Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — FY2022 Earnings Presentation
59 slides from Nippon Express's earnings presentation, Feb 14, 2023
Slide 1: Financial Results Presentation for Fiscal Year Ended December 2022
Financial Results Presentation for Fiscal Year Ended December 2022 February 14, 2023 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents Financial Results Highlights (Executive Summary) III. Challenges of the Business Plan Financial Results Highlights (Executive Summary) P.2- A. NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.29- B. Sales by Business P.31 I. Financial Results for FY2022 (JGAAP) C. S
Slide 3: Financial Results Highlights (Executive Summary)
Financial Results Highlights (Executive Summary) ・Financial Results for FY2022 and Forecast for FY2023 Financial Results for FY2022 (JGAAP) Financial Results Forecast for FY2023 (JGAAP) Vs. FYE Dec 2021 Vs. FYE Dec 2021 Vs. Business Plan Targets 2023 +¥282.5 billion ¥(169.7) billion +¥50.0 billion ➚
Slide 4: Financial Results Highlights (Executive Summary) Overview/Digest
Financial Results Highlights (Executive Summary) Overview/Digest FY2022 Results ◼ Revenues and profit increased, mainly due to steady growth in international freight business in both Japan and overseas regions. Revenues and profit decreased in the fourth quarter due to a reactionary decline in overs
Slide 5: Regarding Presentation of Fiscal Year Ended December 2021 Results
I. Financial Results for FY2022 Regarding Presentation of Fiscal Year Ended December 2021 (Previous Year) Results Consolidated statements of income for the fiscal year ended December 2021 represent results of Nippon Express Co., Ltd. Results converted to a 12-month basis (*estimates). *2021 results
Slide 6: Financial Results for Jan-Dec, FY2022
I. Financial Results for FY2022 (JGAAP) A Financial Results for Jan-Dec, FY2022 (100 million yen, %) (rounded down to 100 million yen) Full-Year Prior-Year Full-Year Item Forecast Difference Results Difference Difference Results Difference (Announced Nov 9) (%) (Jan-Dec 2021) YoY YoY (%) (Jan-Dec 20
Slide 7: Japan and Overseas Results
I. Financial Results for FY2022 (JGAAP) B Japan and Overseas Results (100 million yen, %) (rounded down to 100 million yen) Prior-Year Results Segment Item Full-Year Results Difference Difference (Jan-Dec 2021) (Jan-Dec 2022) YoY YoY (%) Pro Forma Revenues 19,851 18,458 1,392 7.5 Japan Total Segment
Slide 8: Results by Reportable Segment (YoY for Jan-Dec)
I. Financial Results for FY2022 (JGAAP) C Results by Reportable Segment (YoY for Jan-Dec) (100 million yen, %) (rounded down to 100 million yen) Prior-Year Prior-Year 2022 Results 2022 Results 2022 Results 2022 Results Difference Difference 2022 Results Results Difference Difference Segment Item Res
Slide 9: Breakdown of Revenues
I. Financial Results for FY2022 (JGAAP) D Breakdown of Revenues and Operating Income 1) Revenues ★ Revenue (100 million yen) increase from ★Breakdown of revenue from Impact of Impact of the business business activities by segment 27,000 revenue NX SHOJI activities Impact of recognition leasing ⇧2,14
Slide 10: Breakdown of Operating Income
I. Financial Results for FY2022 (JGAAP) ⇩84 D Breakdown of Revenues and Operating Income 2) Operating income 1,400 (100 million yen) Impact of Employment Rebound foreign system reform Decrease in increase of exchange ⇩11 provision for HQ relocation ⇧54 Increase 1,300 Impact of retirement expenses Im
Slide 11: Segment Overview for FY2022: Japan Segment
I. Segment Overview for FY2022 (JGAAP) Japan Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) Air and ocean export freight forwarding saw a decline in volume due to a drop in Revenues (100 million yen) 3,62
Slide 12: Segment Overview for FY2022: The Americas Segment
