apr. 2002 Deputy Manager of Industrial Vehicles Sales Department,
General Machinery & Special Vehicles Business
Headquarters, Mitsubishi Heavy Industries, Ltd.
Jan. 2003 Director, Mitsubishi Caterpillar Forklift America Inc.
Jun. 2007 Director, General Manager, Fleet Sales Department,
Mitsubishi Heavy Industries Forklift Sales Co., Ltd.
Mar. 2008 President, Mitsubishi Heavy Industries (Thailand) Ltd.
May 2013 Advisor, Domestic Corporate Sales Office, Global Strategy
Headquarters, Mitsubishi Heavy Industries, Ltd.
Jun. 2020 Audit and Supervisory Board Member, the Company(to present)

Apr. 1982 Joined Japan Storage Battery Co., Ltd. (currently GS
Yuasa International Ltd.)
Apr. 2004 General Manager, Corporate Strategic Planning Office(Information Systems), GS Yuasa Corporation
Apr. 2008 General Manager, Corporate Strategic Planning Office(Strategic Planning), GS Yuasa Corporation
Aug. 2008 Executive Vice President, Siam GS Battery Co., Ltd.
Jul. 2011 Associate General Manager, Human Resources Division,
GS Yuasa International Ltd.
Jun. 2015 Officer, GS Yuasa International Ltd.
Jun. 2017 General Manager, Human Resources Division, GS Yuasa
International Ltd. (to present)
Jun. 2019 Senior Officer, GS Yuasa International Ltd.
Apr. 2020 Director, GS Yuasa International Ltd. (to present)
Jun. 2020 Director, GS Yuasa Corporation (to present)
Jun. 2023 Audit and Supervisory Board Member, the Company (topresent)

49

Message from Our External Director

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Providing effective recommendations to enhance corporate value

Osamu Ando
Lead Independent External Director
Nominating and Compensation Committee

Contributing to corporate sustainability by
developing organizational infrastructure andsupervising business execution
Since being appointed as an external director in 2020, I havebuilt on my existing knowledge and experience by expanding
my understanding of the business, its organization, and its
people. I have focused my efforts on three priorities: determining
whether the company’s business operations are being carriedout reasonably and appropriately; determining whether we areheaded toward a sustainable increase in corporate value; andinvestigating whether, as a company with a controllingshareholder, the interests of minority shareholders are being
protected. In addition, in fiscal 2022, as a member of theNominating and Compensation Committee, I participated in thecommittee’s examination of the presidential succession planningand in system improvements for the long-term incentive portionof executive compensation, providing reports to the Board of
Directors. I am confident this work will help to strengthen thecompany’s future sustainability.
In fiscal 2022, the circumstances surrounding thecompany’s main North American business changed significantly
in a short period of time: as orders increased, they experienced
an increase in the order backlog and in inventory due to
production delays. This was followed by a recovery periodcharacterized by production normalization and priceoptimization. The Board of Directors has always remained
focused on providing timely and accurate responses in supportof improved business performance. In my role as external
director, I focused on the late delivery of electronic control
components that had contributed to a major disruption in
production. I also addressed the gap between orders and sales
in the U.S. market and called for appropriate response tothese issues.

Envisioning the continued evolution of growthstrategies and sustainability in light of thesmooth implementation of the medium-termbusiness plan
Looking to the progress achieved in implementing the mediumterm business plan in fiscal 2022, sales increased significantly
mainly in North America due to an increase in orders and arecovery in production volumes. Moreover, price revisions
outside Japan as well as currency exchange rates affected

performance, resulting in the company achieving its sales targets
ahead of schedule. Profits also increased significantly, which
prompted the company to revise its sales and profit targets
upward for fiscal 2023, the final year of the business plan. In
addition to these efforts, I suggested that the company takesteps to further improve its profit margin and strengthen its
financial foundation by using the capital adequacy ratio as anindicator in the lead-up to the next medium-term business plan,
which is currently being formulated.
As a growth strategy, the company is upholding the
expansion of its business domains with solutions that meetvarious market needs, although the word “solution” can beinterpreted in various ways. Through the pursuit of technologicaldevelopments in the markets of North America and Japan, thecompany should determine in which business fields it can
provide services and to which customers it will offer them. As aconsequence, through clarification of its goals andresponsibilities, the company should seek to expand its solutions
business as part of its overall portfolio.
Because the company was established through the
integration of four companies, I believe some areas still remain
to be fully integrated and reorganized. Brand integration and theestablishment of a sales and manufacturing company structure
both inside and outside Japan are progressing steadily under
the current medium-term business plan; moreover, the Logisnext
brand is becoming more prevalent both within and outside thecompany. I look forward to their continued efforts to establish abusiness structure that will allow them to maximize the effects
of integration.
Looking to the issue of sustainability, the first thing thatcomes to mind is the issue of the environment. What society
most expects from the company is an effort to reduce theemissions of CO2 and other greenhouse gases that occur as aresult of the operation of the products the company
manufactures and sells, such as forklifts, in order to contribute50Our Value
Creation Story

Message from Our External Director

to the achievement of a decarbonized society. It seems thatsome issues still remain to be resolved in terms of technologicaldevelopment and sales, but in the global forklift market, where
electrification is progressing ahead of other vehicles, it isnecessary to set goals for product development, sales andservice systems in order to keep up with competitors. I believethat strengthening the business and contributing to theenvironment will lead to the sustainable development of
the company.
Regarding the issue of diversity, one of the company’s
remaining challenges is to address the lack of females inmanagement positions. Although this depends on the various
types of businesses being operated and their histories, I still
think a conscious effort needs to be made to improve thissituation. The increase in the proportion of newly graduatedfemale employees hired in fiscal 2023 is a positive sign, and I
have high expectations for the future.

Strengthening group governance andaddressing other challenges amid the steady
improvement in the effectiveness of the Boardof Directors
To date, the company has taken steps to strengthen its
governance through self-evaluations of the Board of Directors.
These steps include improving the criteria for selecting proposals
and managing meetings. As a result, I feel that the provision of
information to external directors has become appropriate andthat practical discussions are progressing. In addition, evenoutside of the Board of Directors meetings, opportunities forreporting and discussing matters related to business operations
have also increased, such as individual interviews withexecutives at the general-manager level and tours of businessfacilities. As an external director, I have gained a deeper
understanding of the company, and this has particularly
improved the quality of my oversight of business execution.
Furthermore, by having external directors participate in regular
information exchanges with general affairs, internal control,
human resources, and other departments that the Audit andOur Value Creation
Strategy

Supervisory Board has traditionally conducted, I have become
more involved in governance involving related departments andthe Audit and Supervisory Board. I believe this approach has
further strengthened the company’s governance structure.
Since the days the company was founded through the
integration of four companies, it has succeeded in expanding its
scale. As a result, a growing need has arisen to extend
governance to the individual workplaces of each of thenumerous group companies that exist both inside and outside
Japan. I believe that the challenge regarding governance isdetermining how to develop a system and implement it
systematically and efficiently.
Furthermore, regarding the recently introduced presidential
succession planning and long-term incentive system forexecutive compensation, simply introducing them is ameaningless exercise, as their function must be continuously
monitored in the future.

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Reason for Appointment

Osamu Ando
Mr. Ando offers excellent insight and is experienced in global business
management with a manufacturer of measuring and medical instruments.
Building on his track record and insight, he has provided constructive opinions
and suggestions and continues to supervise management as appropriate froman objective and neutral standpoint as an Independent Director. We havetherefore determined that he is suitably qualified and have appointed him as
an External Director.

Kyoko Kobayashi
Ms. Kobayashi has an extensive track record as an attorney providing insights
mainly related to corporate legal affairs. She has worked for a listed company
and served as an Independent Director at another listed company. Using her
experience and insight, she has provided constructive opinions andsuggestions and supervised management appropriately from an objective andneutral standpoint as Independent Director. Therefore, we have appointed her
as an External Director.

Fumio Kobayashi
Mr. Kobayashi has gained extensive experience in management and offers
excellent insights in the material handling equipment industry. In light of his
expertise and insight, the company believes he will provide constructive
opinions and suggestions and supervise management appropriately from an
objective and neutral standpoint as an Independent Director. We havetherefore appointed him as an External Director.

