Nikkon Holdings Co., Ltd. · TSE:9072
Nikkon — H1 FY2023/3 Earnings Presentation
37 slides from Nikkon's earnings presentation, Nov 21, 2022
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2023
NIKKON Holdings Co., Ltd. Security: 9072 Financial Results for the First Half of the Fiscal Year Ending March 31, 2023 November 21, 2022 1
Slide 2: Overview of Business in the First Half Year
Financial Results: Overview of Business in the First Half Year ■ Japanese economic trends ■ Logistics industry trends Trending towards a recovery Steep rise in oil price thanks to the easing of activity Chronic shortage of labor restrictions associated with COVID-19, the effects of Intensify
Slide 3: Consolidated Statement of Earnings
Financial Results: Consolidated Statement of Earnings H1 of FY H1 of FY Increase/ Change (Millions of yen) ended Mar. ending Mar. decrease (%) 2022 2023 Net sales 94,614 103,751 +9,137 +9.7% Operating profit 9,262 8,895 －366 －4.0% Ordinary profit 9,952 10,303 +351 +3.5% Net profit* 6,542 7,010 +468
Slide 4: Consolidated Net Sales and Operating Profit by Segment
Financial Results: Consolidated Net Sales and Operating Profit by Segment Segment Net sales Operating profit Profit growth decreased due to a surge in fuel prices, which Sales increased mainly due to a recovery in the volume Transportation more than offset revenue growth effects and increased of car
Slide 5: Consolidated Net Sales by Industry / Regions
Financial Results: Consolidated Net Sales by Industry / Regions Automobile Sales increased due to an increase in the volume Sales increased due to higher business volume of business handled. Japan of automotive and housing sectors. Auto-Parts Sales increased due to an increase in the volume of busin
Slide 6: Consolidated Financial Indicators
Financial Results: Consolidated Financial Indicators Total assets Main change Cash and deposits increased JPY 4,666 million due in part to the posting of profit for factors the period. Property, plant and equipment increased by JPY 7,919 million due to capital investment. Interest- Main change
Slide 7: Consolidated Cash Flows
Financial Results: Consolidated Cash Flows Apr. to Sep. 2021 Free C/F +1,544 Net Change -2,895 (Millions of yen) +13,438 -11,894 30,366 -4,332 -107 27,471 Cash flows Cash flows from investing Cash flows from operating Other activities from financing activities activities Beginning Proceeds from sale
Slide 8: Capital Expenditures (Consolidated Basis)
Growth Strategy: Trend in Consolidated Capital Investment Capital Expenditures (Consolidated Basis) (Millions of yen) (Millions of yen) 40,000 33,087 28,344 30,000 25,914 28,280 23,216 18,984 20,000 20,000 16,548 15,213 10,000 12,458 0 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3 2021/3 2022/3 2023/3 8
Slide 9: Status of Consolidated Capital Investments
Growth Strategy: Status of Consolidated Capital Investments Summary of Capital Investments from Apr. - Sep. 2022 (Consolidated) Capital Amount Investments Descriptions (Millions of yen) Details 69 units (Additional Operating Fleets 443 trucks or replacements) Buildings Warehouses, etc. Lands 8,881 L
Slide 10: Capital Investments: Completed Warehousing
Growth Strategy: Consolidated Capital Investments [Completed Warehousing] Status of warehouse construction from Apr. – Sep. 2022 (Consolidated Basis) Date of Total NO. Company name Location Buildings Applications completion floor area NIPPON KONPO UNYU 1 Suzuka, Mie Pref. Jun. 2022 Warehouse 16,569
Slide 11: Capital Investments: Building Acquisition
Growth Strategy: Consolidated Capital Investments [Building Acquisition] Warehouses acquired from Apr. – Sep. 2022 (Consolidated Basis) Date of Total NO. Company name Location Property Applications acquisition floor area NIPPON KONPO UNYU Storage of Auto-Parts, 1 Shime, Fukuoka Pref. Apr. 2022 Wareh
Slide 12: Capital Investments: Warehouse Construction Ongoing
