FY2019 Financial Results Briefing(FY2019:From April 1, 2019 to March 31, 2020)

June 11, 2020
MITSUBISHI LOGISNEXT CO., LTD.

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

FY2019 Financial Results(FY2019:From April 1, 2019 to March 31, 2020)

President and CEO, Takashi Mikogami© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

1. FY2019 Summary
Economic Market Trends
1.

2.

In the global economy, the impact of trade friction between the U.S. and China
has accelerated the restraint of new investment in many countries, particularlyin the manufacturing industry.
As a result of the above effects on the logistics industry, many capital
investments were postponed in various regions. In addition, the competitiveenvironment has become even more severe, and the COVID-19 pandemic issue
has caused some concern about future market trends. The situation cannot beignored.

Summary of FY2019 Results
1.

Despite a decline in overseas forklift demand, net sales increased +0.1% year-onyear, due to the consolidation of Equipment Depot, Inc. (hereinafter “EQD”) inthe Americas.
The 9-months(from July 1, 2019 to March 31, 2020) financial results of EQD have been
included in the above Consolidated Financial Results of FY2019 due to changes in the closing
dates.

2.

Operating profit decreased ▲35.9% year-on-year, due to lower sales in theAmericas and China especially.

3.

The Group recorded impairment loss on subsidiaries in Europe, China andThailand.

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

3

2. Financial Highlights
Unit: Hundred million JPY

Profit and Loss
Statement

FY2018FY2019YOY Change

4,483.8

4,489.2

+5.4

+0.1％

219.8

（4.9％）

183.3（4.1％）▲36.5▲16.6％

Amortization of
Goodwill

88.2

98.9

―

―

Operating Profit

131.6（2.9％）

84.4（1.9％）▲47.2▲35.9％

137.1

70.5

▲66.7

▲48.6％▲123.2―％Net Sales
Operating Profit(Before amortization of goodwill)(Operating profit margin)(Operating profit margin)

Ordinary Profit(Ordinary profit margin)（3.1％）（1.6％）

Profit Attributable to
Owners of Parent

70.8

▲52.4

(Net income margin)

Balance Sheet（1.6％）FY2018（▲1.2％）FY2019YOY Change

Total Assets

3,677

3,736

+60

+1.6％

Total Liabilities

2,992

3,163

+172

+5.7％

685

573

▲112

▲16.3％Net Assets

FY2018 actual FX rates: USD = JPY110.91, EUR = JPY128.41, CNY = JPY16.75
FY2019 actual FX rates: USD = JPY108.74, EUR = JPY120.82, CNY = JPY15.60© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

4

3. Business Results by Segment
Net Sale: The proportion of the Americas increased due to the new consolidation of EQD.
Unit:
Hundred million JPY

Domestic Business

Net Sales

5,000

Overseas Business

4,484

4,489

2,648

2,699

4,000
3,000

FY2019 Sales by Region

China& Asia7%
Europe (9%)
17%
(18%)

(41%)

2,000
1,000

Japan
40%

1,836

1,790

Americas
36%
(32%)

0
FY2018FY2019() = previous year

Operating profit (*) : Increased proportion of domestic business (impact of 1.5b Yen of adjustment

Operating Profit*

concerning the transfer price of transactions between ML and Americas subsidiary).
Unit:
Hundred million JPY

250.0

Domestic Business

183.3
126.9
98.8

100.0

50.0

FY2019 Operating Profit by Segment

219.8

200.0
150.0

Overseas Business

92.9

84.5

FY2018FY2019Overseas
Business
53.9%(57.7%)

Domestic
Business
46.1%(42.3%)

0.0* Operating Profit before amortization of goodwill© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

() = previous year5

4. Sales by Region
Japan

Americas(Unit: Hundred million JPY)

2,000

1,835.5

1,500

1,790.4

970.2

900.9

1,000

(Unit: Hundred million JPY) ※ Newly consolidated EQD contribution +35.7BJPY

2,000
1,500
1,000

500

889.5

865.3

500

0
FY2019
1H

600

707.6

636.2

FY2018FY2019
1H

797.0

759.7

413.9

377.4

500
400
300

2H

China and Asia

(Unit: Hundred million JPY)

400
200

992.7

2H

Europe(Unit: Hundred million JPY)

