Annual Report 2020
For the fiscal year from April 1, 2019 to March 31, 2020

Contents
1

A Message to Our Shareholders and Investors

3

Business Overview by Each Segment

4

Stock Information

5

Consolidated Financial Statements

7

Company Outline

A Message to Our Shareholders and Investors

Safety is our first priority. As logistics
stics
takes greater role in society, we will
strive to increase our profitability.
Succeeding Mr. Mikogami, I, Takashi Kubo, was appointed to President andndss
CEO of Mitsubishi Logisnext Co., Ltd. We are facing an extremely tough businessenvironment, but Mitsubishi Logisnext Group will work together as one, andndovercome this adverse environment positively. We will put forth every effort toensure all of the stakeholders our further growth and development.

Takashi Kubo
Apr. 1984
Oct. 2011
Jun. 2013
Oct. 2017
Feb. 2019
Jun. 2019
Jun. 2020

President and CEO

Joined Mitsubishi Heavy Industries, Ltd.
Managing Director, Mitsubishi Heavy Industries Forklift(Dalian)Co., Ltd.
Executive Officer, Mitsubishi Logisnext Co., Ltd.
Head of Quality Management Office, Mitsubishi Logisnext Co.,Ltd.
Head of Overseas Sales and Marketing Headquarters, Mitsubishi Logisnext Co., Ltd.
Senior Executive Officer, Mitsubishi Logisnext Co., Ltd.
President and CEO, Mitsubishi Logisnext Co., Ltd.

Summary of Business Performance in Fiscal 2019uring the consolidated fiscal year ended March 31, 2020, the global economy continued to attempt to find its footing
as concern regarding future trends had an ongoing impact. Despite suggestions that long-term stagnation in the exportindustries of several countries originally caused by trade friction between the United States and China had finallyreached its nadir, the economic environment did not improve to any notable extent as the tendency to refrain from conducting
new investment appeared to pick up speed, especially in the manufacturing industry. The flow of people and goods in China
came to a complete stop in China as COVID-19, which emerged in November 2019, continued its violent spread.
Of course, these economic conditions also have a substantial impact on the logistics industry, and many companies in avariety of regions have postponed capital investment. Under these conditions, the Group is facing an increasingly severe
competitive environment and is currently unable to completely eliminate the large concerns regarding future market trends.As theGroup faced circumstances above during the consolidated fiscal year ended March 31, 2020, consolidated net sales was 448.9 billion
yen (up 0.1% YoY). Meanwhile, operating profit fell due to declines in the Americas and China and finished at 8.4 billion yen (down
35.9% YoY) while ordinary profit came to 7.0 billion yen (down 48.6% YoY). The Group recorded impairment loss at subsidiaries in
Europe, China, and Thailand as extraordinary loss and, as a result, posted 5.2 billion yen in loss attributable to owners of parent.
When excluding impact from amortization of goodwill, operating profit was 18.3 billion yen (down 16.6% YoY), and theoperating profit margin was 4.1% (down 0.8 percentage points YoY).
With regard to Equipment Depot, Inc. (all shares acquired on July 1, 2019), only results from the nine-month period
spanning from July 1, 2019 through March 31, 2020 were included in our consolidated financial statements for the fiscal
year ended March 31, 2020 because Equipment Depot changed its closing date from December 31 to March 31.

D

Future Outlooks the international COVID-19 pandemic that originated in China continues its violent worldwide spread, the global
economy continues to take on a form that is entirely different from ever before. Suppressing the flow of people
and goods is largely considered to be the only effective way of preventing the virus’s spread, and economic activity
has come to a complete stop as a result. Consequently, we are currently unable to erase concerns about prolonged impact
from COVID-19. Accordingly, we have decided to characterize its forecast for the fiscal year ending March 31, 2021 as“undetermined” until it is capable of making rational estimates regarding the future impact of the COVID-19 pandemic.
Mitsubishi Logisnext recognizes that the societal role of logistics is even becoming greater amid the current
global crisis. Although we are facing difficult circumstances, we will achieve a unified synergy by solemnly performingA

1

A Message to Our Shareholders and Investors

our duties while prioritizing safety. In addition, we will earnestly strive to increase profitability by devoting all of our energies
toward further streamlining operations and responding to rapid market deceleration.

