Annual Report 2017
For the fiscal year from April 1, 2016 to March 31, 2017

P1

A Message to Our Shareholders and Investors

P3

Financial Highlights

P4

Overview by Each Segment

P5

About New Mid-Term Management Plan

P6

TOPICS

P7

Stock Information

P8

Consolidated Financial Statements

P10 Company Outline

Note: Effective October 1, 2017, Mitsubishi Nichiyu Forklift Co.,
Ltd., will change its name to Mitsubishi Logisnext Co., Ltd.
For details, please visit our corporate website and see thenews release dated July 13, 2017, posted in the News &Topics section.

A Message to Our Shareholders and Investors
Summary of market conditions and performance in fiscal 2016
In the consolidated fiscal year under review, the Group attempted to further increase sales and its share in
the Japanese market through efforts to propose various solutions accurately meeting customer needs interms of logistics advances and efficiencies. In overseas markets, efforts were made to enhance the Group’s
overall sales and earnings capabilities by responding to exchange rate fluctuation while promoting productdevelopment, production and after-sales services supporting sales strategies in each region. In addition,
UniCarriers Holdings Corporation (hereinafter “UniCarriers”), which became a Group equity method
affiliate on March 31, 2016, was converted into a wholly-owned subsidiary during the fiscal year underreview on January 1, 2017.
As a result, Group net sales were 270.9 billion yen (up 11.7% from the previous fiscal year). Despite adecline in sales from overseas subsidiaries due to the impact of exchange rates, the three-monthcontribution from wholly-owned subsidiary UniCarriers made up for this decline.
Operating profit was 10.5 billion yen (up 4.2% from the previous consolidated fiscal year) due to theadditional contribution of UniCarriers consolidated income, reduced material costs and improved profit atEuropean subsidiaries.
At the same time, ordinary profit was 8.9 billion yen (down 6.5% from the previous consolidated fiscal
year) due to equity method investment losses associated with UniCarriers up to the third quarter of the
fiscal year under review. Net income attributable to parent company shareholders was 3.6 billion yen (down
22.9% from the previous consolidated fiscal year).

Hideaki Ninomiya
President and CEO

1

Initiatives and outlook for fiscal 2017
In fiscal 2017 (ending March 31, 2018), we will launch the Group’s new mid-term management plan
“Perfect Integration 2020.”*
The mid-term management plan was formulated with the aim of accelerating and maximizing thecreation of synergies, expanding the scale of our business in light of the management integration with
UniCarriers and due to the evolving global economy as well as macro environment surrounding theCompany. We will combine the expertise in sales, technology and production accumulated by Mitsubishi
Nichiyu Forklift and UniCarriers thus far. As a result of our extensive experience, we will create a robust
business structure and achieve scale expansion through management integration, with the aim of becoming
the world’s top-class general logistics equipment manufacturer engaged in increasing growth andprofitability. Presently, we are making various preparations for the management integration which isscheduled for October 2017.
In light of this, our consolidated earnings forecast for fiscal 2017 (ending March 31, 2018) calls for net
sales of 410.0 billion yen (up 51.3% from the previous consolidated fiscal year), operating profit of 9.0
billion yen (down 14.4% from the previous consolidated fiscal year), ordinary profit of 8.0 billion yen(down 10.9% from the previous consolidated fiscal year) and net income attributable to parent company
shareholders of 3.5 billion yen (down 3.7% from the previous consolidated fiscal year).
Note: Please see page 5 for an overview of the mid-term management plan, its basic policies and numericaltargets.

Message to our shareholders
Our basic dividend policy is to consider the balance between returning profits to shareholders andmaintaining internal reserves required for establishing business infrastructure that appropriately reflects
earnings in a given fiscal year. In accordance with this policy, in fiscal 2016 we will provide a dividend of
11 yen per share. In fiscal 2017, as a result of the aforementioned consolidated fiscal earnings forecast, weplan to pay a dividend of 11 yen per share.
The continued understanding and warm support from shareholders is highly appreciated.

