Results briefing
For
FY ended March, 2017
June 1, 2017

Financial Highlights
for
FY ended March, 2017
President and CEO, Hideaki Ninomiya

1. Financial Highlights(in hundred million yen)

FY ended March,
2016

FY ended March,
2017

2,425

2,710

285

+11.7%

100.9(4.2%)

131.4(4.8%)

30.5+30.2%

―

▲26.3

▲26.3

―

Operating profit(Operating profit
margin)100.9(4.2%)

105.1(3.9%)

4.2+4.2%

Ordinary profit(Ordinary profit
margin)96.0(4.0%)

89.8(3.3%)

▲6.2

▲6.5%

Net income(Net income margin)

47.1(1.9%)

36.4(1.3%)▲10.8▲22.9%

Total assets

1,922

3,669

+1,748+90.9%

Total liabilities

1,340

3,069

+1,729+129.1%

582

600

+18

+3.1%

Sales
Operating profit (Before
amortization of goodwill)(operating profit margin)

Amortization of
goodwill

Net assets

YOY change*Ordinary profit and net income for FY ended March, 2017 decreased YOY due to 1.78 billion yen investment loss in
UniCarriers under the equity method.
FY ended March, 2016 Actual FX rates: USD=120.14 yen, EUR=132.58 yen, CNY=18.85 yen
FY ended March, 2017 Actual FX rates: USD=108.38 yen, EUR=118.79 yen, CNY=16.11 yen
Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

2.

2. Main points of business results
Sales

YOY: Increase by 28.5 billion yen, or 11.7%

Increase due to consolidation of UniCarriers (or, UC)+49.0 billion yen

Demand expansion in domestic battery forklift etc.

+1.1 billion yen

Sales decrease in MIX and CHINA, Emerging countries, etc.
▲2.6 billion yen
Impact of foreign currency translation due to yen appreciation, etc.
▲19.0 billion yen

OperatingprofitYOY: Increase by 0.42 billion yen, or 4.2%

Increase due to consolidation of UC(Operating profit ー Amortization of goodwill)+0.8 billion yen

Cost and Expense Reduction, etc.

+1.7 billion yen

Gross profit decrease due to MIX and the sales decrease▲0.7 billion yen
Impact of foreign currency translation due to yen appreciation, etc.
▲1.4 billion yen

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

3

3. Inc/Dec. factors of consolidated operating profit(FY2016 VS FY2015)
Goodwill
Due toconsolidation amortization
of UC
of UC

In hundred million yen

FX
impact

100.9

Gross
profitdecreasedue tosales
decrease/MIX

Cost
reduction

3.5

▲14.2
▲7.1

Improvementin Europeand One-time
expenditure Consolidation
in FY2015 adjustment
and others
Expenses
reduction

9.6

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

▲7.3

34.6

105.1

96.7

11.4

Decrease by 420 million yen

FY2015▲26.3

Increase by
840 million yen

FY2016
Before consolidation of UC

FY20164

4. Business results by segment
Sales

Overseas Business
Domestic Business

2,258(in hundred million yen)

2,710

2,425
1,631

1,498

1,610

760

815

FY2014FY2015

Operating profit
Overseas Business
Domestic Business

1,078

Sales by each region (FY2016)
Asia and China
9%
Europe
16%

Japan
40%

USA
36%

FY2016(in hundred million yen)

100.9

68.2

105.1

75.7
86.3

46.4

21.8

14.5

FY2014FY2015

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

29.3
FY2016

Operating profit by segment (FY2016)

Domestic
Business
Overseas
27.9%
Business
72.1%*The results for FY2014 excludes the impact of fiscal year unification(January through March, 2014).

