Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — FY2019 Earnings Presentation
42 slides from Nippon Express's earnings presentation, Apr 28, 2020
Slide 1: Financial Results Presentation for the Fiscal Year Ended March 2020
Financial Results Presentation for the Fiscal Year Ended March 2020 April 28, 2020 Nippon Express Co., Ltd. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents I. Financial Results for FY2019 Ⅳ. Financial Results Forecast for FY2020 A. Financial Highlights for FY2019 P.2 Consolidated Results Forecast P.29 B. Results by Reportable Segment P.3 C. Trend for the Past Five Years P.4- Ⅴ. Return to Shareholders D. Financial Position and Cash Flows P.6 A.
Slide 3: Financial Highlights for FY2019
I. Financial Results for FY2019 A Financial Highlights for FY2019 1. Overview (Consolidated) (100 million yen) (rounded down to 100 million yen) Full-Year Item FY2019 FY2018 Difference Difference Forecast Progress Difference Results Results YoY YoY (%) (Announced (%) 01/31) Revenue 20,803 21,385 (58
Slide 4: Results by Reportable Segment
I. Financial Results for FY2019 B Results by Reportable Segment (100 million yen) (rounded down to 100 million yen) Full-Year Segment Item FY2019 FY2018 Difference Difference Forecast Difference Progress Results Results YoY YoY (%) (Announced (%) 01/31) Revenues 12,135 12,568 (432) (3.4) 12,196 (60)
Slide 5: Trend for the Past Five Years: Revenues and Operating Income
I. Financial Results for FY2019 Ｃ Trend for the Past Five Years 1. Revenues (100 million yen) 21,385 20,803 19,091 19,953 20,000 18,643 10,000 0 FY2015 FY2016 FY2017 FY2018 FY2019 2. Operating income (100 million yen) 795 800 702 547 574 592 400 0 FY2015 FY2016 FY2017 FY2018 FY2019 Copyright © 2020
Slide 6: Trend for the Past Five Years: Ordinary Income and Profit
I. Financial Results for FY2019 Ｃ Trend for the Past Five Years 3. Ordinary income and profit attributable to owners of parent Ordinary income (consolidated) Profit attributable to owners of parent (100 million yen) 900 858 800 743 700 623 638 600 574 493 500 400 356 364 300 200 174 100 65 0 FY2015
Slide 7: Financial Position and Cash Flows
I. Financial Results for FY2019 D Financial Position and Cash Flows １. Financial position (100 million yen) Item End of FY2019 End of FY2018 Difference Total Assets 15,180 15,366 (186) Equity 5,394 5,436 (41) Equity Ratio (%) 35.5 35.4 0.1 2. Cash flows (100 million yen) Item FY2019 FY2018 Differenc
Slide 8: Changes Due to External Environmental and Other Factors
I. Financial Results for FY2019 E Changes Due to External Environmental and Other Factors Impact on consolidated results Variable factors Reference (Full year) Operating Income: ¥0.46 billion Unit price per ℓ [Yearly average in FY2018/ Previous forecast] (cost decrease) Light oil: ¥100.22 [¥104.09
Slide 9: Changes Due to External Environmental and Other Factors
I. Financial Results for FY2019 E Changes Due to External Environmental and Other Factors Impact on consolidated results Variable factors Reference (Q4, cumulative) Operating income: [Reference] Impact in FY2018 Impact of disasters ・Transportation opportunity loss due to suspension of operations at
Slide 10: Changes Due to External Environmental and Other Factors
I. Financial Results for FY2019 E Changes Due to External Environmental and Other Factors Impact on consolidated results Variable factors Reference (Q4, cumulative) Correction of excessively recorded Revenues and Operating Income: Japan: ¥(0.78) billion (Q2) revenues in the past ¥(0.78) billion pe
Slide 11: Breakdown of Revenues
I. Financial Results for FY2019 F Breakdown of Revenues and Operating Income 1. Revenues (100 million yen) 21,600 ★Breakdown of revenue decrease by segment 21,500 Rebound effect of Japan: (425) impact of ★ Revenue decrease 21,400 from business Overseas total: (3) disasters activities Security
Slide 12: Breakdown of Operating Income
I. Financial Results for FY2019 F Breakdown of Revenues and Operating Income 2. Operating income Change in (100 million yen) retirement Impact of allowance foreign Decrease rules exchange in fuel ⇧10 ⇩5 Real estate costs business ★Japanese ⇧4 Environment 750 domestic ⇧5 Correction of Rebound investm
