Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — FY2023 Earnings Presentation
38 slides from Nippon Express's earnings presentation, Feb 14, 2024
Slide 1: Financial Results Presentation for Fiscal Year Ended December 2023
Financial Results Presentation for Fiscal Year Ended December 2023 February 14, 2024 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents ・Financial Results Highlights for FY2023 P.4- ・Business Plan 2023 Initiatives (Summary) P.16- ・Forecast for FY2024 P.28- ・Return to Shareholders P.35- Adoption of International Financial Reporting Standards (IFRS) ・The Company voluntarily adopted the International Financial Reporting Standa
Slide 3: Financial Results Highlights (Executive Summary) - FY2023
Financial Results Highlights (Executive Summary) ・Financial Results for FY2023 Financial Results for FY2023 (IFRS) Vs. FY2022 Overview ¥(379.6) billion ➘Revenue ¥2,239.0 billion (14.5 %) ✓ International forwarding business revenues and profit decreased owing to lower gross ➘Consolidated ¥81.2 billio
Slide 4: Financial Results Highlights (Executive Summary) - Forecast for FY2024
Financial Results Highlights (Executive Summary) ・Forecast for FY2024 Financial Results Forecast for FY2024 (IFRS) Vs. FY2022 Overview +¥260.9 billion ➚Revenue ¥2,500.0 billion +11.7 % ✓ We expect the business environment to ➞Consolidated remain a challenge. However, we +¥3.7 billion Segment Income
Slide 5: Financial Results Highlights for FY2023
Financial Results Highlights for FY2023 A. Financial Results for FY2023 P.5- B. Breakdown of Revenues and Operating Income P.7- C. Financial Results for FY2023 (QoQ) P.9- D. Air Forwarding Gross Profit P.11- E. Ocean Forwarding Gross Profit P.13 F. By Segment Quarterly P.14- Financial Results Presen
Slide 6: Financial Results for FY2023
I. Financial Results Highlights for FY2023 A FY2023 Results (100 million yen, %) (rounded down to 100 million yen) Previous Full-Year Prior-Year Item Difference Difference Forecast Difference Results Results Difference YoY YoY (%) *Announced (%) (Jan-Dec 2023) (Jan-Dec 2022) November 13 Revenues 22,
Slide 7: Financial Results for FY2023 (by Segment)
I. Financial Results Highlights for FY2023 A Financial Results for FY2023 (by Segment) (100 million yen, %) (rounded down to 100 million yen) Previous Difference Prior-Year Difference Difference Segment Item 2023 Results Forecast (%) Results YoY YoY (%) Difference (Jan-Dec 2023) *Announced (Jan-Dec
Slide 8: Breakdown of Revenues
I. Financial Results Highlights for FY2023 B Breakdown of Revenues and Operating Income Revenues (100 million yen) Impact of Impact of Impact of ★Revenue from foreign exchange COVID-19 Ukraine business activities 28,000 ⇧540 ⇩526 ⇧25 ⇩3,835 25,000 22,000 19,000 26,186 16,000 22,390 13,000 ¥(379.6) b
Slide 9: Breakdown of Operating Income
I. Financial Results Highlights for FY2023 ⇩84 B Breakdown of Revenues and Operating Income Operating Income (100 million yen) Accounting ★ Domestic standard difference Business 1,600 +268 ⬇329 Reversal of Impact of Overseas Impact of liability for Increase COVID-19 1,400 Business non-current Impact
Slide 10: FY2023 Results (Q4 vs. Q3)
I. Financial Results Highlights for FY2023 C FY2023 Results (Q4, FY2023 vs. Q3, FY2023) (100 million yen, %) (rounded down to 100 million yen) Q4 Results Q3 Results Difference Difference Item (Oct-Dec 2023) (Jul-Sep 2023) YoY YoY (%) Revenues 5,636 5,434 201 3.7 Segment Income 208 181 27 15.2 (Busin
Slide 11: Performance by Segment (Q4 vs. Q3)
I. Financial Results Highlights for FY2023 C Performance by Segment (Q4, FY2023 vs. Q3, FY2023） (100 million yen, %) (rounded down to 100 million yen) Q4 Previous Segment Item Q4 Results Q3 Results Difference Difference Forecast Difference Difference (%) (Oct-Dec 2023) (Jul-Sep 2023) QoQ QoQ (%) (An
Slide 12: Air Forwarding Gross Profit: Japan Segment
I. Financial Results Highlights for FY2023 D Air Forwarding Gross Profit: Japan Segment ✓ Volume increased slightly over Q3, FY2023. Gross profit per ton also improved due to stronger space management and sales price negotiations. ✓ Gross profit impact was -29.4% (-4.8 billion yen) YoY and +5.7% (+0
Slide 13: Air Forwarding Gross Profit: Overseas Segment
