Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q3 2022 Earnings Presentation
51 slides from Nippon Express's earnings presentation, Nov 9, 2022
Slide 1: Financial Results Presentation for Q3, Fiscal Year Ending December 2022
Financial Results Presentation for Q3, Fiscal Year Ending December 2022 November 9, 2022 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents I. Financial Results for Q3, FY2022 III. Challenges of the Business Plan A. NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.25 Regarding Presentation of Fiscal Year Ended December 2021 (Previous Year) Results P.2 B. Sales by Business P.26 A. Financial Results for J
Slide 3: Regarding Presentation of Fiscal Year Ended December 2021 Results
I. Financial Results for Q3, 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 resu
Slide 4: Financial Results for Jan-Sep, FY2022
I. Financial Results for Q3, FY2022 A Financial Results for Jan-Sep, FY2022 (100 million yen, %) (rounded down to 100 million yen) Overview (Consolidated, Key Consolidated Business Indicators) Prior-Year Results Item Current-Year Results Difference Difference (Jan-Sep 2021) (Jan-Sep 2022) YoY YoY (%
Slide 5: Japan and Overseas Results
I. Financial Results for Q3, FY2022 B Japan and Overseas Results (100 million yen, %) (rounded down to 100 million yen) Prior-Year Results Segment Item Current-Year Results Difference Difference (Jan-Sep 2021) (Jan-Sep 2022) YoY YoY (%) Pro Forma Revenues 14,809 13,548 1,261 9.3 Japan Total Segment
Slide 6: Results by Reportable Segment (YoY for Jan-Sep)
I. Financial Results for Q3, FY2022 C Results by Reportable Segment (YoY for Jan-Sep) (100 million yen, %) (rounded down to 100 million yen) Prior-Year Current-Year Current-Year Current-Year Current-Year Segment Item Results Difference Difference Results Results Results Results (Jan-Sep 2021) YoY Yo
Slide 7: Results by Reportable Segment (YoY)
I. Financial Results for Q3, FY2022 D Results by Reportable Segment (YoY) (100 million yen, %) (rounded down to 100 million yen) Segment Item Current-Year Results Prior-Year Results Difference Difference (Jul-Sep 2022) (Jul-Sep 2021) YoY YoY (%) Revenues 3,691 3,240 451 13.9 Japan Segment Income 153
Slide 8: Breakdown of Revenues
I. Financial Results for Q3, FY2022 E Breakdown of Revenues and Operating Income 1) Revenues Jan-Dec 2020 Jan-Dec 2021 800 (99) +744 ★ Revenue increase ★Breakdown of revenue from (100 million yen) from business 600 business activities by segment activities 20,000 400 ⇧110 ⇧217 ⇧217 ⇧248 ⇧2,415 ⚫ Jap
Slide 9: Breakdown of Operating Income
I. Financial Results for Q3, FY2022 ⇩84 E Breakdown of Revenues and Operating Income 2) Operating income 1,100 (100 million yen) Adjustment of Impact of Adjustments prior-period foreign 1,050 differences in Impact of ⇩28 exchange provision for Environment Ukraine Increase 1,000 ⇧32 retirement invest
Slide 10: Forecast for FY2022
II. Financial Results Forecast for FY2022 A Forecast for FY2022 (100 million yen, %) (rounded down to 100 million yen) Prior-Year Full-Year Previous Item Difference Difference Results Difference Difference Forecast Forecast YoY YoY (%) (Jan-Dec 2021) YoY YoY (%) (Jan-Dec 2022) (Jan-Dec 2022) Pro For
Slide 11: Forecast for FY2022 2H
II. Financial Results Forecast for FY2022 B Forecast for FY2022 2H (100 million yen, %) (rounded down to 100 million yen) Revised 2H 2H Forecast Prior-Year Item Difference Difference Difference Difference Forecast (Announced Results YoY YoY (%) YoY YoY (%) (Jul-Dec 2022) August 10) (Jul-Dec 2021) Re
Slide 12: Japan and Overseas Results Forecast
II. Financial Results Forecast for FY2022 C Japan and Overseas Results Forecast (100 million yen, %) (rounded down to 100 million yen) Prior-Year Results Segment Item Forecast (Jan-Dec Difference Difference (Jan-Dec 2021) 2022) YoY YoY (%) Pro Forma Revenues 19,910 18,458 1,451 7.9 Japan Total Segme
