Nikkon Holdings Co., Ltd. · TSE:9072
Nikkon — 1H FY2021 Earnings Presentation
39 slides from Nikkon's earnings presentation, Dec 2, 2020
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2021
NIKKON Holdings Co., Ltd. Security：9072 Financial Results for the First Half of the Fiscal Year Ending March 31, 2021 Dec. 2, 2020 1
Slide 2: Table of Contents
Table of Contents 1 Financial Results P.3 2 Growth Strategy P.10 3 Mid-Term Management Plan P.17 4 Shareholder Returns P.28 2
Slide 3: Financial Results
NIKKO ee Financial Results
Slide 4: Financial Results: Summary of Financial Results
Financial Results: Summary of Financial Results ■ Trend of Japanese economy ■ Logistics industry Due to the impact of the global Cargo movements remained spread of COVID-19, Japan’s sluggish due to restrained economic activities were severely consumer spending and corporate restricted. capital s
Slide 5: Financial Results: Consolidated Statement of Earnings
Financial Results：Consolidated Statement of Earnings Consolidated Financial Results for the First Half of (Millions （百万円） of yen) Net sales the Fiscal Year ending March 31, 2021 120,000 101,416 1H 1H Forecast Comparison 100,000 85,631 (Millions of yen) YoY 80,000 2020/3 2021/3 Forecast Gained 60,000
Slide 6: Consolidated Net Sales and Operating Profit by Segment
Financial Results：Consolidated Net Sales and Operating Profit by Segment Segment Net sales Operating profit Sales decreased due to a decrease in cargo handling Although fuel prices have fallen, profits have Transportation volume due to the impact of COVID-19. decreased due to a decrease in sales. Sa
Slide 7: Consolidated Net Sales by Industry and Regions
Financial Results：Consolidated Net Sales by Industry and Regions Sales decreased due to a decrease in production Sales decreased due to a decrease in the Automobile Japan volume of business in automobile–rerated, and sales volume of automobile manufacturers. housing, and agricultural machinery. Sale
Slide 8: Financial Results: Consolidated Financial Indicators
Financial Results: Consolidated Financial Indicators Total assets Main change Cash and deposits and securities increased by JPY13.059 billion due to factors financing by issuing of bonds. property, plant, and equipment increased by JPY6.897 billion due to capital investment. Investment securit
Slide 9: Financial Results: Consolidated Cash Flows
Financial Results：Consolidated Cash Flows Apr.～Sep. 2019 Free C/F −554 （Millions of yen） Net Change −6,547 ＋12,191 −12,745 25,231 −6,087 ＋94 18,684 Cash flows from Beginning Cash flows from operating activities End of Second investing activities Cash flows from Other of year financing activities Qua
Slide 10: Growth Strategy
NIKKO 2) Growth strategy 10
Slide 11: Growth Strategy: Consolidated Capital Expenditures
Growth Strategy：Consolidated Capital Expenditures Capital Expenditures (Consolidated Basis) (Millions of yen) (Millions of yen) 40,000 33,087 30,000 25,914 23,216 18,984 20,000 16,548 15,213 12,094 10,000 0 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2020/9 11
Slide 12: Capital Expenditure Apr.-Sep. 2020 (Consolidated) Descriptions
Growth Strategy：Consolidated Capital Expenditure Capital Expenditure “Apr.～Sep. 2020” (Consolidated) Capital Expenditure Amount Details （Millions of yen） Descriptions 101 units Operating Fleets 860 (additional trucks or replacements) Buildings 3,235 Warehouses, etc. Lands 4,313 Land for business ・Co
Slide 13: Constructed two warehouses in Japan
Growth Strategy：Consolidated Capital Expenditures 【Completed Warehousing in Japan】 Status of warehouse construction in Japan from Apr. – Sep. 2020 (Consolidated Basis) Date of Facility NO. Company name Location Completion Property Area Application Storage of NIPPON KONPO Osaki, Miyagi 1 UNYU SOKO Co
Slide 14: Acquiring four lands in Japan
Growth Strategy：Consolidated Capital Expenditure 【Land Acquisition】 Acquisition of land from Apr. – Sep. 2020 (Consolidated Basis) Date of NO. Company name Location acquisition Property Site Area Application Takaoka, Toyama Land Land for 1 CHUETSU TEC Co., Ltd. Pref. Apr. 2020 acquisition 13,395㎡ bu
Slide 15: Capital Expenditures: Warehouses under Construction
Growth Strategy：Capital Expenditures 【Warehouse under Construction】 Ongoing Capital Expenditures (Consolidated Basis) as of Sep. 30, 2020 Date of Warehouse NO. Company Name Address completion Property area Applications (planned) Nagahama, Shiga Warehouse Storage of 1 Pref. Nov. 2020 Construction 14,
Slide 16: Consolidated Forecast for Year Ended Mar. 2021
Growth Strategy：Consolidated Forecast for “Year Ended Mar. 31, 2021” Transition of Consolidated Results Forecast （Millions of yen） 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 Net sales 122,786 130,717 140,511 165,205 170,076 174,031 179,312 187,819 197,693 199,512 19
Slide 17: Mid-Term Management Plan
３ Med-Term Management Plan 17
Slide 18: Results of the 11th Medium-Term Management Plan
Med-Term Management Plan：The 11th Medium-Term Management Plan （Apr. 2017～Mar. 2020）Results Results of the 11th Medium-Term Management Plan (Unit: billions of yen) (Unit: billions of yen) 210.0 Net sales 21.0 Operating profit 20.8 199.5 20.0 4.3% 200.0 197.6 20.0 Increase 0.9% Increase 19.0 5.4% 5.3%
Slide 19: The 11th Medium-Term Management Plan: Looking Back
