Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q1 2024 Earnings Presentation
29 slides from Nippon Express's earnings presentation, May 13, 2024
Slide 1: Financial Results Presentation for Q1, Fiscal Year Ending December 2024
Financial Results Presentation for Q1, Fiscal Year Ending December 2024 May 13, 2024 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents 1. Financial Results for Q1, FY2024 P.4～ 2. Forecast for FY2024 P.14～ 3. Business Plan 2028 Initiatives P.20～ 4. Return to Shareholders P.26～ Financial Results Presentation for Q1, 1 Fiscal Year Ending December 2024 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.
Slide 3: Financial Results for Q1, FY2024 Executive Summary
Financial Results for Q1, FY2024 Executive Summary Financial Results for Q1, FY2024 Results Vs. Q1, FY2023 ✓ The addition of cargo-partner (CP) increased +¥39.5 billion group revenue; however, the forwarding ➚Revenue ¥617.6 billion business saw a decline in gross profit per unit +6.8 % due to the ea
Slide 4: Forecast for FY2024 Executive Summary
Financial Results Forecast for FY2024 Executive Summary Financial Results Forecast for FY2024 Forecast Vs, FY2023 ➚Revenue ¥2,500.0 billion +¥260.9 billion +11.7 % ✓Although logistics demand is like to ➞Consolidated Segment Income +¥3.7 billion be sluggish generally, we have not ¥85.0 billion (Busin
Slide 5: 1. Financial Results for Q1, FY2024
1. Financial Results for Q1, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Financial Results Highlights for Q1, FY2024 P.5- B. Breakdown of Revenues and Operating Income P.7- C. Q1, FY2024 vs. Q4, FY2023 P.9- D. Air Forwarding Gross Profit P.11- E. Ocea
Slide 6: I-A. Financial Results Highlights for Q1, FY2024 (Jan-Mar)
I-A. Financial Results Highlights for Q1, FY2024 (Jan-Mar) (100 million yen, %) (rounded down to 100 million yen) Item Current-Year Prior-Year Difference Progress (%) Results Results Revenues 6,176 5,780 395 6.8 Consolidated Segment Income 118 209 (90) (43.4) (Business Income) Business profit ratio
Slide 7: 1-A. Financial Results Highlights for Q1, FY2024 (Jan-Mar)
1-A. Financial Results Highlights for Q1, FY2024 (Jan-Mar) (100 million yen, %) (rounded down to 100 million yen) Segment Item Current-Year Prior-Year Difference Progress (%) Results Results Revenues 3,054 3,297 (242) (7.4) Japan Segment income (Business Income) 63 113 (49) (44.0) Revenues 370 371 (
Slide 8: 1-B. Breakdown of Revenues and Operating Income
1-B. Breakdown of Revenues and Operating Income ✓ The consolidation of CP and the weakening of the yen contributed significantly to the increase in Revenue revenues; however, the logistics business continued to see a decline in revenues Impact of Decrease in foreign cargo- Security adjustment exchan
Slide 9: 1-B. Breakdown of Revenues and Operating Income
1-B. Breakdown of Revenues and Operating Income ⇩84 ⇧55 ✓ Profit decreased in domestic and overseas logistics businesses due to lower gross profit per unit in the Operating international forwarding business, etc. ✓ We recorded , an impairment loss of 6.5 billion yen in the current period due to the
Slide 10: 1-C. Financial Results for Q1, FY2024 vs. Q4, FY2023
1-C. Financial Results for Q1, FY2024 Q1, FY2024 vs. Q4, FY2023 (100 million yen, %) (rounded down to 100 million yen) Item Current-Year FY2023 Q4 Difference Progress (%) Results Results Revenues 6,176 5,636 539 9.6 Consolidated Segment Income 118 208 (90) (43.2) (Business Income) Business profit ra
Slide 11: 1-C. Q1, FY2024 vs. Q4, FY2023 (by Segment)
1-C. Financial Results for Q1, FY2024 Q1, FY2024 vs. Q4, FY2023 (by Segment) (100 million yen, %) (rounded down to 100 million yen) Segment Item FY2024 Q1 FY2023 Q4 Difference Progress (%) Results Results Revenues 3,054 3,132 (77) (2.5) Japan Segment income (Business Income) 63 156 (93) (59.6) Reven
Slide 12: 1-D. Air Forwarding Gross Profit: Japan Segment
1-D. Air Forwarding Gross Profit: Japan Segment ✓ Margin per ton improved 2.7 points due to tighter space control relative to demand and lower fuel surcharges Air Export Freight Volume and Gross Profit per Unit Air Forwarding Gross Profit Unit: 100 million yen 240 100.00 102.42 (Tons) 97.92 220 100.