I. Segment Overview for FY2022 (JGAAP) The Americas Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) Air and ocean export freight forwarding volume declined, but unit freight rates Revenues (100 million yen
Slide 13: Segment Overview for FY2022: Europe Segment
I. Segment Overview for FY2022 (JGAAP) Europe Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) While air export freight forwarding volume declined year on year, unit freight rates Revenues (100 million yen)
Slide 14: Segment Overview for FY2022: East Asia Segment
I. Segment Overview for FY2022 (JGAAP) East Asia Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) Air export freight forwarding volume declined due to a reactionary drop from the Revenues (100 million yen)
Slide 15: Segment Overview for FY2022: South Asia & Oceania Segment
I. Segment Overview for FY2022 (JGAAP) South Asia & Oceania Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) Air export freight forwarding volume declined due to a reactionary drop from the Revenues (100 mi
Slide 16: Segment Overview for FY2022: Security Transportation Segment
I. Segment Overview for FY2022 (JGAAP) Security Transportation Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) Despite gains in financial institution outsourcing services, ATM loading services, Revenues (1
Slide 17: Segment Overview for FY2022: Heavy Haulage & Construction Segment
I. Segment Overview for FY2022 (JGAAP) Heavy Haulage & Construction Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) New large-scale construction projects, mainly related to wind power Revenues (100 million
Slide 18: Segment Overview for FY2022: Logistics Support Segment
I. Segment Overview for FY2022 (JGAAP) Logistics Support Segment 1 Quarterly Results for FY2022 (Oct-Dec Results) Difference October-December 2022 Highlights FY2022 FY2022 FYE Dec 2021 Difference (%) Contributing factors to the increase in revenues and profits included Revenues (100 million yen) 1,1
Slide 19: Forecast for FY2023
II. Financial Results Forecast for FY2023 (JGAAP) A Forecast for FY2023 (100 million yen, %) (rounded down to 100 million yen) Full-Year Prior-Year 2023 Item Difference Difference Business Plan Difference Difference Forecast Results Vs. Plan Vs. Plan (%) YoY YoY (%) Targets (Jan-Dec 2023) (Jan-Dec 2
Slide 20: Financial Results Forecast for FY2023 1H, 2H
II. Financial Results Forecast for FY2023 (JGAAP) B Financial Results Forecast for FY2023 1H, 2H (100 million yen, %) (rounded down to 100 million yen) Prior Year 1H Forecast Prior Year Item 1H Results Difference Difference 2H Forecasts Difference Difference (Jan-Jun 2023) 2H Results (Jan-Jun 2022)
Slide 21: Japan and Overseas Results Forecast
II. Financial Results Forecast for FY2023 (JGAAP) C Japan and Overseas Results Forecast (100 million yen, %) (rounded down to 100 million yen) Segment Item Forecast Prior-Year Results Difference Difference (Jan-Dec 2023) (Jan-Dec 2022) YoY YoY (%) Revenues 19,436 19,851 (415) (2.1) Japan Total Segme
Slide 22: Forecasts by Reportable Segment (Jan-Dec)
II. Financial Results Forecast for FY2023 (JGAAP) D Forecasts by Reportable Segment (Jan-Dec) (100 million yen, %) (rounded down to 100 million yen) Full-Year Prior-Year 2023 Difference Difference Difference Difference Segment Item Forecast Results Business Plan YoY YoY (%) Vs. Plan Vs. Plan (%) (Ja
Slide 23: Forecasts by Reportable Segment 1H, 2H
II. Financial Results Forecast for FY2023 (JGAAP) E Forecasts by Reportable Segment 1H, 2H (100 million yen, %) (rounded down to 100 million yen) Prior Year Prior Year 1H Forecast Difference Difference 2H Forecasts Difference Difference Segment Item 1H Results 2H Results (Jan-Jun 2023) YoY YoY (%) (
Slide 24: Breakdown of Revenues (FY2023 Forecast)
II. Financial Results Forecast for FY2023 (JGAAP) F Breakdown of Revenues and Operating Income 1) Revenues (100 million yen) ★Revenue Impact of Impact of COVID-19 ★Breakdown of revenue from 27,000 increase Ukraine (Rebound decrease) business activities by segment from Business ⇧17 ⇩547 activities ⚫
