Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q1 2022 Earnings Presentation
46 slides from Nippon Express's earnings presentation, May 12, 2022
Slide 1: Financial Results Presentation for Q1, Fiscal Year Ending December 2022
Financial Results Presentation for Q1, Fiscal Year Ending December 2022 May 12, 2022 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents I. Financial Results for Q1, FY2022 III. Challenges of the Business Plan Regarding Presentation of Fiscal Year Ended December 2021 (Previous Year) Results P.2 A. NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.24 A. Financial Results for Jan-Mar, FY2022 P.3 B. Sale
Slide 3: Presentation of Fiscal Year Ended December 2021 Results
I. Financial Results for Q1, 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-Mar, FY2022
I. Financial Results for Q1, FY2022 A Financial Results for Jan-Mar, FY2022 (100 million yen, %) (rounded down to 100 million yen) Overview (Consolidated, Key Consolidated Business Indicators) Prior-Year Current-Year Item Results Difference Difference Progress Results 1H Forecast Difference (Jan-Mar
Slide 5: Japan and Overseas Results
I. Financial Results for Q1, FY2022 B Japan and Overseas Results (not including adjustments) (100 million yen, %) (rounded down to 100 million yen) Prior-Year Results Difference Segment Item Current-Year Results Difference (Jan-Mar 2021) YoY (%) (Jan-Mar 2022) YoY * Pro Forma Revenues 4,906 4,832 73
Slide 6: Financial Results by Segment, Jan-Mar FY2022
I. Financial Results for Q1, FY2022 C Financial Results for Jan-Mar, FY2022 (100 million yen, %) (rounded down to 100 million yen) Prior-Year Results Difference Segment Item Current-Year Results (Jan-Mar 2021) Difference (Jan-Mar 2022) YoY YoY (%) * Pro Forma Revenues 3,599 3,299 299 9.1 Japan Segme
Slide 7: Reference: Performance by Segment
I. Financial Results for Q1, FY2022 *Reference (Quarterly Results) D Reference: Performance by Segment (Oct-Dec 2021 vs. Jan-Mar 2022) (100 million yen, %) (rounded down to 100 million yen) Segment Item Current-Year Results Prior-Year Results Difference Difference (Jan-Mar 2022) (Oct-Dec 2021) YoY Y
Slide 8: Breakdown of Revenues
I. Financial Results for Q1, FY2022 E Breakdown of Revenues and Operating Income 1) Revenues Jan-Dec 2020 Jan-Dec 2021 ★ Revenue increase 800 (99) +744 (100 million yen) 600 from business ★Breakdown of revenue from activities 6,500 400 ⇧217 ⇧217 ⇧110 ⇧248 business activities by segment ⇧896 ⇩162 ⇧16
Slide 9: Breakdown of Operating Income
I. Financial Results for Q1, FY2022 ⇩84 E Breakdown of Revenues and Operating Income 2) Operating income (100 million yen) 400 Impact of Adjustment of prior- foreign Increase in Employment period differences in Environment exchange fuel costs system provision for investments ⇩9 reform retirement ben
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 Results Difference Difference Forecast Forecast Difference (%) (Jan-Dec 2021) YoY YoY (%) (Jan-Dec 2022) (Jan-Dec 2022) * Pro Forma Rev
Slide 11: First Half Results and Second Half Forecast
II. Financial Results Forecast for FY2022 B First Half Results and Second Half Forecast, Year on Year (100 million yen, %) (rounded down to 100 million yen) 1H Results Item 1H Forecast (Jan-Jun 2021) Difference Difference 2H Forecast 2H Results Difference Difference (Jan-Jun 2022) * Pro Forma YoY Yo
Slide 12: Japan and Overseas Results Forecast
II. Financial Results Forecast for FY2022 C Japan and Overseas Results Forecast (not including adjustments) (100 million yen, %) (rounded down to 100 million yen) Prior-Year Results Segment Item Forecast Difference YoY (Jan-Dec 2021) Difference YoY (Jan-Dec 2022) (%) * Pro Forma Revenues 19,457 18,4
Slide 13: Forecasts by Reportable Segment
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 Forecast Segment Item Full-Year Forecast Results Difference Difference Difference (Announced Difference (Jan-Dec 2022) (Jan-Dec 2021) YoY Y
Slide 14: Forecast Breakdown of Revenues
II. Financial Results Forecast for FY2022 E Breakdown of Revenues and Operating Income 1) Revenues ★ Revenue increase from (100 million yen) Business activities ★Breakdown of revenue from ⇧1,946 business activities by segment 24,000 Impact of ⚫ Japan: 731 23,500 Impact of Impact of revenue COVID-19
Slide 15: Forecast Breakdown of Operating Income
