Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q1 2023 Earnings Presentation
53 slides from Nippon Express's earnings presentation, May 12, 2023
Slide 1: Financial Results Presentation for Q1, Fiscal Year Ending December 2023
Financial Results Presentation for Q1, Fiscal Year Ending December 2023 May 12, 2023 NIPPON EXPRESS HOLDINGS, INC. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Financial Results for FY2023 (IFRS): Adoption of IFRS
Financial Results for FY2023 (IFRS) Adoption of IFRS Beginning FY2023 ・ We voluntarily adopted International Financial Reporting Standards (IFRS) beginning with the reporting of financial results for the first quarter of the fiscal year ending December 31, 2023 ＊ (FY2023). Accordingly, we prepared o
Slide 3: Contents
Contents Financial Results Highlights (Executive Summary) III. Challenges of the Business Plan Financial Results Highlights (Executive Summary) P.3- A. Status of Business Plan 2023 Initiatives P.26- B. NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses P.28 I. Financial Results
Slide 4: Financial Results Highlights (Executive Summary)
Financial Results Highlights (Executive Summary) ・Financial Results for Q1, FY2023 and Forecast for FY2023 Financial Results for Q1, FY2023 (IFRS) ＊ Financial Results Forecast for FY2023 (IFRS) Vs. FY2022 Vs. FY2022 ¥(64.5) billion ¥(168.6) billion ➘ Revenue ¥578.0 billion (10.0 %) ➘Revenue ¥2,450.0
Slide 5: Financial Results Highlights (Executive Summary) Overview/Digest
Financial Results Highlights (Executive Summary) Overview/Digest Financial Results for Q1, FY2023 ◼Revenues and profit decreased in Q1 due to a reactionary decline in overseas and international logistics businesses as the supply- demand balance in the forwarding business eased both in Japan and over
Slide 6: Financial Results for Jan-Mar, FY2023
I. Financial Results for Q1, FY2023 (IFRS) A Financial Results for Jan-Mar ,FY2023 (100 million yen, %) (rounded down to 100 million yen) Current-Year Prior-Year Item Difference Difference Results Results 1H Forecast Difference Progress YoY YoY (%) (Jan-Mar 2023) (Jan-Mar 2022) Revenues 5,780 6,425
Slide 7: Japan and Overseas Results
I. Financial Results for Q1, FY2023 (IFRS) B Japan and Overseas Results (100 million yen, %) (rounded down to 100 million yen) Segment Item Current-Year Results Prior-Year Results Difference Difference (Jan-Mar 2023) (Jan-Mar 2022) YoY YoY (%) Revenues 4,673 4,903 (230) (4.7) Japan Total Consolidate
Slide 8: Results by Reportable Segment (YoY for Jan-Mar)
I. Financial Results for Q1, FY2023 (IFRS) C Results by Reportable Segment (YoY for Jan-Mar) (100 million yen, %) (rounded down to 100 million yen) 2023 Results Prior-Year Results Difference Difference Segment Item (Jan-Mar 2023) (Jan-Mar 2022) YoY YoY (%) Revenues 3,297 3,580 (282) (7.9) Japan Segm
Slide 9: Reference: Performance by Segment (Oct-Dec 2022 vs. Jan-Mar 2023)
I. Financial Results for Q1, FY2023 (IFRS) D Reference: Performance by Segment (Oct-Dec 2022 vs. Jan-Mar 2023) (100 million yen, %) (rounded down to 100 million yen) 2023 Results Prior-Year Results Difference Difference Segment Item (Jan-Mar 2023) (Oct-Dec 2022) YoY YoY (%) Revenues 3,297 3,606 (308
Slide 10: Breakdown of Revenues
I. Financial Results for Q1, FY2023 (IFRS) E Breakdown of Revenues and Operating Income 1) Revenues (100 million yen) ★Revenue increase from Business activities ⇩732 6,500 Impact of Impact of Ukraine Impact of COVID-19 ⇧2 foreign ⇩113 exchange 6,000 6,425 ⇧197 ¥(64.5) billion 5,780 5,500 FY2022 Q1 F
Slide 11: Breakdown of Operating Income
I. Financial Results for Q1, FY2023 (IFARS) E Breakdown of Revenues and Operating Income 2) Operating income (100 million yen) Accounting standard 400 difference Other (85) income/expenses, share of gain/loss ★ Domestic Impact of of entities Impact of Decrease in COVID-19 Business Overseas Impact of
Slide 12: 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 Forecast Difference Prior-Year Difference Difference Difference Item Forecast (Jan-Dec 2023) YoY (%) Results (Jan-Dec 2023) *Announced YoY YoY (%) YoY (Jan