Initiatives Intended to Maximize the Effectiveness of External Directors
Specific Measures

Frequency

Details

Preliminary explanation of proposals for the Boardof Directors meeting

Prior explanations / Irregular
Prior questions / Monthly

Prior explanations of proposals to the Board of Directors meeting are provided to External
Directors as necessary. In addition, prior questions on bills are accepted and answered atmeetings of the Board of Directors.

Convening of a forum for discussion of businessstrategies

Monthly

In our Business Strategy Discussions, we address medium- and long-term strategies aswell as other themes.

Regular debriefing session with the Internal Control
Division

Monthly

External Directors also attend regular debriefing sessions between the Audit & Supervisory
Board and Internal Controls Division to share information on internal controls.

Meeting with the chairman and president

4 times a year

External Directors also participate in an exchange of opinions between the Audit &Supervisory Board members, the chairman, and the president, openly exchanging
frank opinions.

Implementation of officer seminars

About 3 times a year

Seminars by external lecturers are held regularly as officer training events that contribute to
the effective functioning of the Board of Directors.

Site visits and meetings of the Board of Directors
held outside the head office

About once a year

Management interviews are conducted with executives and the results are fed back to thechairman and president.

Interviews of senior management by External
Directors

Annually

Management interviews are conducted with executives and the results are fed back to thechairman and president.

Appointment of a lead independent External
Director-

With the aim of strengthening the supervisory functions of the External Directors andimproving the effectiveness of the Board of Directors, the lead independent External
Director is appointed to handle the leading role and duties in a dialogue with executives andin cooperation with the Audit & Supervisory Board and the Board of Directors Secretariat.

51

Our Value
Creation StoryESG Summary of Activities
Category

E

Activity

Objective

Fiscal 2022 Initiatives

Development and provisionof decarbonized andlow-carbon products

1. To develop electric forklifts offering
lower electricity consumption
2. To expand the lineup of electric
forklifts to replace engine-powered
forklifts
3. To develop engine-powered forklifts
in compliance with emissions
regulations

1. To launch a new stacker in the European
market2. To launch the EDiA XL model in the North
American market
3. To develop models in compliance with local
emissions regulations

Development of carbonneutral rubber-tired gantry
cranes

1. To help achieve the carbon-neutral
ports policy being promoted by the
Ministry of Land, Infrastructure,
Transport and Tourism
2. To reduce CO2 emissions attributable
to ports

Initiatives of our special
environmental groups andthe entire company

Achievement
RatingOur Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Fiscal 2022 Results

Fiscal 2023 Initiatives★★★

1. Introduced a new stacker in theEuropean market
2. Introduced the EDiA XL model in the
North American market
3. Introduced a model that complies with
China’s Stage IV Emissions Regulation

1. To introduce electric models poweredby lithium-ion batteries in the Japanesemarket2. To develop a pilot post-ICE vehicle andnew mid-sized electric forklifts
3. To introduce models in compliance withlocal emissions regulations

1. To participate in the Osaka “Minato” CNP Study
Group and the Port of Tokyo CNP Study Group
2. To start production of the first rubber-tired
gantry cranes equipped with diesel generators
in compliance with the fourth emissions
regulation and to adjust, verify, and improve fuelefficiency★★★

1. Participated in the Osaka Minato CNP
Study Group and the Port of Tokyo
Study Group
2. Produced, adjusted, and verified thefirst F-ZERO rubber-tired gantry cranes
equipped with diesel generators incompliance with the fourth emissions
regulation and launched them on themarket1. To participate in CNP study groups
2. To select vehicles for real-world fuelconsumption testing in the market
3. To consider systems capable ofsupporting further progress toward
carbon neutrality

To upgrade the environmental initiativesof Group companies

To improve the accuracy of environmental datacollected from sales companies in Japan andlocations outside Japan★★★

Improved data accuracy by establishing asystem that enables sales companies inJapan to input data directly

To examine the waste sorting methods ofsales companies in Japan and make anynecessary improvements

To improve our waste and emissions
intensity

To achieve a 1.0% improvement in waste andemissions intensity (excluding resources) relative
to fiscal 2020 levels★★★

Achieved a 4.9% improvement in waste
and emissions intensity at the Kyoto,
Shiga, Azuchi, and Hanyu plants relative
to fiscal 2020 levels

To continue monitoring the amount sent
for final disposal and recycling in addition
to focusing on improving waste andemissions intensity

To increase our recycling rate

To improve the recycling rate relative to the results
for fiscal 2020★★

Posted improvements at the Kyoto,
Shiga, and Hanyu plants, but the results
deteriorated at the Azuchi Plant.

To achieve a recycling rate that exceeds
fiscal 2020 results by practicing sorting
awareness and conducting patrols asnecessary

To improve our VOC emissions intensity

To improve the VOC emissions intensity relative tothe results for fiscal 2020★★★

Posted improvements at the Kyoto,
Shiga, and Azuchi plants by a total of
15.2% relative to fiscal 2020

To maintain the improvement trend relative
to fiscal 2020 through facility
improvements and other measures

To ensure the costs of environmental
protection are calculated and clearly
disseminated in-houseTo gain an appropriate understanding ofenvironmental protection costs

Cancelled due to societal trends

To continue monitoring costs related towaste disposal and energy consumption

To establish methods and standards forcalculating CO2 emissions reductions
attributable to product usage

To conduct environmental assessments of vehicles
in development to confirm target values andevaluation results at the development stage★★★

Established targets at each stage ofdevelopment and verified the results ofthe evaluation

To continue conducting reliable
environmental assessments of vehicles indevelopment

To reduce the amount ofenvironmentally hazardous substances
contained in products

1. To continue requiring suppliers to conduct
SVHC surveys and request them to submit a“declaration of non-use or non-inclusion ofprohibited substances”
2. To revise the Guidelines for the Management ofEnvironmentally Hazardous Substances★★★

Continued to conduct SVHC surveys ofsuppliers and revision of the guidelines

To request the cooperation of new
suppliers

To improve our energy intensity

To improve energy intensity by 2% relative to fiscal
2020 levels★★★

Achieved a 19.1% improvement relative
to fiscal 2020 levels

To continue implementing energyefficiency initiatives such as capital
investments and reduction of work-hours

To reduce water intensity

To improve water intensity by 1% relative to fiscal
2020 levels★

Worsened by 5.6% relative to fiscal 2020
levelsTo conduct daily inspections intended todetect water leaks at an early stage

To reduce wood pallet waste

To achieve a 1% improvement in wood pallet
waste intensity relative to the preceding year (1.11kg/million-yen max.)★★★

0.31 kg/million-yen max.

To continue improving wood pallet waste
intensity by 1% relative to the precedingyear

To reduce the weight of packaging
material purchased per unit of sales

To achieve a 1% reduction in the purchase of
packaging material for parts shipments per unit ofsales relative to the preceding year (18.18 kg/
million-yen max.)★★★

16.14 kg/million-yen max.

To continue improving in this category by
1% relative to the preceding year

To improve the usage rate for
returnable containers

To promote the adoption of returnable containers★★

Procurement Headquarters promoted theconversion to plastic containers after
scrap cardboard was detected at thedelivery site. Engaged in a mix of projects,
several of which achieved their goals.