800

745.1

0
FY20181,000

1,628.9

1,452.7

398.4
310.0
199.4
147.2

200
383.1

382.3

0

100

199.0

162.8

FY2018FY20190
FY2018FY20191H

2H© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

1H

2H

6

5. Net Sales FY2018 vs FY2019
Sales increased by 0.1% YoY due to the new consolidation of EQD in the Americas.
Sales reached a new record high.
*Excluding the impact of the consolidation of EQD, sales were down 7.8% YoY due to lower sales in the Americas and China.
The only increase in local currency terms
excluding the impact of foreign exchange rates.
EQD

Europe(Unit: Hundred million JPY)

China & Asia

9.4

FX
impact▲90.9
JapanAmericas

▲81.8
▲39.9

4,489

4,484

▲148.5357.0

Increaseby 0.54 billion yen
FY2018© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

FY20197

6. Operating Profit FY2018 vs FY2019
Profit decline was primarily the result of decrease of sales in America and China andreduction in operation capacity which exceeded positive impact from the rise in thesales prices and the cost reductions.
YoY 16.6% (Before amortization of goodwill) / ▲35.9% (After amortization of goodwill)
Amortizationof goodwill

Gross profit
decreasedue to sales
decrease/Mix(Unit: Hundred million JPY)

Sales
Refunds
price
ExpenseFX
ofimprove- Low
US tariffs increase effects
Costment operations
reductions

▲63.8

9.2

8.4

▲0.6 ▲1.９

EQD
Acquisition
Cost
EQD
Others

▲7.1
16.7

Amortizationof goodwill

4.3▲18.3 16.6

▲88.2
219.8

Operating profit decreaseby 3.65 billion yen(Before amortization of goodwill)

131.6

183.3
▲98.9

84.4

FY2018FY2018(Before amortizationof goodwill)© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

FY2019FY2019(Before amortizationof goodwill)87. Recording of Impairment Losses
Conservatively reviewed the value of assets held (goodwill and fixed assets) andaddressed concerns in light of the deteriorating business environment.
⇒Relieve the risk of impairment in the future.
Impairment
loss

Unit: Hundred million JPY

EuropeGoodwill impairment

61

Although the European business is keeping profitable, the future plan is conservatively
reviewed in light of the deterioration of the business environment caused by COVID-19.

Asia

Goodwill impairment

5

Accounting treatment of the business transfer of the Thai subsidiary as a result of the
Asian restructuring.Profitability in Asia improved as a result of the reorganization.

China

Impairment of fixed assets

14

Total

Due to the deteriorating performance of the former UC subsidiary, almost all fixed assets
were impaired.

80■ D/E ratio worsened from 2.5 to 3.3 times■ Equity ratio decreased from 18.0% to 14.7% △3.3 points
FutureFinancial
PolicyOur first priority :Revitalization and strengthening of the financial structure
Allocate free cash flow after shareholder returns to repay debts andimprove the capital adequacy ratio as soon as possible.

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

98. Consolidated Balance Sheet
Total assets and liabilities increased due to the new consolidation of EQD
and an increase in borrowings associated with the acquisition of EQD.
(Unit: Hundred million JPY)
3,736

3,677

Item

FY2018
1,951
846
680
200
1,726
3,677

Current assets

Assets(Tangible fixed assets)

1,936

1,951
AssetsIncreased by
6.0 billion yen(Inv estments andother assets)

Total fixed assets

Total assets

1,801

1,726

(Intangible fixed assets)

FY2019Change

1,936
1,014
632
154
1,801
3,736

▲ 15
+168
▲ 48
▲ 46
+75
+60

Current assets: Decrease
Decrease in accounts receivable and inventories due to lower sales

Liabilities/
Net Assets

Fixed assets: Increase
FY2018FY2019

3,677

3,736

2,992

685

Liabilities
Increased by
17.2 billion yen
Net assets
decreased by
11.2 billion yen

FY2018© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

Increase in assets and goodwill due to the consolidation of EQD

ItemFY2018Current liabilities
Fixed liabilities
Total liabilities
Total net assets

3,163

Total liabilities and net assets

1,535
1,457
2,992
685
3,677

FY2019Change

1,544
1,619
3,163
573
3,736

+10
+162
+172
▲ 112
+60

Liability: Increase
Increase in borrowings due to the consolidation of EQD and other factors(net decrease excluding EQD)

573
FY2019Net assets : Decrease
Decrease in retained earnings and foreign currency translation
adjustments etc. due to net loss

10

9. Cash Flow
1.

2.

