Nippon Express Holdings, Inc. · TSE:9147
Nippon Express — Q1 FY2020 Earnings Presentation
43 slides from Nippon Express's earnings presentation, Jul 31, 2020
Slide 1: Financial Results Presentation for Q1, Fiscal Year Ending March 2021
Financial Results Presentation for Q1, Fiscal Year Ending March 2021 July 31, 2020 Nippon Express Co., Ltd. Investor Relations Promotion Group Corporate Planning Division
Slide 2: Contents
Contents I. Financial Results for Q1, FY2020 ＩＶ. Nippon Express Group Business Plan 2023 KPIs A. Financial Highlights for Q1, FY2020 P.2 A. Nippon Express Group Business Plan 2023 KPIs of Growth strategy P.22 B. Japan and Overseas Results P.3 for core businesses B. Strategy to Enhance Domestic Busin
Slide 3: Financial Highlights for Q1, FY2020
I. Financial Results for Q1, FY2020 A Financial Highlights for Q1, FY2020 1. Overview (Consolidated) (100 million yen) (rounded down to 100 million yen) Item FY2020 Q1, FY2019 Q1, Difference Difference 1H Forecast Progress Difference Results Results YoY YoY (%) （Latest） (%) Revenue 4,720 5,197 (477)
Slide 4: Japan and Overseas Results
I. Financial Results for Q1, FY2020 B Japan and Overseas Results （not including adjustments） (100 million yen) (rounded down to 100 million yen) Segment Item FY2020 Q1, FY2019 Q1, Difference Difference 1H Forecast Progress Difference Results Results YoY YoY (%) （Latest） (%) Revenues 4,050 4,488 (437
Slide 5: Results by Reportable Segment
I. Financial Results for Q1, FY2020 C Results by Reportable Segment (100 million yen) (rounded down to 100 million yen) Segment Item FY2020 Q1, FY2019 Q1, Difference Difference 1H Forecast Progress Difference Results Results YoY YoY (%) （Latest） (%) Revenues 2,733 3,025 (291) (9.7) 5,631 2,897 48.5
Slide 6: Breakdown of Revenues
I. Financial Results for Q1, FY2020 D Breakdown of Revenues and Operating Income 1. Revenues (100 million yen) 5,300 ★Breakdown of revenue 5,200 decrease from business activities by segment Impact of foreign 5,100 l Japan: (83) exchange ⇩23 l Overseas total: (49) l Security Transportation: (5) 5,000
Slide 7: Breakdown of Operating Income
I. Financial Results for Q1, FY2020 D Breakdown of Revenues and Operating Income 2. Operating income (100 million yen) Provision for retirement benefits ★Breakdown of operating income (insufficient provision in past years) ⇩７ increase from business activities by segment 170 Impact from (Presented as
Slide 8: Forecast for FY2020
II. Financial Results Forecast for FY2020 A Forecast for FY2020 FY2020 FY2021 Item Forecast （Interim Goals） Revenue ¥2,000 billion ¥2,250.0 billion Operating income ¥45.0 billion ¥83.0 billion Operating income ratio 2.3% 3.7% Profit attributable to ¥33.0 billion ¥54.0 billion owners of parent Overse
Slide 9: Forecast for FY2020 by Half
II. Financial Results Forecast for FY2020 A Forecast for FY2020 (100 million yen) (rounded down to 100 million yen) 1H 2H FY Item FY2020 FY2019 Difference FY2020 FY2019 Difference FY2020 FY2019 Difference Forecast Results [%] Forecast Results [%] Forecast Results [%] Revenue 9,600 10,389 (789) 10,40
Slide 10: Japan and Overseas Results Forecast
II. Financial Results Forecast for FY2020 B Japan and Overseas Results Forecast （not including adjustments） (100 million yen) (rounded down to 100 million yen) [Reference] Segment Item Full-Year FY2019 Difference Difference FY2021 Forecast Results YoY YoY (%) Interim Target Revenues 17,213 18,097 (8
Slide 11: Forecasts by Reportable Segment
II. Financial Results Forecast for FY2020 C Forecasts by Reportable Segment (100 million yen) (rounded down to 100 million yen) [Reference] Segment Item Full-Year FY2019 Difference YoY Difference YoY FY2021 Interim Forecast Results (%) Target Revenues 11,672 12,135 (463) (3.8) 13,000 Japan Segment I