Slide 13: Forecasts by Reportable Segment (Jan-Dec)
II. Financial Results Forecast for FY2022 D Forecasts by Reportable Segment (Jan-Dec) (100 million yen, %) (rounded down to 100 million yen) Prior-Year Previous Full-Year Results Difference Difference Forecast Difference Difference Segment Item Forecast (Jan-Dec 2021) YoY YoY (%) (Announced YoY YoY
Slide 14: Forecasts by Reportable Segment (2H Forecast, YoY)
II. Financial Results Forecast for FY2022 E Forecasts by Reportable Segment (2H Forecast, YoY) (100 million yen, %) (rounded down to 100 million yen) Segment Item 2H Forecast Prior 2H Results Difference Difference (Jul-Dec 2022) (Jul-Dec 2021) YoY YoY (%) Revenues 7,368 6,816 551 8.1 Japan Segment I
Slide 15: Forecasts by Reportable Segment (2H vs. Previous Forecast)
II. Financial Results Forecast for FY2022 E Forecasts by Reportable Segment (2H Forecast, vs. Previous Forecast) (100 million yen, %) (rounded down to 100 million yen) Segment Item 2H Forecast Previous 2H Forecast Difference Progress (Jul-Dec 2022) (Announced August 10) YoY YoY (%) Revenues 7,368 7,
Slide 16: Breakdown of Revenues (Forecast)
II. Financial Results Forecast for FY2022 F Breakdown of Revenues and Operating Income 1) Revenues ★ Revenue increase (100 million yen) Impact of from Business ★Breakdown of revenue from revenue activities business activities by segment 27,000 recognition Impact of the NX ⇧2,543 ⚫ Japan: 1,196 Impac
Slide 17: Breakdown of Operating Income (Forecast)
II. Financial Results Forecast for FY2022 F Breakdown of Revenues and Operating Income ⇩84 2) Operating income 1,400 (100 million yen) Impact of foreign Employment Rebound system reform Decrease in increase of exchange ⇩11 provision for HQ relocation ⇧46 Increase Impact of 1,300 retirement expenses
Slide 18: Segment Overview for FY2022 Japan Segment
II. Segment Overview for FY2022 Japan Segment (100 million yen, %) Vs. FYE Dec 2021 FY2022 July-September 2022 Highlights 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) Air and ocean export freight businesses saw a decline in volume due to a drop in demand Quarterly Revenues 3,691 3,2
Slide 19: Segment Overview for FY2022 The Americas Segment
II. Segment Overview for FY2022 The Americas Segment (100 million yen, %) Vs. FYE Dec 2021 FY2022 July-September 2022 Highlights 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) Air export freight forwarding volume declined, while congestion at ports and inland rail Quarterly Revenues 4
Slide 20: Segment Overview for FY2022 Europe Segment
II. Segment Overview for FY2022 Europe Segment (100 million yen, %) Vs. FYE Dec 2021 July-September 2022 Highlights FY2022 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) Although air export freight forwarding volume declined year on year, unit sales Quarterly Revenues 539 425 113 26.7
Slide 21: Segment Overview for FY2022 East Asia Segment
II. Segment Overview for FY2022 East Asia Segment (100 million yen, %) FY2022 Vs. FYE Dec 2021 July-September 2022 Highlights 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) Revenues 669 544 125 23.0 Air export freight forwarding saw a decrease in volume due to weak demand Quarterly Op
Slide 22: Segment Overview for FY2022 South Asia & Oceania Segment
II. Segment Overview for FY2022 South Asia & Oceania Segment (100 million yen, %) Vs. FYE Dec 2021 FY2022 July-September 2022 Highlights 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) Air export freight forwarding volume declined due to a decrease in cargo bound Quarterly Revenues 559
Slide 23: Segment Overview for FY2022 Security Transportation Segment