Slide 13: Forecast for FY2023 1H, 2H
II. Financial Results Forecast for FY2023 (IFRS) B Forecast for FY2023 1H , 2H (100 million yen, %) (rounded down to 100 million yen) Current-Year 1H Forecast Prior Year 2H Forecasts Prior Year Forecast Difference Difference Difference Difference Item Results (Apr-Jun 2023) (Jan-Jun 2023) 1H Results
Slide 14: Japan and Overseas Results Forecast
II. Financial Results Forecast for FY2023 (IFRS) C Japan and Overseas Results Forecast (100 million yen, %) (rounded down to 100 million yen) Segment Item Forecast Prior-Year Results Difference Difference (Jan-Dec 2023) (Jan-Dec 2022) YoY YoY (%) Revenues 19,171 19,852 (681) (3.4) Japan Total Segmen
Slide 15: Forecasts by Reportable Segment (Jan-Dec)
II. Financial Results Forecast for FY2023 (IFRS) D Forecasts by Reportable Segment (Jan-Dec) (100 million yen, %) (rounded down to 100 million yen) Prior Forecast Full-Year Prior-Year (IFRS) Difference Difference Difference Difference Segment Item Forecast *Announced YoY YoY (%) Results YoY YoY (%)
Slide 16: Forecasts by Reportable Segment 1H, 2H
II. Financial Results Forecast for FY2023 (IFRS) E Forecasts by Reportable Segment 1H, 2H (100 million yen, %)(rounded down to 100 million yen) Previous 1H Previous 2H Forecast Difference Forecast Difference 1H Forecast Difference 2H Forecasts Difference Segment Item (Jan-Jun 2023) (%) (Jul-Dec 2023
Slide 17: Forecast Breakdown of Revenues
II. Financial Results Forecast for FY2023 (IFRS) F Breakdown of Revenues and Operating Income 1) Revenues (100 million yen) 28,000 25,000 Impact of Impact of Impact of foreign COVID-19 Ukraine exchange ⇧26 ★Revenue increase ⇩519 ⇧156 from Business 22,000 activities 26,186 ⇩1,350 24,500 ¥(168.6) bill
Slide 18: Forecast Breakdown of Operating Income
II. Financial Results Forecast for FY2023 (IFRS) ⇩84 F Breakdown of Revenues and Operating Income 2) Operating income Breakdown of segment profit (100 million yen) (business profit) Accounting 1800 1700 standard difference ¥(20.5) billion ¥(29.9) billion +267 Increase in Decrease in 1600 Real estate
Slide 19: Segment Overview: Japan Segment
II. Segment Overview for FY2023 (IFRS) Japan Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) January-March 2023 Highlights Difference Domestic logistics cargo movement at the end of March was slower than usual, FY2023 FY2023 FY2022 Difference (%) although we noted a recovery in automobile-r
Slide 20: Segment Overview: The Americas Segment
II. Segment Overview for FY2023 (IFRS) The Americas Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) January-March 2023 Highlights Difference FY2023 FY2023 FY2022 Difference (%) Air and ocean export freight forwarding volume fell significantly year on year, but unit freight rates remained hi
Slide 21: Segment Overview: Europe Segment
II. Segment Overview for FY2023 (IFRS) Europe Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) January-March 2023 Highlights Difference Air and ocean export freight forwarding volume fell significantly year on year, but FY2023 FY2023 FY2022 Difference (%) unit freight rates remained high. Wh
Slide 22: Segment Overview: East Asia Segment
II. Segment Overview for FY2023 (IFRS) East Asia Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) January-March 2023 Highlights Difference Air export freight forwarding exports declined sharply in volume due to a FY2023 FY2023 FY2022 Difference (%) weak market and a reactionary drop in semic
Slide 23: Segment Overview: South Asia & Oceania Segment
II. Segment Overview for FY2023 (IFRS) South Asia & Oceania Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) January-March 2023 Highlights Difference FY2023 FY2023 FY2022 Difference (%) Air export freight forwarding was affected negatively by a reactionary decline in automobile and electrica
Slide 24: Segment Overview: Security Transportation Segment
