Financial Results for the
1st quarter of FY2019(FY2019:From April 1, 2019 to March 31, 2020)

Sep. 3, 2019

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

1. FY2019 1Q Summary
Economic Market Trends
 The global economy has begun to show sluggish growth, mainly in the manufacturingindustry, due to the stagnation of export-type industries from prolonged US-China trade
friction.
 Although there is support from domestic demand in each country, there is a growing sense of
uncertainty including the political situation in Europe and geopolitical factors in Asia and theMiddle East. Thus, companies notably have shown movement toward minimizing capital
investment.
 Although Japan's domestic economy is basically steady, it cannot be said that it is showing
strong growth, and with the slow down of the special demand for the Tokyo Olympics, thedomestic economy is shifting to a wait-and-see phase.
 Logistics equipment demand is not optimistic, since it is also starting to show sluggishness
due to caution of carefully assessing future economic trends.

Summary of FY2019 1Q Results
 Net sales decreased 1.4% year-on-year, due to decrease mainly in China and Asia.
 Operating profit increased 54.0% year-on-year, by reflecting rising material costs and freightcosts into sales prices.
 Net income decreased by 38.4% year-on-year, due to the reversal of deferred tax assets as aresult of tax losses recognized in the current fiscal year for the transfer loss of a Chinese
subsidiary (Anhui Forklift) recorded in the previous fiscal year.
(This impact has been factored into the FY2019 financial forecast)© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

22. Financial Highlights
Unit: Hundred million JPY

Profit and Loss
Statement

FY2018 1Q

FY2019 1Q

YOY Change

1,0651,050

▲15

▲1.4%

37.2

45.4

(Operating profit margin)(3.5%)(4.3%)+8.2+22.0%

Amortization ofGoodwill

21.9

21.9

Operating Profit

15.2

23.5

(Operating profit margin)(1.4%)(2.2%)

Ordinary Profit

19.1

23.8

(Ordinary profit margin)(1.8%)(2.3%)

Profit Attributable toOwners of Parent

9.7

6.0

(0.9%)(0.6%)Net Sales
Operating Profit(Before amortization of goodwill)(Net income margin)

Balance SheetFY2018 1Q

FY2019 1Q――+8.3+54.0%+4.7+24.7%▲3.7▲38.4%

YOY ChangeTotal Assets

3,6773,576▲101▲2.7%

Total Liabilities

2,9922,933▲59▲2.0%685643▲42▲6.1%

Net Assets

FY2018 1Q actual FX rates: USD = JPY109.07 EUR = JPY130.06 CNY = JPY17.13
FY2019 1Q actual FX rates: USD = JPY109.90 EUR = JPY123.49 CNY = JPY16.07© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

33. Business Results by Segment
Net sales decreased mainly in China and Asia.
Unit:Hundred million JPY

Domestic Business

Net Sales

1,200

Overseas Business

1,065641

China& Asia
8%

1,050

1,000800

FY2019 1Q Sales by Region

628

Europe (9%)
20%
(19%)

(40%)

600
400
200424423

FY20181Q

FY20191Q

Japan
40%Americas
32%
(32%)

0
FY2018 1Q indicated in parentheses

Operating Profit

Operating profit increased mainly by reflecting rising material costs and freight costs into sales prices.
Unit:
Hundred million JPY

50.0
40.0
30.0

Domestic Business

Overseas Business

45.4

37.2
19.9

32.5

20.0
10.0

FY2019 1Q Operating Profit by Segment

17.3

12.9Overseas
Business
71.6%(53.5%)

Domestic
Business
28.4%(46.5%)

0.0
FY20181Q* Operating Profit before amortization of goodwill© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

FY20191Q
FY2018 1Q indicated in parentheses

44. Sales by Region
JapanAmericas(Unit: Hundred million JPY)

500

(Unit: Hundred million JPY)

424.3

422.5

400

400

338.7

333.3

FY20181Q

FY20191Q

300

300
200
200
100

10000
FY20181Q

FY20191Q

EuropeChina and Asia

(Unit: Hundred million JPY)

(Unit: Hundred million JPY)

