New Mid-Term Management Plan
“Perfect Integration 2020”

December 8, 2016

1. Achievements of Former Mid-Term Management Plan“Best Integration 2017”
The mid-term management plan “Best Integration 2017”that we aimed for the businessintegration of former Nippon Yusoki Co., Ltd. and the former Forklift Trucks section of
Mitsubishi Heavy Industries, Ltd. achieved certain results and profits despite the changing
environment and unpredictable political and economic situations. However, we could notreach to the level we targeted.
Units for net sales: 100 million yen
Units for operating income margin: %2,602

Result of FY2016 1st half
1,049 (104.9 billion yen)
Operating income margin: 4.5%

2,425

2,350

2,266

2,058

8.0%

4.7%
3.8%

Reinforcement of production capacity and cost
reduction through optimal global SCM

Transition tonew
mid-termmanagementplan

On
12-monthbasis

On15-monthbasis

Main achievements

2,800• Reduced cost and achieved localized production by
expanding local sourcing at Dalian Plant in China

Development and release of new products fordifferent local needs• Release of reach-type forklifts in Japan, Europe, etc.
• Released diesel engine-powered forklifts compliant withTier 4 emission regulations for non-road diesel engines

Establishment of optimal sales, service &logistics networks

4.2%
3.5%

• Reinforced the service network for the markets in China• Reorganized the sales networks in Asia and Australia

Expansion of business scale through M&A and alliances• Acquired UniCarriers Corporation• Reinforced alliances with Daifuku Co., Ltd. andJungheinrich AG

FY2013
Net sales

FY2014FY2015

Operating income margin

Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

FY2016(Forecast)

FY2017*FY2014 accounts for the 15-month period for overseas subsidiaries (except NFT).

12. Environments and Challenges Surrounding Our Company
We develop the new mid-term management plan “Perfect Integration 2020” forFY2017-FY2020 according to the management integration with UniCarriers
Corporation and big changes in the environments surrounding our company.
Economy Although the global economic trends are comparatively steadyglobally, uncertainties over the future persist because of volatile
stock market and exchange rate movements.

Environmentandregulations

 Raising of environmental awareness in a global scale after the ParisAgreement entered into force in Nov. 2016
 Drastic reform of production sites and logistics

Technology

 Advancement of IT technologies such as AI, IoT, Industry 4.0, etc.
 Practical realization of forklifts for new types of fuel such as fuelcells, lithium ion, etc.

To a new phase
Aiming to be the world’s top-class generallogistics equipment manufacturer

 Resolving the remaining issues related to integration of Nippon
Yusoki and the Forklift Trucks section of Mitsubishi Heavy Industries
Mitsubishi
Nichiyu Forklift  Strongly advancing the PMI* activities for management integration
with UniCarriers Corporation*PMI: Post Merger Integration
Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

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3. Concept of “Perfect Integration 2020”
FY2017

Basicpolicy

FY2018FY2019FY2020Growing by implementing the multi-brand /glocal* strategies * glocal: the combination of global and local
Reinforcing the management infrastructurethat support growth
Phase of moving up

 Business synergy
 Infrastructuresynergy Improving profitability ofexisting business on the basis ofstrong business bases andsolutions
 Entering into the new businessesby optimizing resources

FY2021 -To thephase offurthergrowth

Phase of integration and foundation
 Harmonization of corporate cultures
 Integration and establishment ofinfrastructures as a business foundation
 Integration and establishment of new
corporate structure
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4. FY 2020 Goals (Estimated Consolidated Figures)- Reinforcement of Profitability Realizing “460 billion yen consolidated net sales and 7.0%
consolidated operating profit ratio” in FY2020 by strengthening
the business foundation and capabilities
7,000

Net sales(Unit: 100million yen)

6,000

3,000
2,000Operatingincome margin

Net sales: 460 billion yen
Operating income margin: 7.0％

5,000
4,000

12.0%

FY2020 Goals

10.0%

4,600

4,200

7.0％
4.7％

2.2％

1,000

Improving capabilities ofmain businesses

8.0%Long-term Vision
Aiming at the structure
enabling 10%
operating income

5.0％ Increasing both incomes and profits
by utilizing existing resources Developing and taking thepreparations for the future

6.0%

4.0%

2.0%

Innovation
New businesses

0.0%

0FY2016 Forecast
Net sales

FY2020 Planned

Operating income margin (before amortization of goodwill)

Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

Goal

Operating income margin (after amortization of goodwill)*[Planned exchange rates] 100 yen per USD, 115 yen per EUR

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4. FY 2020 Goals (Estimated Consolidated Figures)- Net Sales Achieving 460 billion yen consolidated net sales in FY2020 byentering new businesses and gaining from the synergy centering
around the existing businesses• Increasing product capabilities
through integrated development(Unit: 100 million yen)
• Mutually complementary productlines of both companies• Reinforcing the networks, etc.
5,000

New businesses

Synergy

4,500Existingbusinesses

100200

100
4,600
4,000

4,200

3,500

40 billion yen increase in income
FY2016
Forecast

Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

FY2020Planned5

4. FY 2020 Goals (Estimated Consolidated Figures)- Operating Income Create new business by using the increased profit through theexpansion of the existing business and synergy effort as well as realizing
the cost and expense reduction
350(Unit: 100 million yen)

300

• Increase in profit as a result ofexpansion of product sales /Synergy
after-sales services, etc.

