Mitsubishi Logisnext Co., Ltd.
Financial Results Briefing for the Fiscal Year Ended March 2023
June 1, 2023

Event Summary[Company Name]

Mitsubishi Logisnext Co., Ltd.

[Company ID]

7105-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Financial Results Briefing for the Fiscal Year Ended March 2023

[Fiscal Period]

FY2023 Annual[Date]

June 1, 2023

[Number of Pages]

35[Time]

15:30 – 16:35(Total: 65 minutes, Presentation: 40 minutes, Q&A: 25 minutes)[Venue]Webcast[Number of Speakers]

4
Takashi Mikogami
Yuichi Mano
Takatoshi Uno

Junichi Oi

Representative Director and Chairman
Representative Director and President
Director, Executive Officer, CFO, Division
Head, General Manager, Corporate Strategy
and Planning OfficeMember of the Executive Team, Head ofCorporate Finance and Accounting
Headquarters

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Presentation
Moderator: Thank you for standing by. Welcome to the financial results briefing of Mitsubishi Logisnext Co.,
Ltd. for the fiscal year ended March 2023. Thank you very much for taking time out of your busy schedule toparticipate in our financial results briefing.
Today, we would like to explain our financial results for the fiscal year ended March 2023 and ourmanagement policy for the fiscal year ended March 2023.
Now, let me introduce today's attendees. Takashi Mikogami, Representative Director and Chairman.
Mikogami: I am Mikogami. Hello.
Moderator: Yuichi Mano, Representative Director and President.
Mano: I am Mano. Hello.
Moderator: Takatoshi Uno, Executive Officer, CFO, and Head of Corporate Finance and Accounting
Headquarters.
Uno: I am Uno. Hello.
Moderator: Junichi Oi, Member of the Executive Team and Head of Corporate Finance and Accounting
Headquarters.
Oi: I am Oi. Hello.
Moderator: That is all. As for today's proceedings, Mr. Uno, Head of Corporate Finance and Accounting
Headquarters, will provide an overview of the financial results for the fiscal year ended March 2023, and Mr.
Mano, Representative Director and President, will explain the management policy for FY2023.
We will now move on to an overview of the financial results for the fiscal year ended March 2023. Please go
ahead, Mr. Uno.
Uno: I am Uno from Mitsubishi Logisnext. Thank you very much for attending our FY2022 financial results
briefing today.
I would like to begin with an overview of the first half of today's presentation.

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Please begin by looking at page three of the material.
The market environment surrounding our company. The global economy continued to stagnate and slow
down due to monetary tightening in the US and Europe and Russia's invasion of Ukraine. Overall, the risingcost of materials and transportation and supply chain disruptions, while improving, have yet to dispel
concerns.
Against this backdrop, the domestic forklift market has been firm. Overseas, although the level of sales hasremained higher than before the COVID-19 disaster, Europe and China are in a contractionary trend, and theAmericas and Asia are also experiencing a slight slowdown in the current situation.
In the Company, although the large rebound from the COVID-19 disaster in FY2021 has slowed down, orders
are still steady. In H2, we were able to increase production and shipments both domestically and overseas
compared to H1, and this has enabled us to achieve price optimization.
This is a summary of our consolidated financial results under these circumstances. Sales increased 32.2% YoY
due to increased production and sales in the Americas and Europe, strong performance by the US sales
subsidiary, Equipment Depot, EQD for short, as well as the contribution of the weaker yen.
Operating income before amortization of goodwill and other items increased by 92.1% YoY due to the increasein net sales, strong performance of the rental business, profit contributions from price optimization, and theeffect of the yen's depreciation.

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Please continue with the financial highlights on page four. I will again explain the main financial values.
Net sales were JPY615.4 billion, operating income before amortization of goodwill and other items was JPY25
billion, and operating income under the system accounting after amortization of goodwill and other items
was JPY14.7 billion, all record highs. Net sales for H1 were JPY279.6 billion and operating income before
amortization of goodwill and other items was JPY6.2 billion. This was a result of the production and shipments
proceeded in H2 and the benefits of price optimization, which led to improved profitability.
Ordinary income and net income also increased significantly in H2, to JPY11.6 billion and JPY6.9 billion,
respectively, up 259% and 864% from the previous fiscal year. Unfortunately, however, we were not able toreach the amount recorded in FY2018, and our goals for the current progressive fiscal year, FY2023, are toreach record highs in ordinary profit and net income.
The table below shows the balance sheet, which will be explained later on page nine.