To investigate suppliers posting a low rateof returnable containers and promote thereduction of packaging materials andwood waste★

Corporate
Data

Corresponding SDGs

52

Our Value
Creation StoryESG Summary of Activities
Category

E

Activity

Objective

Fiscal 2022 Initiatives

Achievement
RatingOur Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Fiscal 2022 Results

Fiscal 2023 Initiatives

Initiatives of our special
environmental groups andthe entire company

To determine product shipments (bytonne-kilometer) and maintain or
improve management methods

To determine product shipments (by tonnekilometer) in an appropriate manner and reduceenergy intensity related to transportation★★★

Achieved an improvement in tonnekilometers relative to the fiscal 2021 level

To continue accommodating the Energy
Conservation Law (Specified Shippers)

Environmental investment

To reduce CO2 emissions throughenergy efficiency

To reduce CO2 emissions by 246 tonnes/year (toachieve an emissions reduction of 85.4 tonnes/
year through environmental investments)
1. To introduce LED lighting at the Kyoto Plant(7.7-tonne reduction)
2. To update the air conditioner (gas heat pump) in
the cafeteria (1.0-tonne reduction)
3. To update the air conditioner (gas heat pump) in
the electric components factory (3.7-tonne
reduction)
4. Updated the gas heat pump air conditioner for
the frame factory (6.1-tonne reduction)
5. To convert to LED lighting on the 3rd floor of the
Office Building of the Azuchi Plant (12.6-tonne
reduction)
6. To convert to LED lighting in the Azuchi Plant
painting booth (12.0-tonne reduction)
7. To convert the ceiling fixtures at the Azuchi
Plant to LED lighting (4.6-tonne reduction)
8. To convert the heaters in the mast factory togas (23.6-tonne reduction)
9. To introduce LED lighting at the Shiga Plant(1.1-tonne reduction)
10. To update the cylinder coating boiler (1.7-tonne
reduction)
11. To update the transformer at the Shiga Plant(3.0-tonne reduction)
12. To convert equipment and vehicles at the
Shiga Plant to electric power (8.3-tonne
reduction)★★★

Reduced CO2 emissions throughinvestments in environmental equipment(achieving a reduction of 115.0 tonnes/
year). Added the following item during theperiod in addition to those listed at left.
1. Updated the air conditioners at theElectric Components Factory and
Employee Welfare Building (0.3-tonne
reduction)

To achieve a CO2 emissions reduction of
52 tonnes/year through the following
measures:1. Updating of compressors at the Kyoto
Plant (3.8-tonne reduction)
2. Replacement of gas heat pump incafeteria (2.1-tonne reduction)
3. Updating of gas heat pumps at theElectric Components Factory(9.9-tonne reduction)
4. Replacement of air conditioners at
parts inspection sites (1.1-tonne
reduction)
5. Reduction of LED ceiling lighting at
Azuchi Plant (19.3-tonne reduction)
6. Installation of thermal insulation in
drying equipment at the Attachment
Production Factory (12.7-tonne
reduction)
7. Updating of air conditioners at theheadguard powder coating facility(3.1-tonne reduction)

Global inventory
management andoptimization of spare parts

1. To reduce environmental load bycontrolling the amount of goods by
reducing global inventory on aconsolidated basis
2. To increase efficiency throughoperation of a common platform

To ensure stability of supply amid logistical
disruptions and achieve appropriate inventory
management★★

Global inventories increased 7.9%
year-on-year due to the accumulation of
buffer stock to respond to logistics
disruptions on a transitional basis.

To reduce inventory by streamlining
logistics and strengthening global
inventory management

3 R initiatives

1. To ensure effective use of resources
by reusing surplus items
2. To reduce waste disposal volume

To promote timely internal notification to ensuresurplus items end up at departments in need★★★

Provided four in-house announcements
as information on the “3 R” giveaway
initiative

To be implemented on an ongoing basis

Zero waste movement

1. To cooperate in local government
initiatives (530 campaign)
2. To contribute to a society in which
everyone seeks to take ownership of
the waste issue by cultivating thepractice of picking up waste and notlittering

To hold waste collection events twice annually inspring (May) and autumn (October)★★★

Implemented at a reduced scale toreduce spread of the COVID-19 virus
1. May: 127 participants
2. October: 121 participants

To hold waste collection events twice
annually in spring (May) and autumn(October)Participation in community
cleanup activities

1. To increase the environmental
awareness of employees
2. To promote environmental
conservation in local communities

1. To participate in the Lake Iba-naiko Yoshi
Reed-Harvesting project
2. To participate in the Oiso Cleanup Initiative
3. To participate in weeding of the Sammyo River
4. To participate in Shiga Prefecture Forest
Maintenance Volunteer Activities★★★

1. Participation in the Lake Iba-naiko
Yoshi Reed-Harvesting project:
Canceled
2. Participation in the Oiso Cleanup
Initiative: Continued
3. Participation in weed removal along
the Sammyo River: Continued
4. Zero Waste Movement
5. Nishiyama Forest Volunteers

To be implemented on an ongoing basis

Encouraging use of
returnable pallets

1. To reduce the use and disposal ofwood packaging materials
2. To improve loading efficiency bypallet stacking and reducing thenumber of containers used

1. To promote a switch to reinforced corrugatedcardboard packaging and increase the numberof suppliers
2. To research the development of returnable
plastic containers
3. To address the chronic shortage of returnable
pallets★★

1. Started to do business with newvendors
2. Postponed adoption of returnable
plastic containers
3. Added some returnable pallets

1. To introduce additional iron racks fortransporting engines
2. To continue reducing the use ofwooden crates as a packaging material

Used car sales

1. To improve the image of recycled
products
2. To promote the reuse of resources

To consider introducing an AI-based appraisal
system for used cars★★★

Extended to sales companies as of April
2023 and began trial operation

As fiscal 2023 marks the final year ofsystem development, a relearning function
will be installed to improve the accuracyof appraisal pricing.

Corporate
Data

Corresponding SDGs

53

Our Value
Creation StoryESG Summary of Activities

S

Achievement
RatingFiscal 2022 Results

Value Creationin Practice

The Foundation of
Our Value Creation

Activity

Objective

Fiscal 2022 Initiatives

Development of labor-saving
and unmanned products

1. To reduce the environmental impactof AGVs/AGFs
2. To improve the safety of AGVs/AGFs
3. To increase the throughput of AGVs/
AGFs
4. To promote the introduction of AGFs
to manned forklift sites
5. To promote autonomous control
systems for AGVs/AGFs

To improve the laser-guidance method of ourAGFs
1. To introduce a vehicle with a -25°C freezer
specification
2. To provide support for a wing-body truck
3. To comply with the JIS D6802 (2022) standard
for functional safety★★★

1. Introduced a vehicle with a -25°C
freezer specification
2. Customers began truck unloadingtests
3. Completed design verification

1. To improve the function of laser-guided
automated forklifts(1) To commence actual operation of thewing-body truck(2) To start sales of equipment compliant
with the JIS D6802 (2022) standard forfunctional safety
2. To develop a next-generation AGF
systemSafety awareness initiatives(safety seminars, safety
awareness DVDs, calendars,etc.)

1. To increase our customers’ safety
awareness
2. To raise awareness of and prevent
occupational accidents

1. To present safety seminars (5,500 seminars
with 45,000 participants)
2. To distribute safety awareness DVDs: 3,000
copies3. To distribute safety awareness posters: 23,000
copies4. To distribute KYT hazard prediction training
calendars: 10,000 copies★★★

1. Presented safety seminars (8,032
seminars with 51,426 participants)
2. Distributed safety awareness DVDs
available via download
3. Distributed safety awareness posters:
23,000 copies
4. Distributed KYT hazard prediction
training calendars: 9,830 copies

1. To present safety seminars (5,500
seminars with 45,000 participants)
2. To produce safety awareness videos
3. To distribute safety awareness posters:
23,000 copies
4. To distribute KYT hazard prediction
training calendars: 9,800 copies

Operator qualification
training for forklifts, shovel
loaders, etc.

Ensuring the safety of operators of
forklifts and shovel loaders

1. Number of scheduled sessions Shiga Plant: 33
sessions / On-site Training Center: 14 sessions
2. Estimated number of participants at the Shiga
Plant: 330 / On-site Training Center: 162★★★

1. Number of sessions held Shiga Plant:
39 sessions / On-site Training Center:14 sessions
2. Number of participants: Shiga Plant:
363/ Onsite Training Center: 162

1. Number of scheduled sessions Shiga
Plant: 37 sessions / On-site Training
Center: 14 sessions
2. Estimated number of participants Shiga
Plant: 430 / On-site Training Center:
162

Offering product options(safety equipment) andspecial features

1. To provide forklifts and other material
handling equipment with productcapabilities focused on safety andsecurity
2. To offer a variety of options for safety
equipment
3. To strengthen support for special
features to meet special-orderrequests from customers

1. To provide examples of specialized
specifications to sales companies in Japan
2. To produce a video introducing a case study of
our forklift operation management system
known as LVS (Logistics Vehicle Support); toraise awareness of initiatives such as proposals
for efficient operation of forklifts and operation
analysis that contribute to safer work★★★

Examples of unique specifications were
provided to domestic sales companies.
An LVS introduction video was developed
for the food industry and provided tosales companies as a sales promotion
tool. In addition, this video wasintroduced at the International Logistics
Exhibition 2022.