I. Financial Results Highlights for FY2023 D Air Forwarding Gross Profit: Overseas Segment ✓ Gross profit per ton declined due to rising air freight rates from Asia in East Asia and lower unit sales prices in Europe due to price competition. ✓ Although volume increased QoQ, gross profit declined QoQ
Slide 14: Ocean Forwarding Gross Profit: Japan and Overseas Segments
I. Financial Results Highlights for FY2023 E Ocean Forwarding Gross Profit: Japan and Overseas Segments ✓ Gross profit per TEU improved compared with Q3 in Japan and overseas amid rising freight rates due to navigation restrictions in the Panama and the Suez Canals. ✓ Volume was slower than expected
Slide 15: By Segment Quarterly
I. Financial Results Highlights for FY2023 F By Segment Quarterly (100 million yen) Revenue * [ ] represents change YoY (100 million yen) 4,000 Logistics Japan Logistics Overseas Total Security Transportation Heavy Haulage & Construction Logistics Support 14,000 12,565 [(1,944)] 3,297 [(282)] 3,104
Slide 16: By Segment Quarterly (Overseas Regions)
I. Financial Results Highlights for FY2023 F By Segment Quarterly (Breakdown of Logistics, Overseas Regions) (100 million yen) Revenue * [ ] represents change YoY Americas Europe East Asia South Asia & Oceania (100 million yen) 600 2,000 1,926 515 [(230)] 493 [(62)] 500 449 [(64)] 467 1,576 [(71)] 4
Slide 17: Business Plan 2023 Initiatives (Summary)
Business Plan 2023 Initiatives (Summary) A. Business Plan Figures (Japanese GAAP) P.17- B. NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.19 C. Sales by Business P.20 D. Strategy to Enhance Domestic Businesses in Japan P.21 E. Back Office Cost Reductions P.22 F. Pursuing R
Slide 18: Business Plan Figures (Japanese GAAP)
II. Business Plan 2023 Initiatives (Summary) (100 million yen, %) A Business Plan Figures (Japanese GAAP) (rounded down to 100 million yen) Current-Year Results Business Plan FY2019 Difference Difference (%) Pro Forma (JGAAP) Figures 2023 Difference Difference (%) Results Item (Jan-Dec 2023) (JGAAP)
Slide 19: Business Plan Figures by Segment (JGAAP)
II. Business Plan 2023 Initiatives (Summary) A Business Plan Figures by Segment (JGAAP) (100 million yen, %) (rounded down to 100 million yen) Current Year Results Business Plan Figures 2023 Difference Segment Item Pro Forma (JGAAP) (JGAAP) Difference (Jan-Dec 2023) (%) Revenues 12,674 13,730 (1,055
Slide 20: KPIs of Growth Strategy for Core Businesses
II. Business Plan 2023 Initiatives (Summary) B NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Japan*1 Overseas Item Revenues 2023 Jan-Dec 2022 Jan-Dec Difference (%) 2023 Jan-Dec Progress 2023 Jan-Dec 2022 Jan-Dec Difference (%) 2023 Jan-Dec Progress Results Results Targets
Slide 21: Revenue by Business: FY2023
II. Business Plan 2023 Initiatives (Summary) (Millions of yen, rounded down) C Revenue by Business:FY2023 (Jan-Dec) Millions of yen, % Business Performance Highlights Difference Difference (%) Railway utilization business Nippon Express Co., Ltd. Results Vs. FY2022 Vs. FY2021* Vs. FY2022 Vs. FY2021*
Slide 22: Strategy to Enhance Domestic Businesses in Japan
II. Business Plan 2023 Initiatives (Summary) II. Improve Productivity (Continued) Strategy to Enhance Domestic ◆ Automate, streamline office work D • Pursued two pillars of RPA through FY2023: (1) RPA managed centrally by headquarters IT department and (2) Businesses in Japan Major Initiatives RPA a
Slide 23: Back Office Cost Reductions
II. Business Plan 2023 Initiatives (Summary) E Back Office Cost Reductions FY2023 FY2019 FY2020 FY2021 Results FY2022 Results FY2023 FY2023 Enhancing Japanese Results Item Results Results (Apr-Dec) (Jan-Dec) Cumulative Cumulative Progress Domestic Businesses (Jan-Dec) [YoY] [YoY] [YoY] [YoY] Results
Slide 24: Pursuing RPA and NX-OCR
II. Business Plan 2023 Initiatives (Summary) X Pursuing RPA and NX-OCR F 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
Slide 25: Impact of Employee System Reform
II. Business Plan 2023 Initiatives (Summary) X Impact of Employee System Reform G Human Resource Salary/Wage System Reinforce Workplace Evaluation System System Capabilities • Employee categories • Evaluate roles • CSR, assign health and • Competency and grade • Equal labor, equal pay safety officer