Growth Strategy: Consolidated Capital Investments [Construction of warehouses, etc. ongoing] Ongoing Capital Investments (Consolidated Basis) as of Sep. 30, 2022 Date of completion Total NO. Company name Location Buildings Applications (plan) floor area NIPPON KONPO UNYU Miyoshi, Saitama Storage of
Slide 13: Activities in Reverse Logistics
Growth Strategy: Activities in Reverse Logistics Recovery of lithium-ion batteries from automobiles Remaining Customer Collecting site Delivery destination battery life New business High Step 1 Re-manufacture Automotive Disassembler Remanufacturing facilities manufacturers (7 locations nationwide) S
Slide 14: Acquiring and Expanding New Businesses
Growth Strategy: Acquiring and Expanding New Businesses (including the expansion of the range of businesses of existing shippers) 1. Growing shares in growth industries Expansion of the range of businesses by leveraging the functions of packaging, distribution, and processing (export packaging, part
Slide 15: Electric Vehicle Development in Testing Business
Growth Strategy: Electric Vehicle Development in Testing Business Expanding the range of businesses by introducing test facilities to strengthen EV development Introducing EV simulation test device Battery simulator (BTS) device Inverter/emulator (INE) A device for simulating voltage and current in
Slide 16: M&A Initiatives
Growth Strategy: M&A Initiatives M&A is a tool for buying time. “Regional complement” “Supplement of technologies and functions” “Development of new shippers” 16
Slide 17: Activities for Manpower Saving and Automation
Growth Strategy: Activities for Manpower Saving and Automation Vertical conveyors Warehousing robots Mobile racks Effect: Approx. 84% reduction in Effect: Approx. 30% reduction in Effect: Approx. 10% reduction in excess work operation labor operation man-hours Shuttle racks Double articulated trucks
Slide 18: Activities for Systemization (Digital Platform Development)
Growth Strategy: Activities for Systemization (Digital Platform Development) Automated operations and labor saving Robots AI IoT devices Automated operations WMS: Warehouse Management System and labor saving Prompt introduction of ↓ TMS : Transport Management System optimal and latest Material handl
Slide 19: Progress in the 12th Medium-Term Management Plan (1)
Medium-Term Management Plan: Progress of in the 12th Medium-Term Management Plan (1) The 12th Medium-Term Management Plan (Apr. 2020－Mar. 2023) （Millions of yen） （Millions of yen） Net sales Operating profit 217,000 19,512 20,200 198,159 18,191 182,536 102,000 103,751 10,200 8,895 FY2021/3 FY2022/3 F
Slide 20: Progress in the 12th Medium-Term Management Plan (2)
Medium-Term Management Plan: Progress of in the 12th Medium-Term Management Plan (2) Revision of Full-Year Financial Forecasts Announced on Announced on May 13 H1 of FY2023/3 Change May 13 FY2023/3 Change (Millions of yen) Changes Changes H1 of FY2022/3 Actual (%) FY2023/3 Forecast (%) Forecast Fore
Slide 21: Progress in the 12th Medium-Term Management Plan (3)
Medium-Term Management Plan: Progress of in the 12th Medium-Term Management Plan (3) Results for the Year ending Mar. 31, 2023 (Apr. -Sep. 2022) 1. Creation of group synergies in (Key measures) Strengthening of domestic network Japan NIPPON KONPO UNYU SOKO CO., • Completion of second warehouse at Su
Slide 22: Shareholder Returns: Dividends
Shareholder Returns: Dividends The annual dividend forecast for the fiscal year ending March 31, 2023 is 96 yen per share. We changed the target consolidated payout ratio from 30% to 40% (applicable from the the fiscal year ending March 31, 2023). Trends in dividends and consolidated dividend pa
Slide 23: Purchase/Cancellation of Treasury Shares
Shareholder Returns: Purchase/Cancellation of treasury shares 1. Purchase of treasury shares (1) Total number of shares purchased: 1,352,000 shares (upper limit: 1,400,000 shares) (2) Total stock acquisition cost: JPY 2,999 million (upper limit: JPY 3,000 million) (3) Acquisition period: May 16, 202
Slide 24: Environmental Initiatives (1)