II. Financial Results Forecast for FY2022 E Breakdown of Revenues and Operating Income ⇩84 2) Operating income Impact of 1,200 Rebound foreign Increase in fuel increase of exchange costs (100 million yen) Employment Decrease in HQ relocation ⇧ 26 ⇩26 provision for expenses system reform retirement I
Slide 16: Japan Segment
II. Segment Overview for FY2022 1. Japan Segment (100 million yen, %) Vs. FYE Dec 2021 January-March 2022 Highlights 1 Item FY2022 Jan-Mar Results FYE Dec 2021 Difference Difference (%) Although air export freight forwarding volume declined compared with the previous year, both air and ocean freight
Slide 17: Japan Segment Forecast Change Factors
II. Segment Overview for FY2022 (Reference Materials) Japan Segment Details of Full-Year Operating Income Forecast Change Factors (vs. Previous Announcement) (100 million yen) Impact of Item Operating income change in Adjustment of accounting prior-period treatment 650 differences in ⇧15 Operating I
Slide 18: The Americas Segment
II. Segment Overview for FY2022 2. The Americas Segment (100 million yen, %) Vs. FYE Dec 2021 1 Item FY2022 Jan-Mar Results January-March 2022 Highlights FYE Dec 2021 Difference Difference (%) Quarterly Continuing from the previous fiscal year, the air transportation business saw firm cargo movement
Slide 19: Europe Segment
II. Segment Overview for FY2022 3. Europe Segment (100 million yen, %) Vs. FYE Dec 2021 January-March 2022 Highlights 1 Item FY2022 Jan-Mar Results FYE Dec 2021 Difference Difference (%) The air export freight forwarding business saw strong cargo movement for fashion-related cargo from Quarterly Ita
Slide 20: East Asia Segment
II. Segment Overview for FY2022 4. East Asia Segment (100 million yen, %) Vs. FYE Dec 2021 January-March 2022 Highlights 1 Item FY2022 Jan-Mar Results FYE Dec 2021 Difference Difference (%) Air export freight forwarding was firm for automobile-related, electric and electronics, Quarterly Results Rev
Slide 21: South Asia & Oceania Segment
II. Segment Overview for FY2022 5. South Asia & Oceania Segment (100 million yen, %) Vs. FYE Dec 2021 January-March 2022 Highlights 1 Item FY2022 Jan-Mar Results FYE Dec 2021 Difference Difference (%) Air and ocean export freight forwarding to the Americas and Japan, mainly from Quarterly Results Re
Slide 22: Security Transportation Segment
II. Segment Overview for FY2022 6. Security Transportation Segment (100 million yen, %) Vs. FYE Dec 2021 1 Item FY2022 Jan-Mar Results January-March 2022 Highlights FYE Dec 2021 Difference Difference (%) Despite the increase in volume due to the acquisition of business center operations, Quarterly R
Slide 23: Heavy Haulage & Construction Segment
II. Segment Overview for FY2022 7. Heavy Haulage & Construction Segment (100 million yen, %) Vs. FYE Dec 2021 January-March 2022 Highlights 1 Item FY2022 Jan-Mar Results FYE Dec 2021 Difference Difference (%) Revenues and profits declined year on year due to fewer large-scale projects in the current
Slide 24: Logistics Support Segment
II. Segment Overview for FY2022 8. Logistics Support Segment (100 million yen, %) Vs. FYE Dec 2021 January-March 2022 Highlights 1 Item FY2022 Jan-Mar Results FYE Dec 2021 Difference Difference (%) Although the petroleum business recorded a significant increase in revenues due to a Quarterly Results
Slide 25: NX Group Business Plan 2023 KPIs of Growth Strategy
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 Difference Difference Jan-Mar Jan-Mar Jan-Dec Progress Jan-Mar Jan-Mar Jan-Dec Progress (%) (%) Results Results Targets Results
Slide 26: Sales by Business
III. Challenges of the Business Plan B Sales by Business: FY2022 (Jan-Mar) Millions of yen,％ Nippon Express Co., Ltd. Difference Difference (%) Results Domestic Business Results by Business Vs. 2021 Vs. 2020 Vs. 2021 Vs. 2020 • In addition to the impact of the reemergence of COVID-19 infections, the
Slide 27: Strategy to Enhance Domestic Businesses in Japan
III. Deepen Integration of Land, Sea, and Air III. Challenges of the Business Plan ◆ Pursue cross-mode sales B Strategy to Enhance Domestic Businesses in Japan • Target existing 304 customers to capture business in 465 new areas, engaging in sales that cross beyond the framework of transportation mo
Slide 28: Progress in FY2022 Back Office Cost Reductions
III. Challenges of the Business Plan C Progress in FY2022 Back Office Cost Reductions (as of March 31, 2022) FYE Dec FY2022 Enhancing FY2019 FY2020 FY2022 2021 Results FYE Dec 2021 Results FY2022 Japanese Domestic FY2023 Target Item Results Results Target (Apr-Dec) Cumulative (Jan-Mar) Cumulative Bu