Slide 13: (Reference) Change in Total Personnel Expenses
(Reference) Change in Total Personnel Expenses (Non-Consolidated) Impact of Impact from *Presented on an expense basis Impact from actuarial change of differences (100 million yen) change of the retirement period in retirement allowance Overtime applicable to benefits rules reductions bonus ⇧17 ⇩10
Slide 14: Japan Segment
II. Segment Overview of FY2019 A Japan Segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Railway transportation recorded higher revenues due to strong automobile parts FY2019 Vs. FY2018 volume, despite lower volume in paper and pulp products
Slide 15: The Americas Segment
II. Segment Overview of FY2019 B The Americas Segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Vs. FY2018 Lower revenues due to decreased automobile-related volume caused by FY2019 U.S.-China trade frictions and decrease in certain pharmace
Slide 16: Europe Segment
II. Segment Overview of FY2019 C Europe Segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Lower revenues despite solid performance in automobile transportation FY2019 Vs. FY2018 Item and warehouse and distribution businesses, mainly due to r
Slide 17: East Asia Segment
II. Segment Overview of FY2019 D East Asia Segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Lower profit due to weakness in electric and electronics and automobiles FY2019 Vs. FY2018 Item air freight volume and sluggishness in marine export
Slide 18: South Asia & Oceania Segment
II. Segment Overview of FY2019 E South Asia & Oceania Segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Lower revenues, ultimately, due to the impact of spot operation rebound FY2019 Vs. FY2018 Item decrease and decreased volume for existing
Slide 19: Security Transportation Segment
II. Segment Overview of FY2019 F Security Transportation Segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Vs. FY2018 Lower revenues due the impact of a decrease in deliveries due to the FY2019 consolidate of financial institution branches,
Slide 20: Heavy Haulage & Construction Segment
II. Segment Overview of FY2019 G Heavy Haulage & Construction Segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Higher profits, despite lower year-on-year revenues in overseas business, FY2019 Vs. FY2018 Item mainly due strong wind power fre
Slide 21: Logistics Support Segment
II. Segment Overview of FY2019 H Logistics Support segment (100 million yen) 1. Q4 Results * Figures in brackets indicate operating income margin (%). Overview Profit level year on year, due to sales unit price declines in petroleum and FY2019 Vs. FY2018 Item LP gas businesses, as well as decreases
Slide 22: Working Towards our Centennial Anniversary (2037 Vision)
III. Nippon Express Group Business Plan 2023 A Working Towards our Centennial Anniversary (2037 Vision) Business A logistics company with a strong growth presence in the global market Customers A company that contributes achieve a sustainable and society society through logistics A company that achi
Slide 23: Challenges of the Business Plan
III. Nippon Express Group Business Plan 2023 ～ “Dynamic Growth” ～ B Challenges of the Business Plan • Defines a Three-Dimensional (Customer (Industry) , Business, and Area) approach as a growth strategy for our core business • Defines a realization of the high profitability to build the base of our
Slide 24: Review of Business Plan Year One (Business Growth Strategy)
III. Nippon Express Group Business Plan 2023 C Review of Business Plan Year One (Business Growth Strategy) Growth Strategy for Business Plan Implementation Year One Core Businesses Customer-Based Approach ~Account Sales Initiatives by Industry and Business Type~ ◆Pursue initiatives both in Japan and
Slide 25: Business Growth Strategy KPI Progress
III. Consolidated Financial Results for FY2019 C Review of Business Plan Year One (Business Growth Strategy) KPI Progress (rounded down to 100 million yen) FY2019 FY2019 Progress FY2023 Progress Japan Item (Revenues) Results Forecast (%) ＫＰＩ (%) Electric and Electronics Industry ¥103.8 billion ¥116.
