Nikkon Holdings Co., Ltd. · TSE:9072
Nikkon — H1 FY2020 Earnings Presentation
37 slides from Nikkon's earnings presentation, Nov 21, 2019
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2020
NIKKON Holdings Co., Ltd. Security :9072 Financial Results for the First Half of the Fiscal Year Ending March 31, 2020 November 21, 2019 President and Chief Executive Officer Masakatsu Kuroiwa 1
Slide 2: Table of Contents
Table of Contents 1 Financial Results P.3 2 Growth Strategy P.10 3 Shareholder Returns P.22 2
Slide 3: Financial Results
NIKKO Financial Results
Slide 4: Consolidated Financial Results for the Months under Review
Financial Results : Consolidated Financial Results for the 6 Months under Review ■ Trend of Japanese economy ■ Logistics industry The employment and income Transportation volume improved situation has improved and on the back of the front-loaded domestic demand has remained increase in demand pr
Slide 5: Consolidated Statements of Income
Financial Results : Consolidated Statements of Income 1st HLF of FY 2020 Results (Millions （百万円）of yen) 120,000 Net sales 95,367 101,416 100,000 （Million 1H of 1H of Forecast Comparison YoY 80,000 of Yen） FY2019 FY2020 Forecast Gained 60,000 40,000 +6.3% Net sales 95,367 101,416 +6.3% 103,000 98.5%
Slide 6: Net Sales and Operating Profit by Business Segment
Financial Results : Net Sales by Business Segment/ Operating profit by Business Segment Segment Net sales Operating profit Transportation Revenues increased due to an increase in cargo volume. Profit increased due to improved transportation efficiency and lower fuel prices. Revenues increased due to
Slide 7: Consolidated Sales by Industry / Sales by Area
Financial Results: Consolidated Sales by Industry/ Sales by Area Revenues increased mainly due to an increase in test Sales increased due to an increase in automobile-related Automobile Japan operations. business and housing business volume. Auto-Parts Sales increased due to an increase in the volum
Slide 8: Consolidated Financial Indicators
Financial Results: Consolidated Financial Indicators Total assets Main change Property, plant and equipment increased JPY2,793 million due to capital factors investment Cash and deposits and marketable securities decreased JPY6,747 million due to payments for capital expenditures during the fisc
Slide 9: Consolidated Cash Flows
Financial Results: Consolidated Cash Flows Apr.18’～Sep.18’ Free C/F +2,984 (Millions of yen) Cash balance −2,019 +10,491 −7,507 28,302 −5,205 26,283 +202 CF from CF from investing CF from Others Balance at operating financing End of second beginning of year activities activities Quarter Balance acti
Slide 10: Growth Strategy
NIKKO Growth strategy 10
Slide 11: Consolidated Capital Expenditures
Growth Strategy: Consolidated Capital Expenditures Capital Expenditures (Consolidated Basis) (Millions of yen) (Millions of yen) 40,000 48,921 33,087 30,000 25,914 23,216 18,984 20,000 16,001 15,213 10,000 7,794 0 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2019/9 11
Slide 12: Capital Expenditures April-September 2019
Growth Strategy: Consolidated Capital Expenditures Capital Expenditures from April - September 2019 (Consolidated Basis) Details of capital Amount Notes investments (Millions of yen) 156 units Trucks 1,304 (more trucks/substitutes) Buildings 3,744 Warehouses, etc. Land 1,164 Land for business Constr
Slide 13: Completed Warehousing in Japan
Growth Strategy: Consolidated Capital Expenditures 【Completed Warehousing in Japan】 Status of warehouse construction in Japan from April - September 2019 (Consolidated Basis) Date of Buildi Warehouse NO. Company name Location Application completion ngs area Nagahama, Shiga Wareh Storage of 1 NIPPON
Slide 14: Completion of Overseas Warehousing