Operating C/F increased by 20.3 billion yen (21.9 billion yen YoY). The main
contributors to the increase were inventory reductions (+11.1 billion yen) and the new
EQD consolidation.
Excluding the investment in EQD (approximately $250 million), acquisition costs andother special factors such as the sale of the subsidiary, actual value of FCF is about
17 billion yen.
Other
(Unit: Hundred million JPY)
OperatingAmortization CF
Tangible fixedofasset acquisition
goodwill
Impairment
+26.0
loss
Depreciation
expenses+77.0

Tangible Short-term Other
loan
fixed
Investingasset sale decrease
CF

+80.3

▲250.1

132.7

Investments and borrowings
in connection withthe acquisition of EQD

+9.2

+4.6

Short-termborrowings
increase

Pre-tax
profit+4.8

CashLong-term
dividends
borrowings
payment Other
increasefinancial CF+233.7+137.2FX
impact, etc.153.4

▲13.9
▲88.3

▲5.9

▲254.9 +61.0
FY2018FY2019Cash and cash equivalents increase +20.6
Cash generated byoperating activities +421.7

Cash used ininvesting activities ▲491.2

Cash used infinancing activities +96.0

Free cash flow
▲69.5
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

1110. Financial Forecast for FY2020
1. The impact of the expansion of COVID-19 pandemic is difficult to
calculate, thus the full-year financial forecast is not yet determined.
2. It will be difficult to achieve the goals of the "Perfect Integration 2020"
plan, which is a four-year medium-term management plan ending in
FY2020.

External environment

Our forecast① Deteriorating market conditions due to
US-China trade friction② Material costs remain high③ Uncertainty about the timing of
convergence of COVID-19 infections④ Restrictions due to lockdown and selfrestraint⑤ Uncertainty about the timing ofresumption of economic activity (e.g.,
policy trends in various countries)⑥ The risk of a global recession① Financial forecasts for FY2020 will beannounced as soon as it become
available.
② New medium-term management plan for
FY2021 and beyond will be announced
as soon as it is formulated, dependingon the external environment and market
trends.

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

1211. Medium-term management plan vs results(sales and operating profit*)
Sales exceeded the mid-term management plan (FY2017-FY2020) due to the newconsolidation of EQD.
Operating income fell short of expectations due to soaring material costs andtrade friction between the U.S. and China, although the company was able to reap
the synergies from the integration with UC almost as expected.
Integration

600(Unit: Hundred million JPY)

4,484

4,489

4,331

500

4,435
4,304

400

4,600

4,400

4,200

4,221
300

3,964
167

200

Medium-term
management plan

285

Results

203 191

247

220

4,000

183

100

3,800

3,600

※FY2016 is avirtual consolidation
0

3,400

FY2016FY2017* Operating Profit before amortization of goodwill© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

FY2018Sales

FY2019operating profit

1312．Progress of Mid-term Management Plan
Up to the last fiscal year, synergy creation proceeded almost as expected, but earnings fell
due to a decline in sales and operations caused by deteriorating market conditions in the
U.S. and China due to trade friction between the U.S. and China. Sales price improvement
was reduced.
FY2016 Virtual Consolidation →FY2018 Results

FY2018 Results → FY2019 Results

Synergy creation was achieved, mostly for cost
reductions, but was affected by soaring material
costs and U.S. tariffs

Some U.S. tariffs were refunded.
Sales price improvement was greatly reduced bydiscounts to secure orders.

123
Service expansion,increased sales, etc.

38

70 Material cost increase
47

Refunds of
US tariffs

EQD
Cost reduction

54

23

Cost reduction

U.S. tariffs
Sales priceimprovement

167（4.2％）

4
8
10
17
９

84
Others2
18(Unit: Hundred million JPY)
OthersLow operations

64

Sales decrease

Sales priceimprovement

31

Operating profit
5.32 billion yen
increase(Before amortizationof goodwill)

FY2016 Actual(Before amortization of goodwill,)© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

48

220（4.9％）

Operating profit
3.7 billion yen
decrease(Before amortizationof goodwill)

FY2018 Actual(Before amortization of goodwill)

183（4.1％）FY2019 Actual(Before amortization of goodwill)14

【Reference】 Key Performance Indicators
Performance

Indicator
Return-on-assets (ROA)

Profitability

Operating profit margin

Asset Efficiency

Return-on-equity (ROE)