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I will now explain in detail about sales and operating income in the next page onward.
Pages five and six explain the situation by segment and region. Please note that from this page onward,
operating income before amortization of goodwill, etc. will be referred to as operating income. After posting
goodwill assets, etc. associated with the acquisition of the former UniCarrier, we have designated operating
income before amortization of goodwill, etc. as an important KPI from the viewpoint of comparability withpast results and the results of other companies.
Page five shows net sales and operating income by segment.
As shown in the upper chart, net sales increased 32.2%, but the domestic business, shown in blue, increased
only 1.4%, or JPY2.4 billion.
On the other hand, the increase in revenue from overseas operations, shown in beige, was very large, at 50.7%,
or JPY147.6 billion.
This was the result of efforts to rectify production both in Japan and overseas, but production in Japan wasaffected by the lack of smoothness in H1. The increase in overseas sales was particularly notable in theAmericas. This was due not only to an increase in new vehicle sales, but also to the strong performance of
EQD's rental business in the US and its new solutions business, as well as the translation effect of the yen's
depreciation.
As a result, as shown in the pie chart on the right, Japan and the Americas each accounted for slightly lessthan 40% of total sales in FY2021, but in FY2022, the share of the Americas increased to nearly 50% and thatof Japan decreased to less than 30%.

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Operating income in the bottom line increased 92.1%. While the domestic business saw a decrease of JPY1
billion, or minus 16%, the overseas business saw an increase of JPY13 billion, or plus 195%, which is asignificant increase in profit in the overseas business as well as in sales.
In FY2021, we were much more affected by the rising material and transportation costs overseas than in Japan.
However, our early efforts to optimize sales prices in both the Americas and Europe contributed greatly to alarge increase in profits, especially in H2, as a result of our production and shipments in FY2022.
On the other hand, in Japan, material and transportation costs soared from around the end of FY2021 to theQ3 of FY2022, resulting in delays in sales price responses, which had a limited effect during the period underreview and forced a decline in profits.

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Page six shows YoY comparisons of sales by region and by division into H1, shown in blue, and H2, shown inbeige.
The sales of each overseas region achieved a significant increase, especially in the Americas, including theimpact of the depreciation of the yen against the US dollar.

7Please turn to page seven. Here is a waterfall chart showing in which regions the increase in sales occurred,
after removing foreign exchange effects.
A brief description is provided at the top of the chart. We believe that the situation in both Japan and overseas
is as we have described so far. Of the 32% increase in sales over the previous fiscal year, the Americas
contributed 14%. Foreign exchange contributed 13% of the total, and Europe and other regions contributed
5%.

8Please turn to page eight. This section shows YoY changes in operating income by factor.
First, the factors contributing to the decrease in profit are shown in order from the left side, and then theefforts on the right side and how they have been covered by the factors are shown.
From left to right, the cost side of the business was affected by the impact of rising material and transportation
costs, as well as increases in labor and expenses due to the expansion of the business scale and inflation.
From here, an increase in gross profit due to higher sales will add JPY16 billion, plus JPY28 billion by optimizing
sales prices. These two factors almost covered the disadvantage on the cost side, and with the addition of the
impact of yen's depreciation, etc., I think you can clearly see the picture of the JPY12 billion increase inoperating income from JPY13 billion to JPY25 billion.

9Please turn to page nine. I will explain the major changes in the balance sheet here.
In FY2021, inventories increased significantly, mainly at manufacturing sites worldwide, due to supply chain
disruptions amid rising sales. This also resulted in a significant decrease in free cash flow. In FY2022,
inventories continued to increase by JPY11.6 billion from the end of the previous fiscal year. Excluding theincrease due to foreign currency translation, the increase was JPY5.3 billion, which was small compared to theincrease in net sales. In real terms, taking into account the increase in production and sales volume, we cansay that our efforts to rectify production have been successful, and we have been able to reduce the amountof production.
The increase in total assets at the end of FY2022 is mainly due to the impact of the adoption of the new leaseaccounting standards in the US and foreign currency translation effects. The amount of the former impact is
JPY39.2 billion and that of the latter is JPY22.7 billion. The adoption of the new US lease accounting standard
has resulted in off-balance conversion of those that were previously converted to off-balance through saleand leasebacks.
In addition to the impact on the balance sheet, this has a significant impact on cash flow, which will be
discussed again in more detail on the next page.
Net assets increased by JPY12.2 billion due to the acquisition of net income and an increase in foreign currencytranslation adjustments resulting from the effect of yen's depreciation. However, because of the large
increase in total assets due to the effects just described, the equity ratio increased only slightly from 15.6% at
the end of the previous period to 15.9% at the end of the current period.