2

Financial Highlights

3

Overview by Each Segment
Domestic Business

Sales composition bybusiness segment

40％
Net sales were 107.8 billion yen (up 32.2% from the previous consolidated fiscal year) and segment
profit was 2.9 billion yen (up 101.9% from the previous consolidated fiscal year). Net sales andsegment profit increased substantially due to the consolidation of UniCarriers, as well as other factors
including an increase in the number of battery-powered forklifts sold and increased sales of large
logistics system projects.
In terms of segment profit, despite the increase of positive factors such as cost reductions related tomaterial expenses and excluding the impact of making UniCarriers into a subsidiary, segment profit
declined slightly.
Moreover, in accordance with UniCarriers becoming a subsidiary and from the fourth quarter of the
fiscal year under review, net sales and segment profit were consolidated and impacted domestic
business, resulting in an increase in net sales of 25.2 billion yen and an increase in segment profit of
1.5 billion yen.

Overseas Business

Sales composition bybusiness segment

60％
Net sales were 163.1 billion yen (up 1.3% from the previous consolidated fiscal year) and segment profit
was 7.5 billion yen (down 12.3% from the previous consolidated fiscal year). Segment profit, despite
improvements in the European business, cost reductions, and tighter control of expenses, resulted in asignificant decline due to the negative impact of exchange rate fluctuation as well as the amortization costof good will associated with the consolidation of UniCarriers.
Moreover, the impact on the Group’s overseas business due to UniCarriers becoming a wholly-owned
subsidiary was an increase in net sales of 23.7 billion yen and a decrease in segment profit of 0.8 billion
yen.

4About New Mid-Term Management Plan
We Formulated a New Mid-term Management Plan to Maximize and Accelerate
Business Scale Expansion and Creation of Synergies.
We worked hard to achieve the objectives of our previous mid-term management plan “BestIntegration 2017” (fiscal 2014–fiscal 2017). In light of the management integration with theacquisition of UniCarriers as a wholly-owned subsidiary and substantial changes in theenvironment surrounding the Company, we have formulated “Perfect Integration
2020”. This plan is a new four-year mid-term management plan with its final year in
the fiscal year ending March 31, 2020, which aims to achieve sustainable growth andimprove profitability.

Fiscal 2020 Numerical Targets
Consolidated net sales

Consolidated operating income(hundred million yen)(hundred million yen)

*2

Consolidated operating income
margin (%)

*2

*1

*2

*2

32

460

billion yen

billion yen
（FY）

（FY）
（Plan）（Plan）

Fiscal 2016 Results

*1, 2

7.0%

*1, 2

（FY）
（Plan）*1. Hypothetical consolidated figures (when UniCarriers and Company results are consolidated in fiscal 2016).
*2. Before goodwill amortization.

Basic policy

1. Growing by implementing the multi-brand / glocal*3 strategies→Increase the scale of business by implementing specific strategies appropriate for the local needs●Reinforcement of electric forklifts development capabilities●Expansion of solution business●Utilization of advanced technologies→Realizing the future needs by “utilizing advanced technologies” and “optimizing resources”

2. Reinforcing the management infrastructure that supports growth●Improving production efficiency by segregating the produced models for each region●Pursuing economies of scale by utilizing the global joint procurement activities●Reinforcing significantly the headquarters’ corporate functions and supporting

development of the glocal *3 / multi-brand management through the management
integration●Establish an integrated human resource system●Promote human resource development●Promote creation of a corporate culture ensuring
thorough compliance●Enhance corporate governance●Enhance risk management●Promote CSR●Integrate and enhance accounting systems●Maintain and enhance CMS*4●Create global infrastructure●Enhance security system*3. Glocal: Aiming for global development while providing products and services tailored to specific needs of each region.
*4. CMS: Cash management system based on cash pooling