II. Segment Overview for FY2023 (IFRS) Security Transportation Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) Difference FY2023 FY2023 FY2022 Difference (%) January-March 2023 Highlights Revenues (100 million yen) 169 172 (2) (1.5%) While the acquisition of outsourcing operations had a pos
Slide 25: Segment Overview: Heavy Haulage & Construction Segment
II. Segment Overview for FY2023 (IFRS) Heavy Haulage & Construction Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) FY2023 FY2023 FY2022 Difference Difference January-March 2023 Highlights (%) Revenues (100 million yen) 111 82 29 36.2% Domestic revenues and profit rose due to strong sales o
Slide 26: Segment Overview: Logistics Support Segment
II. Segment Overview for FY2023 (IFRS) Logistics Support Segment 1 Quarterly Results for FY2023 (Jan-Mar Results) Difference FY2023 FY2023 FY2022 Difference (%) January-March 2023 Highlights Revenues (100 million yen) 1,094 1,068 25 2.4% NX Shoji revenue increased due to an increase in vehicle marki
Slide 27: Status of Business Plan 2023 Initiatives
III. Challenges of the Business Plan Business Plan Figures (Japanese GAAP) A Status of Business Plan 2023 Initiatives (100 million yen, %) (rounded down to 100 million yen) Current-Year 2023 *Forecast Item Results Business Plan Difference Difference (%) Difference Pro Forma (JGAAP) Pro Forma (JGAAP)
Slide 28: Status of Business Plan 2023 Initiatives by Segment
III. Challenges of the Business Plan Business Plan Figures (Japanese GAAP) A Status of Business Plan 2023 Initiatives (100 million yen, %) (rounded down to 100 million yen) *Forecast 2023 Pro Forma (JGAAP) Difference Difference (%) Segment Item (Jan-Mar 2023) Difference Pro Forma (JGAAP) Business Pl
Slide 29: NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses
III. Challenges of the Business Plan B NX Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Japan*1 Overseas Item Revenues 2023 Jan-Mar 2022 Jan-Mar Difference 2023 Jan-Dec Targets Progress 2023 Jan-Mar 2022 Jan-Mar Difference 2023 Jan-Dec Targets Progress Results Results (%) Resu
Slide 30: Strategy to Enhance Domestic Businesses in Japan
III. Challenges of the Business Plan C Strategy to Enhance Domestic Major Initiatives Businesses in Japan 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 31: Business Structure Reform Project
III. Challenges of the Business Plan D 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 collective
Slide 32: Progress in FY2023 Back Office Cost Reductions
III. Challenges of the Business Plan E Progress in FY2023 Back Office Cost Reductions (as of March 31, 2023) FYE Dec Enhancing FY2022 FY2023 Cumulative FY2019 FY2020 2021 FY2023 FY2023 Japanese Item Results Results Through FY2023 Results Results Results Cumulative Cumulative Domestic (Jan-Dec) (Jan-
Slide 33: NX Group Business Plan 2023 Overview
III. Challenges of the Business Plan ~ FY2023 Numerical Targets Revenues, operating income (margin), net income, overseas revenues, Accelerate Reform Through a Holding ROE, FWD volume Company Structure A logistics company with a strong By Segment (Logistics, Heavy Haulage & Construction, Security pr
Slide 34: F. M&A Materials
III. Challenges of the Business Plan F M&A Materials Financial Results Presentation for Q1, 33 Fiscal Year Ending December 2023 Copyright © 2023 NIPPON EXPRESS HOLDINGS,INC., All rights reserved.
Slide 35: 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
Slide 36: 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 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-Mar 2023 results) (Jan-Dec 2023 forecast) Segment income (business income) +¥0.02 billion Segment income (business income) ¥(0.04)
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-Mar 2023 results) (Jan-Dec 2023 forecast) Change due to Segment income (business income) ¥(0.31) billion Segment income (business
Slide 39: 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 2023 results) (Jan-Dec 2023 forecast) Revenues: +¥0.23 billion Revenues: +¥2.64 billion Segment income (business income): ¥(0.
