Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q3 2023 Earnings Presentation
36 slides from Nippon Express's earnings presentation, Nov 13, 2023
Slide 1: Financial Results Presentation for Q3, Fiscal Year Ending December 2023
Financial Results Presentation for Q3, Fiscal Year Ending December 2023 November 13, 2023 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents ・Financial Results Highlights for Q3, FY2023 P.4- ・Financial Results Forecast for FY2023 (IFRS) P.14- ・Status of Business Plan Initiatives P.25- ・Return to Shareholders P.33- Adoption of International Financial Reporting Standards (IFRS) ・The Company voluntarily adopted the International Fi
Slide 3: Financial Results Highlights (Executive Summary) - Q3 FY2023
Financial Results Highlights (Executive Summary) ・Financial Results for Q3, FY2023 Financial Results for Q3, FY2023 (IFRS) Vs. FY2022 Overview ¥(287.1) billion ➘Revenue ¥1,675.3 billion (14.6 %) ✓ Revenues and profit decreased both overseas and in Japan, mainly due to lower ➘Consolidated ¥60.3 billi
Slide 4: Financial Results Highlights (Executive Summary) - Forecast for FY2023
Financial Results Highlights (Executive Summary) ・Forecast for FY2023 Financial Results Forecast for FY2023 (IFRS) * Vs. FY2022 Overview ¥(348.6) billion ➘Revenue ¥2,270.0 billion ✓ All profit measures listed below the full-year forecasts (13.3 %) for revenue and operating income announced on ➘Conso
Slide 5: Financial Results Highlights for Q3, FY2023
Financial Results Highlights for Q3, FY2023 A. Financial Results for Jan-Sep, FY2023 P.5 B. Breakdown of Revenues and Operating Income P.7- C. Nippon Express Co., Ltd. Revenue by Business P.9 D. Performance by Segment (QoQ) P.10 E. Air Forwarding Gross Profit P.11- F. Ocean Forwarding Gross Profit P
Slide 6: Financial Results for Jan-Sep, FY2023
I. Financial Results Highlights for Q3, FY2023 A Financial Results for Jan-Sep, FY2023 (100 million yen, %) (rounded down to 100 million yen) Current-Year Item Prior-Year Results Difference Difference Results (Jan-Sep 2022) YoY YoY (%) (Jan-Sep 2023) Revenues 16,753 19,624 (2,871) (14.6) Consolidate
Slide 7: Results by Reportable Segment (YoY for Jan-Sep)
I. Financial Results Highlights for Q3, FY2023 A Results by Reportable Segment (YoY for Jan-Sep) (100 million yen, %) (rounded down to 100 million yen) Segment Item 2023 Results Prior-Year Results Difference Difference (Jan-Sep 2023) (Jan-Sep 2022) YoY YoY (%) Revenues 9,433 10,903 (1,469) (13.5) Ja
Slide 8: Breakdown of Revenues
I. Financial Results Highlights for Q3, FY2023 B Breakdown of Revenues and Operating Income Revenue (100 million yen) 22,000 Impact of foreign Impact of ★Revenue from exchange Impact of COVID-19 business activities ⇧416 Ukraine ⇩434 ⇩2,868 20,000 ⇧14 18,000 16,000 19,624 14,000 16,753 12,000 ¥(287.1
Slide 9: Breakdown of Operating Income
I. Financial Results Highlights for Q3, FY2023 ⇩84 B Breakdown of Revenues and Operating Income Operating Income (100 million yen) Accounting ★ Domestic standard difference Business 1,600 +567 ⬇225 Impact of Overseas Impact of non-current Impact of Increase in COVID-19 Business Real foreign Environm
Slide 10: Nippon Express Co., Ltd. Revenue by Business
I. Financial Results Highlights for Q3, FY2023 C Nippon Express Co., Ltd. Revenue by Business Business Performance Highlights Unit: Millions of yen, % Small-Lot Shipment Business Nippon Express Co., Ltd. Difference Difference (%) Although we saw a mild recovery in heavy industry and chemical Results
Slide 11: Performance by Segment (Q3 vs. Q2, FY2023)
I. Financial Results Highlights for Q3, FY2023 D Performance by Segment (Q3, FY2023 vs. Q2, FY2023） (100 million yen, %) (rounded down to 100 million yen) Segment Item Q3 Results Q2 Results Difference Difference (Jul-Sep 2023) (Apr-Jun 2023) (%) Revenues 3,031 3,104 (73) (2.4) Japan Segment Income (