Slide 12: Forecast Breakdown of Revenues
II. Financial Results Forecast for FY2020 D Breakdown of Revenues and Operating Income 1. Revenues (100 million yen) ★Breakdown of revenue decrease from business activities by segment 21,000 l Japan +13 l Overseas total: (148) Correction of l Security Transportation: (13) prior-period l Heavy Haulag
Slide 13: Forecast Breakdown of Operating Income
II. Financial Results Forecast for FY2020 D Breakdown of Revenues and Operating Income 2. Operating income (100 million yen) Correction of Provision for retirement benefits (insufficient ★Breakdown of operating income increase from Impact prior-period revenues provision in past years) business activ
Slide 14: Change in Total Non-Consolidated Personnel Expense (Forecast)
(Reference) Change in Total Non-Consolidated Personnel Expense (Forecast) Special allowance *Presented on an expense basis payments (100 million yen) ⇧12 Employment system reform ⇧8 Impact from change of the period applicable to bonus payment Overtime Other ⇩46 reductions factors effect ⇩23 ⇧1 2,588
Slide 15: Japan Segment
III. Segment Overview, FY2020 A Japan Segment (100 million yen) Q1 Highlights 1. Q1 Results Both the railway utilization and motor transportation businesses experienced weak Vs. FY2019 cargo movement related to steel and automobiles. In addition, the railway utilization FY2020 Q1, business saw lower
Slide 16: The Americas Segment
III. Segment Overview, FY2020 B The Americas Segment (100 million yen) 1. Q1 Results Q1 Highlights Vs. FY2019 FY2020 Q1, Due to trade friction between the U.S. and China and the spread of COVID-19, nearly Item all volume for warehouse, motor transport, air cargo, etc., experienced lower revenues. Re
Slide 17: Europe Segment
III. Segment Overview, FY2020 C Europe Segment (100 million yen) 1. Q1 Results Q1 Highlights Vs. FY2019 We expect marine and harbor transport to record higher revenues year on year due Item FY2020 Q1, to firm volume in automobiles. However, air freight will continue to experience the Results Differe
Slide 18: East Asia Segment
III. Segment Overview, FY2020 D East Asia Segment (100 million yen) 1. Q1 Results Q1 Highlights Vs. FY2019 Since the Chinese New Year in January, the impact of the spread of COVID-19 has FY2020 Q1, Item Results Difference resulted in significantly lower sales overall. Once we entered March, we saw a
Slide 19: South Asia & Oceania Segment
III. Segment Overview, FY2020 E South Asia & Oceania Segment (100 million yen) 1. Q1 Results Q1 Highlights Vs. FY2019 Both air export freight forwarding and marine export freight forward remained firm. FY2020 Q1, While volume in certain areas decreased significantly due the COVID-19 lockdowns, Item
Slide 20: Security Transportation Segment
III. Segment Overview, FY2020 F Security Transportation Segment (100 million yen) 1. Q1 Results Q1 Highlights Vs. FY2019 With the spread of COVID-19, volume in our cash collection and delivery service FY2020 Q1, decreased. Further, we saw a decrease in volume for certain collection and delivery Item
Slide 21: Heavy Haulage & Construction Segment
III. Segment Overview, FY2020 G Heavy Haulage & Construction Segment (100 million yen) 1. Q1 Results Q1 Highlights Vs. FY2019 Orders for shutdown maintenance and plant construction for petrochemical plants FY2020 Q1, Item were strong. Meanwhile, volume was sluggish for wind power freight and Results
Slide 22: Logistics Support Segment