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If the new lease accounting standards were not applied in FY2022 as in FY2021, the equity ratio would be
17.3%. I understand that we have made substantial progress in improving our financial position, which has
been a challenge.

11Page 10 shows the status of cash flows.
Net cash provided by operating activities was JPY28.7 billion, an increase of JPY8.1 billion from the previous
fiscal year.
Cash flows from investing activities increased investment in forklift trucks for rental use, as demand for rental
equipment grew significantly, especially in the US, under the economic recovery and increased economic andsocial activity. In addition, the Company invested in the acquisition of a North American distributor. In addition
to those, the impact of the new lease accounting standards resulted in a JPY40.2 billion outflow, a JPY21 billion
increase from the previous fiscal year.
As a result, free cash flow turned from an inflow of JPY1.4 billion in the previous fiscal year to an outflow of
JPY11.5 billion.

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Continuing on page 11, we will reiterate the lease accounting standard impacts included here.
As described at the top of this page, we have changed and reviewed the accounting treatment of sale andleaseback transactions upon the adoption of the new lease accounting standards in the US.
As explained in the second item in the upper description, the sale portion of a sale and leaseback transaction
is no longer considered as a sale of an asset. As a result, proceeds from the sale of assets, which werepreviously reported as operating cash flow proceeds or as investing cash flow proceeds, are now reported asproceeds from financing activities.
The table below summarizes the impact of this change. The leftmost column in the table shows the cash flows
for FY2021, and the right-hand column shows the cash flows before reclassification that would have occurred
without the accounting change in FY2022. The reclassified amount to the right is the effect of this accountingchange.
As shown in the reclassification amount column, JPY17.3 billion from operating cash flow was transferred tofinancing cash flow and JPY7.8 billion from investing cash flow was transferred to financing cash flow.
As shown in the second line from the bottom of the before and after columns, free cash flow in FY2022 wasan outflow of JPY11.5 billion, compared to an inflow of JPY13.5 billion before the reclassification.
The accounting changes and revisions were finalized at the end of the fiscal year. This led to the correction of
disclosed financial values for Q1 through Q3 of FY2022. We would like to take this opportunity to apologize
for any inconvenience caused.

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Page 12 shows ROA, ROE, and other financial indicators.
Profitability and efficiency indicators may still be low, but they are showing improvement. We recognize that
financial security remains an issue and will continue to work to improve it.

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In the reference material, the first page is page 13 for CapEx/R&D expenses.

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On page 14, we show quarterly sales and operating income by three-month period.
If you take a look at the operating income section here, you will see that for the three months of the Q4 of
FY2021 and then for the three months of Q1 of FY2022, the effects of sales price optimization had not yet
contributed to the extremely high material and transportation costs, and for two periods, the profit level had
fallen due to the gap between these costs and the sales price.
From there, in Q2, Q3, and Q4 of FY2022, I think we can clearly see how the Company has been reaping thebenefits of sales price optimization by promoting production and shipments, especially in its overseas
operations.

16Page 15 shows a table of sales by category, again broken down into domestic and overseas, for each of thethree months.

17Then the last page, page 16, shows the stock price.
This concludes my explanation on overview of the financial results.
Moderator: We will now move on to the explanation of the management policy for FY2023. Mr. Mano, please.
Mano: I am Mano, and I am the Representative Director and President.
As mentioned earlier by Uno, sales for FY2022 reached a record high due to an increase in overseas sales
volume and the impact of yen's depreciation on foreign exchange rates. Operating income also grewsignificantly YoY as the effects of increased sales and price optimization efforts were realized, offsetting theimpact of higher material and transportation costs.
The outlook for the global economy remains unpredictable due to inflation and smoldering geopolitical risks
around the world. The Company will continue its efforts to secure parts while working to further promote
shipments through production rectification.
FY2023 is the final year of our medium-term management plan, which we call LS23. Today, I would like toexplain the financial outlook for the final year of LS23 and the progress of the medium-term management
plan.