1. Specification features: Acrylic guard infront of levers, hydraulic operation lockwhen operated (brake pedal interlock),driver’s seat pipe guard (on PLATTER
model), cargo-handling interlock when
operated, interlocked buzzer sounding
during overload (ALESIS)
2. Forklift safety support equipment isavailable as an option, (SAssist,
OmniEye®, etc.) and will be exhibitedand demonstrated at “Logis-Tech
Tokyo 2023 & The 3rd INNOVATION
EXPO.”

Customer questionnaire

To visualize the degree of customer
satisfaction and dissatisfaction throughtestimonials for rapid response andcase sharing

To distribute two or more surveys in a year★★★

Distributed twice during the fiscal year
(July 2022 and February 2023)

To distribute the questionnaire twice
during the fiscal year as before; toconsider distributing questionnaires
through CRM software

Publication of thepromotional magazine
monogram

To provide examples of optimal logistics
solutions provided by the Company aswell as information on logistics topics
and the likeTo publish a booklet and web edition
1. September 2022 Vol. 14
2. March 2023 Vol. 15★★★

We published a booklet and web edition
1. September 2022 Vol. 15
2. April 2023 Vol. 16

To publish a booklet and web edition
1. September 2023 Vol. 17
2. March 2024 Vol. 18

Staging of the Logistics
Solutions Fair

1. To provide customers with solutions,tips, and knowledge to improvelogistics
2. To revitalize communication withcustomers with whom we cannot
follow-up at any of the international
logistics exhibitions and similar
eventsIn addition to exhibiting at the International
Logistics Exhibition 2022 in September 2022, wewill present “Logisnext Expo 3.0” at the same time★★★

Logisnext Expo 3.0 was held on the ML
online showroom (concurrently with theInternational Logistics Exhibition 2022 in
September 2022).

To hold “Logisnext Expo 4.0” on the ML
online showroom(concurrently with “Logis-Tech Tokyo 2023
& The 3rd INNOVATION EXPO” in
September 2023)

Strengthening weak points
through implementation ofplant process audits

Strengthening weak points throughreciprocal implementation of plant
process audits

1. Kyoto Plant: To expand target processes
2. Shiga Plant: To transfer production from the
Kyoto Plant
3. Azuchi Plant: To introduce process audits
4. Onomichi Plant: To continue conducting audits★★★

1. Kyoto Plant: Implemented 11 of 11planned audits
2. Shiga Plant: Implemented 41 of 41
planned audits
3. Azuchi Plant introduced audits jointlywith Kyoto Plant.
4. Onomichi Plant: Implemented 3 of 3planned audits

1. To increase the number of audits by 2,
to 13 audits
2. Shiga Plant: To introduce audits of
unimplemented processes (53 audits
planned)3. To conduct audits jointly with the Kyoto
Plant while assuming primary
responsibility
4. Onomichi Plant: To conduct audit once
every 4 months (KPI)

Customers

Category

Our Value Creation
Strategy

Fiscal 2023 Initiatives

Corporate
Data

Corresponding SDGs

54

Our Value
Creation StoryESG Summary of Activities

Customers

Category

Activity

Objective

Fiscal 2022 Initiatives

Implementing Quality Monthinitiatives

1. To raise awareness of quality
2. To recognize the company’s quality
status3. To introduce our quality control
initiatives
4. To promote quality improvements byreflecting on our own work

1. To expand efforts to improve quality awareness
2. To expand the skills competition to the Kyoto
Plant and Azuchi Plant

Utilizing the Quality Dojo forrecurrence prevention
activities

1. To establish a quality culture
2. To visualize quality data by posting it
3. To implement quality training

Providing improvement
guidance through supplierevaluations and identificationof highly rated suppliers

Value Creationin Practice

The Foundation of
Our Value Creation

Fiscal 2022 Results

Fiscal 2023 Initiatives★★★

Japan: Quality Month initiatives in
November• Company-wide: Quality Morning
Meetings, Quality Improvement Report
Meetings• Shiga & Kyoto plants: Presented theDefective Parts Exhibition• Shiga Plant: Skills competition held withparticipants from Kyoto and Azuchi
plants *Welding, painting, assembly,
measurement and product inspection• Raised awareness by encouraging thewearing of badges

Ongoing Initiatives
1. To develop additional initiatives
intended to raise quality awareness
2. To expand skills competitions to include
the Kyoto and Azuchi plants

1. To discuss initiatives and improvements atmeetings of representatives of each department(monthly)
2. To provide training on tightening torque (June)
3. To stage a measurement skills competition andthe Defective Parts Exhibition (November)
4. To establish a new Quality Dojo at the Kyoto
Plant (October)★★★

Shiga Plant:
1. Departmental representatives meeting(monthly)
2. Tightening torque training (June 6,2022)
3. Measuring instrument skills competition
and the Defective Parts Exhibition(November)
4. Quality morning meetings held by the
manufacturing departments (onceevery three months)
Kyoto Plant:
1. Quality Dojo (completed in December
2022)

1. To display training materials using
actual products alongside regular
updates of bulletin boards
2., 3. To shift to quality month initiatives
4. To hold meetings of administrators
every month
To rotate departments in charge of bulletinboards and consider publishing a web
bulletin board

1. To undertake supplier evaluations
regarding delivery date, quality, andprice
2. To submit improvement requests
and provide support for supplierswith low evaluations in terms of
quality and delivery times
3. To undertake factory audits ofsuppliers
4. To build a strong supply chain byconsolidating orders amongsuppliers that have passed factory
audits and achieved high evaluations

1. To focus on monitoring the ratio of orders tocore suppliers and accelerate orderconsolidation
2. To lower costs through a consolidation oftransportation companies★★★

1. Monitored the ratio of orders placedwith core suppliers and confirmed thatorders for the integrated ERSIS models(which increased from 85.8% in fiscal
2021 to 89.6% in fiscal 2022) and
ALESIS models (which increased from
91.7% in fiscal 2021 to 94.8% in fiscal
2022) were steadily consolidating evenunder extremely difficult procurement
conditions marked by high raw material
prices and logistics disruptions.
In addition, as a member of the MHIGroup, we have started sustainability
and CSR procurement initiatives. As
our first initiative, we conductedfact-finding visits to core suppliers in
March 2023. Good efforts wereconfirmed.
2. Conducted monthly monitoring,
identified factors that increasedtransportation costs, and in particular,
reviewed and reduced ocean freightrates, consolidated road freight
carriers, and achieved cost reductionsof 782 million yen in fiscal 2022

1. To regularly monitor the ratio of orders
placed with core suppliers andaccelerate initiatives for the integrated
ERSIS and ALESIS models
To continue our sustainability and CSR
procurement initiatives and to conduct
an online questionnaire in February andMarch 2024
2. To continue monthly monitoring,
identifying aggravating factors, andpromoting improvement initiatives. As acountermeasure to challenges in 2024,
to establish a relay transportation
system and proceed with consolidation
work while assessing the suitability ofroad freight carriers

Promotion of local
procurement

1. To minimize shipping from Japan bypromoting local production for local
consumption
2. To establish a global supply chain bypromoting local procurement
3. To explain our local procurement
promotion approach to domestic
suppliers in Japan

1. To promote local procurement when transferringproduction to our plant in Spain
2. To establish a global supply chain linking ourfour production hubs in Japan, the U.S.A.,
Spain, and China★★★

1. Promoted local procurement duringtransfer of production to the plant inSpain
2. Established a global supply chain
encompassing our four hubs in Japan,
the U.S.A., Spain, and China

1. To promote local procurement of global
parts at plants in China
2. To promote local procurement of global
parts at plants in the U.S.A.

