First Half Results for FY 2016

December 8th, 2016

Company Profile
Company nameHead office

Mitsubishi Nichiyu Forklift Co., Ltd.
1-1, 2-Chome, Higashikotari, Nagaokakyo-shi, Kyoto 617-8585 JAPAN

Establishment

August 1937

Paid-in capital

4.9 billion yen (as of March 31, 2016)

Business lines

Development, design, manufacture and sales of logistics systemproducts such as battery forklift, engine forklift, transportation
robot, automated warehouse, and warehouse management
system (WMS).
[Japan][Overseas]

Offices and plants

Annual production
capacity
Number of employees in
consolidated base
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

Kyoto and Shiga
United States
Houston, Texas
Pearl, Mississippi
Grand Rapids, Michigan
Pico Rivera, California
EuropeThe Netherlands and Finland
China
Dalian and Shanghai
Asia
Thailand, Singapore, etc.

Approx. 75,000 units
Approx. 5,600
1Major Production and Sales Bases
Mitsubishi
Caterpillar Forklift
EuropeMitsubishi Heavy
Industries
Forklift Dalian
Rocla Denmark

Rocla Solution
Rocla Russia

Mitsubishi
Caterpillar Forklift
AmericaSouthern California
Material Handling
Headquarters
and Kyoto Plant

Shiga Plant

Mitsubishi Nichiyu Forklift
260 sales and service bases in Japan
Rocla Oy

Nichiyu Forklift Shanghai
Rapidparts

MF Shanghai
Nichiyu Forklifts India

Daily Equipment

Shanghai Nichiyu
Forklift manufacturing

Mitsubishi Nichiyu
Forklift Asia Pacific

Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

Nichiyu Forklift
Thailand

Production
Sales

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FY 2016 First Half Financial Results

Hideaki Ninomiya, President and CEO

Outlook of FY 2016 First Half Financial Results
Market environment
The world economy looked fragile due to the surprising result of British decision of the exit from EU, andunforeseeable result of US presidential election, while China and other developing countries showed
moderate growth in overall.
As for the Japanese economy, some modest recovery was detected, but there were still some concerns about
its exchange rate fluctuation and stock market.

Overview of Our Consolidated Financial Results
In Japan, sales decreased due to a slow sales after the previous year’s spike of demand of trucks just before
regulatory change over Tier 4 emission of diesel engine forklift, and our battery forklift production
adjustment in consequence of the parts suppliers’ damages caused by Kumamoto earthquakes in April.
The short fall of sales could not fully recover the increased cost, such as development cost of new in-housesystem, and the operating income also decreased.
As for the overseas sales, the figure dropped mainly due to Japanese Yen’s appreciation. On the other hand,the operating income showed steady increase thanks to a good result of China factory operation with its cost
reduction and favorable weaker yuan, and some recovery of European business.

Net sales: 104.9 billion yen

A decrease of JPY 18.2 billion (14.8%) from the same period of FY 2015

Operating income:

4.8 billion yen

An increase of JPY 52 million (1.1%) from the same period of FY 2015

Ordinary income:

2.6 billion yen

A decrease of JPY 1.8 billion (41.0%) from the same period of FY 2015

Net income:

0.8 billion yen

A decrease of JPY 1.7 billion (68.7%) from the same period of FY 2015

Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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1. Historical Results in Recent Years(Unit: 100 million yen)Exchange rate
Net sales

USD/JPY
95.59

USD/JPY102.95USD/JPY
121.80USD/JPY105.29Operatingincome

1,437

1,500

344

200
3-monthimpact

150

1,231

1,000

1,093 4.4%
985

1,049 4.5%
3.8%

3.0%

62.9

500

100

3-monthimpact

22.4
29.7
0

1 HY ended
2013年9⽉期
September 2013

50

47.0

40.5
1 HY ended
2014年9⽉期
September 2014
Net sales

Operatingincome1 HY ended
2015年9⽉期
September 2015

47.5
0

1 HY ended
2016年9⽉期
September 2016

Operatingincome margin* The first half of 2014 included 3 months additional period for most of the overseas subsidiaries, as a transitional period for changing the fiscal year end from December
to March. This is a one time impact for 2014 FY only.

Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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2. Overview of Consolidated Financial Statements(Unit: 100 million yen)Item
Net sales
Operating income(Operating income margin)

Ordinary income(Ordinary income margin)

Net income(Net income margin)

1 HY ended
September 2015

1 HY ended
September 2016

1,231

1,049

▲182

▲14.8%

47.0(3.8%)

47.5(4.5%)

+0.5

+1.1%

43.8

(3.6%)

25.8(2.5%)▲18.0▲41.0%

24.4

7.6

▲16.8

▲68.7%(2.0%)(0.7%)

Comparison to
the same term of previous FY* UniCarriers has been taken into account according to the equity method since the 1st half of the current fiscal year. We
recorded 1.6 billion of equity in losses of affiliates as non-operating loss.

Item

1 HY ended
September 2015

1 HY ended
September 2016

Total assets

1,674

1,879

+205

+12.2%

Total liabilities

1,085

1,352

+267

+24.6%

589

527

▲62

▲10.5%Net assets
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

Comparison to
the same term of previous FY

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3. Financial Results by Segment
Net sales

Overseas
Domestic(Unit: 100 million yen)Asia
& China
アジア・中国

1,231
1,093

Net sales by region (1 HY ended September 2016)

1,049

10%

欧州
Europe⽇本
Domestic

15%

37%

⽶州
Americas38%
1 HY ended
September 2014

1 HY ended
September 2015

OperatingincomeOverseas

40.5

1 HY ended
September 2016
(Unit: 100 million yen)Domestic

47.0

47.5

Operating income by segment (1 HY ended September 2016)
Domestic
2.5%

Overseas
1 HY ended
September 2014

1 HY ended
September 2015

1 HY ended
September 2016

* Figures for FY ended March 2014 have been adjusted to exclude the impact of
unifying accounting period of certain overseas consolidated subsidiaries.
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

In the domestic business segment,
sales decreased as we adjusted
production in consequence ofKumamoto earthquakes in addition todissipation of the last-minute demands
before the Tier 4 emission regulationsin the previous 1st half period.
In the overseas business segment,
sales decreased as the overseas
subsidiaries’ sales were eroded afterconversion into yen because ofsurging yen in addition to a reaction of
the increased sales caused bynormalization after the end of theharbor strike in North America in theprevious 1st half period.

97.5%

In the domestic business segment,
operating income decreased becauseof deteriorated profitability of export
caused by strong yen, increased costfor development of new system, etc.
In the overseas business segment,
although there were impact of strong
yen, operating income increased
because of improved profitability in
Chinese subsidiaries’ export owing to
weak yuan, improvement of businesses
in Europe and contribution of worldwide cost reduction.

74. Consolidated Balance Sheet
1,922

1,879
Current
assetsItem

AssetsAssetsReduction of
4,300 million yen
Noncurrent
assets(Unit: 100 million yen)

(Unit: 100 million yen)

Major
increases/decreases

Liabilities/Net assets

1,879
Liabilities

980

901

▲79

(Non-current tangible andintangible assets)(Investments andother assets)

447

429

▲18

495

549

+54

Total noncurrent assets

942

978

+36

1,922

1,879

▲43

(Unit: 100 million yen)

Liabilities
Increase of
1,200 million yen
Net assets
Reduction of
5,500 million yen
Major
increases/decreases

Net
assetsFY ended
March 2016

1 HY ended
September 2016

Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

Increase/decrease

Current assets reduced mainly with accounts receivable, etc. due to impact of the
yen’s appreciation.
Investments and other assets increased because of investments in UniCarriers’
affiliate companies.

1 HY ended
September 2016

1,922

April toSeptember
2016

Current assets

Total assets
FY ended
March 2016

FY ended
March
2016

Item

FY ended
March
2016

1 HY ended
September
2016

Increase/decrease

1,197

1,149

▲48

143

203

+60

Total liabilities

1,340

1,352

+12

Total net assets

582

527

▲55

Total liabilities andnet assets

1,922

1,879

▲43

Current liabilities
Non-current liabilities

Current liabilities decreased due to foreign exchange gains generated by thestrong yen and reduced borrowings.
Non-current liabilities increased due to outstanding balance of investments in
UniCarriers Americas Corporation in the US.
Net assets decreased because of deterioration of foreign currency translation
adjustment account caused by strong yen.

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5. Consolidated Cash Flow Statement(Unit: 100 million yen)Free cash flows (FCF) improved by +3.5 billion yen from +3.0 billion yen
for the same period of FY 2015.