Growth strategy: Consolidated capital Expenditures 【Completion of overseas warehousing】 Status of warehouse construction from April - September 2019 (Consolidated Basis) Date of Warehouse NO. Company name Location Buildings Application completion area Chonburi Storage of 1 Province April, 2019 Wareh
Slide 15: Land Acquisition
Growth Strategy: Consolidated Capital Expenditures 【Land Acquisition】 Acquisition of land from April - September 2019 (Consolidated Basis) Date of NO. Company name Location Property Site Area Application acquisition Iwanuma, Land for 1 July. 2019 Land 29,908㎡ Miyagi Pref. business Ebetsu, Land for 2
Slide 16: Construction of Warehouses Ongoing
Growth strategy: Capital Expenditures 【Construction of warehouses, etc. ongoing】 Ongoing Capital Expenditures (Consolidated Basis) as of September 30, 2019 Date of Warehouse NO. Company name Location completion Buildings and facility Application (planned) area Development NIKON HOLDINGS Haga, Develo
Slide 17: New Transportation Sales Dept. Nippon Konpo
Expansion of consolidated cargo handling Growth Strategy : (New Transportation Sales Dpt. Nippon Konpo) New transportation system Our Group's logistics infrastructure (logistics links between business sites and sites) to respond to customers' needs and concerns Expansion of consolidated cargo handli
Slide 18: Safe Warehousing Operations and Reducing Number of Workers
Growth strategy: Efforts to ensure safe warehousing operations and reduce the number of workers STEP3: Advanced (automated) Realizing a model distribution center Optimal distribution base ・ Reduction in the number of people ◆ Reducing Work Loads through RFID Utilization entering racks ⇒Fully utilize
Slide 19: Explore Existing Businesses (Recycling Logistics)
Growth Strategy: Explore existing businesses (Recycling logistics) Automobiles Agricultural machinery Leisure Industry Testing Healthcare Manufacturer Apparel Logistics R&D Wholesalers company Food Self-driving Facilities Packaging Logistics ReturnTransportation warehouse Packaging Transportation Re
Slide 20: Securing Human Resources and Improving Productivity
Growth Strategy: Securing Human Resources and Improving Productivity Recruitment of human resources and improvement of productivity are indispensable for business expansion. Recruitment of human resources Improve productivity by enhancing logistics using networks [Measures] [Measures] Building perso
Slide 21: Progress of the 11th Medium-Term Management Plan
Growth Strategy: Progress of the 11th Medium-Term Management Plan 11th Mid-term Management Plan Progress (Billion of yen) (Billion of yen) Net sales Operating profit 210.0 22.0 21.5 205.0 21.0 200.0 197.6 20.0 20.0 190.0 187.8 Up 3.7% 19.0 Up 7.3% 19.0 Up 5.3% Up 5.4% 180.0 Up 4.7% 18.0 Up 4.9% 170.
Slide 22: Shareholder Returns
NIKKO 6) Shareholder Returns 22
Slide 23: Trends in Dividends and Dividend Payout Ratio
Shareholder returns: Trends in dividends and dividend payout ratio The interim dividend for the fiscal year ending March 31, 2020 was higher than expected profit, so this is JPY38 per share, an increase of JPY3 from the forecast. The company forecasts an annual dividend of JPY76 per share for th
Slide 24: Acquisition of Treasury Stock
Shareholder returns: Acquisition of treasury stock Treasury Stock Acquisition through Share Repurchases in the Fiscal Year Ended March 31, 2020 Total Number Total Purchase NO. Period of acquisition of Shares Amount Taken (Yen) 1 May 13, 2019 200,000 486,200,000 2 From June 10, 2019 to August 1, 2019
Slide 25: For IR Inquiries
For IR inquiries NIKKON Holdings Co., Ltd. Stock Section, General Affairs Department 6-17 Akashi-cho, Chuo-ku, Tokyo TEL (03)3541-5330 (Representative) FAX (03)3546-3659 http://www.nikkon-hd.co.jp E-mail:kouhou@nikkon.co.jp ◆ Forward-looking statements in this presentation, including earnings foreca