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First, page 18 shows the actual number of forklift trucks shipped worldwide.
Due to a change in the statistical disclosure policy of the member associations, shipments are delayed six
months to Q3 of 2022, and the data is compiled for the calendar year from January to December.
The bar graph shows shipments for the past five years in each region, and the pie chart in the center shows
shipments from January to September 2022 as a percentage of total shipments by region.
For Japan and the Americas, statistical data are disclosed by region, so the data for January to March 2022
and 2023 for JIVA in Japan and ITA in the Americas, respectively, are shown as light-colored bar graphs.
The JIVA and ITA are based on a different standard of calculation than WITS, so we introduce them only foryour reference. However, you can see that the market shipment volume from January to March was almost
the same level in Japan as the previous fiscal year, while the volume in the Americas was higher than theprevious fiscal year, despite the growing uncertainty in the global economy.

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On page 19, we show the orders received in the global forklift market, arranged by quarter, excluding thecategory of self-propelled electric small lifts, known as Class III. The number of these orders is also tallied ona calendar year basis.
In Q4 of 2022, orders received in all regions except Japan were down compared to the previous fiscal year.
Although demand is stronger worldwide than in 2019 before the COVID-19 disaster, orders have been
gradually declining due to increased concerns of a significant slowdown in the global economy caused bymonetary tightening in Western countries, China's zero COVID-19 policy, and increased geopolitical risks due
to Russia's invasion of Ukraine.

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Continuing on page 20, the bar graph shows the number of orders received by the Company over the past
three years, with the index making the actual performance in 2019 set as 1. The pie chart in the center shows
the number of orders received in FY2022 as a percentage of total orders by region.
Our order volume for FY2022 is above the level before the COVID-19 disaster in 2019 in the Americas andAsia-Pacific, as well as the global market order trends I just explained. Although total sales remained steady,they were down about 20% from the previous fiscal year due to growing concerns about the global economic
slowdown.

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Next, on page 21, we will explain the market outlook for each region for FY2023 and our situation.
For the market in FY2023, we expect the market to remain robust compared to around 2019 before the
COVID-19 disaster. However, compared to FY2022, Europe, the US, and Asia-Pacific will all show a downward
trend due to the reaction to the large market expansion in FY2022 and the slowdown in the economy. On theother hand, we expect that the number of such cases will increase in Japan and China, and that the pattern
will vary from region to region.
The Company expects that the shortage of semiconductors and other components will be resolved in FY2022,
which will lead to a rectification of production and an increase in shipments.
In the Americas, there is a backlog of orders in excess of one year, and we believe that the recent market
contraction will have a negligible impact on our business performance.
As for the effects of price optimization efforts, they have been fully realized in the Americas, Europe, and AsiaPacific from the latter half of FY2022, and we expect the same effects in FY2023. For Japan, we assume thatthe effects of the price increase implemented in H2 of FY2022 will be fully realized from FY2023.

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Starting on page 22, I will explain the progress of our medium-term management plan, LS23.
LS23 has three basic strategies: strengthening corporate resilience, promoting growth strategies, andenhancing brand power. For the final year of the plan, FY2023, our goals were net sales of JPY500 billion,
operating income before amortization of goodwill of JPY30 billion, operating margin of 6%, and equity ratioof at least 20%.
As you are aware, we have already exceeded our sales target of JPY500 billion in FY2022, and we plan toachieve sales of JPY630 billion in FY2023, an increase of about 2% from the previous fiscal year.
Operating income before amortization of goodwill and other items is also expected to exceed the LS23 targetof JPY35 billion, as we expect to secure sales by proceeding with production and shipments to eliminate thelarge backlog of orders in the Americas and other regions, as well as to benefit from price optimization efforts.
As for the capital adequacy ratio, we expect to achieve the LS23 target of 20% by improving working capitalthrough further shipments and using the free cash flow generated from these shipments to repay interestbearing debt.