55. Consolidated Balance Sheet(in hundred million yen)

Assets

3,669

1,922

980

AssetsIncreasedby 174.7
billion yen

Current
assets

Item

1,782

Current assets

980

1,782

+802

(Tangible fixed
assets)(Intangible fixed
assets)(Investments andother assets)

447

910

+463

59

860

+801

495

117

▲378

942

1,887

+945

1,922

3,669

+1,747

Fixed assets

1,887
942

Fixed assets
in total
Total assets

Liabilities /Net assets

FY2015FY2015FY2016

ChangeFY2016

3,669
Item
Liabilities

1,922

1,340

Liabilities
Increasedby 172.9
billion yen

582

Net assets
Increased by
1.8 billion yen

FY2015
Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

3,069
Net assets

600

FY2016

Current
liabilities
Fixed liabilities
Total liabilities
Total Net
AssetsTotal Liabilities
and Net Assets

FY2015FY2016

Change

1,197

1,516

+319

143

1,553

+1,410

1,340

3,069

+1,729

582

600

+18

1,922

3,667

+1,7476

6. Consolidated Cash Flow Statement(in hundred million yen)Free cash flow (FCF) increased by +4.17 billion yen(UC Impact is excluded)
Beginning balance of
cash equivalent
102.8

Increase/decreasein cash equivalent
91.4

Ending balance of
cash equivalent
194.2

UC impact▲655.0Cash flow frominvesting activities▲840.1(▲507.7 in previous FY)

Cash flow fromoperating activities+326.1(+228.7 in previous FY)

Cash flow fromfinancing activities+610.5(+285.9 in previous FY)

FCF ▲514.0 (▲279.0 in previous FY)
FCF that excludes UC impact is+141.0.
Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

7

7. Business outlook for FY ending March, 2018
(full year)(in hundred million yen)
FY ended March,
2017(Actual)FY ended March,
2017(Adjusted
consolidation)

FY ending March,
2018(Forecast)

75,000108,000

115,000

Sales

2,710

3,969

4,100

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

131(4.8%)

166(4.2%)

185(4.5%)

Amortization of goodwill

▲26

▲99

▲95

Operating profit(Operating profit margin)

105(3.9%)

67(1.7%)

90(2.2%)

Ordinary profit(Ordinary profit margin)

90

63

80

Number of units sold

(3.3%)(1.6%)(2.0%)

36

14

35

Net income(Net income margin)(1.4%)(0.4%)(0.9%)

Dividend per share

11 yen―11 yenActual results for FY ended March, 2017 consolidate UC only for 4th quarter (3 months). Business results in the adjusted consolidation
for FY ended March 2017 are the provisional figures based on an assumption that UC was consolidated for the full year.
FY ended March, 2017 Actual FX rates: USD=108.38 yen, EUR=118.79 yen, CNY=16.11 yen
FY ending March, 2018 FX rates forecast: USD=105.00 yen, EUR=120.00 yen, CNY=15.50 yen
Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

8

8. Main points of the business outlook for
FY ending March 2018 (full year)
Sales

YOY: Increase by 139 billion yen, or 51.3%
Increase by full consolidation of UC+129 billion yen

Expansion in overseas business (Increase in market share and synergy
with UC)+10.1 billion yen
Expansion in domestic business (Battery trucks and logistic system, etc.)+5.1 billion yen
Impact of FX translation due to yen appreciation, etc.
▲5.2 billion yen
OperatingprofitYOY: Decrease by 1.51 billion yen, or 14.4%
Sales increase, MIX and decrease of cost of sales, etc.

+2.4 billion yen

UC impact for full year (Amortization of goodwill is included)▲2.3 billion yen

The current year impact ▲1.5 billion yen – Previous year impact +0.8 billion yen

Impact of FX translation due to yen appreciation, etc.

▲0.9 billion yen

Change of the method of depreciation (straight line method), etc.
▲0.7 billion yen
Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

9

9. Inc/Dec. factors of consolidated operating Profit

FY2017 (Forecast) VS FY2016 (Actual)
Decrease ofcost of sales

In hundred million yen

Material
inflation

UC impact

Operating profit 80.0
Amortization of goodwill▲94.5

FY2016 4Q
UC impact

105.1

▲8.4

▲13.1
96.7

Due tochange in
FX rateSales
increase/
MIX

32.4

▲26.4

Change of themethod ofdepreciation

FY 2017 Full year
UC impact

▲6.4

104.5
▲9.3

17.5

▲14.5

90.0

Increase by +780 million yen
FY2016(Actual)