Holding supplier briefings

1. To hold supplier briefings for coresuppliers
2. To share information throughbusiness overview presentations byexecutives
3. To strengthen the supply chain byrequesting cooperation with our
initiatives

To deliver explanatory materials to suppliers andexplanatory videos from executives (in April andOctober)
Depending on the COVID-19 pandemic situation,
we will also consider in-person briefing sessions.

★★★

First half: Distributed videos to the mostimportant BP175 companies with which
we have signed a confidentiality
agreement in advance. These videos
covered the Mitsubishi Heavy Industries
Group’s sustainability and CSR
procurement initiatives; called forstabilization of supply by strengthening
supply chains, a critical issue; and called
for optimization of backlogs andinventories through “One Logisnext.”
Second half: Distributed videos to themost important BP174 companies on
October 14, 2022, as in the first half ofthe year.

First half: To distribute videos to the mostimportant BP172 companies on April 21,
2023, as was done in fiscal 2022
Second half: To continue distributing
videos that have become established as a
new form of information-sharing and thathave been largely well received

S

Suppliers

Achievement
RatingOur Value Creation
Strategy

Corporate
Data

Corresponding SDGs

55

Our Value
Creation StoryESG Summary of Activities

S

Activity

Objective

Fiscal 2022 Initiatives

Participation by females

To hire employees, retain them, andincrease employee motivation bycreating a workplace environment inwhich female employees can continue
to work while developing their skills

To maintain a minimum ratio of 20% female
employees in personnel recruitment efforts

Diversity training

1. To secure personnel in an aging
society with a declining birth rate bypromoting the active participation of
a diverse range of personnel
2. To strengthen our ability to respondto diversifying market needs andvaried risks

To re-examine the target audience and the content
of the lectures and to invite an external lecturer todeliver a presentation

Promoting employment ofpeople with disabilities

To create an environment in whichanyone can live an independent life byfinding employment suitable to theirabilities and aptitudes, regardless ofwhether or not they have a disability

Trainee system for
employees outside Japan

Achievement
Rating★

Fiscal 2022 Results

Value Creationin Practice

The Foundation of
Our Value Creation

Fiscal 2023 Initiatives

Female employee ratio: 11.3%
Note: Includes mid-career and part-timehires

To maintain a minimum ratio of 20%
female employees in personnel
recruitment efforts★★★

Date of the event : March 16, 2023
Participants: 79

To hold seminars promoting female
empowerment

To achieve the statutory employment rate of atleast 2.3% for people with disabilities as of theend of fiscal 2022★★

The ratio of people with disabilities to all
employees at the end of fiscal 2022:
2.28% (Fiscal 2022: 2.33%)

To achieve the statutory minimum
employment rate of 2.3% for people withdisabilities as of the end of fiscal 2023

To foster personnel who cancommunicate both inside and outside
Japan in a world of rapid progressing
globalization

Depending on the COVID-19 pandemic situation,
we will determine whether to dispatch participants
to other countries or opt for online training.

★★★

Period: 5 days between January andMarch 2023 (online)
Participants: 2

Depending on the COVID-19 pandemic
situation, we will determine whether todispatch participants to other countries or
opt for online training.

In-house training (rankspecific training)

1. To develop personnel trained toachieve the company’s vision by
assigning them to the roles expectedof them by the company
2. To raise the status of the entire
company and improve motivation

To provide training for newly appointed generalmanagers★★★

Date of the event: September 27, 2022
Participants: Those promoted to Grade 8
in 2022 and newly appointed generalmanagers (11 individuals)

To be implemented on an ongoing basis

Service workshop (in Japan)

1. To improve maintenance technology
for service technicians
2. To improve the user-response skillsof service technicians
3. To improve product knowledge
4. To share information on defects

1. To train new service technicians
2. To train new leaders
3. To implement a forklift mechanic certification
system
4. To implement user-response training
5. To convene a service support exchange
meeting
6. To convene a large forklift reach stacker
technical liaison committee★★★

1. Service skills training: 11 classes witha total of 262 participants
2-1. Forklift mechanic certification exam
Note: Cancelled because of the
COVID-19 pandemic
2-2 Service advisor certification exam: A
total of 455 applicants
3. ERSIS new vehicle training: 4 classes
with a total of 352 participants
4. Service support exchange meeting: 3
meetings with 300 participants

To merge the large forklift reach stacker
technical liaison meeting into the service
support exchange meeting (heldsimultaneously beginning in the second
half of 2022)

Service technician
certification system outsideJapan

1. To ensure service technicians acquire
the technical knowledge andtechnical skills required formaintenance and fault diagnosis
2. To confer qualifications on service
technicians commensurate with thetechnical knowledge and skills they
have acquired
3. To visualize the skill level of individual
service technicians
4. To improve the motivation of service
technicians by conferring appropriatequalifications

To increase the number of distributors participating
and the number of applicants for examinations
under the certification system★★★

The number of agencies participating in
the certification system was 12companies compared to the target of 10,
which exceeded the target (an increaseof one company from fiscal 2021), and
121 applicants for the examination (anincrease of 13 individuals). In the end, 52participants were certified as new
graduates or provided with advanced
certification.

To increase the number of participants inthe certification system and the number ofapplicants for the exam (Target number ofparticipants from the MLOS region: 6
companies)

Conducting stress checks

1. To raise awareness of stress andways of dealing with it
2. To foster a safe and comfortableworking environment
3. To improve the workplaceenvironment by conducting group
analysis

1. To introduce advanced stress checks
2. To reduce the rate of highly stressed employees
to the fiscal 2021 rate or lower
3. To improve the testing rate★★

1. Introduced advanced stress checks
2. High-stress employee rate: Reduced
from 14.0% to 11.8%, an improvementof 2.2 points
3. Examination rate: Reduced from
99.3% to 98.3%, a decline of 1.0 point

1. To reduce the rate of high-stressemployees to the fiscal 2022 rate orlower
2. To improve the stress checkexamination rate
3. To reduce the overall health risks to thefiscal 2022 rate or lower

Conducting health andsafety patrols

To improve safety, hygiene, and the “5S” principle

1. To have the health and safety committee
members conduct patrols 9 times a year
according to a monthly theme
2. To have labor and management executives
conduct “5 S” patrols twice a year★★★

Implemented

1. To have the health and safetycommittee members conduct patrols 9times a year according to a monthly
theme
2. To have labor and management
executives conduct “5 S” patrols twicea year

Employees

Category

Our Value Creation
Strategy

Corporate
Data

Corresponding SDGs

56

Our Value
Creation StoryESG Summary of Activities

Employees

Category

Community

S

Activity

Objective

Fiscal 2022 Initiatives

Achievement
RatingOur Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Fiscal 2022 Results

Fiscal 2023 Initiatives

Providing mental healthtraining

1. To encourage employees to becomeaware of their own state and learn
appropriate response measures
2. To encourage managers to acquire
knowledge and coping methods
related to mental disorders
3. To improve the workplace based on
results of group analysis

The following training will be held online:
1. Executive briefing session on group analysis
results
2. Self-care training
3. Workplace care manager training session
4. Workplace revitalization interviews
5. Line-care training★★★

1. Executive briefing session: Held
September 12, 2022, with 14
participants
2. Self-care training: Held September 14,
2022, with 125 participants
3. Workplace care manager training: Held
September 20, 2022, with 134
participants
4. Workplace revitalization interviews:
Held November 7 to December 9,2022, at 15 workplaces
5. Line-care training: Held December 14,
2022, with 39 participants andDecember 19, 2022, with 60
participants

The following training will be held online:
1. Executive briefing session on group
analysis results
2. Self-care training
3. Workplace care manager training
session
4. Workplace revitalization interviews
5. Line-care training

Counseling rooms opened

To improve mental health carecapabilities

To be implemented on an ongoing basis★★★

Number of individuals who underwent
counseling (total)
Fiscal 2020: 225
Fiscal 2021: 263
Fiscal 2022: 235