Slide 12: Air Forwarding Gross Profit: Japan Segment
I. Financial Results Highlights for Q3, FY2023 E Air Forwarding Gross Profit: Japan Segment ✓ Despite weak demand, the supply of space continued to expand in Q3, resulting in lower gross profit per ton. ✓ The impact on gross profit impact was -36.9% (-6.4 billion yen) YoY and -12.6% (-1.5 billion ye
Slide 13: Air Forwarding Gross Profit: Overseas Segment
I. Financial Results Highlights for Q3, FY2023 E Air Forwarding Gross Profit: Overseas Segment ✓ We maintained gross profit per ton as global international freight demand recovers ✓ Gross profit impact was -26.3% (-5.3 billion yen) in YoY and +1.2% (+0.1 billion yen) QonQ Air Export Freight Volume a
Slide 14: Ocean Forwarding Gross Profit: Japan and Overseas Segments
I. Financial Results Highlights for Q3, FY2023 F Ocean Forwarding Gross Profit: Japan and Overseas Segments ✓ Gross profit per TEU declining in Japan and overseas. ✓ Volume in Japan continues to fall below the previous year’s level, but volume overseas is recovering. Volume (Japan) Volume (Overseas)
Slide 15: Financial Results Forecast for FY2023 (IFRS)
Financial Results Forecast for FY2023 (IFRS) A. Forecast for FY2023 P.15- B. Forecast for FY2023 (Q3 vs. Q4) P.18- C. Breakdown of Revenues and Operating Income P.20- D. Change in Business Profit by Segment P.22 E. By Segment Quarterly P.23- Financial Results Presentation for Q3, 14 Fiscal Year Endi
Slide 16: Forecast for FY2023
II. Financial Results Forecast for FY2023 (IFRS) A Forecast for FY2023 (100 million yen, %) (rounded down to 100 million yen) Previous Full-Year Prior-Year Forecast Difference Difference Difference Item Forecast Results YoY YoY (%) (Jan-Dec 2023) Difference (%) (Jan-Dec 2023) (Jan-Dec 2022) *Announc
Slide 17: Forecast for FY2023 (1H, 2H)
II. Financial Results Forecast for FY2023 (IFRS) A Forecast for FY2023 (1H, 2H) (100 million yen, %) (rounded down to 100 million yen) Full-Year Prior Year Prior Year Prior-Year 1H Results 2H Forecasts Item (Jan-Jun 2023) (Jul-Dec 2023) Forecast 1H Results 2H Results Results (Jan-Dec 2023) (Jan-Jun
Slide 18: Forecasts by Reportable Segment
II. Financial Results Forecast for FY2023 (IFRS) A Forecasts by Reportable Segment (Jan-Dec) (100 million yen, %) (rounded down to 100 million yen) Previous Full-Year Prior-Year Difference Difference Forecast Difference Segment Item Forecast Results YoY YoY (%) *Announced Difference (%) (Jan-Dec 202
Slide 19: Forecast for FY2023 (Q4 vs. Q3)
II. Financial Results Forecast for FY2023 (IFRS) B Forecast for FY2023 (Q4, FY2023 vs. Q3, FY2023） (100 million yen, %) (rounded down to 100 million yen) Q4 Forecast Q3 Results Difference Item (Oct-Dec 2023) (Jul-Sep 2023) Difference (%) Revenues 5,946 5,434 511 9.4 Segment Income 246 181 64 35.8 (B
Slide 20: Performance by Segment (Q4 Forecast vs. Q3)
II. Financial Results Forecast for FY2023 (IFRS) B Performance by Segment (Q4, FY2023 vs. Q3, FY2023） (100 million yen, %) (rounded down to 100 million yen) Q4 Forecast Q3 Results Difference Segment Item Difference (Oct-Dec 2023) (Jul-Sep 2023) (%) Revenues 3,214 3,031 183 6.1 Japan Segment Income 1
Slide 21: Breakdown of Revenues (FY2022 to FY2023 Forecast)
II. Financial Results Forecast for FY2023 (IFRS) C Breakdown of Revenues and Operating Income Revenue (100 million yen) Impact of foreign Impact of ★Revenue from Impact of 28,000 exchange COVID-19 business activities Ukraine ⇧448 ⇩526 ⇧25 ⇩3,434 25,000 22,000 26,186 19,000 ¥(348.6) billion 22,700 16
Slide 22: Breakdown of Operating Income (FY2022 to FY2023 Forecast)
II. Financial Results Forecast for FY2023 (IFRS) ⇩84 C Breakdown of Revenues and Operating Income Operating Income (100 million yen) Breakdown of segment income (business profit) 1,800 Accounting ¥(52.5) billion ¥(28.9) billion 1,700 standard difference ★ Domestic Business 1,600 +268 ⬇280 1,500 Over