ESG Initiatives: Environmental Initiatives (1) NIPPON KONPO UNYU SOKO CO., LTD. received a Special Award of the 23rd Logistics Environment Award. It earned high marks for its efforts to reduce CO₂ emissions in transportation operations. Operation of 21-meter full trailers and development and use of
Slide 25: Environmental Initiatives (2)
ESG Initiatives: Environmental Initiatives (2) Introduction of Low-Emission Introduction of self-consumption Vehicles photovoltaic power generation 2-ton hybrid tracks • Installed on 18 hybrid tracks Issues • EV trucks are not widely used. • Cost burden will increase. • Installed solar power generat
Slide 26: Environmental Initiatives (3)
ESG Initiatives: Environmental Initiatives (3) In conjunction with the government's reduction target for the transportation sector, under our next Medium-Term Management Plan, we will accelerate initiatives for achievement of a 35% reduction compared to FY2013 by 2030. Efforts toward 2030 Introduc
Slide 27: Promotion of active participation of women
ESG Activities: Promotion of active participation of women Main initiatives Target for FY2023/3 Empowerment of Improvement of the personnel Percentage of people in senior Female Employees system positions that are women:15.42% Correction of wage gap between Percentage of women in men and wom
Slide 28: 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 https://www.nikkon-hd.co.jp E-mail:kouhou@nikkon.co.jp ◆ Forward-looking statements in this presentation, including earnings forec
Slide 29: Reference Materials
© NIKKON Reference Materials 29
Slide 30: Corporate Profile
Company Overview: Corporate Profile Company Name NIKKON Holdings Co., Ltd. Established August 27, 1953 Head Office 6-17 Akashi-Cho, Chuo-ku, Tokyo, Japan Representative Masakatsu Kuroiwa President Capital Stock JPY 11,316 million (As of September 30, 2022) Number of Employees 12,815 (Consolidated: A
Slide 31: Our History
Company Overview: Our History ■ Sales trends and History Mar. 2022 Acquired an 86% stake in Yaskawa Transport Corporation. (Billions of yen) Changed trade name to NIKKON KITAKYU CO., LTD. 2,000 200.0 Oct. 2015 Company name changed to NIKKON Holdings Co., Ltd. Nov. 2015 Established company in Malaysi
Slide 32: Domestic Offices
Company Overview: Domestic Offices (As of Sep. 30, 2022) Hokkaido area Number of Domestic Affiliates 45 Tomakomai (NK) Ebetsu 〃 Number of Domestic Sales Offices 287 Takasu Center 〃 Sapporo shinbun Yuso Co., Ltd. Hokkai Butsuryu Service Co., Ltd. NIKKON Holdings Co., Ltd. Head office Touhoku area NIP
Slide 33: Overseas Offices
Company Overview: Overseas Offices (As of Sep. 30, 2022) 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. ・NIPPON
Slide 34: Historical Financial Data: Net Sales, Operating Profit, Operating Profit Ratio
Historical Financial Data: Consolidated Net Sales, Operating Profit, Operating Profit Ratio (Millions of yen) (％) Net sales Operating profit Operating profit ratio 11.0 205,000 197,693 199,512 198,159 187,819 179,312 182,536 174,031 10.5 170,076 165,205 165,000 10.0 10.1 10.1 10.1 10.1 10.0 140,511
Slide 35: Historical Financial Data: Net Sales, ROE, ROA
Historical Financial Data: Consolidated Net Sales, ROE, ROA (Millions of yen) (％) 220,000 Net sales ROE ROA 10.0 8.8 9.0 200,000 8.2 8.2 8.2 8.1 8.0 199,512 198,159 8.0 7.5 197,693 7.3 7.1 187,819 180,000 6.9 182,536 7.0 179,312 174,031 170,076 6.0 160,000 165,205 4.9 5.7 5.4 5.0 5.2 5.1 5.1 4.9 5.0
Slide 36: Historical Data: Shareholders' Equity and Equity Ratio
Historical Financial Data: Consolidated Shareholder’s Equity, Shareholder’s Equity-to-Total Asset Ratio (Millions of yen) (％) 218,478 220,000 Shareholders' equity Equity ratio 100.0 207,747 95.0 200,000 192,780 90.0 186,338 182,101 85.0 180,000 170,910 80.0 159,173 160,000 155,842 75.0 70.7 146,480
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet (Millions of yen) 2021/3 2022/3 2022/9 2021/3 2022/3 2022/9 Total current assets 74,542 74,655 78,898 Total current liabilities 46,269 44,367 55,734 Cash and deposits 31,399 30,227 34,893 Notes and accounts payable - trade 9,799 11,537 11,282 Notes and accounts Electronica