Nippon Express Holdings, Inc. · TSE:9147

Nippon Express — Q3 2024 Earnings Presentation

30 slides from Nippon Express's earnings presentation, Nov 12, 2024

  1. Slide 1: Financial Results Presentation for Q3, Fiscal Year Ending December 2024

    Financial Results Presentation for Q3, Fiscal Year Ending December 2024 November 12, 2024 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division

  2. Slide 2: Contents

    Contents 1. Financial Results for Q3, FY2024 P.4～ 2. Forecast for FY2024 P.13～ 3. Business Plan 2028 Initiatives P.20～ 4. Return to Shareholders P.27～ Financial Results Presentation for Q3, 1 Fiscal Year Ending December 2024 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.

  3. Slide 3: Financial Results for Q3, FY2024 Executive Summary

    Financial Results for Q3, FY2024 Executive Summary Financial Results for Q3, FY2024 Results Vs. Q3, FY2023 ✓Global logistics demand began +¥224.8 billion recovering in Q2 of this fiscal year; the ➚Revenues ¥1,900.2 billion +13.4 % addition of cargo partner (CP) this fiscal ➘Consolidated Segment year

  4. Slide 4: Financial Results Forecast for FY2024 Executive Summary

    Financial Results Forecast for FY2024 Executive Summary Forecast for FY2024 ✓After a comprehensive look at the current Forecast Vs, FY2023 situation and future outlook, we left our +¥330.9 billion ➚Revenues ¥2,570.0 billion +14.8 % consolidated fiscal 2024 full-year ➘Consolidated Segment Income ¥(11

  5. Slide 5: 1. Financial Results for Q3, FY2024

    1. Financial Results for Q3, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Financial Results Highlights for Q3, FY2024 P.5- B. Breakdown of Revenues and Operating Income P.7- C. Q3, FY2024 vs. Q2, FY2024 P.9- D. Income and Expenses by Business P.11- Fin

  6. Slide 6: 1-A. Financial Results Highlights for Q3, FY2024

    1-A. Financial Results Highlights for Q3, FY2024 (100 million yen, %) (rounded down to 100 million yen) Current-Year Prior-Year Item Results Results Difference Difference Current-Year Prior-Year Difference Difference (Jan-Sep (Jan-Sep YoY YoY (%) Q3 Results Q3 Results (%) 2024) 2023) Revenues 19,002

  7. Slide 7: 1-A. Financial Results Highlights for Q3, FY2024 (by Segment)

    1-A. Financial Results Highlights for Q3, FY2024 (100 million yen, %) (rounded down to 100 million yen) Current-Year Segment Item Prior-Year Results Results Difference Difference (%) (Jan-Sep 2023) (Jan-Sep 2024) Revenues 9,283 9,433 (150) (1.6) Japan Segment Income (Business Income) 277 328 (51) (1

  8. Slide 8: 1-B. Breakdown of Revenues and Operating Income: Revenue

    1-B. Breakdown of Revenues and Operating Income ✓ Revenues increased due to recovery in global logistics demand beginning in Q2 this fiscal year, the Revenue consolidation of CP, and the weak yen. Impact of foreign cargo- Security exchange partner Transportation 19,002 Heavy Logistics Increase in Ha

  9. Slide 9: 1-B. Breakdown of Revenues and Operating Income: Income

    1-B. Breakdown of Revenues and Operating Income ✓ Profit declined for the logistics business in Japan and overseas due to lower volume of pandemic-related supplies and an increase in personnel Operating expenses and other costs. Income ✓ We recorded an impairment loss of 6.5 billion yen in Q1 due to

  10. Slide 10: 1-C. Q3, FY2024 vs. Q2, FY2024

    1-C. Financial Results for Q3, FY2024 Q3, FY2024 vs. Q2, FY2024 (100 million yen, %) (rounded down to 100 million yen) Item FY2024 FY2024 Difference Difference (%) Q3 Results Q2 Results Revenues 6,503 6,322 180 2.8 Consolidated Segment Income 182 136 46 33.9 (Business Income) Business Profit Ratio 2