Slide 23: Change in Business Profit by Segment
II. Financial Results Forecast for FY2023 (IFRS) ⇩84 D Change in Business Profit by Segment (Previous Announcement vs. Revised Announcement) Business Profit (100 million yen) 1,300 Overseas Segment 1,200 Overseas (23) Segment Heavy (8) 1,100 Difference Details Haulage & Japan The Americas: (6) Heavy
Slide 24: By Segment Quarterly
II. Financial Results Forecast for FY2023 (IFRS) E 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 12,648 3,297 [(1,861)] 3,104 3,
Slide 25: By Segment Quarterly (Overseas Regions)
II. Financial Results Forecast for FY2023 (IFRS) E By Segment Quarterly (Breakdown of Logistics, Overseas Regions) (100 million yen) Revenue * [ ] represents change YoY (100 million yen) 600 Americas Europe East Asia South Asia & Oceania 2,000 1,864 493 [(293)] 500 449 [(64)] 467 452 1,593 [(32)] [(
Slide 26: Status of Business Plan Initiatives
Status of Business Plan Initiatives A. Status of Business Plan 2023 Initiatives P.26- B. NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.28 C. Strategy to Enhance Domestic Businesses in Japan P.29 D. Back Office Cost Reductions Progress (as of September 30, 2023) P.30 E. Bu
Slide 27: Business Plan Figures (Japanese GAAP)
III. Status of Business Plan Initiatives (100 million yen, %) A Business Plan Figures (Japanese GAAP) (rounded down to 100 million yen) Current-Year *Forecast Results Progress FY2019 Pro Forma Business Plan Difference Difference (%) Pro Forma (Vs Business Difference Progress (%) Results (JGAAP) Figu
Slide 28: Business Plan Figures by Segment (JGAAP)
III. Status of Business Plan Initiatives (100 million yen, %) A Business Plan Figures by Segment (JGAAP) (rounded down to 100 million yen) *Forecast Current-Year Results Business Plan Pro Forma Difference Segment Item Pro Forma (JGAAP) Progress Figures 2023 Difference (JGAAP) (%) (Jan-Sep 2023) (JGA
Slide 29: NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses
III. Status of Business Plan Initiatives B NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Japan*1 Overseas Item Revenues 2023 Jan-Sep 2022 Jan-Sep Difference 2023 Jan-Dec 2023 Jan-Sep 2022 Jan-Sep Difference 2023 Jan-Dec Progress Progress Results Results (%) Targets Results
Slide 30: Strategy to Enhance Domestic Businesses in Japan
III. Challenges of the Business Plan II. Improve Productivity (Continued) ◆ Automate, streamline office work C Strategy to Enhance Domestic Major Initiatives • Reduce a cumulative total of 2,150,000 hours (annualized) by the end of FY2023 through the Businesses in Japan two pillars of RPA: (1) RPA m
Slide 31: Back Office Cost Reductions Progress
III. Challenges of the Business Plan D Back Office Cost Reductions Progress (as of September 30, 2023) FY2021 FY2022 FY2023 Cumulative FY2019 FY2020 FY2023 FY2023 Enhancing Japanese Results Results Results Through FY2023 Item Results Results Cumulative Cumulative Domestic Businesses (Apr-Dec) (Jan-D
Slide 32: Business Structure Reform Project
III. Status of Business Plan Initiatives E 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 collect
Slide 33: Business Plan Initiatives for Achieving Our Long-Term Vision
III. Status of Business Plan Initiatives F 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 volu
Slide 34: Return to Shareholders
Return to Shareholders A. Capital Policies P.34 B. Key Indicators P.34 Financial Results Presentation for Q3, 33 Fiscal Year Ending December 2023 Copyright © 2023 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.
Slide 35: 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 FY2019-FY2023) • Equity ratio: Target 35% B Key Indicators (100 million yen) Total dividend Treasury share acquisition Dividend payout ratio Total return ratio
Slide 36: 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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