Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q2 2024 Earnings Presentation
32 slides from Nippon Express's earnings presentation, Aug 9, 2024
Slide 1: Financial Results Presentation for Q2, Fiscal Year Ending December 2024
Financial Results Presentation for Q2, Fiscal Year Ending December 2024 August 9, 2024 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents 1. Financial Results for Q2, FY2024 P.4～ 2. Forecast for FY2024 P.16～ 3. Business Plan 2028 Initiatives P.22～ 4. Return to Shareholders P.29～ Financial Results Presentation for Q2, 1 Fiscal Year Ending December 2024 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.
Slide 3: Financial Results for Q2, FY2024 Executive Summary
Financial Results for Q2, FY2024 Executive Summary Financial Results for Q2, FY2024 Results Vs. Q2, FY2023 ✓ While global logistics demand appears to be +¥118.0 billion recovering from a low, and we are seeing a ➚Revenues ¥1,249.8 billion +10.4 % long-awaited trend toward recovery in Q2. In addition
Slide 4: Financial Results Forecast for FY2024 Executive Summary
Financial Results Forecast for FY2024 Executive Summary Forecast for FY2024 Forecast Vs, FY2023 ✓Based on a comprehensive consideration +¥330.9 billion ➚Revenues ¥2,570.0 billion +14.8 % of the current situation and future outlook, ➘Consolidated Segment Income ¥(11.2) billion we revised revenues upw
Slide 5: 1. Financial Results for Q2, FY2024
1. Financial Results for Q2, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Financial Results Highlights for Q2, FY2024 P.5 B. Breakdown of Revenues and Operating Income P.7- C. Q2, FY2024 vs. Q1, FY2024 P.9- D. Air Forwarding Gross Profit P.11- E. Ocean
Slide 6: 1-A. Financial Results Highlights for Q2, FY2024
1-A. Financial Results Highlights for Q2, FY2024 (100 million yen, %) (rounded down to 100 million yen) Current-Year Prior-Year 1H Forecast Item Difference Difference Difference Results Results (Announced Difference YoY YoY (%) (%) (Jan-Jun 2024) (Jan-Jun 2023) May 13) Revenues 12,498 11,318 1,180 1
Slide 7: 1-A. Financial Results Highlights for Q2, FY2024 (by Segment)
1-A. Financial Results Highlights for Q2, FY2024 (100 million yen, %) (rounded down to 100 million yen) 1H Current-Year Prior-Year Segment Item Difference Difference Forecast Difference Results Results Difference YoY YoY (%) (Announced (%) (Jan-Jun 2024) (Jan-Jun 2023) May 13) Revenues 6,124 6,402 (
Slide 8: 1-B. Breakdown of Revenues and Operating Income
1-B. Breakdown of Revenues and Operating Income Revenues ✓ The consolidation of CP and the weakening of the yen contributed significantly to the increase in revenues; however, the logistics business continued to see a decline in revenues Impact of foreign Security exchange cargo- Decrease in partner
Slide 9: 1-B. Breakdown of Revenues and Operating Income
1-B. Breakdown of Revenues and Operating Income ✓ Profit decreased in domestic and overseas logistics businesses due to lower gross profit per unit in the international forwarding Operating business, etc. income ✓ We recorded an impairment loss of 6.5 billion yen in Q1 due to the transfer of the spe
Slide 10: 1-C. Q2, FY2024 vs. Q1, FY2024
1-C. Financial Results for Q2, FY2024 Q2, FY2024 vs. Q1, FY2024 (100 million yen, %) (rounded down to 100 million yen) Item FY2024 FY2024 Difference Difference Q2 Results Q1 Results (%) Revenues 6,322 6,176 146 2.4 Consolidated Segment Income 136 118 17 15.0 (Business Income) Business profit ratio 2
Slide 11: 1-C. Q2 vs. Q1 FY2024 (by Segment)
1-C. Financial Results for Q2, FY2024 Q2, FY2024 vs. Q1, FY2024 (by Segment) (100 million yen, %) (rounded down to 100 million yen) Segment Item FY2024 Q2 FY2024 Q1 Difference Difference Results Results (%) Revenues 3,069 3,054 14 0.5 Japan Segment income (Business Income) 92 63 29 45.9 Revenues 413
Slide 12: 1-D. Air Forwarding Gross Profit: Japan Segment
1-D. Air Forwarding Gross Profit: Japan Segment ✓ Gross profit per ton fell by 7.9 points due to increased spot purchases for space in connection with higher volumes amid rising air freight rates. Air Export Freight Volume and Gross Profit per Unit Air Forwarding Gross Profit Unit: 100 million yen 1
Slide 13: 1-D. Air Forwarding Gross Profit: Overseas Segment
1-D. Air Forwarding Gross Profit: Overseas Segment ✓ Overall gross profit per ton remained at essentially the same level as in Q1, improving by 0.3 points. Air Export Freight Volume and Gross Profit per Unit Air Forwarding Gross Profit Unit: 100 million yen 240 (Tons) 120.00 105.85 105.93 +0.3pt 220
Slide 14: 1-F. Ocean Forwarding Gross Profit: Japan/Overseas
1-F. Ocean Forwarding Gross Profit: Japan/Overseas ✓ Gross profit per TEU from Japan decreased by 8.5 points due to a time lag in price pass-through caused by a sharp rise in ocean freight rates in May. ✓ Amid upward trends in freight rates, gross profit per TEU from overseas rose 6.9 points. Volume
Slide 15: 1-F. Income and Expenses by Business
1-F. Income and Expenses by Business (100 million yen) (rounded down to 100 million yen) Quarterly Trend Analysis (Logistics Japan) Segment Q1 Q2 Q2 Cumulative Q2 vs q1 Logistics Revenues 447 444 891 -3 Air: Despite an increase in air export volume, gross profit per unit declined 7.9 points Japan Ai