FY2016(UC is excluded)

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

FY2017(UC is excluded)

FY2017(Forecast)10Appendix (Main management indicators)

Profitability

Overall

Indicator
Return on assets (ROA)
Return-on-equity (ROE)
Operating profit margin
Net income margin

Efficiency

Total asset turnover
Receivables turnover

Evaluation

Stock Price

Solvency

Inventory turnover
Capital adequacy ratio
D/E ratio
Price earning ratio (PER)
Price book value ratio(PBR)

FormulaNet income
Total Asset
Net income
Net worth equity
Operating profit
Sales
Net income
Sales
Sales
Total Asset
Sales
Account receivable
Cost of Sales
Inventories
Net worth equity
Total Asset
Interest-bearing debt
Net worth equity
Stock prices
Earnings per share
Stock prices
Book value per share

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

FY2015FY2016(Before amortizationof goodwill)

2.7%

1.3%

(2.2%)

8.4%

6.3%(10.7%)

4.2%

3.9%

4.8%

1.9%

1.3%

2.2%

1.4 times

1.0 time―

5.9 times 4.8 times―

4.6 times 4.5 times

―

29.5%

15.8%

―

1.3 times 3.2 times―

Comments
・The total assets increased, due to consolidation of UC
・The indicator deteriorated because the net income
decreased by amortization of goodwill (The figure
before the amortization of goodwill excludes theimpact of amortization of goodwill from the net
・Sales increased because the business results of UC for
the 4th quarter was consolidated
・The indicator deteriorated because the operating
profit and the net income decreased due to theamortization of goodwill, etc

Both the equity ratio and D/E ratio deteriorated
significantly because the acquisition of UC was
financed by borrowings.

10.4 times 20.9 times 12.6 times Stock prices
At end of 115th accounting term:460 yen
At end of 116th accounting term:714 yen
0.9 times 1.3 times―
11Appendix (Transition of business results)
Acquisition of
100% ownershipof UniCarriers(in hundred million yen)

Operating profit

Sales

131.4

Business integration
with
Mitsubishi Heavy Industries

100.9
90.6

(Before amortization of goodwill)

79.1
68.2

Impact of fiscal year
unification is excluded.

2,710

2,602
2,425

37.1
27.6
12.7

11.1

17.9

16.0

2,058

0.0

2,258

659

685

659

719

820

834

656

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

FY2013

FY2014FY2015FY2016

The period of FY 2014 for the consolidated business results was irregular as it was a transitional
period for a change of the closing dates. Mitsubishi Nichiyu Forklift and the subsidiaries that had
the end of March as the closing date had 12 months to be covered in the consolidation whereas
the subsidiaries that had the end of December as the closing date had 15 months.

12Appendix (Transition of stock prices)(yen)

684 yen(May 30, 2017)
1000
900
800
700
600
500
400
300
200
100
0
2008年

2008

2009年

2009

2010年

2010

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

2011年

2011

2012年

2012

2013年

2013

2014年

2014

2015年

2015

2016年

2016

2017年

2017
13

Appendix (Company Profile)
Company Name

Mitsubishi Nichiyu Forklift Co.,Ltd.

Head Office

1-1, 2-Chome, Higashikotari, Nagaokakyo-shi, Kyoto 617-8585
JAPAN

Established

August 1937

Capital stock

4,890 million yen (as of March 31, 2017)

Description ofBusiness

Development, designing, and sales of logistic system products
etc. such as Battery forklift, Engine forklift,
Robot for transportation, Automated warehouse, and WMS*,
etc.

Operation
Centers【 Domestic 】 Kyoto, Shiga, Kanagawa and others【 Overseas 】 United States, Europe, China, Asia and others

Production
capacity per
year

About 115,000 units*WMS: Warehouse management system

Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

14

Business Planin fiscal year 2017
President and CEO, Hideaki Ninomiya

1. Business environmentEconomic
Trend

Forklift
Market Trend

Although the economic strengths in matured markets are still uncertain, the capital
investment is recovering in Japan and the USA.
Overall, a moderate economic recovery is expected.
Regarding the emerging countries, Chinese economy is recovering from thestagnant situation to show some upticks and Asian economies as a whole are also
on a recovering trend thanks to economic reforms and political stabilization.
The global market in 2016 recorded 1.153 millions units, an increase by 8.3% froma year earlier, and renewed the all-time high, driven by the matured markets aswell as an expansion in China.
The global market of the forklift is expected to be steady in 2017 as well.