Total asset turnover

Net income margin

Receivable turnover

Financial
Soundness

Inventory turnover
Capital adequacy ratio
D/E ratio

Sahre

Earnings per share

FY2018FormulaNet income
Total assets
Net income
Shareholders' equity
Operating profit
Sales
Net income
Sales
Sales
Total assets
Sales
Accounts receivable
Cost of sales
Inventories

Net income
Shares outstanding
Share value

Price earnings ratio(PER)

Earnings per share

Price book value ratio(PBR)

Book value per share

Share value

1.9%（4.2％）-1.4%(2.8％)

11.2%（20.4％）-8.7%(12.2％)

2.9%（4.9％）

1.9%(4.1％)

1.6%（3.5％）-1.2%(2.5％)

1.2 times

5.8 times

5.8 times

5.6 times

5.5 times

18.0%

14.7%

2.5 times

3.3 times

JPY 66.48

JPY ▲49.24

18.1 times▲17.7 times

1.9 times

1.7 times

Total assets

Shareholders' equity(Before amortizationof goodw ill)

1.2 times

Shareholders' equity

Interest-bearing debt

FY2019(Before amortizationof goodw ill)

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Comments
The index deteriorated from theprevious year due to a net loss resulting
from impairment losses on subsidiaries
in Europe, China, and Thailand, whichwere recorded as extraordinary losses.
The index worsened from the previous
year due to the trade war between the
U.S. and China and deteriorating
earnings due to the spread of newpneumonia infections.

The capital adequacy ratio
worsened in line with the
decline in retained earnings.

Stock prices：
End of FY2018：JPY1,205
End of FY2019：JPY 874

15

【Reference】 Quarterly Financial Results
Domestic Business

Unit: Hundred million JPY

1,400

Net Sales

1,200

1,147.4

Overseas Business

1,181.3

1,065.0

1,089.9

640.6

649.0

667.6

690.8

424.3

440.9

479.7

1Q

2Q

3Q

EQD

1,275.4
1,020.4

241.4

627.9

553.4

599.8

560.4

490.4

422.5

466.9

434.1

466.7

4Q

1Q

2Q

3Q

4Q

1,000
800

1,142.8

1,050.5

600

115.6

400
200
0

FY2018Domestic Business

Unit: Hundred million JPY

Operating
Profit (*)

80

67.0

60
40
20
0

* Operating Profit before
amortization of goodwill

FY2019Overseas Business

37.2
19.9

38.8

34.4

17.3

16.3

1Q

2Q

45.4
32.5

33.3
3Q

FY2018© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

25.9
4Q

※1,2：Excluding EQD acquisition costs※3： 1.5 billion in transfer pricing
adjustments from the Americas

64.7

50.7
33.6

EQD

12.9
1Q

48.2
24.1

46.7
8.9 ※142.8
0.7 ※2
8.5

23.9
24.0

※3

33.5
13.8

2Q

3Q

4Q

FY201916

【Reference】 Capital Expenditure and R&D Expenses■ Capital Expenditure

Operating investments
Lease/rental investments

Unit: Hundred million JPY

271

300
250
200

178

150
100
50
0

FY2018FY2019FY2020 Plan

■ R&D Expenses
Unit: Hundred million JPY

60.0

55.3

52.9

FY2018FY2019

40.0
20.0
0.0
© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

FY2020 Plan17

【Reference】 Stock Price Trend(JPY)

Closing priceon June 8

2020
Year high value: 1,729 yen (Feb 13)
Year low value: 700 yen (Mar 19)

1,126Yen(as of June 8, 2020)

1800

45,000

October 2017
Established“Mitsubishi
Logisnext Co., Ltd”

1600

Nikkei Average
1400

Logisnext share value

40,00035,0001200

30,000April 2013
Established“Mitsubishi Nichiyu
Forklift Co., Ltd”

1000

25,000800

600

20,000November 2012
Announced merger with
Mitsubishi Heavy
Industries Ltd.

15,000400

July 2015
Announced acquisitionof UniCarriers
Corporation shares

200

10,000

May 2017
Announced integration
with UniCarriers
Corporation

5,000

0
Jan 2008(JPY)

0
Jan 2009

Jan 2010

Jan 2011

Jan 2012© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Jan 2013

Jan 2014

Jan 2015

Jan 2016

Jan 2017

Jan 2018

Jan 2019

Jan 2020

18

FY2020 Business Plan

President and CEO, Takashi Mikogami© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

1. Message from the President and CEO
Since taking office, we have promoted PMI activities and cash
flow management, but unfortunately our medium-term businessplan has been at a standstill due to various factors. At present,
the situation is unsettled due to the expansion of COVID-19
pandemic in addition to the US-China problem, but logistics isthe foundation of society and we are sure to expand. We areconfident that we can provide our customers with solutions andmeet their expectations with our world-class material handlingequipment technology.