III. Segment Overview, FY2020 H Logistics Support Segment (100 million yen) 1. Q1 Results Q1 Highlights Vs. FY2019 Sales unit price declines in petroleum and LP gas, the impact of U.S.-China trade Item FY2020 Q1, frictions on our LS business, and lower volume due to the impact of COVID-19, Results D
Slide 23: Business Plan 2023 KPIs of Growth Strategy for Core Businesses
ＩＶ. Nippon Express Group Business Plan 2023 KPIs Ａ Nippon Express Group Business Plan 2023 KPIs of Growth Strategy for Core Businesses Japan＊ Overseas Item Actual for Q1 Revenues FY2020 FY2019 FY2020 FY2019 of FY 2019 Q1, Results Q1, Results Difference (%) Q1, Results Q1, Results Difference (%) Elec
Slide 24: Strategy to Enhance Domestic Businesses in Japan
ＩＶ. Nippon Express Group Business Plan 2023 KPIs B Strategy to Enhance Domestic Businesses in Japan Major Initiatives Strengthen Integration of Land, Sea, and Air Structural Reform of the Moving & Relocation Business Pursue greater synergies among organizations, human Strengthen capture of weekend d
Slide 25: Return to Shareholders
Ⅴ. Return to Shareholders A Capital Policies • ROE: 10％ • Dividend ratio: Over 30% • Total return ratio: Over 50% (cumulative total 2019-2023) • Equity ratio: Target 35% B Key Indicators (100 million yen) Dividend Acquiring treasury shares Dividend payout ratio Total return ratio 400 200.0% 177.5% 1
Slide 26: 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 27: Changes Due to External Environmental and Other Factors
(Appendix 1) Financial Results for Q1, FY2020 A Changes Due to External Environmental and Other Factors Impact on consolidated results Variable factors Reference (Q1) Unit price per ℓ [FY2019 Q1] Operating Income: Impact of l Light oil : ¥74.94 [¥103.46] change in unit +¥1.01 billion l Gasoline : ¥1
Slide 28: Changes Due to External Environmental and Other Factors
(Appendix 1) Financial Results for Q1, FY2020 A Changes Due to External Environmental and Other Factors Impact on consolidated results Variable factors Reference (Q1) Changes associated with employee system l Japan : ¥(0.2) billion reform Operating income: l Security Transportation : ¥(0.02) billion
Slide 29: Changes Due to External Environmental and Other Factors
(Appendix 1) Financial Results for Q1, FY2020 A Changes Due to External Environmental and Other Factors Impact on consolidated Variable factors results Reference (Q1) Revenues/Operating Income l Japan : ¥(20.8) billion/¥(8.0) billion l The Americas : +¥0.0 billion/+¥0.0 billion Revenues: l Europe :
Slide 30: Impact of COVID-19 on Sales by Business
(Appendix 1) Financial Results for Q1, FY2020 B Impact of COVID-19 on Sales by Business (Non-Consolidated) April 2020 May 2020 June 2020 Total (100 million yen) 0 (5) (5) (6) (7) (10) (8) (9) (9) (9) (15) (16) (20) (25) (23) (24) (24) (27) (30) Heavy Small-lot Chartered Marine Harbor Air Warehouse M
Slide 31: Volume in Priority Industries (YoY Sales)
(Appendix 1) Financial Results for Q1, FY2020 C Volume in Priority Industries (YoY Sales) Domestic Priority Industries Electric and Electronics Automotive Apparel Pharmaceutical/Medical （Unit：％） 20 10 0 (10) (20) (30) (40) April May June Cumulative Electric and Electronics (3) (14) (5) (7) Automotiv
Slide 32: Initiatives to Reduce Costs: Variable Costs
(Appendix 1) Financial Results for Q1, FY2020 D Initiatives to Reduce Costs in Japan and Overseas (Details for Q1, FY2020 and Beyond) 1. Cost Reduction Measures (Variable Costs) Air Cargo Railway and Automotive Small-lot Facility Usage Transportation Ocean Cargo Shipment Charges • Reduce air • Lever
Slide 33: Cost Reduction Measures (Fixed Costs)