II. Segment Overview for FY2022 Security Transportation Segment (100 million yen, %) FY2022 Vs. FYE Dec 2021 July-September 2022 Highlights 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) Revenues 170 171 (0) (0.5) Although we acquired new business, including intra-bank processing and
Slide 24: Segment Overview for FY2022 Heavy Haulage & Construction Segment
II. Segment Overview for FY2022 Heavy Haulage & Construction Segment (100 million yen, %) FY2022 Vs. FYE Dec 2021 July-September 2022 Highlights 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) 114 We saw signs of resolution for the third quarter to delays in construction progress Quart
Slide 25: Segment Overview for FY2022 Logistics Support Segment
II. Segment Overview for FY2022 Logistics Support Segment (100 million yen, %) Vs. FYE Dec 2021 FY2022 July-September 2022 Highlights 1 Item Jul-Sep Results FYE Dec 2021 Difference Difference (%) Contributing factors to the increase in revenues and profits included higher unit Quarterly Revenues 975
Slide 26: NX Group Business Plan 2023 KPIs of Growth Strategy for Core Business
III. Challenges of the Business Plan Ａ NX Group Business Plan 2023 KPIs of Growth Strategy for Core Business Japan*1 Overseas Item 2022 2021 2022 2022 2021 2022 Revenues Difference Difference Jan-Sep Jan-Sep Jan-Dec Progress Jan-Sep Jan-Sep Jan-Dec Progress (%) (%) Results Results Targets Results Re
Slide 27: Sales by Business: FY2022 (Jan-Sep)
III. Challenges of the Business Plan B Sales by Business: FY2022 (Jan-Sep) Millions of yen,％ (Millions of yen, rounded down) Difference Difference (%) Domestic Business Nippon Express Co., Ltd. • Results Vs. FYE Vs. FYE In the third quarter, the lifting of lockdowns in China (Shanghai) led to a Resu
Slide 28: Strategy to Enhance Domestic Businesses in Japan: Major Initiatives
III. Challenges of the Business Plan C Strategy to Enhance Domestic Businesses in Japan Major Initiatives 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 29: Strategy to Enhance Domestic Businesses in Japan: Business Structure Reform
III. Challenges of the Business Plan C Strategy to Enhance Domestic Businesses in Japan Ⅴ. Business Structure Reform Project Initiatives (Six Categories) (1) Logistics Division Reform Optimize and improve functions of SCM by customer Make a positive contribution to customers, designing optimal logis
Slide 30: Progress in FY2022 Back Office Cost Reductions
III. Challenges of the Business Plan D Progress in FY2022 Back Office Cost Reductions (as of September 30, 2022) Enhancing FY2019 FY2020 FYE Dec FY2022 FY2022 FY2022 FY2022 2021 Results Results Japanese Domestic FY2023 Target Item Results Results September Target Cumulative (Apr-Dec) (Jan-Sep) Busin
Slide 31: Business Plan Initiatives for Achieving Our Long-Term Vision
III. Challenges of the Business Plan E Business Plan (FY2022-FY2023) Initiatives for Achieving Our Long-Term Vision FY2022 - FY2023 Numerical Targets Birth of the NX Group Revenues, operating income (margin), net income, overseas revenues, A logistics company with a strong ROE, FWD volume Accelerate
Slide 32: 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 500 200
Slide 33: Major Special Factors and Future Outlook for FY2022
(Reference) Major Special Factors and Future Outlook (Operating Income Change Factors) for FY2022 Breakdown of Operating Income 1,400 (100 million yen) 1,300 FY2022 COVID-19 Impact Actual 1,200 Forecast Major Variables Factors Expected in 2023 ⇩252 Adjustment of prior-period *Excluding normal change
Slide 34: 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 35: 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-Sep results) (12-month forecast) Operating income ¥(2.53) billion Operating income ¥(2.81) billion (cost increase) (cost increase)