President and CEO, Takashi Mikogami

I have been appointed to succeed Mr.Mikogami as president.
My name is Takashi Kubo. In spite of the extremely difficult
business environment, the Mitsubishi Logisnext Group will work
together to move forward as one group to achieve this goal.
We will do our best to overcome the difficulties and show you
further growth and development.

Takashi Kubo

（ Scheduled to become president and CEO on June 25.）

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

20

2. Forklift Market Trends 【Shipping】
Due to restrained capital expenditures resulting from the stagnation in the world manufacturingindustry, the global market in FY2019 decreased ▲4.5% (YOY) to 1.451 million units.
EuropeJapan(incl. Middle East & Africa)(1,000 units)(1,000 units)

600
500
400

556
467

506

524

(1,000 units)

100.0% 100

86

83

80.0%

89

80.0%

300

266

305

280

100.0%

301

80.0%

250

81.1% 81.6% 82.8% 82.7%

200

60.0%

60

40.0%

40

62.7% 63.4% 63.6% 65.3%

60.0%

200

40.0%

150

60.0%

65.5% 64.1% 63.4% 65.3%

40.0%

100

100
0

20.0%

20

0.0%

0

FY2016 FY2017 FY2018 FY2019 FY2020

20.0%
0.0%

Asia & Oceania

Asia &
Oceania6.9％

140100.0%
115

120

101
88

100

80.0%
60.0%

80
50.4% 50.0% 52.0%

56.5%

40.0%

China
30.2％

40
20.0%

20
0

0.0%
FY2016 FY2017 FY2018 FY2019 FY2020

0© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

0.0%
FY2016 FY2017 FY2018 FY2019 FY2020

China
Europe(1,000 units)(incl. Middle East
& Africa)

Global Market 36.1％
In FY2019

1.451

million units(Electric forklifts: 64.9%)

Japan
6.1％

20.0%

50

FY2016 FY2017 FY2018 FY2019 FY2020(1,000 units)

60

90

100.0% 350

80

300

100

Americas

Americas
20.7％

600

100.0%
454

500
390

400
300

80.0%
60.0%

300

200
100

438

32.7%

37.2%

40.0%

42.0% 45.3%

20.0%

0

0.0%
FY2016 FY2017 FY2018 FY2019 FY2020

Markets units
Percent electric forklifts

21

3. Forklift Market Trends 【Orders】
1. Despite a slight year-on-year recovery in the third quarter, the expansion of COVID-19 pandemic
affected the orders for 4Q in all regions (-13.8% YoY).
2. In the 4Q y/y, Japan and the Americas were relatively strong; however, China suffered asignificant decrease due to the lockdown after the New Year's holiday, and Europe and Asia also
fell to double digits due to refraining from activities.

Order intake（excl. Class III*）
300.0
250.0
200.0

260.2
22.7

50.0
0.0

226.7

231.8

21.2

21.5

92.2
76.6

150.0
100.0

Year-on-year▲ 9.6%

67.1

58.1

68.0

62.6

238.3

235.2

18.9

19.7

(Unit: Thousand units)

Year-on-year▲ 4.5%

216.5
17.9

89.7

83.2

75.5

63.0

58.5

53.7

Year-on-year+ 0.3%

Year-on-year▲ 13.8%

232.5
205.3

18.7

16.8
75.3
69.2
61.4

55.2

56.0

50.1

58.2

46.3

51.3

48.4

57.6

44.1

22.2

20.7

21.6

20.5

22.5

20.9

19.5

20.0

FY2018-1Q

FY2018-2Q

FY2018-3Q

FY2018-4Q

FY2019-1Q

FY2019-2Q

FY2019-3Q

FY2019-4Q

Japan

Americas

Europe(incl.Middle East & Africa)

China

Asia & Oceania※Class III : Self-propelled electric small lift
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

22

4. The impact of the COVID-19 pandemic■ Production Plant Operations
Japan

1.
2.

No major parts supply problems, and operations are normal.
However, capacity utilization rates worsened owing to adecrease in orders.