Slide 13: 1-D. Air Forwarding Gross Profit: Overseas Segment
1-D. Air Forwarding Gross Profit: Overseas Segment ✓ East Asia improved beginning in Q4 of the previous year due to strengthened space control, etc.; overall gross profit per ton improved by 1.8 points Air Export Freight Volume and Gross Profit per Unit Air Forwarding Gross Profit Unit: 100 million
Slide 14: 1-E. Ocean Forwarding Gross Profit: Japan/Overseas
1-E. Ocean Forwarding Gross Profit: Japan/Overseas ✓ Gross profit per TEU from Japan declined 3.6 points due to the impact of a time lag in transferring certain costs, etc., in connection with the application of peak season surcharges (PSS) related to canal navigation restrictions, etc. ✓ Amid upwar
Slide 15: 2. Forecast for FY2024
1. Financial Results for Q1, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Forecast for FY2024 P.15 B. Forecast for FY2024 (by Segment) P.16- C. Breakdown of Revenues and Operating Income P.18- Financial Results Presentation for Q1, 14 Fiscal Year Endin
Slide 16: 2-A. Forecast for FY2024
2-A. Forecast for FY2024 (100 million yen, %) (rounded down to 100 million yen) Item Q1 Q2 1H 2H Full-Year Prior-Year Difference Difference Results Forecast Forecast Forecast Forecast Results YoY YoY (%) Revenues 6,176 5,823 12,000 13,000 25,000 22,390 2,609 11.7 Segment income 118 231 350 500 850 8
Slide 17: 2-B. Forecast for FY2024 (by Segment)
2-B. Forecast for FY2024 (by Segment) (100 million yen, %) (rounded down to 100 million yen) Previous Segment Item Full-Year Prior-Year Difference Difference Forecast* Difference Difference Forecast Results YoY YoY (%) Announced (%) February 14 Revenues 12,130 12,565 (435) (3.5) 12,330 (200) (1.6) J
Slide 18: 2-B. Forecast for FY2024 (by Segment) First Half/Second Half
2-B. Forecast for FY2024 (by Segment) First Half/Second Half (100 million yen, %) (rounded down to 100 million yen) Segment Item Q1 Q2 1H Prior Year Difference 2H Prior Year Difference Results Forecast Forecast 1H Results YoY Forecasts 2H Results YoY Revenues 3,054 2,875 5,930 6,402 (472) 6,200 6,16
Slide 19: 2-C. Breakdown of Revenues and Operating Income
2-C. Forecast for FY2024 Breakdown of Revenues and Operating Income Revenues Decrease in Impact of adjustment foreign cargo- Security Logistics exchange amount partner Transportation Support (11) Heavy Haulage & Construction (435) (102) Logistics Overseas Japan Business +¥260.9 billion FY2023 FY2024
Slide 20: 2-C. Breakdown of Revenues and Operating Income
2-C. Forecast for FY2024 Breakdown of Revenues and Operating Income ⇩84 Operating income Increase in Business Income: +¥3.7 billion cost of dismantling Costs related to former acquisition of CP earthquake- 2023：¥3.0 billion Business Income resistant 2024：¥0.8 billion Brand- locations FY2023 Results
Slide 21: 3. Business Plan 2028 Initiatives
1. Financial Results for Q1, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders A. Business Plan 2028 P.21 B. Basic Policy Global Business Growth: Priority Industries P.22 C. Basic Policy Global Business Growth: Major KPIs and Policies P.23 D. Global Business G
Slide 22: 3-A. Business Plan 2028 Basic Policy
3-A. Business Plan 2028 Basic Policy Major Strategies and Policies in Business Plan 2028 ⚫ Improve global competitiveness and achieve business growth under groupwide optimization. ⚫ Increase competitiveness and profitability of businesses and enhance financial value through well-balanced strategic p
Slide 23: 3-B. Global Business Growth Priority Industries
3-B. Global Business Growth Priority Industries (100 million yen, %) (Rounded down to 100 million yen) 2024 Progress Toward Priority Industry 2024 Targets 2028 Targets Jan-Mar Results Targets Technology Core Domain: Electric & Electronics 716 3,295 21.7 % 4,000 Growth, Pursuit Domains: Industrial Ma
Slide 24: 3-C. Global Business Growth Major KPIs and Policies
3-C. Global Business Growth Major KPIs and Policies 2024 Jan-Mar 2023 Jan-Mar Expand Forwarding Sales YoY% 2028 Targets Results Results Air Cargo Forwarding 215,000 t 173,000 t 24.4％ 1,300,000 t Volume Ocean Cargo Forwarding 215,000 TEU 173,000 TEU 24.2% 1,400,000 TEU Volume 2024 Jan-Mar 2023 Jan-Ma
Slide 25: 3-D. Global Business Growth Major Initiatives in Overseas Regions
3-D. Global Business Growth Major Initiatives in Overseas Regions Establish a Strong Presence in the Indian Market Develop the potential of Indian subcontinent as a new region Conduct PMI with cargo-partner • Extend our domestic Japanese logistics business structure to India, Establish a position as
Slide 26: 3-E. Rebuild Businesses in Japan
3-E. Rebuild Businesses in Japan [Improve Warehouse Operations Quality and Productivity] ・Logistics Boot Camp: Education of core personnel to Transform into a more promote improved productivity in warehouse operations customer-oriented company Scheduled participants this FY: 15 (sales growth) ・Logis
Slide 27: 4. Return to Shareholders
1. Financial Results for Q1, FY2024 2. Forecast for FY2024 3. Business Plan 2028 Initiatives 4. Return to Shareholders Capital Policies and Key Indicators P.27 Financial Results Presentation for Q1, 26 Fiscal Year Ending December 2024 Copyright © 2024 NIPPON EXPRESS HOLDINGS,INC., All rights reserve
Slide 28: 4. Capital Policies and Key Indicators
4. Capital Policies and Key Indicators Business Plan 2028 • ROE Over 10％ • Dividend payout ratio: Over 40% Target • Total return ratio: Over 55% • Equity ratio: Target 35% (cumulative total FY2024-FY2028) (100 million yen) Total dividend Treasury Share acquisition Dividend payout ratio Total Return
Slide 29: 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
Nippon Express Holdings — Q1 2024 Earnings Presentation on 6ix