Actions Plans
nder this business environment, we will establish a structure that will allow us to flexibly respond to environmental
changes while closely monitoring COVID-19’s impact on our businesses. At the same time, we will aim to raise
our medium- to long-term corporate value by focusing on the following key actions:
1. Strengthen earning power through enhancement of PMI (Post Merger Integration)
Japan domestic business segment: Streamline operations and improve customer service through restructuring at direct sales
companies (scheduled for October 2020); strengthen and expand sales of the ALESIS integrated-model forklift truck(launched in November 2019).
Overseas business segment: Merge subsidiaries in Europe and Asia (both in April 2020), as well as other regions; acceleratemodel integration and production restructuring in anticipation of demand fluctuation.
2. Diversify earning sources by capturing customer demand and strengthen after-sales business through direct
sales network
Japan domestic business segment: Optimize personnel distribution by restructuring sales and service networks; promote
the use of IT technology in service operations.
Overseas business segment: Restructure and enrich direct sales network in a continuation of efforts that began with the fullacquisition of a North American sales company in July 2019.
3. Capturing demand in two growth fields: manpower reduction and automation
Freight handling operations are difficult to standardize. As a result, demand for urgent manpower reduction and automation
measures that involve human cooperation is growing. Moving forward, the Group will develop automation technologies it refinedin Japan and Europe, promote collaboration with other companies, and accelerate global business expansion in the United Statesand other countries where growth is anticipated.

U

We humbly ask for the continued support and understanding from our shareholders.

Financial Highlights
Net Sales

Operating Profit(Billion yen)(Billion yen)433.0 448.3 448.9

Ordinary Profit(Billion yen)

19.1

242.5 270.9

10.0

13.7
9.5

Earnings per Share

(Billion yen)

(Yen)

7.0
3.6

13.1

FY2015–FY2016 figures are Mitsubishi Nichiyu Forklift data.

66.48△49.24△5.2

FY2015 FY2016* FY2017 FY2018 FY2019

8.4

7.0

FY2015 FY2016* FY2017 FY2018 FY2019

Return on Equity

44.30 34.16
27.64

2.9

8.9

8.4

FY2015 FY2016* FY2017 FY2018 FY2019

Profit Attributable to Owners of Parent

4.7

18.3

10.5
9.2

FY2015 FY2016* FY2017 FY2018 FY2019

21.9

FY2015 FY2016* FY2017 FY2018 FY2019

(%)

8.4

11.2
6.3

5.0

△8.7
FY2015 FY2016* FY2017 FY2018 FY2019

Goodwill amortization amount.

* In accordance with UniCarriers becoming a wholly owned subsidiary on January 1, 2017, figures for January–March of the fiscal year ended March 31, 2017 show the consolidated
figures for Mitsubishi Nichiyu Forklift and UniCarriers.

2

Business Overview by Each Segment

Japan Domestic Business
Sales of the domestic business segment were 179.0
billion yen (down 2.5% YoY) mainly due to a decline inexports caused by stagnation in overseas markets.
Segment profit finished at 3.7 billion yen (down 18.6%
YoY), primarily as a result of lower intersegment sales
and higher expenses.
Excluding the impact of goodwill amortization,
segment profit was 8.4 billion yen (down 9.1% YoY).

40%

Sales Composition
by Business Segment
Sales

Operating Profit(Billion yen)(Billion yen)

183.5

179.0

9.2

8.4
4.5

FY2018FY2019FY20183.7
FY2019Goodwill amortization amount.