300

200201.8

209.5

200
100100.084.910000FY20181Q

FY20191Q© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

FY20181Q

FY20191Q
55. Net Sales FY2018 1Q vs FY2019 1Q
Net sales decreased mainly in China and Asia.
(Unit: Hundred million JPY)

FXimpact

EuropeChina & Asia

JapanAmericas

▲7.9
▲2.4
1,065.0

▲15.3
▲7.9

18.9
1,050.4

FY2018 1Q© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

FY2019 1Q

6

6. Operating Profit FY2018 1Q vs FY2019 1Q
Operating profit increased mainly by reflecting rising material costs
and freight costs into sales prices.
Material cost
Manufacturing increase(Includingcost
SalesUS tariffs)
reduction
FX
price
impacts
improveCost-saving
Gross profit
mentDecrease
due to salesdecrease/Mix

Amortizationof goodwill

▲9.3
37.2
▲21.9

5.1

▲5.4

1.5

1.1

16.7

Operating profit increasedby JPY0.82billion(Unit: Hundred million JPY)

Amortizationof goodwill

Others

▲1.5

45.4
▲21.9

(Before amortization of goodwill)

23.5

15.2

FY2018 1Q

FY2018 1Q(Before amortizationof goodwill)© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

FY2019 1Q(Before amortizationof goodwill)

FY2019 1Q

7

7. Consolidated Balance Sheet
Total assets and total liabilities decreased due to decrease in trade receivables and payablesfrom the decline in sales(Unit: Hundred million JPY)
3,677

3,576

Item
Current assets

Assets(Tangible fixed assets)

1,951

1,879
Assetsdecreased by
JPY10.1billion

Total fixed assets

1,696

FY2018FY20191Q

Liabilities/
Net Assets

3,677

685
FY2018(Inv estments andother assets)

Total assets

1,726

2,992

(Intangible fixed assets)

3,576
Liabilities
decreased by
JPY5.9billion

1,951846
680
200
1,726
3,677

FY20191Q
1,879862647
188
1,696
3,576

Change▲ 72+16▲ 33▲ 12▲ 30▲ 101

Current assets
Decreased due to decrease in notes and accounts receivable,
short-term loans receivable, etc.

Fixed assets
Reduction due to amortization of goodwill, etc.

Item
Current liabilities
Fixed liabilities
Total liabilities
Total net assets

2,933

FY2018

Total liabilities and net assets

FY2018
1,535
1,457
2,992
685
3,677

FY2019
1Q
1,436
1,497
2,933
643
3,576

Change▲ 99+40▲ 59▲ 42▲ 101

LiabilityNet assets
decreased by
JPY4.2billion

Decreased due to decrease in notes and accounts payable643
FY20191Q© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

Net assets
Decreased due to dividend payments, decrease in foreign
currency translation adjustment, etc.

8

8. Financial Forecast for FY2019
Due to the acquisition of Equipment Depot, Inc. (EQD), we have revised our FY2019
financial forecast by including EQD and it's subsidiaries’ nine months forecast andamortization of goodwill.
(Unit: Hundred million JPY)Item

FY2019 Original
Forecast

FY2019 1Q(Results)(May 2019)

FY2019 Revised
Forecast（Aug. 5, 2019）

Units Sold

28,000 units

119,000 units

119,000 units

Net Sales

1,050

4,600

4,900

(Before amortization of goodwill)

45.4

240.0

250.0

(Operating profit margin)(4.3%)(5.2%)(5.1%)

Amortization of Goodwill

21.9

90.0

110.0

Operating Profit

23.5

150.0

140.0

(Operating profit margin)(2.2%)(3.3%)(2.9%)

Ordinary Profit

23.8

150.0

130.0

(Ordinary profit margin)(2.3%)(3.3%)(2.7%)

6.0

90.0

70.0

(0.6%)(2.0%)(1.4%)

JPY13

JPY13

Operating Profit

Profit Attributable to Owners ofParent(Net income margin)

Dividend per Share© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

―FY2019 Plan FX rate: USD=JPY110, EUR=JPY125, CNY=JPY169

(Reference) Key Performance Indicators

Financial
Soundness

Asset Efficiency

Profitability

Performance

Indicator
Return-on-assets (ROA)

