Nippon Express Holdings, Inc. · TSE:9147

Nippon Express — Q2 FY2021 Earnings Presentation

41 slides from Nippon Express's earnings presentation, Nov 12, 2021

  1. Slide 1: Financial Results Presentation for Q2, Fiscal Year Ending December 31, 2021

    Financial Results Presentation for Q2, November 12, 2021 Nippon Express Co., Ltd. Fiscal Year Ending December 31, 2021 Investor Relations Promotion Group Corporate Planning Division

  2. Slide 2: Contents

    Contents I. Financial Results for Q2, Fiscal Year Ending December 31, 2021 (Pro Forma) III. Challenges of the Business Plan (Progress) Change in Fiscal Year End P.3 A. Nippon Express Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.31 A. Financial Results for FYE December 2021

  3. Slide 3: I. Financial Results for Q2, Fiscal Year Ending December 31, 2021 (Pro Forma)

    I. Financial Results for Q2, Fiscal Year Ending December 31, 2021 (Pro Forma) Copyright © 2021 NIPPON EXPRESS, All rights reserved. Financial Results Presentation for Q2, Fiscal Year Ending December 31, 2021 2

  4. Slide 4: Change in Fiscal Year End

    I. Fiscal Year Ending December 2021 (Pro Forma) Change in Fiscal Year End As a result of the change in fiscal year-end, we will disclose our consolidated statements of income on a financial reporting basis (summary) and on a supplementary converted 12-month basis (*estimated). *Forecasts 2021 have b

  5. Slide 5: Financial Results for January-September, Overview (Consolidated)

    I. FYE December 2021 Q2 (Pro Forma) A Financial Results for January-September, FYE December 2021 Overview (Consolidated) (100 million yen) (rounded down to 100 million yen) Current-Year Prior-Year Difference YoY Item Results Results Difference YoY (%) (Jan-Sep 2021) (Jan-Sep 2020) Revenues 16,781 14

  6. Slide 6: Financial Results for April-September, Overview (Consolidated)

    I. FYE December 2021 Q2 (Pro Forma) A Financial Results for April-September, FYE December 2021 Overview (Consolidated) (100 million yen) (rounded down to 100 million yen) Current-Year Prior-Year Apr-Sep 2021 Results Results Difference Difference Difference Item (Apr-Sep (Apr-Sep YoY YoY (%) (Previou

  7. Slide 7: Financial Results for July-September, Overview (Consolidated)

    I. FYE December 2021 Q2 (Pro Forma) B Financial Results for July-September, FYE December 2021 Overview (Consolidated) (100 million yen) (rounded down to 100 million yen) Current-Year Prior-Year Difference YoY Item Results Results Difference YoY (%) (Jul-Sep 2021) (Jul-Sep 2020) Revenues 5,591 4,965

  8. Slide 8: Japan and Overseas Results

    I. FYE December 2021 Q2 (Pro Forma) C Japan and Overseas Results (not including adjustments) (100 million yen) (rounded down to 100 million yen) Current-Year Prior-Year Difference YoY Segment Item Results Results Difference YoY (%) (Jan-Sep 2021) (Jan-Sep 2020) Revenues 13,548 12,749 798 6.3 Japan T

  9. Slide 9: Results by Reportable Segment (Jan-Sep)

    I. FYE December 2021 Q2 (Pro Forma) D Results by Reportable Segment (Jan-Sep) (100 million yen) (rounded down to 100 million yen) Current-Year Prior-Year Segment Item Results Results Difference YoY Difference YoY (%) (Jan-Sep 2021) (Jan-Sep 2020) Revenues 9,805 8,561 1,244 14.5 Japan Segment Income

  10. Slide 10: Results by Reportable Segment (Apr-Sep)

    I. FYE December 2021 Q2 (Pro Forma) D Results by Reportable Segment (Apr-Sep) (100 million yen) (rounded down to 100 million yen) Current-Year Prior-Year Apr-Sep 2021 Difference Difference Forecast Segment Item Results Results (Previous Difference YoY YoY (%) （Apr-Sep 2021） （Apr-Sep 2020） Announceme

  11. Slide 11: Results by Reportable Segment (Jul-Sep)

    I. FYE December 2021 Q2 (Pro Forma) D Results by Reportable Segment (Jul-Sep) (100 million yen) (rounded down to 100 million yen) Current-Year Prior-Year Segment Item Results Results Difference Difference (Jul-Sep 2021) (Jul-Sep 2020) YoY YoY (%) Revenues 3,240 2,877 362 12.6 Japan Segment Income 89

  12. Slide 12: Performance by Segment (Apr-Jun 2021 vs. Jul-Sep 2021)

    I. FYE December 2021 Q2 (Pro Forma) *Reference (Quarterly Results) D Reference: Performance by Segment (Apr-Jun 2021 vs. Jul-Sep 2021) (100 million yen) (rounded down to 100 million yen) Current-Year Current-Year Segment Item Results Results Difference Difference (Jul-Sep 2021) (Apr-Jun 2021) YoY Yo