1.

MCFA shut down operations in early May due to production
adjustments. It is now operating as normal.
UCA closed part of the plant for about a week in late May, but
resumed operations in June. Operations are now back to normal.

Plant：Kyoto・Shiga・Saitama・Hiroshima

Americas
Plant：MCFA（TX）・UCA（IL）

EuropePlant：MLSE（Sweden）
MLFI （Finland）
MLSP（Spain）

2.

1.

2.
3.

China

1.

Plant：MFD（Dalian）
NFS（Shanghai）
UCCA（Hefei）

2.

Asia
Plant：LMT（Thai）

1.
2.

Operations were halted because of the order to stand by at home
due to the lockdown and production was adjusted in response to thedecrease in orders. Operations are now back to normal.
MLSP：Operations were suspended from late March to mid April
and mid May.
MLFI ：Operations were suspended from mid to late May.
Since the second half of March, there have been no stoppages inoperations at the Dalian and Shanghai plants and no problems withparts supply, etc., and operations have been normal.
However, the impact of the decline in orders was significant.
(including exports to Europe and Asia).
No shutdowns or parts supply problems, and normal operations.
The lockdown adversely affected the operations of the sales offices.

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

23

5. Emergency management measures➢ An emergency task force has been set up under the direct supervision of the president,
and cost reductions are being implemented around the world without exclusion.
1.

Thoroughly reduce costs and review fixed costs, including the nature of fixed costs.

Operational efficiency

Reduced fees

＜Workstyle reforms, IT＞＜ Drastic reductions in fixed costs ＞① Use of robotics for indirect operations② New system introduction to improve
efficiency③ Remote work retention and continuity④ Use of tele- and web
conferencing(reduce travel)

①
②
③
④

Furlough・Use of subsidy programs
Streamline staffing
Procurement and transportation cost
reduction
Partial reduction of executive
compensation

Strive to secure profits through business managementthat responds to changes in the market environment© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

24

6. Strengthening the Group's overall strength■ Reorganization➢ Foster and strengthen cooperation among development, production and sales functions

1. We will seek to maximize the Group's overall strength by realizing costsynergies through the reorganization of overlapping functions and management
infrastructure, and by strengthening the functions of each company.
Japan

Americas

EuropeAsia

Reorganized 11 domestic direct
sales companies from 2 lines
into 9 companies from 1 line.
(Scheduled for October 1, 2020)

Reorganized the direct sales
network in North America(former UC Sales Company)
under the umbrella of EQD.

Group subsidiaries in Europe tobe restructured on April 1, 2020

Consolidate the control andsales functions of the Thaisales companies to Singapore.

1.

1.

1.

1.

2.

Centralized sales andservice system forcustomers
Improving the efficiencyof duplicate sites anddepartments

2.

Horizontal expansion of
EQD's rental businessand other expertise
Unification of the sales
department's chain ofcommand＜ Benefits of the EQD Acquisition＞
Short-term：Strengthen profitability (bring in service revenues, expand rental
and used car business) and improve dealership management
Long-term ： Horizontally develop business management methods,
standardize rental and used vehicle platform systems,
and strengthen sales measures© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

2.

3.

Consolidation of thehead office management
function and sales
management function
Strengthening CrossSectional Cooperation
among Production Sites
Improving the efficiencyof duplicate sites anddepartments

2.

Consolidation of Asian
management functions
Improving the efficiencyof duplicate sites anddepartments25

7. Optimal resource allocation for development
and production■ Production of MLFI-designed battery cars begins at MLSP
➢ Optimizing production sites to meet the growing demand for electric vehicles
1.
2.

MLFI (Finland) will begin producing 2-3 metric tons of counter battery vehicles designed
and produced by MLFI in April at MLSP (Spain) as a unified model for Europe.
As the flagship model of the company's integration in Europe, the company is looking to
expand its sales on a global basis.
MLFI Design【 Product Features 】①②③④

Sophisticated Scandinavian design
Provides a comfortable driving
environment, safety and stress-freevisibility
Stable running performance andlow power consumption thanks toa two-motor drive
A wide range of performanceadjustment functions allows for
optimal settings for each work
environment

MLFI
Cost
improvement
Productivity

Improvement

MLSP
Production started
in April 2020.
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Sales
expansion