Return-on-equity (ROE)

Operating profit margin

Net income margin

Total asset turnover

Receivable turnover

Inventory turnover

Capital adequacy ratio

D/E ratio

FY2018FormulaNet income
Total assets
Net income
Shareholders' equityOperating profit
Sales
Net income
Sales
Sales
Total assets
Sales
Accounts receivable
Cost of sales
Inventories
Shareholders' equity
Total assets
Interest-bearing debt
Shareholders' equity

FY20191Q(Before amortizationof goodwill)(Before amortizationof goodwill)

1.9%（4.2％）

1.9%(4.7％)

11.2%（20.4％）

10.9%(23.1％)

2.9%（4.9％）

2.9%(5.1％)

1.6%（3.5％）

1.4%(3.5％)

1.2 times

1.4 times

5.8 times

6.1 times

5.6 times

5.1 times

Comments
Indicators after amortization of goodwill
slightly deteriorated due to an increasein goodwill amortization resulting fromthe EQD acquisition.

Equity ratio deteriorated due to payment of

17.9%

17.3%

2.5 times

2.8 times

dividends and decrease in foreign currencytranslation adjustment from yen appreciation*Performance (ROA / ROE) and Profitability (operating profit margin, etc.) indicators are calculated based on theFY2019 financial forecast.
© MITSUBISHI LOGISNEXT CO.,LTD. All rights reserved.

10

(Reference) Quarterly Financial Results
Domestic Business

Unit: Hundred million JPY

Overseas Business

1,400

Net Sales

1,200

1,089.9

1,147.41,181.3

1,065.0

640.6

649.0

667.6

690.8

424.3

440.9

479.7

490.4

422.5

1Q

2Q

3Q

4Q

1Q

1,050.4

1,000
800
600

627.9

4002000

FY2018Operating Profit

80.0

67.0

60.0
40.0
20.00.0* Operating Profit before
amortization of goodwill

33.6

19.9

38.8

34.4
16.3

1Q

2Q

3Q

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

3Q

4Q

Overseas Business

45.4
32.5

33.3
17.3

4Q

64.7

50.7
37.2

3Q

FY2019Domestic Business

Unit: Hundred million JPY

2Q

25.9
4Q

12.9
1Q

2Q

FY201911(Reference) Market Trend in Forklift Trucks
Due to sluggish demand in the US and China,
the global market in FY2019 1Q decreased 1.6% (YOY) to 386 thousand units.
EuropeJapan(incl. Middle East & Africa)(1,000 units)(1,000 units)

600
352

500
400

Americas380(1,000 units)

100.0% 100

420

64

62

80.0%

300

65

100.0% 350

69

80

80.0%

104

116

126

136

60.0%

60

60.0%

200

40.0%

40

40.0%

150

144

100
0

21

20.0%

20

0.0%

0

19

23

0.0%

Asia & Oceania

Asia &Oceania
7.1％

100.0%
86

120

80.0%

7761

668060.0%

6040.0%22222429272010020.0%

FY2015 FY2016 FY2017 FY2018 FY2019

140402122FY2015 FY2016 FY2017 FY2018 FY2019(1,000 units)

100200213

20080.0%

250

300
200

300

100.0%

227

China
30.9％

20.0%

60.0%

65

67

65

78

40.0%
72

20.0%

50
00.0%
FY2015 FY2016 FY2017 FY2018 FY2019

China(1,000 units)

Europe500(incl. Middle East& Africa)

400

Global Market 37.4％
In FY2019 1Q386
thousand units

300

294

80.0%

232

60.0%

176

200
100100.0%

326

70

6895

128

40.0%
120

20.0%

(Electric forklifts: 63.2%)

00.0%
FY2015 FY2016 FY2017 FY2018 FY2019© MITSUBISHI LOGISNEXT CO., LTD. ALL rights reserved.

Japan Americas
5.9％
18.7％

00.0%
FY2015 FY2016 FY2017 FY2018 FY2019

Markets units
Percent electric forklifts

12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 hisor 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.

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