Overseas Business
The inclusion of Equipment Depot, Inc. in the UnitedStates in the scope of consolidation compensated for
declining forklift demand in the United States, Europe,
China, and the rest of Asia, resulting in segment salesof 269.8 billion yen (up 1.9% YoY). Segment profit
was 4.7 billion yen (down 45.1% YoY) mainly due toincreasingly tough competitive environments in the
United States and other countries caused primarily
by trade friction between the United States and China
and tariff-related issues. Expenses and amortization of
goodwill associated with the acquisition of Equipment
Depot also contributed to the decline in segment profit.
Excluding the impact of goodwill amortization, segment
profit was 9.8 billion yen (down 22.1% YoY).

60%

Sales Composition
by Business Segment
Sales

Operating Profit(Billion yen)(Billion yen)

264.8

12.6

269.8

8.5

9.8
4.7

FY2018FY2019FY2018FY2019Goodwill amortization amount.

Major Overseas Network As of April 1,2020Head Office

Production baseMain sales baseMitsubishi Logisnext Europe B.V.
Mitsubishi Logisnext Europe AB
Mitsubishi Logisnext Europe Oy
●
●
●
●
●●●
●●
●
●
●

UniCarriers China Corporation
Mitsubishi Heavy Industries
Forklift (Dalian) Co., Ltd.

●●●

Mitsubishi Logisnext Europe S.A.
Logisnext Manufacturing(Thailand) Co., Ltd. ●Mitsubishi Logisnext Co., Ltd.

●
●
●
●
●

●

●●
●

●

Shanghai Nichiyu Forklift
Manufacturing Co., Ltd.

●
●●
● ●
●
●

●

UniCarriers Americas
Corporation
Mitsubishi Caterpillar
Forklift America Inc.

Mitsubishi Logisnext
Forklift (Shanghai) Co., Ltd.
Mitsubishi Logisnext
Asia Pacific Pte. Ltd.

Equipment Depot, Inc.

3

Stock Information

Stock Information

As of March 31, 2020

Common stock

392,725,256 sharesClass A stock

32,274,744 shares

Shares issued

Common stock

106,536,013 shares

Number of shareholders

Common stock

8,223

Total number of authorized shares

Major Shareholders (Common Stock)
Name of shareholder

No. of shares

Equity position(Unit: 1,000 shares)(%)

Mitsubishi Heavy Industries Forklift,
Engine & Turbocharger Holdings, Ltd.

68,88864.66

GS Yuasa Corporation

4,701

4.41

The Master Trust Bank of Japan, Ltd.

3,912

3.67

Japan Trustee Services Bank, Ltd.

3,627

3.41

Meiji Yasuda Life Insurance Company

2,765

2.60

GOVERNMENT OF NORWAY

1,671

1.57

MUFG Bank, Ltd.

1,363

1.28

The Bank of Kyoto, Ltd.

1,301

1.22

JP MORGAN CHASE BANK 385151

1,097

1.03

971

0.91

Tokyo Marine & Nichido Fire Insurance Co., Ltd.

Major Shareholders (Common Stock)
Securities companies etc. 0.16%

Treasury stocks 0.01%

Individual shereholders etc. 4.81%
Foreign shareholders 8.78%
Financial institution 15.93%
General corporations 70.31%

4Consolidated Financial Statements

Consolidated Balance Sheets (Summary)
Item(Million yen)

FY2018FY2019As of March 31, 2019

As of March 31, 2020

AssetsTotal current assets

195,059

193,560

Total non-current assets

172,602

180,079

Total property, plant and equipment

84,581

101,423

Total intangible assets

68,022

63,219Total investments and other assets

19,99915,435

367,662

373,640

Total current liabilities

153,495

154,445

Total non-current liabilities

145,663

161,868

Total Liabilities

299,158

316,31462,191

55,483

Share capital

4,894

4,904

Capital surplus

35,84235,785Retained earnings

21,456

14,796

(2)

(2)

3,812

(605)

Share acquisition rights

168

219

Non-controlling interests

2,330

2,227

Total net assets

68,50357,326

Total liabilities and net assets

367,662

373,640

Total Assets
Liabilities

Net assets
Total shareholders’ equity

Treasury shares
Total accumulated other comprehensive income

Overview of Consolidated Balance Sheets
Total assets as of March 31, 2020 were 373,640 million yen, up 5,977 million yen YoY. This increase was primarily due
to the addition of assets obtained through the acquisition of Equipment Depot, Inc.
Total liabilities were 316,314 million yen, up 17,155 million yen YoY. The rise was mainly the result of short- andlong-term debt incurred through the acquisition of Equipment Depot.
Total net assets, which exclude share acquisition rights and non-controlling interests, were 54,878 million yen, down
11,125 million yen YoY. Primarily contributing to this decline were a 6,660 million yen slide in retained earnings anda 3,083 million yen decrease in the foreign currency translation adjustment.

