1H FY2016 Consolidated Results - Mitsubishi Logistics · 1H FY2016 Consolidated Results Nov 8, 2016...

1H FY2016 Consolidated Results Nov 8, 2016

1H FY2016 Consolidated Results Presentation Copyright 2016 Mitsubishi Logistics Corporation All Rights Reserved

1H FY2016 Consolidated Results Contents

1

1. 1H FY2016 Consolidated Results Summary

2. 1H FY2016 Consolidated Results (Consolidated Statement of Income)

3. 1H FY2016 Consolidated Financial Condition (Consolidated Balance Sheet)

4. FY2016 Consolidated Earnings Forecast

5. Miscellaneous Information



2


1-1 Business Environment and Policy

1-2 Subsidiaries and Affiliates

1-3 Consolidated Operating Results (by Segment)

1-4 Consolidated Financial Condition

1-5 Consolidated Cash Flows


1-1-1 Business Environment and Policy

In the world economy, recovery continued in the U.S., business conditions in Europe also showed a modest recovery, and even

in China there was a visible movement toward recovery.

In Japan, although capital expenditure has been at a standstill, employment conditions improved, consumer spending was

steady, and the economy continued on a slow but steady road to recovery.

Business Environment in 1H FY2016

3

Sluggish growth of cargo volume and intensified competition, etc.

Warehouse and Logistics The demand and supply for rental office buildings showed signs of recovery, but the rent levels did

not make a recovery.

Real Estate


1-1-2 Business Environment and Policy

4

Our Policy

Extension of distribution center operations especially for

pharmaceuticals, and expansion of overseas offices.

Logistics Real Estate

[Misato Warehouse #2, Saitama]

Thoroughly ensuring cost management and increasing efficiency of operations

[Nihonbashi Dia Building]

Securing good tenants, and maintaining and improving rent

levels.


1-2-1 Subsidiaries and Affiliates

5

Consolidated Subsidiaries

Equity-Method Subsidiaries No Change

ー（ー）

ー（ー）

52 (Logistics 44/ Real Estate 8)

52 (Logistics 44/ Real Estate 8）



Subsidiaries

No Change 3 (Logistics 3)

3 (Logistics 3)

Equity-Method Affiliates

No Change 15 (Logistics 15)

15 (Logistics 15)

Affiliates

Change 1H FY2016 FY2015

No Change

No Change


1-2-2 List of Consolidated Subsidiaries

6

Logistics Real Estate

Tohoku Ryoso Transportation Co., Ltd. Monryo Transport Corporation Dia Buil-Tech Co., Ltd.Sairyo Service Co., Ltd. Hakuryo Koun Co., Ltd. Yokohama Dia Building ManagementDia Pharmaceutical Network Co., Ltd. Seiho Kaiun Kaisha, Ltd. CorporationTokyo Dia Service Co., Ltd. Saryo Service Co., Ltd. Chubo Kaihatsu Co., Ltd.Dia Systems Corporation Mitsubishi Logistics America Corp. Nagoya Dia Buil-Tech Co., Ltd.Ryoso Transportation Co., Ltd. Mitsubishi Warehouse California Corp. Osaka Dia Buil-Tech Co., Ltd.Unitrans Ltd. Mitsubishi Logistics Europe B.V. Kobe Dia Service Co., Ltd.Keihin Naigai Forwarding Co., Ltd. Fuji Logistics Europe B.V. Kobe Dia Maintenance Co., Ltd.Touryo Kigyo Co., Ltd. Mitsubishi Logistics China Co., Ltd. T'ACT Co., Ltd.Fuji Logistics Co., Ltd. Shanghai Linghua Logistics Co., Ltd.Tokyo Juki Transport Co., Ltd. Shanghai Qingke Warehouse SII Logistics Inc. Management Co., Ltd.Fuji Logistics Operations Co., Ltd. Shanghai Lingyun Global Forwarding Co., Ltd.

Fuji Logistics Support Co., Ltd. Fuji Logistics (China) Co., Ltd.Kinko Service Co., Ltd. Fuji Logistics (Dalian F.T.Z.) Co., Ltd.Chubu Trade Warehousing Co., Ltd. Fuji Logistics (Shanghai) Co., Ltd.Meiryo Kigyo Co., Ltd. Mitsubishi Logistics Hong Kong Ltd.Ryoyo Transportation Co., Ltd. Fuji Logistics (H.K.) Co., Ltd.Kyokuryo Warehouse Co., Ltd. Mitsubishi Logistics Thailand Co., Ltd.Hanryo Kigyo Co., Ltd. P.T. Mitsubishi Logistics IndonesiaShinryo Koun Co., Ltd. P.T.Dia-Jaya Forwarding IndonesiaNaigai Forwarding Co., Ltd. Fuji Logistics (Malaysia) SDN. BHD.Kyushu Ryoso Transportation Co., Ltd.