Slide 36: 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-Sep results) (12-month forecast) Change due to employee system Operating income ¥(0.86) billion Operating income ¥(1.11) billion r
Slide 37: 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-Sep results) (12-month forecast) Adjustment of prior- Operating Income period differences in +¥2.51 billion provision for retireme
Slide 38: 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-Sep results) (12-month forecast) Impact of revenue Revenues recognition standard to decrease sales ¥(12.52) billion Logistics Supp
Slide 39: 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 Total: 192,431 tons 26.6% 25.4% 25.6% 24.1% 24.3% 25.0% 28.0%
Slide 40: 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 41: 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 42: Air Export Freight Forwarding Gross Profit by Quarter
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 43: 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% 60 46.7% 46.5% 60 46.5% 40.0% 40.0% 43.8% 42.5% 42.0% 42.3% 42.1% 34.3% 40 40 25.8% 24.2% 24
Slide 44: 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 Item Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jul-Dec Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-
Slide 45: Nippon Express FY2022 Results and Forecasts: Revenues
Appendix 3: Nippon Express FY2022 Results and Forecasts Jan-Sep Results Oct-Dec Forecast A. Revenues Change Oct-Dec 2022 Change Jan-Sep 2022 % of Jan-Sep 2021 % of % of Oct-Dec 2021 % of (Unit: Millions of yen,%) Amount Ratio Forecast Amount Ratio Sales Sales Sales Sales Railway utilization business
Slide 46: Nippon Express FY2022 Results and Forecasts: Operating Expenses
Appendix 3: Nippon Express FY2022 Results and Forecasts Jan-Sep Results Oct-Dec Forecast B. Operating expenses Change Change (Unit: Millions of yen,%) Jan-Sep 2022 Jan-Sep 2021 Oct-Dec 2022 Forecast Oct-Dec 2021 % of % of % of % of Amount Ratio Amount Ratio Sales Sales Sales Sales Total personnel ex
Slide 47: Non-Consolidated Profit Factors (Jan-Sep)
Appendix 3: Nippon Express FY2022 Jan-Sep Results Non-Consolidated Profit Factors (100 million yen) (rounded down to 100 million yen) *Increase and decrease in the graph is on an income basis Revenue Increase in increase forwarding costs ＋1,113 (775) Increase in vehicle chartering and Impact of Decr
Slide 48: Nippon Express FY2022 Jan-Dec Forecasts: Revenues
Appendix 3: Nippon Express FY2022 Jan-Dec Forecasts A. Revenues (Unit: Millions of yen,%) Change Jan-Dec 2022 Forecast % of Jan-Dec 2021 % of Amount Ratio Sales Sales Railway utilization business 68,000 5.0 68,828 5.5 (828) (1.2) Small-lot shipment business 37,600 2.8 41,060 3.3 (3,460) (8.4) Automo
Slide 49: Nippon Express FY2022 Jan-Dec Forecasts: Operating Expenses
Appendix 3: Nippon Express FY2022 Jan-Dec Forecasts B. Operating expenses (Unit: Millions of yen,%) Change Jan-Dec 2022 Forecast Jan-Dec 2021 % of % of Sales Sales Amount Ratio Total personnel expenses 252,100 18.5 260,681 21.0 (8,581) (3.3) Railway forwarding costs 36,800 2.7 37,532 3.0 (732) (2.0)
Slide 50: Non-Consolidated Profit Factors (Jan-Dec Forecast)
Appendix 3: Nippon Express FY2022 Jan-Dec Forecasts Non-Consolidated Profit Factors (100 million yen) (rounded down to 100 million yen) Revenue Increase in *Increase and decrease in the graph is on an income basis increase forwarding costs ＋1,227 (886) Increase in vehicle chartering and Decrease in
Slide 51: Company’s shares. based on the Company’s assumptions, judgments and beliefs in light of the
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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