  13. Slide 13: Breakdown of Revenues

    I. FYE December 2021 Q2 (Pro Forma) *Domestic and overseas total for January through September compared to the same E Breakdown of Revenues and Operating Income period in the previous year 1. Revenues (100 million yen) Detailed COVID-19 Impact Jan-Sep 2020 Jan-Sep 2021 (Results) ★Breakdown of revenu

  14. Slide 14: Breakdown of Operating Income

    I. FYE December 2021 Q2 (Pro Forma) *Domestic and overseas total for January E Breakdown of Revenues and Operating Income through September compared to the same period in the previous year 2. Operating income 700 (100 million yen) Employment system reform Adjustments Detailed COVID-19 Impact Increas

  15. Slide 15: Air Export Freight Forwarding Gross Profit and Margin by Quarter

    Reference Air Export Freight Forwarding Business Gross Profit and Gross Profit Margin by Quarter *Air export freight forwarding gross profit: Net sales minus air usage fees Gross profit margin: Ratio of gross profit from air export freight forwarding to net sales from air export freight forwarding (

  16. Slide 16: II. Financial Results Forecast for Fiscal Year Ending December 31, 2021

    II. Financial Results Forecast for Fiscal Year Ending December 31, 2021 (Pro Forma) Copyright © 2021 NIPPON EXPRESS, All rights reserved. Financial Results Presentation for Q2, Fiscal Year Ending December 31, 2021 15

  17. Slide 17: Forecast for Jan-Dec 2021

    II. Financial Results Forecast for Fiscal Year Ending December 31, 2021 (Pro Forma) A Forecast for the FYE December 2021 (Jan-Dec 2021) (100 million yen) (rounded down to 100 million yen) Revised Previous Forecast FYE Dec 2020 Difference Difference Forecast Difference Item (Announced Results YoY YoY

  18. Slide 18: Forecast for Apr-Dec 2021

    II. Financial Results Forecast for Fiscal Year Ending December 31, 2021 (Pro Forma) A Forecast for the FYE December 2021 (Apr-Dec 2021) (100 million yen) (rounded down to 100 million yen) Revised Previous Forecast 2020 Difference Difference Forecast Item Apr-Dec 2021 Apr-Dec Results Difference YoY Y

  19. Slide 19: Japan and Overseas Results Forecast

    II. Financial Results Forecast for Fiscal Year Ending December 31, 2021 (Pro Forma) B Japan and Overseas Results Forecast (not including adjustments) (100 million yen) (rounded down to 100 million yen) Current-Year Segment Item Prior-Year Results Difference Difference Results (Jan-Dec 2020) YoY YoY

  20. Slide 20: Forecasts by Reportable Segment

    II. Financial Results Forecast for Fiscal Year Ending December 31, 2021 (Pro Forma) C Forecasts by Reportable Segment (100 million yen) (rounded down to 100 million yen) 2H Forecast (Jul-Dec) Full-Year Forecast (Jan- Dec) 1H Segment Item Results FYE Dec FYE Dec FYE Dec FYE Dec FYE Dec 2021 2020 2021

  21. Slide 21: Breakdown of Revenues (Forecast)

    II. Financial Results Forecast for Fiscal Year Ending December 31, 2021 (Pro Forma) *Domestic and overseas total for January through D Breakdown of Revenues and Operating Income December compared to the same period in the previous year 1) Revenues 800 (100 million yen) Jan-Dec 2020 Jan-Dec 2021 ★ Re

  22. Slide 22: Breakdown of Operating Income (Forecast)

    II. Financial Results Forecast for Fiscal Year Ending December 31, 2021 (Pro Forma) *Domestic and overseas total for January through D Breakdown of Revenues and Operating Income December compared to the same period in the previous year 2) Operating income 1,000 (100 million yen) Employment system re

  23. Slide 23: Segment Overview: Japan Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 1. Japan Segment (100 million yen) FYE Dec Vs. FYE Dec 2020 July-September Highlights 2021 Item FYE Dec Difference Cargo movement in the railway utilization and motor transportation businesses remained sluggish due to the impact of Jul-Se

  24. Slide 24: Segment Overview: The Americas Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 2. The Americas Segment (100 million yen) FYE Dec Vs. FYE Dec 2020 2021 July-September Highlights Item FYE Dec Difference Jul-Sep Difference 1 Results 2020 (%) The air transportation business saw growth in both imports and exports of auto

  25. Slide 25: Segment Overview: Europe Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 3. Europe Segment (100 million yen) FYE Dec Vs. FYE Dec 2020 2021 July-September Highlights Item FYE Dec Difference Jul-Sep Difference 1 Results 2020 (%) The air forwarding business saw firm exports for automobile-related and electronic c

  26. Slide 26: Segment Overview: East Asia Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 4. East Asia Segment (100 million yen) FYE Dec Vs. FYE Dec 2020 Item 2021 July-September Highlights Jul-Sep FYE Dec Difference Difference 1 Results 2020 (%) Air forwarding experienced firm cargo movement for automobile-, medical-, and ele