To be implemented on an ongoing basis

Increasing the take-up rateof paid leave

To establish a comfortable workplace
and promote a healthy work-lifebalance

To achieve a paid leave take-up rate of at least
68%

★★★

Achieved a paid leave take-up rate of
69.7%

To achieve a paid leave take-up rate of atleast 70%

Implementing a childcare
leave system / Reducing
working hours for those
providing childcare

1. To promote continuous work for
employees providing childcare
2. To promote employee welfare

To achieve a take-up rate of at least 9.4% forchildcare leave for male employees★★★

Percentage of male employees who tookchildcare leave: 42.5%

To achieve a take-up rate of at least 50%
for childcare leave for male employees

Implementing a nursing careleave system / Reducing
working hours for those
providing nursing care

1. To promote continuous work for
employees providing nursing care
2. To promote employee welfare

To be implemented on an ongoing basis─No records available

To be implemented on an ongoing basis

Formulating andimplementing an action plan
for work-style reforms

To improve employee job satisfaction
and purposeful living and maximize
work output while improving customer
satisfaction

To implement on an ongoing basis in eachdepartment based on the results of the fiscal 2020
employee awareness survey─Continued to implement initiatives in all
departments

To implement action plans for all
departments and check the progress of
implementation

Sponsorship of the
Mitsubishi Heavy Industries
Sagamihara DynaBoars

1. To promote sports
2. To contribute to society bysupporting the sound developmentof young people

To provide sponsorship as a Platinum Partner★★★

Implemented

To provide sponsorship as a PlatinumPartnerSponsorship of the Kyoto
Sanga F.C

1. To pursue regional revitalization
through sports
2. To contribute to society bysupporting the sound developmentof young people

To continue our sponsorship by advertising at thehome stadium in Kameoka, Kyoto prefecture★★★

Implemented

To continue our sponsorship byadvertising at the home stadium in
Kameoka, Kyoto prefecture

Sponsorship of the Kyoto
Philharmonic Chamber
Orchestra

1. To pursue regional revitalization
through music
2. To promote cultural and artistic
initiatives

To support the orchestra as a corporate sponsor★★★

Implemented

To support the orchestra as a corporate
sponsorContinued sponsorship★★★

Implemented

Sponsorship information posted on
billboards and in advertisements

Sponsorship of female
professional golfer Ayaka
Furue
Supporting the hospitality
guesthouse of “A Dream a
Day in Tokyo”

1. To donate to the project to support
children with intractable diseases
2. To invite children with intractablediseases and their families to travel
3. To provide support for travel throughvolunteer activities

To continue supporting the cause throughdonations★★★

Implemented

To continue the support provided since
fiscal 2020. We previously contributed asa Bronze Partner, but in order to support
their social contribution initiatives to agreater extent, we plan to donate as aGold Partner in fiscal 2023.

Sponsorship of the Super
GT (Nissan Automobile
Technical College)

To provide training for maintenanceengineers by supporting student
development projects at the Nissan
Automobile Technical College

1. To participate as a race sponsor
2. To exhibit at school festivals
3. To participate in employment guidance★★★

1. Continued with race sponsorship
2. Resumed participation in two school
festivals and participated in exhibitions
3. Continued to provide employment
guidance

1. To participate as a race sponsor
2. To exhibit at school festivals
3. To participate in employment guidance

Corporate
Data

Corresponding SDGs

57

Our Value
Creation StoryESG Summary of Activities

S

Community

CategoryG

Activity

Objective

Fiscal 2022 Initiatives

Offering workplace
experience to elementaryand junior high school
students through our On-site
Training Center

1. To support local school education
2. To promote career training

This initiative was discontinued to prevent the
spread of the COVID-19 pandemic.

Offering workplace
experience to elementaryand junior high school
students through our Shiga
Plant

1. To support local school education
2. To promote career training

To provide factory tours tohigh school students

Achievement
RatingOur Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Fiscal 2022 Results

Fiscal 2023 Initiatives

─This initiative was discontinued to preventthe spread of the COVID-19 pandemic.

Although the Japanese government has
reclassified COVID-19 as Class 5,
cancelations continued in order tominimize the spread of the infection.

To offer workplace experience to elementary andjunior high school students──

1. To offer work experience to junior highschool students
2. To provide teaching materials about ourbusiness to elementary school students
3. To provide online factory tours toelementary school students

To provide information that helps highschool students choose a career andimprove their skills

1. To provide company tours to three schools in
Shiga Prefecture
2. To provide tours of target companies★★★

1. Provided company tours to high school
students
2. Offered internships
3. Provided workplace tours before
employment
4. Provided practical training at highschools for persons with disabilities

1. To provide company tours to highschool students
2. To offer internships
3. To provide workplace tours before
employment
4. To provide practical training at highschools for persons with disabilities

To improve the effectivenessof the Board of Directors

1. To improve the effectiveness of theBoard of Directors
2. To reform the Board of Directors
3. To promote diversity
4. To enhance discussions on businessstrategies
5. To provide information to external
officers
6. To strengthen supervisory functions

1. To provide a forum for discussion of businessstrategies
2. To enrich and enliven discussion
3. To respond to the increasing sophistication ofinternal controls and risk management
4. To provide information and interaction withexternal officers
5. To address the need for succession plans★★★

Implemented

1. To enhance discussions on businessstrategies
2. To deepen understanding of the detailsof the agenda
3. To respond to the increasing
sophistication of internal controls andrisk management
4. To provide information and interaction
with external officers
5. To follow up on the status of succession
planning

Introduction of an electronic
contract system

1. To digitize procedures for concluding
various contracts that have been
undertaken conventionally withpaper media
2. To reduce various expenses
previously incurred to conclude
contracts and to increase operational
efficiency
3. To strengthen compliance andsecurity
4. To support various new work styles,
such as teleworking, and to improve
employee motivation

To further promote the use of the Electronic
Contract System by responding to inquiries frominternal departments, providing explanations to
suppliers, and using Robotic Process Automation(RPA) in combination★★★

Implemented

To continue promoting the use of theElectronic Contract System by responding
to inquiries from internal departments,
providing explanations to suppliers, andusing RPA in combination

Establishment of a Risk
Management System(convening meetings of the
Risk Management andCompliance Committee)

1. To ensure the permanentdevelopment of our business
operations by establishing a risk
management system andcontinuously implementing risk
management activities
2. To minimize risk by identifying
serious risks
3. To minimize risk, recover quickly, andprevent any recurrence
4. To avoid harming the interests ofcustomers, society, shareholders,
officers, and employees
5. To improve the risk awareness andrisk management capabilities ofofficers and employees to respondto societal needs

To continue the initiative to formulate a business
continuity plan in 2023★★★

1. Formulated a business continuity planfor our company and establishedrelevant regulations in fiscal 2022
2. Published our business continuity planon our corporate website

1. To provide practical exercises for the
purpose of confirming the effectivenessof the business continuity plan forms
prepared by each department
2. To engage management in conducting
tabletop exercises for events that
require management decisions when
the business continuity plan is invoked
3. To ensure each of our nine direct sales
companies in Japan establishes abusiness continuity guideline inalignment with the company’s business
continuity plan with the aim of
improving the business continuity
capabilities of these sales companies inthe event of a disaster
4. To prepare forms for the purpose ofminimizing the impact of businesssuspension by the company in theevent of a disaster

Establishment of an Internal
Reporting Helpline

To ensure prompt discovery ofcompliance violations

1. To accept reports and consultations regarding
acts that violate laws, regulations, andcorporate ethics
2. To accept reports from external stakeholders
3. To accommodate the revised Whistleblower
Protection Act★★★

Implemented

1. To accept reports and consultations
regarding acts that violate laws,
regulations, and corporate ethics
2. To accept reports from external
stakeholders
3. To accommodate the revised
Whistleblower Protection Act

Corporate
Data

Corresponding SDGs

58

Our Value
Creation StoryESG Summary of Activities
Category

Activity

Achievement
RatingOur Value Creation
Strategy

The Foundation of
Our Value Creation

Objective

Fiscal 2022 Initiatives

Inquiry and reporting
procedures regarding
contact with competitors
and government
procurement agencies

To comply with the Anti-Monopoly Law
and Competition Laws

To have the company and Group companies
compile a monthly report on the content of andnumber of contacts with competitors andgovernment procurement agencies and submit itto the department in charge★★★