Slide 26: Reference Materials
NIKKO Reference Materials 26
Slide 27: Corporate Profile
Company Overview：Corporate Profile Company Name NIKKON Holdings Co.,Ltd. E s t a b l i s h e d August 27, 1953 H e a d O f f i c e 6-17 Akashi-Cho, Chuo-ku, Tokyo, Japan Representative Masakatsu Kuroiwa President C a p i t a l s t o c k JPY11,316 million (As of September 30, 2019) Number of 12,772 (
Slide 28: Our History
Company Overview：Our History ■Sales trends and History Oct.2015 Company name changed to NIKKON Holdings Co., Ltd. Nov.2015 Established company in Malaysia （Billion of yen） 200 Jan.2014 Acquired shares of Ito Express Co., Ltd. Mar.2013 Acquired shares of Shinei Warehouse Co., Ltd. 180 Oct.2010 Establ
Slide 29: Domestic Operating Sites
Company Overview：Domestic operating Sites（As of Sep. 30,2019） 46 domestic affiliates Hokkaido area Tomakomai (NK) Number of domestic operating sites 275 Ebetsu 〃 【Legend】 Takasu Center 〃 Sapporo shinbun yuso Co.,Ltd. NIKKON Holdings Head office Hokkai Logistics service Co.,Ltd. Touhoku area NIPPON K
Slide 30: Overseas Offices
Company Overview：Overseas Offices（As of Sep. 30, 2019） Overseas locations 9 Countries 29 Companies ・NIKKON CHINA LOGISTICS CO.,LTD ・NK PARTS INDUSTRIES，INC. ・FUTIAN-NIKKON LOGISTICS ・NK AMERICA INC. (GUANGZHOU) CO.,LTD. ・Other 4 Companies ・Others 2 Companies ・NKP MEXICO.S.A.DE C.V. ・NK LOGISTICA MEX
Slide 31: Net Sales, Operating Profit, Operating Profit Ratio
Historical Financial Data: Net Sales・Operating Profit・Operating Profit Ratio (Million of yen) (％) 250,000 Net Sales Operating Profit Operating Profit Ratio 12.0 10.1 10.1 10.1 10.1 9.6 10.0 200,000 9.0 8.9 7.8 7.3 8.0 7.1 150,000 6.0 100,000 197,693 174,031 179,312 187,819 165,205 170,076 4.0 140,51
Slide 32: Historical Financial Data: ROE and ROA
Historical Financial Data：ROE・ROA (Million of yen) (％) 250,000 Net Sales ROE ROA 15.0 197,693 200,000 187,819 12.0 179,312 165,205 170,076 174,031 140,511 150,000 8.2 8.1 8.2 8.2 9.0 130,717 8.0 7.5 116,219 122,786 7.1 100,000 5.4 5.2 6.0 4.9 4.9 5.0 5.1 5.1 4.8 4.8 4.5 3.1 3.3 2.8 50,000 3.0 0 0.0
Slide 33: Shareholder's Equity and Equity-to-Total Asset Ratio
Historical Financial Data: Shareholder’s Equity, Shareholder’s Equity-to-Total Asset Ratio (Million of yen) (％) 200,000 Shareholder's Equity Shareholder's Equity-to-Total Asset Ratio 100.0 180,000 160,000 70.7 75.0 67.6 140,000 64.2 65.7 64.0 62.5 62.6 63.7 63.3 61.0 120,000 100,000 50.0 182,101 186
Slide 34: Balance Sheet
Balance Sheet （Million of yen） 2018/3 2019/3 2019/9 2018/3 2019/3 2019/9 Total current assets 72,606 69,401 61,640 Total current liabilities 52,813 51,458 42,300 Notes and accounts Cash and deposits 17,755 16,940 19,227 11,573 11,330 11,370 payable-trade Notes and accounts Electronically recorded 33
Slide 35: 11th Mid-Term Management Plan Overview
Mid-Term Management Plan ： 11th Mid-Term Management Plan: 【Overview】 ◆Overview for 11th Mid-Term Management Plan Name 『11th Mid-Term Management Plan （Challenge11）』 Term from 1st Apr., 2017 to 31st Mar., 2020 Tackle into a new stage as we solidify group’s all strength, Group’s Management become more
Slide 36: Management Strategy: Positioning
Mid-Term Management Plan ： 11th Mid-Term Management Plan 【Management Strategy：Positioning】 【Basic Strategies】 １．Always pursue “Expansibility” and “Business Worthiness” Tackle：11th Mid-Term MP ２．Make the best of our Group’s Networks and purse synergy effects Challenge11 within the Group ３．Gain insigh
Slide 37: Management Strategies: Concentrate Management Resources
Mid-Term Management Plan ： 11th Mid-Term Management Plan 【Management Strategies: Concentrate Management Resources】 Challenge11 Expand into Logistics-Related Regions to Expand Peripheral Business Total Logistics Transportation Testing Heavy machine plant Contract work・Temporary staffing Packaging mat