250

Existing
businesses

200361895001580• Reducing material costs• Improving development,production and sales
efficiencies• Improving efficiency ofback-office150100

New businesses

320

13.1 billion yen increase in profit
FY2016 Forecast(before amortization ofgoodwill associated with acquisitionof UniCarriers)
Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

FY2020 Planned(before amortization ofgoodwill associated with acquisitionof UniCarriers)6

5. Growth Strategies - Concept Aiming at sustained growth from three points of viewMarkets inadvancedcountries

 Maximizing strengths of UniCarriers and Mitsubishi
Nichiyu Forklift and differentiating thoroughly Not only concentrate on outright sales of trucks but
also provide more solutions to the clients’ logistic
problems

Emergingmarkets

 Expansion of businesses thoughdevelopment, production and sales of thebrands / products meeting the specific needs
in relevant regions

Newbusinesses

 Establishment of the next-generation
business model by foreseeing the futureneeds and trends

Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

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5. Growth Strategies- Markets in matured countries / emerging countries -Markets in emerging countries

Markets in matured countries

Realizing increase of the business scale by implementing the strategies
appropriate for the local needsJapan Establishing the strong sales and service networks throughintegration
 Reinforcing the lineup by supplementing with the strong models
 Reinforcing the solution and engineering functions

Reach-type forklift
for Japanese market“Platter”Americas

 Maintaining and reinforcing the each brand’s networks
 Responding to the growing market of electric forklifts by
sophisticating the development know-hows Expanding the product lineup by utilizing mutual supplementation

Medium-size diesel
engine-powered forklift
for North Americanmarket

 Optimizing networks by establishing the regional management
function Expanding the logistics solution business centering around AGV
 Reinforcing the warehouse-related models as a measure forlogistics in Europe

Reach-type forklift for
European market“SENSiA”

EuropeChina

Asia and otheremerging
countries Expanding local production of the products meeting local needs for
local sales
 Reinforcing the lineup as a measure for Europeanizing logistics
 Utilizing to the maximum extent the NFT (Thai Plant) and the brands andthe sales networks existing in our company and UniCarriers and taking a measurefor the markets’ demands for electric forklifts
 Improving efficiency of and reinforcing the sales and service networks throughintegration of operations

Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

Engine-powered
forklift for
Chinese market“C-ONE”
manufactured by
UniCarriers

Reach-typeforklift
manufacturedin Thai Plant8

5. Growth Strategies - New businesses Realizing the future needs by“utilizing the advanced technologies” and “optimizing resources”
Reinforcement ofelectric forklifts development capabilitiesImage ofresource optimization

 Practical realization of forklifts fornext-generation energies such asfuel cells, lithium-ion batteries, etc.
Forklift powered by fuel cell

Improving efficiency
thoroughly by
eliminating overlaps

Expansion of solution business Expanding the businesses thatprovide high additional value by
utilizing the technologies such as
AGV, unmanned forklifts, etc.

AGV+

Automatic warehouse“CASPACK”

Resources forexisting
businesses

Utilization of advanced technologies
 Entering the cutting-edge
logistics system field combinedwith IoT, AI, etc.

Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

Resources ofMitsubishi
Nichiyu

Resources fornewbusinesses

Resources ofUniCarriers

Resources
afterintegration

Creating new businesses byoptimizing resources9

6. Reinforcement of Management Foundation Supporting
Growth Strategies
 Optimization of supply chains Improving production efficiency
by segregating the produced
models for each region
 Restructuring and optimizing
the plant operation rate Pursuing scale economy byutilizing the global joint
procurement activities Reducing the materialcosts globally[Americas][Europe][China][Asia, Australia, Middle East, etc.]

Copyright © 2016Mitsubishi Nichiyu Forklift Co., Ltd.

Our company’s production bases
UniCarriers’ production bases

 Improving efficiency of andreinforcing the corporate functions
 Reinforcing significantly
the headquarters’
corporate functions andsupporting development of
the glocal / multi-brandmanagement through the
management integration[Japan]Finance & Accounting Integrating and sophisticating theaccounting systems of our company
and UniCarriers
 Maintaining and reinforcing the CMS*

Human Resource Promoting the human resource
diversification
 Establishing the integrated
personnel system
 Promoting the human resource
development for strengthening
the global competitiveness Promoting thorough complianceas a corporate culture

Corporatefunctions
that support
glocal /multi-brandmanagement*CMS: Cash management system
based on cash pooling

General Administration&Internal Control
 Reinforcing the corporate
governance Reinforcing the risk management
 Promotion of CSR
 Reinforcing the internal auditsystem

Information Technology
 Establishing the global infrastructure
including ICT
 Reinforcing the security system

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