(Unit: 1,000 units)

800

989

1,063

1,064

1,153

2013

2014

2015

2016

600
400
200
0
■Matured Market■Emerging
成熟国台数 Market
新興国台数

2017

2020 (year)【 source: World Industrial Truck Statistics (WITS) 】

16

2. Topics in fiscal year 2016
Acquisition of 100% ownership of UniCarriers, assuming a management integration.
•

In January 2017, Mitsubishi Nichiyu Forklift acquired the shares of UniCarriers Corporation (UC) from our parent
company, M-FET (Mitsubishi Heavy Industries Forklift, Engine and Turbocharger Holdings, Ltd.), to make UC our
100%-owned subsidiary.
Furthermore, we announced that we would implement the management integration to realize an earlymaximization of synergy, improvement in business efficiency, and pursuit of scale merit, by October, 2017.

Public announcement of the new mid-term management plan "Perfect Integration 2020"••

We established a new mid-term management plan based on the management integration with UniCarriers andthe significant changes in the environment that surrounds us.
We aim at sales of 460 billion yen and an operating profit margin of 7.0%* in FY2020 on a consolidated basis
by increasing the capabilities of our core business and maximizing the synergy, based on "Strengthening ofmanagement foundation" and "Multi-brand/Glocal strategy."

Implementation of solutions for logistic systems.
•••

In October 2016, with cooperation from the Jungheinrich Company, we launched high-level
order picker cars onto the North American market and expanded the line-up of thewarehouse related machine types.
In September 2016, we put up a display booth and made presentation in “LOGIS-TECH
TOKYO 2016" We made exhibition of products such as fuel cell forklifts and appealed for an
improvement in the logistic systems.
In December 2016, we held “Logistics Solution Fair 2016 in Kobe"
We provided the "Resolution・Hint・Awareness" about an improvement of logistic systems by HIGH-LEVEL ORDER PICKER
for North American Market
the exhibition of latest logistic solutions and the products.
*Before amortization of goodwill

17

3. Business Plan in fiscal year 2017
We will pursue the strategy based on the basic policies set out in the new mid-term management
plan and the phases in it.
We regard the fiscal year 2017 as the “Integration and foundation phase" and the year forstrengthening our business base.
Mid-termmanagement plan
Basic policies

7,000
6,000

Strengthening of the management foundation that supports growth
Maximization of synergy and enhancement of business capabilities by"Strengthening of comprehensive business base."
Preparation for the expansion and development phase by"challenging the growth areas."

FY2017
Basic policy(in hundred million yen)

Growth by the multi-brand/glocal strategy【FX rate forecast for fiscal year 2017】
105 yen/USD
120 yen/EUR

5,000

3,969

10.0%

4,600

4,100

4,000
3,000

8.0%

7.0%
4.2%

6.0%

4.5%
5.0%

2,000
1,000

12.0%

*Adjusted consolidation: Numbers when Mitsubishi Nichiyu Forklift and UniCarriers Corporation
are consolidated for the full FY2016.

1.7%

4.0%

Sales
売上⾼
営業利益率（のれん償却前）
OP(Before Amortization)

2.2%

2.0%

営業利益率（のれん償却後）

0
FY2016 (Actual)(Adjusted
consolidation* )OP(After Amortization)

Integration and foundation phase
FY2017Company target

FY2020Targets in the mid-term
management plan

Expansion and development phase

Ideal structure
as a company

0.0%

18

4. Pursue the multi-brand/glocal strategy■Pursuit of strengthening of the business Further strengthening of logistic network for theparts

MaturedMarkets

・In June 2017, we established a new center for the parts in
Texas State Expand the marketing capabilities