5

TOPICS
Mitsubishi Nichiyu Forklift Design Capabilities and Brand Power

1. Overseas Design Award Received in Recognition of Manufacturing Supporting Local
Needs Rocla-Designed Reach-type Forklift SENSiA for the European Market Wins
Reddot Award 2016!
SENSiA, developed and produced by Rocla Oy, a European Group
company, received the internationally influential design prize “Reddot
Award 2016.” This is the fifth time Rocla Oy has received this award,
selected among 5,214 candidates from 57 countries, the largest entry
pool in the award’s history. In developing SENSiA, thorough market
research was conducted with the assistance of our customers. The
judges’ high evaluation was
based on innovations realized
in all aspects of the product,from usability and loading todriving.

2. Our booth at Logis-Tech Tokyo 2016 Intended to Further Improve Brand Image
We participated at Logis-Tech Tokyo 2016, held at Tokyo Big Sight for four days during September 13–16,
2016.
At the exhibition, we shifted the concept of our booth from emphasizing current products being built
today, to improving the Mitsubishi Nichiyu Forklift corporate brand image. We presented a new exhibitfeaturing a collaboration between actual machines and computer graphic visuals. The dynamic video shown
on a large screen attracted the attention of many visitors whose vocal admiration led to enthusiastic
applause. As a result of our booth being adjacent to the UniCarriers booth, we were able to successfully
attract additional visitors.

Presentation corner

Safety and vehicle nagement
support corner

6

Stock Information
Total number of authorized shares
Shares issued
Number of shareholders

As of March 31, 2017

Common stock
Class A stock
Common stock
Class A stock
Common stock
Class A stock

392,725,256 shares
32,274,744 shares
76,611,269 shares
32,274,744 shares
3,185
2

 Major Shareholders (Common stock)
Name of shareholder

No. of shares

Equity position

Unit: 1,000 shares%

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

39,03350.95%

GS Yuasa Corporation

4,701

6.14%

The Master Trust Bank of Japan, Ltd.

3,729

4.87%

Japan Trustee Services Bank, Ltd.

3,642

4.75%

Meiji Yasuda Life Insurance Company

2,765

3.61%

Tokio Marine & Nichido Fire Insurance Co., Ltd.

1,853

2.42%

CBNY-GOVERNMENT OF NORWAY

1,380

1.80%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1,363

1.78%

The Bank of Kyoto, Ltd.

1,301

1.70%

The Shiga Bank, Ltd.

941

1.23%

 Shareholder Distribution (Common stock)7

Consolidated Financial Statements
Consolidated Balance Sheets (Summary)(Million yen)
Item

FY2015FY2016(As of March 31, 2016) (As of March 31, 2017)

AssetsCurrent assets

97,999178,195

Fixed assets

94,163

188,719

Tangible fixed assets

38,74890,955Intangible fixed assets

5,903

86,032

Investments and other assets

49,512

11,731

192,163366,915

Current liabilities

119,695

151,629

Fixed liabilities

14,269155,264

Total Liabilities

133,964

306,893

51,47954,597

Capital

4,890

4,890

Capital surplus

35,84235,839Earned surplus

10,771

13,888Treasury stock

(26)

(20)

5,133

3,496

112

143

Non-controlling interests

1,473

1,783

Total Net Worth Equity

58,19960,021

Total Liabilities and Net Worth Equity

192,163366,915

Total Assets
Liabilities

Net worth equity
Stockholders’ equity

Other accumulated comprehensive income
Equity warrant

Overview of Consolidated Balance Sheets
Regarding total assets, although working capital improved as a result of efforts aimed at reducing inventories, total
assets amounted to 366,915 million yen, mainly due to the acquisition of UniCarriers as a wholly-owned subsidiary.
This resulted in a substantial increase in total assets of 174,751 million yen compared to the previous year.
In terms of total liabilities, increased borrowings related mainly to the acquisition of UniCarriers stock caused total
liabilities to increase significantly by 172,928 million yen compared to the previous year, to 306,893 million yen.
Despite the recording of increased retained earnings, dividend payments and decreased foreign exchange adjustments
due to recent yen appreciation caused net assets to increase to 60,021 million yen, 1,822 million yen higher compared* From the previous consolidated fiscal year, the Group standardized the accounting period to end on March 31, thus
with the exception of Nichiyu Forklift (Thailand), whose accounting period already ends on March 31, the fiscal yearof overseas consolidated subsidiaries is presented as a 15-month period, from January 2014 to March 2015.