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On page 23, we will explain our recently announced forecast for FY2023, which was released on May 10.
As I mentioned earlier, we expect the forklift market to deteriorate YoY due to the global economic slowdown.
However, we expect sales volume to increase by about 3,000 units YoY to 115,000 units as we move forwardwith production and shipments of the backlog of orders, mainly in the Americas, through production
streamlining.
With the increase in sales volume, net sales increased 2.4% YoY to JPY630 billion. Profits are expected to bemuch higher than in FY2022 in all categories, with operating income after amortization of goodwill, etc., at
JPY25 billion, ordinary income at JPY23 billion, and net income at JPY13 billion.
Operating income before amortization of goodwill and other items, which we have positioned as a key
indicator, is also projected at JPY35 billion, an increase of JPY10 billion over the previous fiscal year.
Regarding dividends, we will increase the dividend to JPY16 per share, which is about 2% of DOE, dividend on
equity, since we expect net assets to increase in line with the increase in profit.

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On page 24, we present a waterfall chart by item showing the factors behind the increase or decrease inoperating income before amortization of goodwill and other items in the forecast for FY2023, which we
explained earlier, versus the previous fiscal year's actual results.
In FY2023, we expect to see a downward swing in profits due to higher labor and expense costs and a stronger
yen as a result of normalization of business activities under global inflation and after-COVID-19. Operating
income before amortization of goodwill is expected to increase by JPY10 billion to JPY35 billion, as the soaring
costs of materials and transportation settle down, sales increase due to higher sales volume, and therealization of the effects of price optimization initiatives will offset the negative effects of higher labor costs
and other factors.

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On page 25, we present our initiatives for the final year of LS23.
In FY2023, as the completion and evolution phase, we will improve profitability through every possible move,provide safe and secure logistics solutions, and promote automation initiatives. For specific measures, please
see the bottom half of the slide.
The first is the efforts of the Americas and European businesses to strengthen profitability. The second is thelogistics solutions business initiatives in the Americas, Europe, and Japan, as well as cooperation with theparent company, Mitsubishi Heavy Industries. The third is about initiatives such as collaboration withstakeholders in many fields to improve brand strength. The following pages provide details on these three
initiatives.

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On page 26, we explain our efforts in the Americas business in strengthening profitability.
In the Americas business, the effects of the price optimization that we have been working on have been
contributing in earnest since H2 of FY2022 through the rectification of production and the promotion of
shipments. In addition to this, the impact of the yen's depreciation on foreign currency translation has also
greatly improved our performance, resulting in a significant increase in sales to JPY296.1 billion in FY2022. In
FY2023, we expect to eliminate the backlog of orders by further streamlining production, and sales are
expected to grow steadily.
While orders received by MLA, a manufacturing company, expanded significantly due to the strong US
economy, production could not keep up because of the shortage of semiconductors and other components,
resulting in prolonged lead times. We have an order backlog of more than a year's worth, and we will work toeliminate the backlog and streamline production.
EQD, the sales company, achieved record results in FY2022, thanks to a strong rental business. Norlift, which
we acquired last June and now call EQD Northwest, also exceeded the plan that we had envisioned at thetime of acquisition from the first year.
Although we expect growth to be moderate to some extent in FY2023, the rental business is expected tocontinue to expand in the Americas, and we will make additional investments in rental vehicles to achieve
further growth.

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Next, on page 27, I will explain our efforts in the logistics solutions business.
In order to develop our global logistics solutions business, we are collaborating with our overseas offices andaiming to expand our logistics solutions business through the use of ΣSynX and the cooperation of humanand machine resources.
In the Americas, MLA is working to expand its logistics solutions business by selling AGVs and other products
through its distributor network and establishing a new Rocla AGV Demonstration Center at its Marengo plantin Chicago.
EQD's efforts to strengthen EQ Solutions by expanding its organization and providing sales training resulted
in the largest contract amount ever recorded in FY2022.
In Europe, a leading market for decarbonization and automation, we are working to differentiate ourselves
through mixed fleet solutions as forklift trucks and AGVs coexist.
We would like to show you a video about the mixed fleet solution we are working on in Europe to help you
better understand the concept of human-machine coordination.
[Video Plays]
Mano: In Japan, we have also been working on joint development with Mitsubishi Heavy Industries and othercompanies, as well as on automation of logistics in warehouses using AGF with ΣSynX.