Slide 16: 1-F. Income and Expenses by Business (Results by Organization)
1-F. Income and Expenses by Business (Results by Organization) (100 million yen) (rounded down to 100 million yen) Segment Q1 Q2 Q2 Cumulative Q2 vs q1 Segment Q1 Q2 Q2 Cumulative Q2 vs q1 Revenues 99 112 212 13 Revenues 148 184 333 36 Air Forwarding Air Forwarding Operating profit 2 3 6 1 Operating
Slide 17: 2. Forecast for FY2024
1. Financial Results for Q1, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Forecast for FY2024 P.17- B. Breakdown of Revenues and Operating Income P.19- C. (vs. Previous Forecast) Breakdown of Business Income P.21 Financial Results Presentation for Q2,
Slide 18: 2-A. Forecast for FY2024
2-A. Forecast for FY2024 (100 million yen, %) (rounded down to 100 million yen) Prior-Full- Full-Year Item 1H 2H Full-Year Difference Difference Forecast Difference Year Difference Results Forecasts Forecast YoY YoY (%) (Announced (%) Results May 13) Revenues 12,498 13,201 25,700 22,390 3,309 14.8 2
Slide 19: 2-A. Forecast for FY2024 (by Segment)
2-A. Forecast for FY2024 (by Segment) (100 million yen, %) (rounded down to 100 million yen) Previous Segment Item Full-Year Prior-Year Difference Difference Forecast Difference Difference Forecast Results YoY YoY (%) Announced (%) May 13 Revenues 12,330 12,565 (235) (1.9) 12,130 200 1.6 Japan Segme
Slide 20: 2-B. Forecast Breakdown of Revenues and Operating Income
2-B. Forecast for FY2024 Breakdown of Revenues and Operating Income Revenues Impact of foreign exchange cargo- Security Logistics partner Transportation Support Decrease in Heavy adjustment Haulage & amount Construction Overseas Logistics Business Japan +¥330.9 billion FY2023 FY2024 Forward-looking
Slide 21: 2-B. Forecast Breakdown of Revenues and Operating Income
2-B. Forecast for FY2024 Breakdown of Revenues and Operating Income ⇩84 Operating income Costs related to acquisition of CP Business Income: (¥11.2) billion 2023：¥3.0 billion 2024：¥0.8 billion Business Income Pharmaceuticals/ FY2023 Results 812 medical business additional FY2024 Forecast 700 Impairm
Slide 22: 2-D. Forecast vs. Previous Forecast Breakdown of Business Income
2-D. Financial Results Forecast for FY2023 (vs. Previous Forecast) Breakdown of Business Income Business Income: ¥(15.0) billion Business Income Business Profit FY2024 Forecast 700 FY2024 Previous Forecast 850 Heavy cargo- Security Haulage & partner Transportation Construction Logistics Japan (*Incl
Slide 23: 3. Business Plan 2028 Initiatives
1. Financial Results for Q1, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Business Plan 2028 Basic Policy P.23 B. Global Business Growth: Priority Industries P.24 C. Global Business Growth: Major KPIs and Policies P.25 D. Rebuild Businesses in Japan P.
Slide 24: 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
Slide 25: 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-Jun Results Toward Targets Technology Core Domain: Electric & Electronics 1,477 3,295 44.8 % 4,000 Growth, Pursuit Domains: Industrial
Slide 26: 3-C. Global Business Growth Major KPIs and Policies
3-C. Global Business Growth Major KPIs and Policies (kilotons, Thousand TEU %) 2024 2023 Expand Forwarding Sales YoY% 2028 Targets Jan-Jun Results Jan-Jun Results Air Cargo Forwarding Volume 442kt 342kt 29.2% 1,300kt Ocean Forwarding Volume 440thusand TEU 350thusand TEU 25.7% 1,400thusand TEU *Forwa
Slide 27: 3-D. Rebuild Businesses in Japan
3-D. Rebuild Businesses in Japan [Improve Warehouse Operations Quality and Productivity] ・Logistics Boot Camp: Education program for core personnel Transform into a more to promote improved productivity in warehouse operations customer-oriented company Current FY Participants: 19 (sales growth) ・Log
Slide 28: 3-E. Management Plan 2028 KPIs and Progress
3-E. Management Plan 2028 KPIs and Progress ＊ Sustainability Strategy Enhancement of Human Capital to Foster Innovation KPI 2023 Results 2024 1H Results 2024 Targets 2028 Targets Post-career assignments 35 60 More than 120 More than 120 (No. of post-career) No. of participants in global human 883 57
Slide 29: 3-F. Main Initiatives Toward Achieving Business Plan Goals
3-F. 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 ・Establish a strong presence in the Indian market ■ Rebuild our businesses in Japan ・Introduce an in-house compa
Slide 30: 4. Return to Shareholders
1. Financial Results for Q1, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders Capital Policies and Key Indicators P.30 Financial Results Presentation for Q2, 29 Fiscal Year Ending December 2024 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserve
Slide 31: 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) 億円 Total dividend Treasury Share acquisition Dividend payout ratio Total Return Ratio 600 200.0
Slide 32: Company’s shares. based on the Company’s assumptions, judgments and beliefs in light of the
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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