・Initiate a review of the regional controlling functions

The parts center in the Indiana State, USA Optimization the sales and services network

・Start an integration of domestic bases (also to execute scientificverification* etc. with use of AI) *IBM Watson and others

 Expansion of the product value chain

・Cope with the various usage patterns of customers such as thelease/rental or the used cars, mainly in the direct selling regions

Sales of new cars
Lease /rental

Scrap

After-sales
service
Sales of thecomponents

Product
Life
Cycle
Sales ofused cars

After-sales
service
Sales of thecomponents

Emerging
Markets

 Develop a full line-up product for local

・Cope with the wide range of customers and various needs in China

 Focus on products that have strength・Start to consolidate some products in Asian region

 Optimization the distribution of the parts

・In January 2017, we integrated the Asia Parts Center with thebase in Singapore

Engine forklift
for the middle ranges
Reach forklift
for Asia and China

19

4. Pursue the multi-brand/glocal strategy■Optimization of development structure Consolidate the development divisions of the two companies as a global design center.
 Support the multi-brand/glocal strategy by the three bases in the world together with the
newly developed bases in USA and Europe.
European Design Center(Northern Europe)

American Design Center(USA)

Global Design Center(Japan)Product development that matches with the customer needs of each region.
To improve the efficiency of development by cross-regional communication on technology.

20

5. Strengthening of the business base by the management integration
Strengthen the business base by the management integration.
Achieve the early creation of synergy by combining the strong points of the twocompanies and supplementing the functions with each other.
UniCarriers

Mitsubishi Nichiyu Forklift

Strong points

Strong points








Electric forklift・logistic systems
Diesel engine forklift
Global supply structure of service
parts
Markets in Japan and USA

Large-sized forklift・Harbor systems
Key components such as gasoline
enginesSpecial trucks, construction machines
Direct selling system in Europe, Asianmarkets

Become an comprehensive logistic-related
manufacturer of top class in the world.
Maximize synergy by combination of the best practices of the two companies.
Viewpoint from themarginal profit

Viewpoint from thefixed cost

Viewpoint from thebalance sheet

Strengthening of the integrated business base21

6. Strengthening of the integrated business base

- Viewpoint from the marginal profit -■Cost reform by strengthening of the procurement structure Realize the cost reform by the establishment and strengthening of the procurement
structure by integration, the differentiation of each product type, and launch of jointly
developed products onto the market.

■Pricing that suits the value added of the product.
 Review the prices based on the variation range, range and functions of the product typesof the two companies.
STEP1

Establishment ofprocurement
structure.
Consolidation of the
suppliers (tradeconnections).

STEP2

Production reorganization
by differentiation ofeach product type.

STEP3
Launch of jointly developed products
onto the market.

Materials

Cost of

Product prices

STEP0
Beginning
the joint procurement.

FY2016FY2017FY2018FY2020■Strengthening of the structure and functionsof the after-sales service parts business Optimize the parts logistic system globally.
 To best utilize the direct-line service network of the two companies
that is expanding into various areas of the world.
 Improve the service skills of employees
by use of educational programs of the two companies.

22

6. Strengthening of the integrated business base

- Viewpoint from the marginal profit -■Optimization of resources Reassignment of the resources
with organization of the best structure.

Reviewing offunctions・Expansion of the existing businesses andthe creation of resources for the growth areas.

 Cost control of duplicated activities

Resources forexisting businesses+

・Excluding the duplicated activities and uselessness,and to be thorough in pursuingefficiency improvement.

Mitsubishi Nichiyu Forklift
Resources

Resources for
growth areas

UniCarriers
Resources

After integration
Resources■Optimum SCM* ・Realization of the best operations
Europe: 3 bases

USA: 2 bases

Japan: 3 bases

China: 3 bases【 main production bases 】
Finnish Factory
Swedish Factory

Asia and others: 1 base

Dalian Factory

Spanish Factory

Reorganization of the production bases
by differentiation of each product type.

Aduchi Factory

Shiga Factory
Kyoto Factory

Hefei Factory

Shanghai Factory

Marengo Factory

Houston Factory

Thai Factory

Production base (Mitsubishi Nichiyu Forklift

Realize the best
operations globally.