5Consolidated Financial Statements

Consolidated Income Statements (Summary)(Million yen)

FY2018FY2019From April 1, 2018
through March 31, 2019

From April 1, 2019
through March 31, 2020

Net sales

448,381448,918

Cost of sales

343,842

341,665

Gross profit

104,538

107,253

Selling, general and administrative expenses

91,382

98,816

13,156

8,437

Total non-operating income

1,906

1,534

Total non-operating expenses

1,348

2,926

13,714

7,045

Total extraordinary income

419

2,107

Total extraordinary losses

3,332

8,673

10,801

479

Income taxes - current

4,788

4,813

Income taxes - deferred(1,534)

642

7,546

(4,976)

Profit attributable to non-controlling interests

469

266

Profit (loss) attributable to owners of parent

7,077(5,243)Item

Operating profit

Ordinary profit

Profit before income taxes

Profit (loss)

Overview of Consolidated Income Statements
In the consolidated fiscal year ended March 31, 2020, consolidated net sales was 448,918 million yen (up 0.1% YoY).
Meanwhile, operating profit fell due to declines in the Americas and China and finished at 8,437 million yen (down 35.9% YoY)
while ordinary profit came to 7,045 million yen (down 48.6% YoY). The Group recorded impairment loss at subsidiaries in Europe,
China, and Thailand as extraordinary loss and, as a result, posted 5,243 million yen in loss attributable to owners of parent.

6Company Outline

Company Outline

As of March 31, 2020

Company Name

Mitsubishi Logisnext Co., Ltd.

Established

August 4, 1937

Capital Stock

4,904 million yen

Operation Centers
Head Office and Kyoto Plant

2-1-1, Higashi-kotari, Nagaokakyo-shi, Kyoto
617-8585

Tel: +81-(0)75-951-7171

Shiga Plant

578 Chokoji-cho, Omihachiman-shi,
Shiga 523-0013

Tel: +81-(0)748-37-6700

Azuchi Plant

8-1 Nishioiso, Azuchi-cho, Omihachiman-shi,
Shiga 521-1334

Tel: +81-(0)748-46-5511

On-Site Training Center

576 Hongo, Ohaza, Sugito-cho, Kitakatsushika-gun,
Saitama 345-0023

Tel: +81-(0)480-37-2108

Directors and Audit and Supervisory Board Members

As of June 25, 2020

Masanori Kagami

Chairman of the Board

Takashi Kubo

President and CEO

Shinji Fujita

Director

Masayuki Suematsu

Director(Senior Vice President, Mitsubishi Heavy Industries, Ltd. Head of Business
Strategy Office and Senior General Manager of Corporate Planning Department,
Mitsubishi Heavy Industries, Ltd.)Ken Okochi

External Director

Osamu Ando

External Director(President, Shimadzu Access Corporation)

Kyoko Kobayashi

External Director(Partner, Irokawa Legal Professional Corporation
External Audit and Supervisory Board Member, KAWAKAMIPAINT MANUFACTURING CO.,LTD.)

Koji Baba

Audit and Supervisory Board Member

Shinji Ichihara

Audit and Supervisory Board Member

Masahide Kuragaki

External Audit and Supervisory Board Member(Managing Director, GS Yuasa Corporation)

Yasuyuki Fukuoka

External Audit and Supervisory Board Member(Full-time Corporate Auditor, Dai Nippon Toryo Co., Ltd.)

Shigeru Yoshimura

External Audit and Supervisory Board Member

7