Implemented

To have the company and Group
companies compile a monthly report on
the content of and number of contacts
with competitors and government
procurement agencies and submit it to
the department in charge

Compliance check related
to order optimization

To ensure appropriate orderacceptance

To have the company and Group companies
compile a monthly report on the content of andnumber of compliance checks conducted andsubmit it to the department in charge★★★

Implemented

To have the company and Group
companies compile a monthly report on
the content of and number of compliancechecks conducted and submit it to thedepartment in charge

Anti-fraud procedures

To prevent bribery and fraudulent
conduct

To undertake examinations and various otherprocedures each time a targeted gift is profferedand submit it to the head of the department incharge for approval★★★

Implemented

To undertake examinations and various
other procedures each time a targeted giftis proffered and submit it to the head ofthe department in charge for approval

Compliance training

To increase awareness of compliance

1. New employee training: Offered once a year for
28 employees of the company and 41
employees of Group companies in Japan
2. Training for promoted managers: Offered oncea year for 22 employees of the company
3. E-learning training: Offered twice a year for
6,250 officers and employees of all Group
companies in Japan★★★

Implemented* Provided training for newly appointed
general managers* Provided training for all employees,
including employees of groupcompanies• Global Code of Conduct• Export controls (technical controls)• The Subcontract Act• Human rights due diligence• Revisions to the Whistleblower
Protection Act• Information security

1. Training for new employees: To be
provided once a year for 39 employeesof the company and 26 employees ofGroup companies in Japan
2. Training for those promoted to
managerial positions (section manager):
To be provided once a year for 24
employees of the company
3. Training through e-learning: To provide
follow-up to ensure that 100% of
employees, including those of Group
companies, take part in training, and toactively encourage employees to takethe voluntary training

Information system security
training

To raise awareness of information
system security

To improve the quality of educational content★★★

Implemented. Also incorporated video
into e-learning materials to improvereadability.

In addition to continuing last year’s
initiatives, to review our security training
program in response to the increasing
sophistication and diversity ofcyberattacks

Conducting vulnerability
assessments

To institute countermeasures forvulnerabilities

To increase the frequency of diagnosis★★★

Implemented.
For VPN devices, we increased thefrequency of vulnerability assessments tomonthly due to the magnitude of the risk

In addition to continuing the efforts of theprevious fiscal year, to increase thefrequency of diagnostic vulnerability
assessments for devices other than VPNs
from an annual basis

Strengthening the Information
Security Risk Monitoring
System (new initiatives forfiscal 2023)

To focus on early detection ofunauthorized intrusions andminimization of damage, as it is
becoming difficult to prevent 100% of
the damage caused by cyberattacks
due to their increasing sophisticationand diversity──

To establish a system for early detectionof unauthorized intrusions caused byincreasingly sophisticated and diverse
cyberattacks and to minimize their
damageG

─

Fiscal 2022 Results

Value Creationin PracticeFiscal 2023 Initiatives

Corporate
Data

Corresponding SDGs

59

Corporate Data

Chapter.

5

Corporate
Data

Part of our laser-guided AGF product line ismanufactured by Mitsubishi Logisnext Europe Oy, ourGroup company in Finland.
In Europe, a leading market in terms ofdecarbonization and automation, we are working todifferentiate ourselves by offering mixed-fleet solutions
incorporating both manned forklifts and AGVs.

Our Value
Creation Story

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

60

Our Value
Creation Story

Five-year Financial Summary

FY2018Financial Data

Cash Flows

Financial position

Per share amounts

Key Performance
Indicators

FY2019Our Value Creation
Strategy

FY2020

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

FY2022

FY2021

Net sales (Millions of yen)

448,381448,918

391,496

465,406

615,421

Operating Profit (Before amortization of goodwill) (Millions of yen)

21,981

18,182

10,99013,01324,995

Operating Profit (Millions of yen)

13,156

8,288

1,594

3,592

14,709Ordinary Profit (Millions of yen)

13,714

6,896

2,014

3,240

11,646

Profit attributable to owners of parent (Millions of yen)

7,077

(5,392)(2,683)

717

6,913

R&D expenses (Millions of yen)

5,528

5,292

4,362

4,649

5,040

Capital expenditure (Millions of yen)*

17,84427,084

18,12826,71045,698Depreciation and amortization (Millions of yen)

18,66923,367

23,522

23,95625,844

Cash flows from operating activities (Millions of yen)

21,92542,00433,48020,621

28,743

Cash flows from investing activities (Millions of yen)

(6,862)(48,953)(22,475)(19,243)(40,233)

Cash flows from financing activities (Millions of yen)

(16,189)

9,600(11,931)(4,601)

11,729Cash and cash equivalents at end of year (Millions of yen)

13,273

15,33515,00012,562

13,245

Total Assets (Millions of yen)

367,662

373,492

363,357

405,601

475,432

Net Assets (Millions of yen)

68,50357,17855,39463,73776,027

Interest-bearing debt (Millions of yen)

167,424

183,627

182,695

188,182229,665

Earnings per share (yen)

66.48(50.63)(25.19)

6.73

64.82

Net assets per share (yen)619.85513.77514.70592.02707.19Dividend per share (yen)

13

13

8

8

9

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

4.9

4.1

2.8

2.8

4.1

Operating profit margin (%)

2.9

1.8

0.4

0.8

2.4

ROA (Return on assets) (%)

1.9

(1.5)

(0.7)

0.2

1.6

ROE (Return on equity) (%)

11.2

(8.9)

(4.9)

1.2

10.0

Current ratio (%)

127.1

125.5

129.4

131.5

126.8

Capital adequacy ratio (%)

18.0

14.7

15.1

15.6

15.9

DOE (Dividend on Equity Ratio) (%)

2.2

2.3

1.6

1.4

1.4

D/E ratio (times)

2.5

3.4

3.3

3.0

3.0

* Includes forklifts for leases and rental business. It also includes intangible assets.

61

Our Value
Creation Story

1937
Established Nippon Yusoki Co., Ltd.,
inheriting entire business from Nippon
Yusoki Seisakujo Co., Ltd. (founded in 1921
in Nishiyodogawa-ku, Osaka)

1958
Developed Japan’s first electric reach forklift “Platter”

Nissan Forklift Co., Ltd.

TCM Corporation

1930s

Our Value Creation
Strategy

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

1985
Introduced the industry’s first explosion-proof automated guided vehicle
1988
Developed and delivered the world’s first explosion-proof type rack forklift trucks

1970
Introduced the Mujin-car, Japan’s first
automated guided vehicle

1939
Delivered Japan’s first electric forklift to the
Yawata Works (currently Nippon SteelCorporation)

1997
Established Shanghai Lizhiyou Forklift Manufacture
Limited Company as a production subsidiary inShanghai, China

1971
Developed and presented the world’s first
automatic guided forklift trucks

Forklift Division,
Mitsubishi Heavy Industries,
Ltd.

Nippon Yusoki Co., Ltd.

Chronology

1988
Established Mitsubishi Forklift America Inc. in Houston, USA andstarted the local production of forklift trucks in the United States
1992
Established the joint venture companies with Caterpillar
Inc. and Mitsubishi Corporation in USA, Netherlands,
and Singapore

1970
Completed Sagamihara Plant phase 1
construction, started production of
forklift trucks

1940s

1950s

1960s

1970s

1996
Acquired Rapidparts Inc., a competitive parts business,
in North America

1980s

1949
Established Toyo Carriers ManufacturingCo., Ltd., followed by the 1st forklift madein Japan

1990s
1993
Established Anhui TCM Forklift Co., Ltd., which
produces forklifts locally in China
1997
Shiga Plant obtains ISO 9001 certification
1999
Shiga Plant obtains ISO 14001 certification
Company renamed to TCM Corporation on its
50th anniversary

1954
Change of company name to Toyo Umpanki Co., Ltd.

1957
1st Nissan forklift completed at Totsuka
Plant of Nissan Motor Co., Ltd.