Slide 29: Direction Forward for Business Plan Review
III. Challenges of the Business Plan Direction Forward for Business Plan Review No major changes will be made to the plan; we will continue to work toward achieving our long-term vision. FY2022 - FY2023 A logistics company with a strong Numerical Targets presence in the global market Revenues, opera
Slide 30: 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 2019-2023) • Equity ratio: Target 35% B Key Indicators (100 million yen) Total dividend Treasury share acquisition Dividend payout ratio Total return ratio 40
Slide 31: 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 32: 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-Mar results) (12-month forecast) Operating income ¥(0.92) billion Operating income ¥(2.64) billion (cost increase) (cost increase)
Slide 33: 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-Mar results) (12-month forecast) Change due to Operating income ¥(0.47) billion Operating income ¥(1.05) billion employee system re
Slide 34: 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-Mar results) (12-month forecast) Operating income Adjustment of prior- period differences in +¥2.51 billion provision for retiremen
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-Mar results) (12-month forecast) Impact of revenue Revenues recognition standard to decrease sales ¥(12.52) billion Logistics Suppo
Slide 36: 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 （Unit：t） 30.0% FY Total: 222,247 tons FY Total:214,889 tons Total: 67,924 tons 26.6% 25.4% 25.6% 24.1% 24.3% 28.0% 100,00
Slide 37: Export Freight (Air Freight Forwarding)
Appendix 2 Forwarding Results: Export Freight (Air Freight Forwarding) 2020 2021 (Unit： t /chargeable) 2022 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full Year Jan-Mar Apr-Jun Jul-Sep Oct-Dec Total Jan-Mar Apr-Jun Jul-Sep Oct-Dec Total Japan 58,841 45,579 55,874 78,048 238,343 89,719 90,527
Slide 38: 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 39: Air Export Forwarding Gross Profit and Margin by Quarter
Appendix 2 Forwarding Results: Air Export Freight Forwarding Business Gross Profit and Gross Profit Margin by Quarter (Non-Consolidated) *Air export freight forwarding gross profit: Net sales minus air forwarding costs (international) Gross profit margin: Ratio of gross profit from international air
Slide 40: Nippon Express Revenues
Appendix 3 Nippon Express FY2022 Jan-Dec Results A. Revenues (Unit: Millions of yen,%) Change Jan-Mar 2022 % of Jan-Mar 2021 % of Amount Ratio Sales Sales Railway utilization business 16,247 4.9 17,618 5.8 (1,371) (7.8) Small-lot shipment business 9,258 2.8 10,135 3.3 (876) (8.7) Automotive Chartere
Slide 41: Operating Expenses and Profits
Appendix 3 Nippon Express FY2022 Jan-Dec Results B. Operating Expenses (Unit: Millions of yen,%) Change Jan-Mar 2022 Jan-Mar 2021 % of % of Sales Sales Amount Ratio Total personnel expenses 60,717 18.2 66,669 22.0 (5,952) (8.9) Railway forwarding costs 8,883 2.7 9,804 3.2 (921) (9.4) Forwarding cost
Slide 42: Non-Consolidated Profit Factors
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 +298 (242) Increase in vehicle chartering and subcontracting Im
Slide 43: Nippon Express Forecast Revenues
Appendix 3 Nippon Express FY2022 Jan-Dec Forecasts A. Revenues (Unit: Millions of yen,%) Change Jan-Dec 2022 % of Jan-Dec 2021 % of Forecast Amount Ratio Sales Sales Railway utilization business 67,500 5.0 68,828 5.5 (1,328) (1.9) Small-lot shipment business 39,800 3.0 41,060 3.3 (1,260) (3.1) Autom
Slide 44: Forecast Operating Expenses and Profits
Appendix 3 Nippon Express FY2022 Jan-Dec Forecasts B. Operating Expenses (Unit: Millions of yen,%) Change Jan-Dec 2022 Jan-Dec 2021 Forecast % of % of Sales Sales Amount Ratio Total personnel expenses 255,751 19.1 260,680 21.0 (4,930) (1.9) Railway forwarding costs 36,700 2.7 37,532 3.0 (832) (2.2)
Slide 45: Non-Consolidated Profit Factors 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 forwarding costs *Increase and decrease in the graph is on an income basis +977 (715) Increase in vehicle chartering and Impact of Decre
Slide 46: sale of the Company’s shares. document are based on the Company’s assumptions, judgments and
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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