Marketshare
increase

Aim to achieve these goals

26

8. Growth business (partnership with AI start-ups)■ UCA and Brain's technology partnership➢ Improving Product Value through the Use of AI
1. UniCarriers Americas Corporation (UCA) in the United States has formed atechnology partnership with Brain Corp (Brain), an AI company for the robotics
industry, to develop AGVs.
2. Under the partnership, UCA licensed BrainOS®, a cloud-connected operating
system for commercial autonomous robots. Work on developing AGVs forretail stores and warehouses.
3. We aims to further expand its business in response to the growing need forautomation worldwide.
Outline of Brain Corp
Company
nameBrain Corp

Location

10182 Telesis Court Suite 100
San Diego, CA

Business
description

AI company creating transformative coretechnology for the robotics industry

Auto-D© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

27

9. Growth business (expansion of logistics solutions)■ Combination sale of AGV/AGF and rack
➢ Development of products and services that support society 24/7
1.

2.

Develops an unmanned transportation and storage system that combines AGF/AGV
and racks (e.g., horizontal fluidized bed drive racks and motorized moving racks).
Realizes more efficient work with less space than conveyorized transport.
We will continue to expand our products and services to meet the needs of ourcustomers with a variety of solution technologies.

AGF and Auto-through rack

Specialized AGV(horizontal fluidized bed drive racks)

Delivery to a breadmanufacturer

AGV with clean cabin

AGV with refrigerated cabin© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

28

10. Future of Logistics and Our Vision
１．Example of Logistics MaaS (Mobility as a Service) Concept
Aiming to solve social issues and increase the added value of logistics by realizing optimal logistics
through the combination of data linkage among shippers, transporters and vehicles and the automation oflogistics functions.
Marinetransport

Node

Trunk-line transportation

Node

Branch line delivery (intra-regional to terminal)

Larger and more automated vehicles have led to Seamless transshipment is realized by linking logistics information The introduction of electric vehicles is on the rise
Terminal AI eliminateswith infrastructure informationa dramatic increase in the amount of transportation
waiting in front of the trailer gate
per vehicle (one driver).
⚫ Introduction of automated cargo handling and AGVs
Production
warehouse⚫ Joint transportation
Retail Stores⚫ Double-connected truckbase⚫ Manned column run (Lv2, 3), Lv4 run⚫ FC Truck⚫ Joint/consolidation transportation⚫ Transportationfrom Overseas
Factories⚫ Port Logistics⚫ Auto-tuning in restricted area

Warehouse and wholesale

SA/PA etc.

⚫ Return shipment matchingtransfer point⚫ Birth reservation ⚫ Standardization of pallets⚫ Swap bodyand packaging materials

The rate of actual vehicles has been increasedby the freight and vehicle seeking system ⚫ Rest, transshipment, etc.

２．Our Vision⚫ Optimal route andenergy management⚫ Use of electric
Informationcommercial vehicles

collaborative
platform
Retail Stores

Retail Stores
Optimal transportation and⚫ Joint/consolidationdelivery based on production
transportation
Consumerand sales forecast information
Shipper matchingin accordance with cargo OD
increases loading rates.

＜ Excerpt from "Logistics MaaS Study Session" by the METI ＞

Aiming to be a core player in the future logistics MaaS market with data-connected solution technology

Data flow
Node (Harbor)

Production base

Nodal point(Warehouses, transit points,
retail stores)© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

29

【Reference】 Company Profile
Company Name

Mitsubishi Logisnext Co., Ltd.

Head Office

1-1, 2-Chome, Higashikotari, Nagaokakyo-shi, Kyoto

Established

August 1937

President and CEO

Takashi Mikogami

Paid-in Capital

4,894 million yen

Business Lines

Design, development, production, and sales of electric andengine forklifts, conveyor robots, automated warehouseequipment, warehouse management systems, construction
machinery, industrial engines, transmissions, etc.

Operation Centers

Japan:
Kyoto, Shiga, etc.
Overseas: United States, Europe, China, Asia, and others

Number of
Employees

Approx. 12,000 employees

Production Capacity
Approx. 110,000 units
per Year© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

30

【Reference】 Japan Domestic Network
5 Production Bases and 11 Direct Sales Subsidiaries

Mitsubishi Logisnext
Headquarters (Kyoto)
Office (Tokyo)
11 Direct Distributors① Logisnext UniCarriers② Logisnext Hokkaido③ Logisnext Tohoku④ Logisnext Tokyo⑤ Logisnext Shinetsu⑥ Logisnext Shizuoka⑦ Logisnext Chubu⑧ Logisnext Kinki⑨ Logisnext Chugoku⑩ Logisnext Shikoku⑪ Logisnext Kyushu② 8 bases
Shiga Plant