  27. Slide 27: Segment Overview: South Asia & Oceania Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 5. South Asia & Oceania Segment (100 million yen) FYE Dec Vs. FYE Dec 2020 2021 July-September Highlights Item FYE Dec Difference 1 Jul-Sep Results 2020 Difference (%) Both air and ocean forwarding remained firm, and revenues increased su

  28. Slide 28: Segment Overview: Security Transportation Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 6. Security Transportation Segment (100 million yen) FYE Dec Vs. FYE Dec 2020 2021 July-September Highlights Item FYE Dec Difference 1 Jul-Sep Difference 2020 (%) Our cash collection business, which was affected significantly by the sprea

  29. Slide 29: Segment Overview: Heavy Haulage & Construction Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 7. Heavy Haulage & Construction Segment (100 million yen) FYE Dec Vs. FYE Dec 2020 2021 July-September Highlights Item FYE Dec Difference Jul-Sep 1 Results 2020 Difference (%) Although wind power-related performed well, we saw a decrease

  30. Slide 30: Segment Overview: Logistics Support Segment

    II. -E Segment Overview, Fiscal Year Ending December 31, 2021 8. Logistics Support Segment FYE Dec Vs. FYE Dec 2020 (100 million yen) Item 2021 FYE Dec Difference July-September Highlights Jul-Sep Difference 2020 (%) 1 Revenues Results 830 1,058 (227) (21.5) Revenues declined due to the spin-off of

  31. Slide 31: III. Challenges of the Business Plan (Progress)

    III. Challenges of the Business Plan (Progress) Copyright © 2021 NIPPON EXPRESS, All rights reserved. Financial Results Presentation for Q2, Fiscal Year Ending December 31, 2021 30

  32. Slide 32: Business Plan 2023 KPIs of Growth Strategy for Core Businesses

    III. Challenges of the Business Plan A Nippon Express Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Domestic *1 Overseas Item 2021 2020 2021 2021 2020 2021 Revenues Difference Progress Difference Progress Jan-Sep Jan-Sep Jan-Dec Jan-Sep Jan-Sep Jan-Dec (%) (%) (%) (%) Results

  33. Slide 33: Sales by Business: Q2 (Apr-Sep, Cumulative)

    III. Challenges of the Business Plan (Non-Consolidated) B Sales by Business: Q2, FYE December 2021 (Apr-Sep, Cumulative) (Millions of yen,％） Domestic Business Difference Difference (%) ・In the first quarter, we saw a positive rebound from the Results impact of COVID-19. In the second quarter onward,

  34. Slide 34: Strategy to Enhance Domestic Businesses in Japan

    III. Challenges of the Business Plan B Strategy to Enhance Domestic Businesses in Japan III. Deepen Integration of Land, Sea, and Air  Pursue cross-mode sales Major Initiatives • Pursuing top-line growth by expanding transactions with existing customers through delving deeper into sales across land

  35. Slide 35: Progress in Back Office Cost Reductions

    III. Challenges of the Business Plan C Progress in FYE December 2021 Back Office Cost Reductions (as of September 30, 2021) Reinforcing Human Resource Salary/Wage Evaluation Workplace System System System Capabilities • Employee • Equal labor, • Evaluate roles • CSR, assign categories equal pay • Ev

  36. Slide 36: Progress in Back Office Cost Reductions (Details)

    III. Challenges of the Business Plan C Progress in FYE December 2021 Back Office Cost Reductions (as of September 30, 2021) FYE FYE FYE Enhancing FY2019 FY2020 December December December Japanese FY2023 Results Item Results 2021 2021 Cumulative 2021 Domestic Targets [YoY] [YoY] Results Results Targe

  37. Slide 37: Pursuing RPA

    III. Challenges of the Business Plan C Pursuing RPA Reasons behind RPA adoption Create more time for core tasks, including creative planning, business activities, etc. ⇒ Improve productivity and quality, reduce costs, and create potential new businesses. Numerical Targets ~Planned Use Cases for RPA~

  38. Slide 38: ESG Management

    III. Challenges of the Business Plan C ESG Management Target FY2019 FYE December FY2017 FY2020 FY 2023 2021 Apr-Aug (New Target) 468,069 t 414,884 t 157,829ｔ 350,000t 401,580ｔ (vs. 6,497t in PY) (53,185t) (66,489t) (118,069t) Indicator *preliminary figures *Upward revision in FYE December 2021 FY201

  39. Slide 39: Holding Company Structure, Inorganic Growth, ESG-Oriented Management

    III. Challenges of the Business Plan D Transition to a Holding Company Structure ・Establish new brand identity ・Operations of integrated NX Group locations E Inorganic Growth Strategy ・Grow into a global mega-forwarder through M&A ・Build a global management foundation, a global customer base of non-

  40. Slide 40: IV. Return to Shareholders

    IV. Return to Shareholders A Capital Policies • ROE: 10% • Dividend payout ratio 30% or more • Total return ratio: Over 50% (cumulative total 2019-2023) • Equity ratio: Target 35% B Key Indicators (100 million yen) Total dividend Treasury share acquisition Dividend payout ratio Total return ratio 40

  41. Slide 41: No information contained in this document is intended to solicit purchase or sale

    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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