Slide 25: Breakdown of Operating Income (FY2023 Forecast)
II. Financial Results Forecast for FY2023 (JGAAP) ⇩84 F Breakdown of Revenues and Operating Income 2) Operating income (100 million yen) ★Domestic Decrease in business provision for 1,300 ⇩21 retirement Environment Real estate investments Increase in fuel benefits business ⇩4 costs ⇧10 ⇧7 ⇩1 1,200 I
Slide 26: Segment Overview Forecasts for FY2023: Japan
II. Segment Overview Financial Results Forecasts for FY2023 (JGAAP) (100 million yen, %) * Figures in brackets indicate operating income margin [%] １ Japan Segment Overview Full-Year Forecast We expect unit freight rates for international logistics to continue to decline, but volume should recover b
Slide 27: Segment Overview Forecasts for FY2023: Europe, East Asia
II. Segment Overview Financial Results Forecasts for FY2023 (JGAAP) (100 million yen, %) * Figures in brackets indicate operating income margin [%] 3 Europe Segment Overview Full-Year Forecast We expect freight rates to decline for air and ocean forwarding. While we will make efforts to increase vol
Slide 28: Segment Overview Forecasts for FY2023: South Asia & Oceania
II. Segment Overview Financial Results Forecasts for FY2023 (JGAAP) (100 million yen, %) * Figures in brackets indicate operating income margin [%] 5 South Asia & Oceania Segment Overview Full-Year Forecast We expect freight rates to decline for air and ocean forwarding. We will aim to increase volu
Slide 29: Segment Overview Forecasts for FY2023: Heavy Haulage, Logistics Support
II. Segment Overview Financial Results Forecasts for FY2023 (JGAAP) (100 million yen, %) * Figures in brackets indicate operating income margin [%] 7 Heavy Haulage & Construction Segment Overview Full-Year Forecast In addition to continued large-scale industrial machinery projects related to our win
Slide 30: NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses
III. Challenges of the Business Plan Ａ NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Japan*1 Overseas Item 2022 2021 2022 2022 2021 2022 Revenues Jan-Dec Jan-Dec Difference Jan-Dec Difference Jan-Dec Jan-Dec Difference Jan-Dec Difference YoY (%) (%) (%) (%) Results Results
Slide 31: Expand the Logistics Solution Business
III. Challenges of the Business Plan A NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Expanding Volume and Lower Utilization Costs Ocean Forwarding Air Forwarding ・Strengthen purchasing power through the NX Global Ocean ・Expand volume in trade lanes, which are less commonly
Slide 32: Sales by Business: FY2022 (Jan-Dec)
III. Challenges of the Business Plan (Millions of yen, rounded down) B Sales by Business: FY2022 (Jan-Dec) Millions of yen,％ Domestic Business In the fourth quarter, the warehousing and in-factory businesses remained firm, while the railway utilization and motor transportation business saw a Progres
Slide 33: Strategy to Enhance Domestic Businesses in Japan
III. Challenges of the Business Plan C Strategy to Enhance Domestic Major Initiatives Businesses in Japan I. Improve Profits III. Deepen Integration of Land, Sea, and Air ◆ Pursued daily cost controls, continuing to leverage company ◆ Pursue cross-mode sales strengths to fullest and reduce outsourci
Slide 34: Progress in Back Office Cost Reductions
III. Challenges of the Business Plan D Progress in FYE December 2022 Back Office Cost Reductions (as of December 31, 2022) Enhancing FYE Dec FY2022 FY2022 FY2019 FY2020 FY2022 FY2022 FY2023 FY2023 Japanese 2021 Results Results Targets FY2023 Item Results Results Cumulative Cumulative Cumulative Cumu
Slide 35: Pursuing RPA and NX-OCR
III. Challenges of the Business Plan E Pursuing RPA and NX-OCR To create more time for more value-added tasks, such as creative planning and sales activities. Why Adopt RPA? ⇒ Improve productivity and quality, reduce costs, and foster the potential of creating new businesses. FY2023 Target: Create c