Slide 40: 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:214,889 tons FY Total: 250,342 tons Q1：47,269 tons 25.6% 28.0% 100,000 24.2% 24.1% 24.3% 76,632
Slide 41: Export Freight (Air Freight Forwarding)
Appendix 2 Forwarding Results: Export Freight (Air Freight Forwarding) (Unit：t /chargeable) Originating 2021 2022 2023 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 89,719 90,527 82,178 85,592 348,017 84,660
Slide 42: Export Freight (Ocean Transportation)
Appendix 2 Forwarding Results: Export Freight (Ocean Transportation) （Unit：TEU） 2021 2022 2023 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 67,261 65,442 66,373 70,807 269,882 67,614 67,851 62,3
Slide 43: Air Export Freight Forwarding Gross Profit: Japan and Overseas
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, %) 240 60.0% (rounded down to 100 million yen) 220 200 180 2021 Air export freight forwarding gross profit 160 40.0% 20
Slide 44: Air Export 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% 50.0% 60 46.8% 60 43.8% 42.5% 48.2% 40.0% 40.0% 42.1% 46.4% 42.0% 40 34.3% 40 24.6% 23.0% 20.0% 20.0% 20
Slide 45: Ocean Freight Forwarding (NOVCC) Results
Appendix 2 Ocean Freight Forwarding (NOVCC) Results Gross Profit per TEU for Japan/Overseas Segment Outbound Ocean Export Freight Forwarding by Quarter Japan Segment Total 150.00 100.00 91.45 86.20 89.04 91.66 50.00 FY2022 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2023 Q1 Overseas Segment Total 150.00 100.
Slide 46: 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) 2023 2021 2021 2021 2021 2022 2022 2022 2022 Item Jan-Mar Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec (IFRS) Railway 107 107
Slide 47: Nippon Express FY2023 Jan-Mar Results: Revenues
Appendix 3: Nippon Express FY2023 Jan-Mar Results (IFRS) A. Revenues (Unit: Millions of yen,%) Change Jan-Mar 2023 % of Jan-Mar 2022 % of Amount Ratio Sales Sales Railway utilization business 16,569 5.7 16,247 4.9 322 2.0 Ocean transportation Automotive Small-lot shipment business 8,709 3.0 9,258 2.
Slide 48: Nippon Express Jan-Mar Results: Operating Expenses
Appendix 3: Nippon Express FY2023 Jan-Mar Results (IFRS) B. Operating Expenses, Total Other Expenses, Share of Loss of Entities Accounted for Using Equity Method (Unit: Millions of yen,%) Change Jan-Mar 2023 Jan-Mar 2022 % of % of Sales Sales Amount Ratio Total personnel expenses 50,053 17.2 62,745
Slide 49: Non Consolidated Profit Factors (IFRS)
Appendix 3: Nippon Express FY2023 Jan-Mar Results Non Consolidated Profit Factors (IFRS) (100 million yen) (rounded down to 100 million yen) *Increase and decrease in the graph is on an income basis Impact of Decrease in decrease in Decrease in Decrease in Revenue decrease unit fuel depreciation and
Slide 50: Nippon Express FY2023 Forecasts: Revenues
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts (IFRS) A. Revenues (Unit: Millions of yen,%) Change 2023 2022 Change 2023 2022 % of % of Full-Year % of Full-Year % of 1H Forecast 1H Results Amount Ratio Amount Ratio Sales Sales Forecast Sales Results Sales Railway utilization business 35,000 5.8
Slide 51: Nippon Express FY2023 Forecasts: Operating Expenses
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts (IFRS) B.Operating Expenses, Total Other Expenses, Share of Loss of Entities Accounted for Using Equity Method (Unit: Millions of yen,%) Change 2023 2022 Change 2023 2022 % of % of Full-Year % of Full-Year % of 1H Forecast 1H Results Amount Ratio A
Slide 52: Non Consolidated Profit Factors Forecast (IFRS)
Appendix 3: Nippon Express FY2023 Jan-Dec Forecasts Non Consolidated Profit Factors (IFRS) (100 million yen) (rounded down to 100 million yen) *Increase and decrease in the graph is on an income basis ¥(38.0) billion Decrease in personnel costs ＋395 Decrease in Impact of Decrease in Increase in vehi
Slide 53: 52 Financial
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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