Headquarters
Kyoto Plant③ 15 bases⑤ 7 bases

Onomichi Plant(UniCarriers Handling
Systems)⑨ 17 bases⑪ 19 bases④ 31 bases⑦ 21 bases⑥ 5 bases

KonosuPlant(Global Component
Technology)① 7 branch offices 132 bases nationwide⑩ 7 bases⑧ 14 bases

Mitsubishi Logisnext Office and Plant
Sales Subsidiary Head Office© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

Azuchi Plant
31

【Reference】 Overseas Network

Mitsubishi
Logisnext
Europe B.V.

Mitsubishi Heavy
Industries
Forklift Dalian

Mitsubishi
Logisnext
Europe AB(Sweden)

UniCarriers Americas
Corporation

Mitsubishi Logisnext
Forklift(Shanghai)

Mitsubishi Logisnext
Europe Oy (Finland)

Equipment
Depot, Inc.

Mitsubishi Logisnext
Europe S.A.(Spain)

Shanghai Nichiyu
Forkliftmanufacturing

UniCarriers China
Corporation

Mitsubishi
Caterpillar Forklift
America

Mitsubishi Logisnext
Asia Pacific

Production Bases
Main sales Bases© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Logisnext
Manufacturing(Thailand)32

【Reference】 Topics in FY2019
New Model Launch
1.
2.

In November 2019, the first new model after integration, 「ALESIS」
was released. The strengths of 4 old models have been combined into 1.
We will continue model integrations to improve production efficiency
and enhance our market presence.

Strengthening Sales Business
1. Two North American direct sales companies (DEC / SCMH) will
become an affiliate of EQD. We will expand the after-sales andrental business know-how of EQD, and pursue higher profitability.
2. We will continue to strengthen our direct sales and service businesses
in the North American market to develop new business models andestablish a firm business foundation.

EQD

Selection and concentration of management resources
1. All shares of Nichiyu Machinery Co., Ltd. were transferred toJapan Steel Works, Ltd.
2. Further concentration of resources on the material handlingequipment business.
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

2 Axial rotary winder33

【Reference】 Strengthen the Product Capability ofMaterial Handling Equipment■ New experimental facility, the Technology Development Center,began operation on April 1.
➢ Strengthen R&D capabilities
1.

Integrates laboratories from Kyoto Plant, Shin-Kawasaki Office, and Shiga Plant.

2.

By relocating the Technical Headquarters to the Shiga Plant, the core of the manufacturing Division,
we aim to higher product quality, higher operating efficiency, shorter development lead times,
and stronger development capabilities in growth fields.
Technical Development Center
Laboratory Building

Location

Main
Facilities

Laboratory Building

Outdoor Test
CourseTechnical Development Center

574-1 Chokoji-cho, Omihachiman-shi, Shiga
On-board testing
equipment
1. Vehicle
maintenancefacilities
2. Mast Endurance
Test Room
3. Hydraulic Test
Room
4. Powerplant Testing
Room etc.

Indoor Testing Center
and Office
1. Indoor test site
2. Design Lab
3. Anechoic chamber
4. Office etc.

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

Straight track,approx. 350 meters(A turnpike anda slope are included.)34

Disclaimer:⚫ This material is prepared for the sole purpose of providing investors with information and
not intended for solicitation of any buying or selling.
⚫ Forward-looking statements in this material are intended as targets or forecasts,
with no commitment or guarantee as to their accuracy.
⚫ Note that actual future business results of Mitsubishi Logisnext may differ from our current forecast.
⚫ Statements concerning the business results are based on various data that we believe
to be reliable, but we do not guarantee the correctness or completeness of such data.
⚫ This material is provided based on the premise that each investor should use it relying on his
or her own judgment and responsibility, whatever the purpose of its use may be.
Mitsubishi Logisnext shall not be liable whatsoever, regardless of the results from using this material.

Please direct inquires regarding this material to the following:
Mr. Kariya or Ms. Kashiwagi
Planning Division
Mitsubishi Logisnext Co., Ltd.
1-1, 2-chome, Higashikotari, Nagaokakyo-shi, Kyoto 617-8585
TEL: 075-956-8610 FAX: 075-951-4038
URL: www.logisnext.com© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

35

© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.