(Appendix 1) Financial Results for Q1, FY2020 2. Cost Reduction Measures (Fixed Costs) • Employee temporary leave program • Reduction in force (suspend hiring overseas) • Reduce general and administrative expenses Reduced Variable and Fixed Costs... Cost reduction Nippon Express (Non-Consolidated; Q
Slide 34: Changes Due to External Environmental and Other Factors (Forecast)
(Appendix 2) Financial Results Forecast for FY2020 Changes Due to External Environmental and Other Factors (Forecast) Impact on Consolidated Variable Factors Results Reference (Full-year forecast) ¥3.97 billion Unit price per ℓ [Yearly average in FY2019] l Light oil : ¥76.30 [¥100.22] Impact of chan
Slide 35: Changes Due to External Environmental and Other Factors (Forecast)
(Appendix 2) Financial Results Forecast for FY2020 Changes Due to External Environmental and Other Factors (Forecast) Impact on Consolidated Variable Factors Results Reference (Full-year forecast) Correction of Revenues and Operating excessively recorded Income l Japan : ¥0.78 billion (Q2) revenues
Slide 36: Changes Due to External Environmental and Other Factors (Forecast)
(Appendix 2) Financial Results Forecast for FY2020 Changes Due to External Environmental and Other Factors (Forecast) Impact on Consolidated Variable Factors Results Reference (Full-year forecast) Provision for retirement benefits Operating income: （insufficient l Japan : ¥(0.74) billion [Q1] provis
Slide 37: Changes Due to External Environmental and Other Factors (Forecast)
(Appendix 2) Financial Results Forecast for FY2020 Changes Due to External Environmental and Other Factors (Forecast) Impact on Consolidated Variable Factors Results Reference (Full-year forecast) l Japan Revenues: ¥(48.51) billion Operating income: ¥(18.73) billion l The Americas Revenues: ¥(2.85)
Slide 38: Export Air Freight Weight Originating From Japan
(Appendix 3) Export Air Freight Weight Originating From Japan Export Air Freight Weight Originating from Japan 100,000 86,953 30.0% 86,178 Nippon Express 80,228Export Weight Nippon Express Share 80,000 26.6% 28.0% 63,449 60,000 54,590 53,249 26.0% 26.6% 26.8% 49,298 47,370 37,192 40,000 24.0% 24.0%
Slide 39: Export Freight (Air Freight Forwarding)
(Appendix 4) Export Freight (Air Freight Forwarding) （Unit： t /chargeable） Originating 2018 2019 2020 Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Japan (consolidated) 90,513 94,814 89,545 99,401 374,273 75,277 67,156
Slide 40: Export Freight (Marine & Harbor Transportation)
(Appendix 5) Export Freight (Marine & Harbor Transportation) （Unit：TEU） 2018 2019 2020 Originating Region Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Jan-Mar Apr-Jun Jul-Sep Oct-Dec Full FY Japan 51,887 58,722 62,703 75,280 248,592 53,755 60,126 63,141 64,458 241,
Slide 41: Change in Non-Consolidated Income (FY2020 Q1)
(Appendix 6) Change in Non-Consolidated Income （FY2020 Q1） (100 million yen) *Increase and decrease in the graph is on an income basis. Decrease in Other vehicle expenses chartering and +25 subcontracting costs +133 Impact of Operating Operating change in unit fuel price income YoY expenses YoY +5 (
Slide 42: Change in Non-Consolidated Income (FY2020 Forecast)
(Appendix 7) Change in Non-Consolidated Income (FY2020 Forecast) (100 million yen) *Increase and decrease in the graph is on an income basis. Operating Operating Increase in income YoY expenses YoY depreciation Increase in Impact of (37) (354) Decrease in and change Personnel amortization facility i
Slide 43: No information contained in this document is intended to solicit purchase or sale of
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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