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From the next page, we will explain our cooperative activities with Mitsubishi Heavy Industries and othercompanies.
Please turn to page 28. The first cooperative activity is the automated forklift truck business in Japan. We haveentered into a business alliance and collaboration with Rapyuta Robotics, a venture company from ETH Zurichthat possesses cutting-edge technology in robot solutions and provides development, implementation, andoperation support.
The collaboration will involve the installation of Rapyuta Robotics' automatic control equipment on ourbattery-powered forklifts, enabling the forklifts to be automated. At the Kansai Logistics Expo held from April
12 to April 14, Rapyuta Robotics also gave a demonstration of its automated forklift trucks at its booth.
Going forward, Rapyuta Robotics and we will continue to collaborate to solve various issues in the logistics
industry and contribute to the realization of a better society.

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On page 29, I will explain the second cooperative activity, that of Mitsubishi Heavy Industries and the Kirin
Group.
Mitsubishi Heavy Industries, Kirin Beverage Company, Limited, Kirin Group Logistics Co., Ltd. and we started
a joint demonstration project to introduce an automated picking solution in a beverage warehouse in
November 2022.
While the Kirin Group has been automating its factories, warehouse logistics is mainly handled manually bymanned forklifts and workers. Improving the working environment, such as addressing the shortage oflogistics operators and heavy-duty picking, has become a major issue.
In this verification experiment, AGF, AGV, and palletizers will be linked under Kirin Beverage's warehouse
operating conditions, and optimization control by ΣSynX will be verified, aiming to solve issues at thewarehouse logistics site with consideration for safety.

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On page 30, we will discuss brand enhancement.
As a member of society, we work with stakeholders in various fields to increase employee engagement andawareness of our company and thereby enhance our group's brand power through measures such as next
generation development, community collaboration, and social contribution.
As you can see in the photo at the bottom right of the slide, we have sponsored and supported, for example,
Ayaka Furue, a professional women's golf player, Kyoto Sanga F.C. of the J-League, the Mitsubishi Heavy
Industries Sagamihara Dynaboars rugby team, and also for cultural activities, the Kyoto Philharmonic Chamber
Ensemble.
This year, we will also focus on further improving our brand power by developing new measures such as Lake
Biwa cleanup activities, support for sports projects in the Kyoto and Shiga areas, and support for engineering
education for young people.
This concludes our presentation of the financial results for the fiscal year ended March 2023 and the progressof the medium-term management plan. Thank you very much for your attention.
Moderator: Thank you. With that, we will conclude the presentation of the materials.

31Question & Answer

Moderator: We will now move on to the question-and-answer session.
[Questioner1]
Q1: Thank you very much as always. Hello. I would like to ask three questions.
One is that there is probably a significant backlog of orders for this fiscal year's sales. I think the plan that isbeing put forth now can probably work. However, excuse me for mentioning the future a little too ahead, butwhen we look at the next fiscal year, based on the situation with the orders received and the current inquiries,
is it correct to assume that the scale of business will be lower next year than this fiscal year?
Or will you be able to maintain a reasonable scale of operations in the next fiscal year because you will still
have a high level of order backlog? It may be a little difficult to foresee that much ahead, but if you have any
picture, please share that. This is my first question.
Mano: This is Mano. Hello.
In terms of the projected scale of business for the coming year, the current orders are certainly quite varied
from region to region. Orders are still relatively strong in the US, but in Europe, orders have dropped
considerably due to the problems in Russia and Ukraine. However, we believe that the US portion is quite
large and will go up to a certain extent.
Also in the US, in addition to sales of new cars, the sales of EQD, a direct sales company, have been growing
quite rapidly in recent years. Demand for rentals and other services is still strong, according to various industry
statistics, and will probably be covered to some extent there. We are not at a stage where we can give you a
specific figure right now, but we do not see it falling significantly.
Q1: I see. Thank you. Secondly, I would like to ask for a supplement explanation on the status of the value
chain business, including leasing, rental, and after-sales services, which you have just mentioned.
Perhaps the number of units of the main unit has increased and the unit price has increased, so in percentage
terms it may not have increased that much, but in monetary terms, how much has it increased? Can you tell
us about the status of the value chain business other than the main body, including quantitative data?
Uno: This is Uno. Thank you as always.
As for the quantitative part, please see page 15 of the material we have prepared today. There aresales/domestic, sales/overseas by three months, products and after-sales service, and lease rentals and other.
The other means almost exclusively used car sales. We are showing you how we are doing in these four
categories with figures through Q4 of this current FY2022.
We sell new cars, which leads to after-sales service, and we also receive sales from customers not throughnew cars but through leasing and rental services. We believe that we are slowly and steadily growing both
domestically and internationally in the area of lease rentals and after-sales service.
However, with regard to overseas lease rentals, we honestly believe that the figures for Q2 and Q3 were alittle too good. We believe that it will be difficult to maintain the same level of performance as in Q2 and Q3.
Does that answer your questions? That's all from me.