*FCF improved because of improvement of working capital such as accounts receivable, accounts payable, etc.
Beginning balance of
cash and cash equivalents

112.1

Ending balance of
cash and cash equivalents
Increase/decrease of
cash and cash equivalents

102.2

▲9.9

Investing C/F▲63.0
Acquisition of
Fixed Assets
Acquisition of UC stock
OthersOperating C/F+127.0

▲44.1
▲10.5
▲ 8.4

Income before taxes
Depreciation expenses
Decrease ofworking capital
UC equity method, etc.
Others

+25.9
+40.1
+27.3
+16.3
+17.4

Financing C/F▲54.7
Increase ofborrowings
Dividend payment
Others

▲37.8
▲12.3
▲ 4.6

FCF +64.0

An improvement of +3.5 billion yen
from +3.0 billion yen for the same period of FY 2015
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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6. 1st Half of FY 2016 (April to September) Consolidated OP Analysis
Although profitability deteriorated due to yen appreciation, we could achieve 101% OP
compared to the same period of FY 2015 because of improvement of businesses in Europe,
Chinese subsidiaries’ improved profitability and contribution of cost reduction in Japan andother areas.
One-off
cost reduction

1 HY ended
September Currency fluctuation
2015
impact▲13.1

Unit: 100 million yen

OthersCost reduction,
Expenditure reduction

▲2.5
6.5

47.0

Downturn ofmarkets
in China and other
Asian countries▲2.8

1 HY ended
September
2016

47.5

Decrease in grossprofit resulting
from sales
decrease

▲5.6

18.0

Due to stronger yen,
> Profit from overseas business dropped
in yen term,▲800 million yen> Export to overseas sales amount in yen
dropped,▲510 million yen
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

Income decreased in North America (▲430 million
yen) partly because of a reaction of the increased
sales caused by normalization after the end of theharbor strike in the previous year.
On the other hand, sales increased in Europe becauseof improvement of business environment (+160
million yen).
Income decreased in Japan and other countries(▲290 million yen).

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OverallOperating income to net sales

SafetyEfficiency

Return on Assets (ROA)

Shareholders-related
indices

Calculation

Index

Profitability

Item

7. Key Financial Indicators

Net income
Total assets
Net income

Return on Equity (ROE)

Equity capital
Operating income
Net sales

Ordinary income to net
sales

Ordinary income
Net sales
Net oncome

Net income to net sales

Net sales
Net sales

Total assets turnover
Accounts receivable turnover

Total assets
Net sales
Accounts receivable-trade

Inventory turnover
Share holder's equity ratio
Debt Equity ratio
Earnings per share (EPS)
Price earnings ratio (PER)
Price book-value ratio (PBR)

Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

Cost of goods soldInventory
Equity capital
Total assets
Interest-bearing debt
Shareholders’ equity
NetincomeNumber of shares issued

Stock priceEarnings per share
Stock priceNet assets per share

April toSeptember 2015

April toSeptember 2016

Comment

3.0%

and ROE decreased in FY 2016 - 1 HY term
0.8% ROA
as net income decreased due to loss on equity

8.6%

2.8% UniCarriers.

3.8%

operating income to net sales improved in
4.5% Although
FY 2016 - 1 HY term owing to contribution of

3.6%

and net income to net sales decreased from the
2.5% sales
previous quarter because we posted as non-operating

2.0%

0.7% amortization of goodwill of UniCarriers.

method with amortization of goodwill ofmaterials cost reduction, etc., ordinary income to net

loss the loss on equity method associated with

1.5 cycles

1.1 cycles

6.0 cycles

5.3 cycles

4.3 cycles

4.4 cycles

34.2%

27.3% Net assets decreased because of deteriorationof foreign currency translation adjustment
caused by strong yen.

0.8 times

1.3 times

45.8 times

14.3 times UniCarriers.

10.3 timesof FY 2015 - 1 HY term: 470 yen
46.7 times End
End of FY 2016 - 1 HY term: 669 yen

0.9 times

EPS decreased due to loss on equity method forIndex decreased as a stock price increased while

1.4 times EPS decreased.