  11. Slide 11: 1-C. Q3, FY2024 vs. Q2, FY2024 (by Segment)

    1-C. Financial Results for Q3, FY2024 Q3, FY2024 vs. Q2, FY2024 (by Segment) (100 million yen, %) (rounded down to 100 million yen) FY2024 Q3 FY2024 Q2 Segment Item Difference Difference (%) Results Results Revenues 3,159 3,069 90 2.9 Japan Segment Income (Business Income) 121 92 29 31.5 Revenues 38

  12. Slide 12: 1-D. Income and Expenses by Business

    1-D. Income and Expenses by Business (100 million yen, %) (rounded down to 100 million yen) Segment Q1 Q2 Q3 Q3 Cumulative Q3 vs Q2 Quarterly Trend Analysis (Logistics Japan) Logistics Revenues 447 444 490 1,382 46 Air: Significant increase in export revenue and profit due to higher volume and impro

  13. Slide 13: 1-D. Income and Expenses by Business

    1-D. Income and Expenses by Business (100 million yen, %) (rounded down to 100 million yen) Segment Q1 Q2 Q3 Q3 Cumulative Q3 vs Q2 Segment Q1 Q2 Q3 Q3 Cumulative Q3 vs Q2 Revenues 99 112 103 315 -9 Revenues 148 184 183 516 -1 Air Forwarding Air Forwarding Operating income 2 3 4 10 0 Operating incom

  14. Slide 14: 2. Forecast for FY2024

    1. Financial Results for Q3, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Forecast for FY2024 P.14- B. Forecast for FY2024 (Q4 vs. Q3) P.16- C. Breakdown of Revenues and Operating Income P.18- Financial Results Presentation for Q3, 13 Fiscal Year Endin

  15. Slide 15: 2-A. Forecast for FY2024

    2-A. Forecast for FY2024 (100 million yen, %) (rounded down to 100 million yen) Full-Year Item Full-Year Prior-Full-Year Difference YoY Forecast Difference Difference YoY Difference Forecast Results (%) (Announced (%) August 9) Revenues 25,700 22,390 3,309 14.8 25,700 - - Segment Income (Business In

  16. Slide 16: 2-A. Forecast for FY2024 (by Segment)

    2-A. Forecast for FY2024 (by Segment) (100 million yen, %) (rounded down to 100 million yen) Full-Year Segment Item Full-Year Prior-Year Difference Difference Forecast Difference Difference Forecast Results YoY YoY (%) (Announced (%) August 9) Revenues 12,520 12,565 (45) (0.4) 12,330 190 1.5 Japan S

  17. Slide 17: 2-B. Forecast for FY2024 (Q4 vs. Q3)

    2-B. Forecast for FY2024 (Q4 vs. Q3) (100 million yen, %) (rounded down to 100 million yen) Item Q4 Forecast Q3 Results Difference Difference (%) Revenues 6,697 6,503 194 3.0 Segment Income 262 182 79 43.5 (Business Income) Business Profit Ratio 3.9 2.8 - - Operating Income 299 158 140 88.6 Profit A

  18. Slide 18: 2-B. Forecast by Segment (Q4 vs. Q3)

    2-B. Forecast for FY2024 by Segment (Q4 vs. Q3) (100 million yen, %) (rounded down to 100 million yen) Segment Item Q4 Forecast Q3 Results Difference Difference (%) Revenues 3,236 3,159 77 2.5 Japan Segment Income (Business Income) 157 121 36 29.8 Revenues 381 385 (3) (1.0) Americas Segment Income (

  19. Slide 19: 2-C. Breakdown of Revenues and Operating Income: Revenue

    2-C. Forecast for FY2024 Breakdown of Revenues and Operating Income Revenue Impact of foreign cargo- Security exchange partner Transportation Logistics Japan Heavy Increase in Haulage & adjustment Construction Overseas amount Business Logistics Japan +¥330.9 billion FY2023 FY2024 Forward-looking fig