Production base (UniCarriers)*SCM: Supply Chain Management23

6. Strengthening of the integrated business base

- Viewpoint from the marginal profit -■Improvement of asset efficiency
 We will improve the financial structure by the asset compression(such as asset management)(in hundred million yen)Compressionof assets

Net Assets
600【FY2016】
Total assets: 366.9 billion yen
Equity ratio: 15.8%

Fixed assets

Liabilities

Improvement

Making the unprofitableasset offthe balance sheet

Fixed
assets
1,887【FY2015】
Total assets: 192.2 billion yen
Equity ratio: 29.5%

Current assets

Liquidation ofproperties

Liabilities
1,340

Net Assets
582

Consolidation offunds

Compression

Fixedassets942

Liabilities
3,069

Compression

Current
assets980

Current
assets1,782

Compression

Increase by 174.7
billion yen

Net Assets

Improving of financial structure24

7. Activities for the growth areas■Expansion of the solution businesses Cope with the needs for " Automation, mechanization,and efficiency improvement“ that are expanding rapidly.
WMS*1

Transportation【AGV・AGF】
NEW

Storage

Logistics
systems

Automated warehouse「CASPACK」

Laser guidance type AGF
made by Rocla

Laser guidance type AGF*2
for Japan「Platter Auto」*1WMS: Warehouse management system.
*2AGF:Auto Guided Forklift (unmanned forklift) Realization of the improvement in productivity
and efficiency by "visualization" of the work.
・Vehicle management system using the telematics

By the laser guidance method"Free of (no need for ) floor
construction"
Realization of "Flexible layout"(sale on April 1, 2017)
Vehicle management
systemCustomermanagement
department

The forklift work data
Workers information

Base ofeach
customer■Activities of safety and security for customers
・Proposal for the equipment to realize safety, security and comfort
on the logistic sites.
・Holding of the safety seminars (3,042 times in Japan in FY2016)

Drive recorderfor forklift only

Intensify our efforts for the growth areas toward the "Expansion anddevelopment phase" of the mid-term management plan.

Blue light25

< Appendix>■Investment Plans
Consolidation base of
Mitsubishi Nichiyu
Forklift and UniCarriers

250(in hundred million yen)

Mitsubishi Nichiyu
Forklift and UniCarriers
based on adjusted
consolidation

200

220

200

Mitsubishi Nichiyu
Forklift only

150

105

120

110

100

50

0
FY2013 (A)FY2013実績

FY2014(A)FY2014実績

FY2015(A)FY2015実績■Recurring(Plan)investment ■Investment in lease/rental of trucks

経常投資

リース／レンタル投資

FY2016 ユニキャリア 経常投資

FY2016(A)FY2016実績

FY2017FY2017計画

FY2016 ユニキャリア リース／レンタル投資※M&A is not included.

■Recurring investment by UC in FY2016 ■Investment in lease /rental of trucks by UC in FY201626

Disclaimer: This material was prepared for the sole purpose of providing investors withinformation and not aimed at solicitation of any buying or selling.
 The description concerning the expectation of the future in this material is basedon the target or the forecast and shall not provide any commitment or guarantee.
 Please bear in mind when you use this material that the business results of
Mitsubishi Nichiyu Forklift in the future may be different from our present forecast.
 The description concerning the business results etc. is based on various data that
we believe reliable but we do not guarantee correctness and completeness ofsuch data.
 This material is provided based on the premise that each investor should use thison his own judgment and responsibility, whatever the purpose of the use may be.
In no event shall Mitsubishi Nichiyu Forklift be liable for any kind of consequence.

Inquiry concerning this material
Mitsubishi Nichiyu Forklift Co.,Ltd., Administration Section, Matsuura and Koizumi
1-1, 2-Chome, Higashikotari, Nagaokakyo-shi, Kyoto 617-8585 JAPANTEL:075-951-7171 FAX:075-955-3797
http://www.nmf.co.jp/
Copyright © 2017 Mitsubishi Nichiyu Forklift Co., Ltd.

27