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8. Topics of FY2016 First Half
Additional acquisition ofstocks of UniCarriers
Reach-type forklift “Platter”
won the Machinery
Industrial Design Award
Exhibit in the“Logis-Tech Tokyo 2016”
Launch of
new warehouse equipment
into the US market

 Acquisition of stocks on the premise ofmanagement integration
 Cultivate and collect of synergy
and increase in the growth rate

 Improvement in basic performancessuch as drive, turn and stop
 Further improvement in safeness,
operability and energy saving
 A hydrogen FCV concept car and other items were on
display.
 We conducted demonstrations withthe slogan“Pursuing Logistics Thoroughly.” Newly releasing in the market inNorth America the order picker lift withhigh lift created in collaboration with
Jungheinrich128. Financial Forecast for FY 2016
(Unit: 100 million yen)Item

1 HY ended September
2016 (Result)

FY ending March 2017
(Forecast)

Units sold

29,209 units

65,000 units

Net sales

1,049

2,350

48

110

Operating income(Operating income margin)

Ordinary income(Ordinary income margin)

Net income(Net income margin)

Dividend per share(4.5%)(4.7%)

26

85(2.5%)(3.6%)

845(0.8%)(1.9%)–

11 yen/share* Financial forecast shown in the above table has taken into account UniCarriers as an equity method affiliate.
In the case the company becomes our wholly owned subsidiary after we acquire proprietary interests from MHI
in January 2017 as scheduled, the company is considered as an equity method affiliate until the end of the third
quarter and it is considered as a consolidated subsidiary from the fourth quarter. We are investigating its
impacts on our consolidated financial results and we will announce promptly when the information that should
be disclosed becomes clear.
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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(Reference) Outline of UniCarriersCompany name

UniCarriers Corporation

Head office1-2, Shin-Ogura, Saiwai-ku, Kawasaki, Kanagawa

Establishment

February 1949

Paid-in capital

9.8 billion yen (as of March 31, 2016)

President & CEO
Business lines

PlantsAkira Shiki
Development, production and sales of transportation
machineries including forklifts, container carriers,transfer cranes, etc.
Japan, US, Sweden, Spain, China(Production capability: 55,000 units)

Consolidated net sales

196.2 billion yen (as of March 31, 2016)

Number of employees in
consolidated base

Approx. 5,700 (as of March 31, 2016)

Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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1
(Reference)
UniCarriers’ Network

UniCarriers Manufacturing
Sweden A.B
Operational Headquarters in Europe[Sweden & Spain /Development, production and sales]

Operational Headquarters in China[Anhui / Development, production and sales]

UniCarriers China Corporation

Shiga Plant

Anhui Hecha Forklift Co., Ltd.
Operational Headquarters in the Americas[Illinois / Development, production and sales]

GCT Konosu Plant
Hanyu Plant (Saitama)(Saitama)

UniCarriers Manufacturing
Spain S.A

Head Office (Kanagawa)

UniCarriers Handling
Systems (Hiroshima)

UniCarriers Americas Corporation

UniCarriers Asia Co., Ltd.

Operational Headquarters in Asia
[Thailand / Sales]

Operational Headquarters in Japan[Kanagawa /Development, production and sales]
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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(Reference) UniCarriers’ Main Products

Engine-powered compact forklift

Battery-powered counterbalance forklift

Engine-powered large-sized forklift

Harbor loading andunloading system

Battery-powered reach-type forklift

Shovel loader

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Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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NoticeThis material is provided exclusively for the purpose of information provision forinvestors and not for solicitation of stock sales or purchases. Forward-looking
descriptions in this material are based on targets and forecasts and do not represent
the commitments or warranties by the Company. Please be aware that actual financial
results in the future may differ from the Company’s present forecasts. In addition,although descriptions relating to financial results and forecasts were prepared based on
various data that the Company believes to be trustworthy, the Company does notwarrant their correctness or safety. This material is provided on the condition that each
investor will use it for any purpose at their own discretion and responsibility and theCompany hereby disclaims any responsibility whatsoever in any event.
Contact:
Mitsubishi Nichiyu Forklift Co., Ltd.
Administration Department (Matsuura or Koizumi)
1-1, 2-Chome, Higashikotari, Nagaokakyo-shi,
Kyoto 617-8585 JAPAN
TEL:+81-(0)75-951-7171
FAX:+81-(0)75-955-3797
http://www.nmf.co.jp/
Copyright © 2016 Mitsubishi Nichiyu Forklift Co., Ltd.

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