Slide 36: Impact of Employee System Reform
III. Challenges of the Business Plan F Impact of Employee System Reform (as of December 31, 2022) X Human Resource Salary/Wage System Reinforce workplace System Evaluation System capabilities • Employee categories • Equal labor, equal pay • Evaluate roles • CSR, assign health and • Competency and gr
Slide 37: Business Structure Reform Project
III. Challenges of the Business Plan G Business Structure Reform Project ～ Reform and Strengthen Businesses ~ (1) Logistics Division Reform Optimize and improve functions of SCM by customer. Make a positive contribution to customers, designing optimal logistics solutions by mobilizing the collective
Slide 38: ESG Management
III. Challenges of the Business Plan H ESG Management CO2 emissions reductions vs. FY2017 Target FY2020 FYE December FY2022 FY2017 FY2019 FY2023 2021 Apr-Dec Jan-Nov (preliminary) 350,000t 468,069t 414,884t 401,580t 290,779t 363,252t (118,069t) Indicator (53,185t) (66,489t) (Prior-year (104,817t) *U
Slide 39: NX Group Business Plan 2023 Overview and 2037 Long-Term Vision
III. Challenges of the Business Plan ~ FY2023 Numerical Targets Revenues, operating income (margin), net income, overseas revenues, Accelerate Reform Through a Holding ROE, FWD volume Company Structure A logistics company with a strong By Segment (Logistics, Heavy Haulage & Construction, Security pr
Slide 40: Return to Shareholders
IV. Return to Shareholders • ROE 10％ A Capital Policies • Dividend payout ratio 30% or more • Total return ratio: Over 50% (cumulative total FY2019-FY2023) • Equity ratio: Target 35% B Key Indicators (100 million yen) Total dividend Treasury share acquisition Dividend payout ratio Total return ratio
Slide 41: 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 42: Appendix 1: Special Factors
Appendix 1: Special Factors (Changes Due to External Environmental and Other Factors) Impact on consolidated results Impact on consolidated results Variable factors (Jan-Dec 2022 results) (Jan-Dec 2023 forecast) Operating income ¥(2.79) billion Operating income ¥(0.13) billion (cost increase) (cost
Slide 43: Appendix 1: Special Factors
Appendix 1: Special Factors (Changes Due to External Environmental and Other Factors) Impact on consolidated results Impact on consolidated results Variable factors (Jan-Dec 2022 results) (Jan-Dec 2023 forecast) Operating income ¥(1.11) billion Operating income ¥(1.12) billion Change due to employee
Slide 44: Appendix 1: Special Factors
Appendix 1: Special Factors (Changes Due to External Environmental and Other Factors) Impact on consolidated results Impact on consolidated results Variable factors (Jan-Dec 2022 results) (Jan-Dec 2023 forecast) Operating income +¥2.51 billion Operating income ¥(2.51) billion Adjustment of prior-per
Slide 45: Appendix 1: Special Factors
Appendix 1: Special Factors (Changes Due to External Environmental and Other Factors) Impact on consolidated results Impact on consolidated results Variable factors (Jan-Dec 2022 results) (Jan-Dec 2023forecast) Operating Income Impact of impairment loss on non-current assets and +¥2.66 billion goodw
Slide 46: Forwarding Results: Export Air Freight Weight Originating from Japan
Appendix 2 Forwarding Results: Export Air Freight Weight Originating from Japan Export Air Freight Weight Originating from Japan Nippon Express Export Weight Nippon Express Share 30.0% （Unit: t) FY Total: 222,247 tons FY Total:214,889 tons FY Total: 250,342 tons 26.6% 25.4% 25.6% 24.1% 24.3% 25.0% 2
Slide 47: Forwarding Results: Export Freight (Air Freight Forwarding)
Appendix 2 Forwarding Results: Export Freight (Air Freight Forwarding) (Unit：t /chargeable) 2020 2021 2022 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Japan 58,841 45,579 55,874 78,048 238,343 89,719
Slide 48: Forwarding Results: Export Freight (Ocean Transportation)