Slide 26: Strategy to Enhance Domestic Businesses in Japan
III. Nippon Express Group Business Plan 2023 C Review of Business Plan Year One (Business Growth Strategy) Strategy to Enhance Domestic Businesses in Japan Item Figures in parentheses ( ) are FY2019 results Strengthen Integration of Land, Sea, and Air Structural Reform of the Moving & Relocation Bus
Slide 27: Efforts to Implement Our Long-Term Vision
III. Nippon Express Group Business Plan 2023 D Review of Business Plan Year One (Efforts to Implement Our Long-Term Vision) Business Business Plan Implementation Year One Strategies Dynamic Growth Strategy ~Improve Implementation Structure, Generate Capital for Acquisitions~ ◆Strengthened M&A team ◆
Slide 28: Employee System Reform Initiatives
III. Nippon Express Group Business Plan 2023 E Review of Business Plan Year One (Employee System Reform Initiatives) A. FY2018 Initiatives Item Fiscal Impact *Cost basis Employee System Reform ・Raise regular retirement age in stages (60 yrs → 61 yrs) ¥4.8 billion ・Major reform in general employee sy
Slide 29: Initiative Progress: Business Plan 2023 KPIs
III. Nippon Express Group Business Plan 2023 KPIs F Initiative Progress FY2019 ＫＰＩ Social (S) Items Indicator Results FY2021 FY2023 168.7％ Double Rate of taking Work-style innovations (vs. FY2016 ― FY2016 annual paid leave acquisition rate) (200%) Copyright © 2020 NIPPON EXPRESS, All rights reserved
Slide 30: Financial Results Forecast for FY2020
IV. Financial Results Forecast for FY2020 We have not yet established financial results forecasts due to the difficulty at present in conducting rational calculations stemming from the impact of COVID-19. We will announce our financial results forecasts promptly when we are able provide these disclo
Slide 31: Return to Shareholders
Ⅴ. Return to Shareholders A Capital Policy • ROE: 10％ • Dividend ratio: Over 30% • Total return ratio: Over 50% (cumulative total 2019-2023) • Equity ratio: Target 35% B Key Indicators (100 million yen) Dividend Acquiring treasury shares Dividend payout ratio Total return ratio 400 200.0% 177.5% 176
Slide 32: Supplemental Documents
Supplemental Documents The information presented in this document provides data trends for each category. However, the data used is pre-close data and may differ from figures presented in our financial reports. Please be aware that this document has been produced to provide a better understanding of
Slide 33: Export Air Freight Weight Originating From Japan
(Appendix 1) Export Air Freight Weight Originating From Japan Export Air Freight Weight Originating from Japan （Unit：t） Nippon Express Export Weight Nippon Express Share (Nippon Express Share) 100,000 86,953 30.0% 81,703 86,178 80,228 80,000 72,717 28.0% 65,723 64,062 63,449 60,000 54,590 53,249 26.
Slide 34: Japan Segment Operating Income by Business
(Appendix 2) Japan Segment Operating Income by Business (Cumulative, FY2019) (100 million yen) (rounded down to 100 million yen) Full-Year Results FY2018 Difference Non-consolidated Air freight forwarding 96 135 (38) Non-Consolidated Marine & Harbor Transportation 68 82 (13) Non-consolidated Account
Slide 35: Japan Segment Operating Income by Business (Cumulative, FY2019)
(Appendix 2) Japan Segment Operating Income by Business (Cumulative, FY2019) (100 million yen) 1H (23) Non-consolidated 1H 2H Other Impact from change of the period 2H (Tokyo, Nagoya, (15) +0 (14) applicable to bonus payment Osaka) 1H 38 (9) 9 1H Non- consolidated +5 Impact of actuarial differences
Slide 36: Changes to Export Cargo Performance Evaluations
Changes to Export Cargo Performance Evaluations Before After Change [Japan] Measured on actual Both Japan + Overseas Chargeable *Volume measured by weight on scale [Overseas] Measured on chargeable ・Change to numerical management via chargeable for all Nippon Express internal KPIs (Data for past thr
Slide 37: Export Cargo Trends (Former Evaluation Method)
(Appendix 3) Export Cargo Trends (Former Evaluation Method) （Unit：t） 2017 2018 2019 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Japan 57,845 65,723 64,062 72,717 260,347 81,703 86,178 80,228 86,953 335,062
Slide 38: Export Cargo Trends (New Evaluation Method)
(Appendix 3) Export Cargo Trends (new evaluation method) （Unit：t） 2017 2018 2019 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Japan 62,895 72,925 71,567 80,990 288,377 90,513 94,814 89,545 99,401 374,273 75
Slide 39: Export Freight (Marine & Harbor Transportation)
(Appendix 4) Export Freight (Marine & Harbor Transportation) （Unit：TEU） 2017 2018 2019 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Japan 45,418 48,762 51,593 56,426 202,199 51,887 58,722 62,703 75,280 248,
Slide 40: Non-Consolidated Expenses
(Appendix 5) Non-Consolidated Expenses (FY2020 (Full Year)) Decrease in vehicle (100 million yen) Decrease in chartering and *Increase and decrease in the graph is on an income basis. forwarding subcontracting costs Impact of costs Operating Operating +70 change in income YoY expenses +275 unit fuel
Slide 41: Initiatives to Generate Asset Liquidity
(Appendix 6) Initiatives to Generate Asset Liquidity First Effort by Nippon Express Mizonokuchi Distribution Center Transfer Price Asset Liquidity and other land, buildings owned ¥50.0 billion (plan) by Nippon Express Total floor Transferred Assets Location Site area Current status space Mizonokuchi
Slide 42: 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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