Slide 26: Business Structure Reform Project
II. Business Plan 2023 Initiatives (Summary) H Business Structure Reform Project ~ Reform and Strengthen Businesses ~ (1) Logistics Division Reform Define the functions required to launch new facilities as an initiative to provide optimal end-to-end logistics solutions. Established the Logistics Bus
Slide 27: ESG Management
II. Business Plan 2023 Initiatives (Summary) I ESG Management Target CO2 emissions reductions vs. FY2017 FY2021 FY2022 FY2023 FY2023 FY2017 FY2019 FY2020 Apr-Dec Jan-Dec Jan-Dec (preliminary) 290,779t 395,436t 350,000t 468,069t 414,884t 401,580t 404,438t (118,069t) (Prior-year results: (63,631t) Ind
Slide 28: Business Plan Initiatives for Achieving Our Long-Term Vision
II. Business Plan 2023 Initiatives (Summary) J Business Plan Initiatives for Achieving Our Long-Term Vision ~ FY2023 Numerical Targets Accelerate Reform Through a Holding Revenues, operating income (margin), net income, overseas revenues, Company Structure A logistics company with a strong ROE, FWD
Slide 29: Financial Results Forecast for FY2024
Financial Results Forecast for FY2024 A. Forecast for FY2024 P.29- B. Forecast for FY2024 (by Segment) P.31- C. Breakdown of Revenues and Operating Income P.33- Financial Results Presentation for 28 Fiscal Year Ended December 2023 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.
Slide 30: Forecast for FY2024
III. Financial Results Forecast for FY2024 A Forecast for FY2024 (100 million yen, %) (rounded down to 100 million yen) Item Full-Year Forecast Prior-Year Results Difference Difference (Jan-Dec 2024) (Jan-Dec 2023) YoY YoY (%) Revenues 25,000 22,390 2,609 11.7 Segment Income 850 812 37 4.6 (Business
Slide 31: FY2024 First Half and Second Half Forecasts
III. Financial Results Forecast for FY2024 A FY2024 First Half and Second Half Forecasts (100 million yen, %) (rounded down to 100 million yen) Prior Year Prior Year Item 1H Forecast Difference Difference 2H Forecasts Difference Difference 1H Results 2H Results (Jan-Jun 2024) YoY YoY (%) (Jul-Dec 20
Slide 32: Performance by Segment (Full Year Forecast)
III. Financial Results Forecast for FY2024 B Performance by Segment (Full Year) (100 million yen, %) (rounded down to 100 million yen) Segment Item Full-Year Forecast Prior-Year Results Difference Difference (Jan-Dec 2024) (Jan-Dec 2023) YoY YoY (%) Revenues 12,330 12,565 (235) (1.9) Japan Segment I
Slide 33: Forecasts by Reportable Segment (1H, 2H)
III. Financial Results Forecast for FY2024 B Forecasts by Reportable Segment (1H, 2H) (100 million yen, %) (rounded down to 100 million yen) Prior Year Prior Year Segment Item 1H Forecast Difference Difference 2H Forecasts Difference Difference 1H Results 2H Results (Jan-Jun 2024) YoY YoY (%) (Jul-D
Slide 34: Breakdown of Revenues (FY2024 Forecast)
III. Financial Results Forecast for FY2024 C Breakdown of Revenues and Operating Income Revenues (100 million yen) 28,000 Decrease in Impact of Heavy foreign cargo- Security Logistics adjustment Haulage & exchange partner transportation Support amount Construction ⇧112 ⇧2,092 ⇧1 ⇧191 ⇧259 25,000 ⇩11
Slide 35: Breakdown of Operating Income (FY2024 Forecast)
III. Financial Results Forecast for FY2024 ⇩84 ⇧55 F Breakdown of Revenues and Operating Income Operating Income (100 million yen) 1,000 M&A-related expenses (Rebound 900 Brand-related increase) ⇧29 expenses (Rebound Prior-year increase) 800 impairmen ⇧68 Other Decrease in Impact of t (rebound Disma
Slide 36: Return to Shareholders
Return to Shareholders A. Capital Policies P.36 B. Key Indicators P.36 Financial Results Presentation for 35 Fiscal Year Ended December 2023 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.
Slide 37: Return to Shareholders
IV. Return to Shareholders A Capital Policies • ROE: 10％ • ROE: Over 10 % • Dividend payout ratio: Over 30% • Dividend payout ratio: Over 40% • Total return ratio: Over 50% • Total return ratio: Over 55% (cumulative total FY2019-FY2023) (cumulative total FY2024-FY2028) B Key Indicators • Equity rati
Slide 38: the Company’s shares. are based on the Company’s assumptions, judgments and beliefs in light
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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