Appendix 2 Forwarding Results: Export Freight (Ocean Transportation) （Unit：TEU） 2020 2021 2022 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Japan 57,648 52,572 53,813 66,291 230,324 67,261 65,442 66,3
Slide 49: Air Forwarding Gross Profit: Japan and Overseas Segment
Appendix 2 Air Forwarding Results: Japan and Overseas Segment Air Export Freight Forwarding Business Gross Profit and Gross Profit Margin by Quarter Japan Segment (100 million yen, %) (rounded down to 100 million yen) 240 60.0% 220 200 51.9% 50.3% 49.6% 180 2020 Air export freight forwarding gross p
Slide 50: Air Forwarding Gross Profit by Overseas Segment
Appendix 2 Air Forwarding Results: Air Export Freight Forwarding Business Gross Profit and Gross Profit Margin by Overseas Segment by Quarter The Americas Segment Europe Segment 80 60.0% 80 60.0% 50.7% 50.0% 46.7% 46.5% 48.2% 60 60 40.0% 46.5% 43.8% 40.0% 42.1% 42.5% 42.0% 42.3% 34.3% 40 40 25.0% 23
Slide 51: Consolidated Forwarding Costs by Quarter
Appendix 2 Forwarding Results: (Consolidated) Forwarding Costs by Quarter Consolidated forwarding costs (100 million yen) (rounded down to 100 million yen) 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Item Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun
Slide 52: Nippon Express FY2022 Results: Revenues
Appendix 3: Nippon Express FY2022 Results A. Revenues (Unit: Millions of yen,%) Change Jan-Dec 2022 % of Jan-Dec 2021 % of Amount Ratio Sales Sales Railway utilization business 67,067 4.9 68,828 5.5 (1,761) (2.6) Small-lot shipment business 37,714 2.8 41,060 3.3 (3,346) (8.1) Automotive Chartered tr
Slide 53: Nippon Express FY2022 Results: Operating Expenses
Appendix 3: Nippon Express FY2022 Results B. Operating expenses (Unit: Millions of yen,%) Change Jan-Dec 2022 Jan-Dec 2021 % of % of Sales Sales Amount Ratio Total personnel expenses 251,430 18.5 260,681 21.0 (9,251) (3.5) Railway forwarding costs 36,138 2.7 37,532 3.0 (1,393) (3.7) Forwarding costs
Slide 54: Non-Consolidated Profit Factors FY2022
Appendix 3: Nippon Express FY2022 Jan-Dec Results Non-Consolidated Profit Factors Revenue Increase in (100 million yen) (rounded down to 100 million yen) increase forwarding costs *Increase and decrease in the graph is on an income basis ＋1,170 (798) Increase in vehicle Decrease in chartering and pe
Slide 55: Nippon Express FY2023 Forecasts: Revenues
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts A. Revenues (Unit: Millions of yen,%) Change Jan-Dec 2023 Forecast % of Jan-Dec 2022 % of Amount Ratio Sales Sales Railway utilization business 67,600 5.4 67,067 4.9 532 0.8 Small-lot shipment business 38,000 3.1 37,714 2.8 285 0.8 Automotive Chart
Slide 56: Nippon Express FY2023 Forecasts: Operating Expenses
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts B. Operating expenses (Unit: Millions of yen,%) Change Jan-Dec 2023 Forecast Jan-Dec 2022 % of % of Amount Ratio Sales Sales Total personnel expenses 209,300 16.9 251,430 18.5 (42,130) (16.8) Railway forwarding costs 36,300 2.9 36,138 2.7 161 0.4 F
Slide 57: Non-Consolidated Profit Factors FY2023 Forecast
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts Non-Consolidated Profit Factors (100 million yen) (rounded down to 100 million yen) *Increase and decrease in the graph is on an income basis Decrease in Decrease in Revenue decrease Other depreciation and facility usage Decrease in amortization (1
Slide 58: Voluntary Adoption of IFRS
Appendix 4: Voluntary Adoption of International Financial Reporting Standards (IFRS) ・ Purpose To engage in global management through unified group accounting standards and to improve comparability of financial information in the capital markets ・ Disclosure Schedule Fiscal year end Disclosures Acco
Slide 59: 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
Nippon Express Holdings — FY2022 Earnings Presentation on 6ix