  20. Slide 20: 2-C. Breakdown of Revenues and Operating Income: Operating Income

    2-C. Forecast for FY2024 Breakdown of Revenues and Operating Income Operating Income Business Income: ¥(11.2) billion Costs related to acquisition of CP Increase in cost of Business Profit dismantling former 2023：¥3.0 billion 2024：¥0.8 billion earthquake-resistant FY2023 Results 812 locations FY2024

  21. Slide 21: 3. Business Plan 2028 Initiatives

    1. Financial Results for Q3, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Business Plan 2028 Basic Policy P.21 B. Global Business Growth: Priority Industries P.22 C. Global Business Growth: Major KPIs and Policies P.23 D. Rebuild Businesses in Japan P.

  22. Slide 22: 3-A. Business Plan 2028 Basic Policy

    3-A. Business Plan 2028 Basic Policy Major Strategies and Policies in Business Plan 2028 ⚫ Improve global competitiveness and achieve business growth under groupwide optimization. ⚫ Increase competitiveness and profitability of businesses and enhance financial value through well-balanced strategic p

  23. Slide 23: 3-B. Global Business Growth Priority Industries

    3-B. Global Business Growth Priority Industries (100 million yen, %) (rounded down to 100 million yen) 2024 Progress Priority Industry 2024 Targets 2028 Targets Jan-Sep Results Toward Targets Technology Core Domain: Electric & Electronics 2,267 3,295 68.8% 4,000 Growth, Pursuit Domains: Industrial M

  24. Slide 24: 3-C. Global Business Growth Major KPIs and Policies

    3-C. Global Business Growth Major KPIs and Policies 2024 2023 Expand Forwarding Sales YoY% 2028 (Target) Jan-Sep Results Jan-Sep Results Air Cargo Forwarding Volume 680kt 513kt 32.6% 1,300kt Ocean Forwarding Volume 669 thousand TEU 536 thousand TEU 24.7% 1,400 thousand TEU *Forwarding volume (2023 J

  25. Slide 25: 3-D. Rebuild Businesses in Japan

    3-D. Rebuild Businesses in Japan KPI: Japan Logistics Segment [Establish an Account Management Structure] Improvement of business income ・Establish a specialized structure of 44 account offices ・Increase specialized structure by January 2025 (44 companies → 85 companies) margin (3.9% → 5.9%) Transfo

  26. Slide 26: 3-E. Main Initiatives Toward Achieving Business Plan Goals

    3-E. Main Initiatives Toward Achieving Business Plan Goals ■ Accelerate growth in the global market ・Expand end-to-end solutions, beginning with account management ・PMI with cargo-partner ・Acquisition of SH HoldCo GmbH (Simon Hegele) (to be executed in Q1, 2025) ・Establish a strong presence in the I

  27. Slide 27: 3-F. (Reference) Overview of SH HoldCo GmbH

    3-F. (Reference) Overview of SH HoldCo GmbH Financial Results Presentation for Q3, 26 Fiscal Year Ending December 2024 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.

  28. Slide 28: 4. Return to Shareholders

    1. Financial Results for Q3, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders Capital Policies and Key Indicators P.28 Financial Results Presentation for Q3, 27 Fiscal Year Ending December 2024 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserve

  29. Slide 29: 4. Capital Policies and Key Indicators

    4. Capital Policies and Key Indicators Business Plan 2028 • ROE: Over 10％ • Dividend payout ratio: Over 40% Target • Total return ratio: Over 55% • Equity ratio: Target 35% (cumulative total FY2024-FY2028) (100 million yen) Total dividend Treasury Share acquisition Dividend payout ratio Total Return

  30. Slide 30: Disclaimer

    No information contained in this document is intended to solicit purchase or sale of the Company’s shares. Views, forecasts, and other forward looking statements contained in this document are based on the Company’s assumptions, judgments and beliefs in light of the information currently available t

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