32

Q1: Thank you. Excuse me, but I missed it. Thank you for pointing out. Lastly, I am afraid that it may be too
early to say, but this year is the final year of the mid-term plan, and I think that the next mid-term plan willprobably be formulated over this fiscal year.
What direction are you thinking of taking at the moment? In particular, where are the challenges you arefacing now? I assume that you will consider what to do about China in this mid-term plan, so please tell us
what issues you will resolve in the next mid-term plan, including strategies for emerging countries. This is myfirst question.
Mano: This is Mano. This year, we will deepen the discussion on the medium-term plan. As I have said since
taking office, for example in the Integrated Report, I believe that we must provide solutions to future social
issues.
There are three axes. The first is safety and security, the second is automation, and the third is decarbonization.
I have mentioned these three points on a regular basis, and I am now thinking about how we can build further
growth around them.
We need to make investments in each region with clear intentions, considering which regions we need to
expand or restrain. We will do that, and we are thinking of formulating our growth strategy with the threeaxes as big themes.
Q1: I think China was one of the remaining issues, but have you already decided on a strategy for that area?
Mano: For China, the reorganization of factories and other measures were taken during the current mid-termplan period. The current environment is very difficult for us to compete in China. Positioning ourselves in thissituation of competition is very difficult, and I believe that China is described in the current medium-term plan
as a market to be evaluated, and I wonder how we will complete that evaluation.
Q1: I understand. That's all from me. Thank you very much.
Mano: Thank you very much.
[Questioner2]
Q2: Could you tell us about price and demand trends in major regions, including overseas and Japan?
First of all, prices in Europe have been rising for the last year, FY2022, and demand has been declining. I think
the US has been going through price increases since about late last year. However, it is still at a point where
demand is still strong, and we are not sure what the price trend will be this year.
For example, in the US, is the price increase still going to be further than at the end of last year's fiscal year as
the backlog of orders decreases, or is it going to remain flat? With demand falling so low in Europe, isn't there
a concern that prices will come down a bit from last year's price increase?
On a similar question, I know that price increases have been slow in Japan as well, but could you tell us what
the trend in prices will be compared to last year? That is my first question.
Mano: This is Mano.
As for the price trend, as you mentioned, the backlog of orders in Europe has been decreasing considerably,
which means that the stock of the price increase is gradually decreasing.