Med-Term Management Plan：The 11th Medium-Term Management Plan （Apr. 2017～Mar. 2020）Looking Back Results of the 11th Medium-Term Management Plan (April 2017 to March 2020) [NIKKON Holdings: Priority Issues and Results of Measures] ・ Acquired 33.3% of the shares of NIHON RIKUSOU Co., Ltd.（Gunma Pref.）
Slide 20: The 12th Medium-Term Management Plan: Performance Goals
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）performance goals Tackle into a new stage as we solidify group’s all strength, become more competitive Group’s Management with infinite and unique knowledge and have such strength on our group’s Policy management doma
Slide 21: Toward the Realization of a Sustainable Society
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）Toward the realization of a sustainable society information sharing ■ Social ■ Strengthening traffic safety Strengthening occupational safety and health ■ Environment ■ Modal shift S ■ Quality ■ Joint transportation d
Slide 22: The 12th Medium-Term Management Plan: Basic Strategy
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）Basic strategy Basic strategy Details of measures １. Creation of domestic group synergies Restructuring (strengthening) the domestic network ① Strengthening of consolidated freight transportation business system ② Dev
Slide 23: Creation of Domestic Group Synergies (1)
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）Creation of domestic group synergies ① Expandability (sales force) + business potential (power of work sites) Restructuring (strengthening) the domestic network 【Strengthening sales force】 【Strengthening power of work
Slide 24: Creation of Domestic Group Synergies (2)
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）Creation of domestic group synergies ② ■Priority strengthening area＝Company（Global company） ＆ Population concentration Capital Area、Chukyo area、Kansai area ■Important base＝Trade base International airport Internationa
Slide 25: Creation of International Group Synergies
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）Creation of international group synergies Strengthening the inter-country forwarding business system China Japan USA India Mexico Vietnam Thailand Philippines Indonesia Malaysia Maximize international group synergies
Slide 26: Promote M&A Aimed at Synergistic Effects with Our Group
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）M & A Transportation business Contract business Forwarding business (Packing business) (Customs clearance business) Sales related business Logistics company Real estate related business (Manufacturing industry) (Wareh
Slide 27: Group Operating Company Priority Strategy
Med-Term Management Plan：The 12th Medium-Term Management Plan （Apr. 2020～Mar. 2023）Group operating company priority strategy Priority strategy Measure system 1 Measure system ２ ・Strengthening the network １. Restructuring (strengthening) Expansion of consolidated freight maintenance of NIPPON KONPO t
Slide 28: Shareholder Returns
NIKKO (4) Shareholder Returns 28
Slide 29: Trends in Dividends and Dividend Payout Ratio
Shareholder returns: Trends in dividends and dividend payout ratio Interim dividends for the year ending March 2021 amounted to JPY33 per share, as originally expected. For the fiscal year ending March 31, 2021, we plan to pay an annual dividend of JPY66 per share. （Yen） JPY54 JPY53 JPY60 JPY65
Slide 30: 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 31: Reference Materials
NIKKO Reference Materials 31
Slide 32: Company Overview: 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, 2020) Number of 12,483
Slide 33: Company Overview: 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 （Billions of yen） 200 Jan.2014 Acquired shares of Ito Express Co., Ltd. Mar.2013 Acquired shares of Shinei Warehouse Co., Ltd. 180 Oct.2010 Estab
Slide 34: Domestic Operating Sites
Company Overview：Domestic operating Sites（As of Sep. 30, 2020） 44 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
Slide 35: Overseas Offices
Company Overview：Overseas Offices（As of Sep. 30, 2020） 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 M
Slide 36: Historical Financial Data: Net Sales, Operating Profit, Operating Profit Ratio
Historical Financial Data : Net Sales・Operating Profit・ Operating Profit Ratio (Millions of yen) (％) 250,000 Net Sales Operating Profit Operating Profit Ratio 12.0 10.5 10.1 10.1 10.1 10.1 9.6 10.0 200,000 9.0 8.9 7.8 7.3 8.0 150,000 6.0 100,000 197,693 199,512 187,819 165,205 170,076 174,031 179,31
Slide 37: Historical Financial Data: Net Sales, ROE, ROA
Historical Financial Data：Net Sales・ ROE・ROA (Millions of yen) (％) 250,000 Net Sales ROE ROA 15.0 197,693 199,512 200,000 187,819 12.0 170,076 174,031 179,312 165,205 140,511 8.8 150,000 8.2 8.1 8.2 8.2 9.0 130,717 8.0 122,786 7.5 7.1 5.7 100,000 5.4 5.2 6.0 4.9 4.9 5.0 5.1 5.1 4.8 4.8 3.1 3.3 50,00
Slide 38: Historical Financial Data: Shareholder's Equity and Equity Ratio
Historical Financial Data : Shareholder’s Equity・ Shareholder’s Equity-to-Total Asset Ratio (Millions 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 65.7 64.0 64.8 62.5 62.6 63.7 63.3 61.0 120,000 100,000 50.0 182,101 1
Slide 39: Balance Sheet
Balance Sheet （Millions of yen） 2019/3 2020/3 2020/9 2019/3 2020/3 2020/9 Total current assets 69,401 73,464 83,728 Total current liabilities 51,458 54,474 50,423 Notes and accounts Cash and deposits 16,940 31,502 34,741 11,330 11,265 8,662 payable-trade Notes and accounts Electronically recorded 33