8

Consolidated Income Statements (Summary)(Million yen)
Item

FY2015FY2016

From April 1, 2015
through March 31, 2016

From April 1, 2016
through March 31, 2017

Sales

242,519

270,969

Cost of sales

188,297

207,098

Gross profit on sales

54,222

63,871

Selling, general and administrative expenses

44,13553,362

10,086

10,508Non-operating income

616

1,127

Non-operating expenses

1,104

2,658

Ordinary profit

9,598

8,978

Special profit

40

88

Special loss

282

271

9,356

8,795

Corporation tax, residents tax and enterprise tax

3,073

4,803

Adjusted amount of corporation tax etc.

1,287

144

4,995

3,847

282

211

4,713

3,635

Operating profit

Current net profit unadjusted for tax

Net income

Profit attributable to non-controlling interests
Profit attributable to owners of parent

Overview of Consolidated Income Statements
Net sales increased to 270,969 million yen. Despite the impact from foreign exchange adjustments onoverseas subsidiaries due to yen appreciation, the inclusion of three months of increased sales from theacquisition of UniCarriers as a consolidated subsidiary, higher demand for battery-powered forklifts inJapan and growth in logistics systems sales contributed to the increase in net sales
In terms of income, although the stronger yen led to income deterioration, operating income
increased to 10,508 million yen due to materials expense reductions and improved income at European
subsidiaries in addition to the contribution from UniCarriers consolidated income. At the same time,ordinary profit was 8,978 million yen due to equity method investment losses associated with
UniCarriers up to the third quarter of the fiscal year under review. Net income attributable to parent
the previous year.

9Company Outline
Company name:
Established:
Capital stock:

As of March 31, 2017

Mitsubishi Nichiyu Forklift Co., Ltd.
August 4, 1937
4,890 million yen

 Operation Centers
Head Office and Kyoto Plant
2-1-1, Higashi-kotari, Nagaokakyo City, Kyoto 617-8585
Tel: 075-951-7171
Shiga Plant
8-1, Nishioiso, Azuchi-cho, Omihachiman City, Shiga Pref. 521-1334 Tel: 0748-46-5511
On-Site Training Center
576, Hongo, Sugito-machi, Kitakatsushika-gun,
Saitama Pref. 345-0023
Tel: 0480-37-2108

 Executives

As of June 29, 2017

• Hideaki Ninomiya, President and CEO• Hiroshi Maeshima, Audit and Supervisory Board Member• Takashi Mikogami, Director and Senior EVP• Norio Konishi, Audit and Supervisory Board Member(Senior Executive Vice President, Mitsubishi Heavy Industries• Masahide Kuragaki, Audit and Supervisory Board Member

Forklift, Engine & Turbocharger Holdings, Ltd.)• Masanori Kagami, Director and SVP(Director, GS Yuasa Corporation)• Yasuyuki Fukuoka, Audit and Supervisory Board Member• Shinji Fujita, Director(Senior Vice President, General Manager of Research and(Senior Corporate Audit, Dai Nippon Toryo Company, Limited)• Takumi Saito, Audit and Supervisory Board Member

Development Division, Unicarriers Corporation)• Hiroaki Yamamoto, Director(Senior General Manager, Corporate Planning Business Strategy
Office, Mitsubishi Heavy Industries, Ltd.)• Takayuki Kato, Director• Ken Okochi, Director

10