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On the other hand, demand itself is also becoming very severe, so we feel that it will probably decline to someextent. I have been telling not to drop too much, but it is not easy to do so, I think it is depreciatory in Europe.
In the US, the prices have been raised for about two years now, and the remainder of this year's order is stillin the current fiscal year. We believe that prices are still high on a shipment basis because some of the full
effects of the price increase were not reaped last year.
In Japan, the timing of the price change was a little delayed compared to Europe and the US. In this sense, we
believe that the effect will be felt most in the current fiscal year. We think that this will be the case in termsof a shipping-based crisis.
Q2: Excuse me. As for US prices, do you think they will ever go up? In other words, the portion of the orderbacklog still in place now is pretty much the price that was finalized over a year ago.
Mano: In terms of actual income, we are thinking that it will be a little more this year for the US.
Q2: Ok, I see. And second, the demand in the US.
Perhaps it could be that forklifts are not necessarily linked to e-commerce giants, but Amazon and others are
cutting CapEx significantly right now, and I think investment in autos has dropped significantly YoY.
When I look at your company's forklift orders, they are falling, but I think the pace of the fall is smaller thanother warehouses and construction, or the way Amazon's CapEx is cut. In short, do you see the weight of the
e-commerce giants as small, or do you see the CapEx cut of the e-commerce giants affecting the product alittle further down the road, since the lead time is still short due to the nature of the product?
Uno: E-commerce is a very important area for us, but forklifts do not have a large role to play in warehouses
where such small packages are actually moved vertically and horizontally at high speed. We are well aware of
the situation of CapEx being cut and restrained at major e-commerce companies, and we also understand thatthe automated warehouse is not a part that affects forklifts that much, although we understand that there
has been a significant decrease in orders.
Q2: Thank you. Lastly, the third question.
I believe that the shortage of truck drivers is now more pronounced in Japan and the United States. Can you
tell us how you see this having a negative or positive impact on the demand for forklifts?
In Japan, truck drivers are also responsible for loading and unloading, so there is a risk that a drop in truck
driver utilization could lead to a decrease in demand for forklift trucks. I'm wondering if there are both pluses
and minuses, so if you have any thoughts or ideas about what might actually happen, I'd like to know. That's
all from me.
Mano: There are problems for truck drivers, such as the 2024 problem. The results of the study showed thattruck drivers are not only burdened by truck driving, but also by loading and unloading at the work site. We
are currently studying how to automate this area using various technologies.
In that sense, I think it is possible that this part of the work will be partially automated, or perhaps replacedby something like an automated forklift. However, we are currently conducting various studies to see how far
we can go in terms of technical perfection, so I think it will depend on the progress of these studies.
Q2: I see. Is it possible for example that the demand for Class III forklifts will increase? Or, is the demand forforklifts is not so directly related to the shortage of truck drivers?

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Mano: In that sense, I think the demand for Class III has already gone as far as it can go in Europe and theUnited States. Therefore, I do not think that the number of Class III units themselves will explode in Europe
and the US in the future. I think it is difficult to say how Class III will be used in Japan, but we will have to takea hard look at it.
Q2: I understand. Thank you.
[Questioner3]
Q3: Hello. Thank you very much for your kind explanation. I have two questions.
One is about pages 18 to 20, which shows the market trend and the trend of your company's orders. Whendo you expect the overall market or the Americas market to turn positive? Or when do you expect to see
positive results in terms of orders for your company in a given quarter? This is my first question.
Mano: This is Mano.
I think page 19 shows this. Since they are lined up quarterly starting in 2021, it appears that orders are
decreasing. As I mentioned in my explanation, we believe that the years 2021 and 2022 were two years inwhich demand grew more rapidly than we had expected, or rather irregularly, worldwide in the post-COVID19 period. Therefore, we expect the US market to fall by about 20% this fiscal year from the previous fiscal
year.
However, even with a 20% drop, this is still a considerably higher level than that before COVID-19. So, we arelooking at a level where it will drop a bit more slightly and settle down to the level of 2019, etc.
So, we are looking at a slight drop now and then a gradual decline, and even then, it will settle around the2019 level and flatten out; or repeat itself in the rest of the economic cycle.
Q3: Thank you. I see. Secondly, on page 22, you have shown the progress of the medium-term management
plan, which is very clear, thank you very much.
This question is in light of the next plan. I do think that operating income before goodwill and other items areeasy to understand and good for both administration and explanation. However, when considering corporate
value and stock price, it would be appreciated if there were targets or references to capital efficiency
indicators such as net income, EPS, ROE, ROIC, etc., which are the final profit/loss. What are your current goals,
including your plans, if any? That is all from me.
Uno: This is Uno.
As you understand, in our current medium-term management plan, which we call LS23, we have set targets
up to operating income as well as capital adequacy ratio. As you pointed out, many investors have requested
that we set targets for ROA, ROE, and net income, including tax expenses, in the next medium-term
management plan, with an awareness of capital costs and other factors. In the next mid-term plan, we would
like to present something that will help you better understand our company.
At this point, I am afraid if we will not be able to present those figures for FY2023, but we would definitely
like to present them in the next mid-term plan. That's all from me.
Q3: Thank you very much. I understand very well. Thank you.
Moderator [M]: Thank you very much. The time has come, and this concludes the financial results briefing of
Mitsubishi Logisnext. Thank you all very much for taking time out of your busy schedules to join us today.

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