1988
Acquired Barrett Industrial Trucks Inc. of the USA and began local
manufacture of forklift

1961
Shinnikkokukogyo Co., Ltd. (current Nissan Shatai Co.,
Ltd.) commissioned to design and manufacture forklift

1989 Began local manufacture of forklifts in Spain

1975
R&D, manufacturing and sales are consolidated at
Nissan Motor’s Murayama Plant; all-inclusive andin-house operations are established1993
Established Nissan Forklift Corporation, North America
which coordinates Nissan Forklift manufacturing andsales activities
1995 Established Nissan Forklift Espana in Spain

62

Our Value
Creation Story

2009
Integrated domestic forklift truck sales and service operations with MHI andjointly established Nichiyu MHI Forklift Co., Ltd. along with nine domestic sales
subsidiaries in Japan2011
Established Nichiyu Forklift (Thailand) Co., Ltd. as a
production plant in Thailand

2008
Established Mitsubishi Heavy Industries Forklift (Dalian) Co., Ltd. in Dalian, China and began
local production of forklift trucks in China
Acquired Rocla Oy, a Finish manufacture of warehouse equipment
2009
Integrated domestic sales business of forklifts inJapan with Nippon Yusoki
Started the sales of world’s first hybrid forklift trucks (4 to 5 tonnes)

Nissan Forklift Co., Ltd.

TCM Corporation

2000s

2012
Acquired Daily Equipment Company in Mississippi
and made it as a dealer in North America

Mitsubishi Nichiyu Forklift Co., Ltd.

2007
Strengthened the capital and business alliance with MHI2009
TCM Corporation became a wholly-owned subsidiary of
Hitachi Construction Machinery Co., Ltd.

2007
Celebrated 50th anniversary for the 1st Nissan forklift
Acquired Atlet AB in Europe

2010
The 1st domestic forklift truck certified as“Mechanical Engineering Heritage” by The Japan
Society of Mechanical Engineers
2011
Established TCM Forklift (M) Sdn. Bhd., a joint
venture of forklift sales & service in Malaysia

2010
Established Nissan Forklift Co., Ltd., succeeding
Nissan Motor’s industrial machinery business

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

2013
Both companies integrated their businesses and established a new company
Mitsubishi Nichiyu Forklift Co., Ltd.
The new factory specialized for electric forklift trucks completed at MCFA
Started the production of engine-powered forklift trucks at Kyoto Plant
2014
Fully remodeled the PLATTER electric reach forklift
2016
Acquired 35% shares of UniCarriers Corporation
2017
Made UniCarriers Corporation a wholly owned subsidiary
Introduced a laser-guided AGF

Mitsubishi
Logisnext Co.,
Ltd.

2010s

2001
Established TCM Asia Distribution Co., Ltd., a subsidiary
based in Thailand
2006
Established TCM Anhui Machinery in China

Our Value Creation
Strategy

2017
The two companies
are consolidated into

UniCarriers Corporation

Forklift Division,
Mitsubishi Heavy Industries,
Ltd.

Nippon Yusoki Co., Ltd.

Chronology

2011 Established UniCarriers Corporation
2012
TCM Corporation and Nissan Forklift Co., Ltd. joined Uni Carriers Group, eachbecoming a 100% subsidiary of UniCarriers Corporation
2013
Integrated of TCM Corporation and Nissan Forklift Co., Ltd.
Started operation as UniCarriers Corporation2014
Acquired the Konosu Plant from UD Trucks Corporation, and established the Konosu
Plant of Global Component Technologies Corporation
Introduced a system for offering certified pre-owned vehicles
2015
Moved head office and Global R&D center to Kawasaki, Kanagawa Prefecture
Reach truck forklift, designed and produced in Europe, received an International
Forklift Truck of the Year (IFOY) award in the category of Warehouse Equipment
Acquired 70% of equity stake in Anhui Hecha Forklift Co., Ltd. production and sales
company of China
2016
Acquired Hanyu Plant of UD Trucks Corporation
Fully remodeled the gas/LPG engine powered small forklift

63

Our Value
Creation Story

Corporate Profile (as of September 30, 2023)

Company
Mitsubishi Logisnext Co., Ltd.
Name
Head Office	1-1, 2-Chome, Higashikotari,
Nagaokakyo-shi, Kyoto 617-8585 JAPAN
Establishment August 1937
Representative Yuichi Mano, President
Capital
4,938 million yen (as of March 31, 2023)(Standard Market, Tokyo Stock Exchange)
Net Sales
615,421 million yen (as of March 31, 2023)
Employees
12,056 (as of March 31, 2023)

Our Value Creation
Strategy

Directors andAudit andSupervisory
Board
Members

Scope of Development, design, manufacture and sale ofBusiness logistics system products such as electric forklifts,
engine-powered forklifts, container carriers, transfer
cranes, transport robots, automated warehouses,
and warehouse management systems (WMS)
Locations Head Office and Kyoto Plant, Shiga Plant, Azuchi
Plant, Tokyo Office, On-site Training Center,
Hanyu Plant
Sales & Service: approximately 400 Service Depots
nationwide
International locations: U.S.A., Netherlands, Finland,
Sweden, Spain, China, Thailand, and Singapore

Value Creationin Practice

The Foundation of
Our Value Creation

Corporate
Data

Takashi Mikogami Representative Director and Chairman
Representative Director and President
Yuichi Mano
Director
Takatoshi Uno
Masayuki Suematsu Director

Executive Vice President and CSO, Mitsubishi Heavy Industries, Ltd.

Osamu Ando

External Director

Kyoko Kobayashi

External Director

President, Shimadzu Access Corporation
Partner, Irokawa Legal Professional Corporation,
Attorney External Audit and Supervisory Board Member,
KAWAKAMI PAINT MANUFACTURING CO., LTD.
External Director, Nippon Pillar Packing Co., Ltd.

Fumio Kobayashi

External Director
Adviser, Japan Material Flow InstituteShinji Ichihara
Katsutoshi Yuasa
Shigeru Yoshimura
Kazuhiro Fukuoka

Audit and Supervisory Board Member
Audit and Supervisory Board Member
External Audit and Supervisory Board Member
External Audit and Supervisory Board Member
Director, GS Yuasa Corporation
Director, General Manager, Human Resources Division,
GS Yuasa International Ltd.

Networks (as of September 30, 2023)
Production bases

Major sales bases

Regional HQ

Mitsubishi Logisnext Europe B.V.

Konosu Plant(Global Component
Technologies Corporation)

Mitsubishi Logisnext Europe AB
Mitsubishi Logisnext
Europe Oy●

Azuchi Plant

●
●
●
●●
●●●●●
●
●

●

Hanyu Plant
●
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●

●●

●

●
● ●
● ●

●●

Shiga Plant
Head Office &Kyoto Plant
Onomichi Plant(Logisnext Handling
System Corporation)●●

Logisnext Manufacturing (Thailand)Co., Ltd.

On-site Training Center

Mitsubishi Heavy Industries Forklift(Dalian) Co., Ltd.
Equipment Depot, Inc.

Mitsubishi Logisnext Europe S.A.

●

●

●●

●

●
●
●

●

●

Mitsubishi Logisnext
Asia Pacific Pte. Ltd.

64

Mitsubishi Logisnext
Co., Ltd.

●
●●●

●
●
●

●● ●
●

●
●

●●

Shanghai Nichiyu Forklift
Manufacturing Co., Ltd.

Mitsubishi Logisnext
Americas Group Inc.

Editorial Policy
The purpose of this report is to create opportunities for dialogue by communicating
the Group’s sustainable growth initiatives to a wide range of stakeholders.

Organizational Scope
This report covers Mitsubishi Logisnext Co., Ltd., but some articles make reference
to other group companies.

Reporting Period
This report spans the period from April 1, 2022 to March 31, 2023.
* Some initiatives undertaken before and after this period are also reported.

Reference Guidelines
This publication adheres to the Integrated Reporting Framework of
the Value Reporting Foundation.

Cautionary Note on Future Prospects
The plans, strategies, earnings forecasts, and other forward-looking statements
described in this report are based on currently available information and involve risks
and uncertainties. Note that actual results may differ significantly from the company’s
forecasts due to changes in economic conditions, market trends, and other factors.

2024.03A