Nippon Container Terminals Co., Ltd. Jupiter Global LimitedKusatsu Soko Co., Ltd.

Equity-Method Affiliates (3)

Consolidated Subsidiaries (44) Consolidated Subsidiaries (8)


Revenue: Revenue decreased by 7% as a whole. In logistics, although the cargo handling in port and harbor operations increased, in the international transportation business there was a decrease of revenue due to a decrease of cargo handling, a drop of ocean freight rates, and strong yen rates. In real estate, due to a decrease in the number of condominiums for sale, etc., there was a decrease of revenue. Operating Income: We posted an increase of income by 11% YOY on the whole as income increased in both logistics and real estate. Ordinary Income: 10% increase YOY from an increase in operating income Profit Attributable to Owners of Parent: 1% decrease YOY from a decrease of gain on sales of investment securities

1-3-1 Consolidated Operating Results

-137

+656

+458

-7,863

-1.0%

+10.1%

+10.9%

-6.5%

Difference Between the

Actual Results and the Forecast

*Initial Results

Forecast for 1H FY2016

YOY 1H FY2016

1H FY2015

5,111

6,952

5,641

104,386

-2.6% 5,200 -49 5,062 Profit Attributable to Owners of Parent

+9.4% 7,000 +704 7,656 Ordinary Income

+7.9% 5,800 +617 6,258 Operating Income

-7.5% 105,500 -6,749 97,636 Revenue

*1H FY2016 Results Forecast was announced on April 28, 2016.

7

(Unit: Millions of Yen)


1-3-2 Consolidated Operating Results

8

100,000

0

経常利益営業利益当期純利益

120,000

104,386 97,636

80,000

60,000

40,000

2,000

0

5,641

6,952

5,111

4,000

8,000

6,258

7,656

5,062

6,000

20,000


R e v e n u e I n c o m e s Operating Income

Ordinary Income

Profit Attributable to Owners of Parent

1H FY2015 1H FY2016 1H FY2015 1H FY2016


1-3-3 Segment Information 1. Revenue

9

1H FY2015 1H FY2016 YOY

Logistics 85,691 【81%】 81,154 【82%】 -4,537 -5.3%

Real Estate 19,706 【19%】 17,517 【18%】 -2,188 -11.1%

Internal Transactions -1,011 － -1,035 － -24 －

Total 104,386 － 97,636 － -6,749 -6.5%

*The figures in [ ] show the size of the Logistics and Real Estate businesses as percentages (excluding Internal Transactions), and therefore total 100% in both columns.

Logistics: 5% YOY decrease as a whole. There was only a slow decrease of cargo handling in warehousing and land

transportation, and although cargo handling increased in port and harbor operations, a decrease of cargo handling

in the international transportation business, a drop in the ocean freight rates, and strong yen rates resulted in a

decrease of revenue.

Real Estate: 11% decrease YOY overall. In the main real estate rental business, income decreased due to a decrease of

miscellaneous income, such as electric power income, etc., and there was also a decrease in the number of

condominiums for sale in condominium sales business.



1-3-4 Segment Information 1. Revenue

10

Real Estate 17,517

Logistics 81,154 Revenue

97,636

Internal Transactions -1,035

Real Estate 19,706


104,386

Internal Transactions

-1,011


1H FY2015 1H FY2016


1-3-5 Segment Information 2. Operating Income

1H FY2015 1H FY2016 YOY

Logistics 2,694 【33%】 3,468 【38%】 +774 +28.7%

Real Estate 5,364 【67%】 5,632 【62%】 +267 +5.0%

Parent Company’s General Expenses

-2,417 － -2,841 － -423 －

Total 5,641 － 6,258 － +617 +10.9%

*The percentage in [ ] does not account for parent company’s general expenses

11

Logistics: Operating income increased by 29% as in addition to a decrease of operational and transportation consignment costs, etc., from decreased cargo handling, there was also a decrease in depreciation and repair expenses. Real Estate: Operating income increased by 5% as in addition to a decrease of cost of sales of real estate, etc. from a decrease of the number of condominiums for sale, there was also a decrease in depreciation and repair expenses.



1-3-6 Segment Information 2. Operating Income

12

Real Estate 5,632

Logistics 3,468

Operating Income 6,258

Parent Company’s General Expenses -2,841

Real Estate 5,364

Logistics 2,694




1H FY2015 1H FY2016


1-4-1 Consolidated Financial Condition

13

End of FY2015

End of 1H FY2016 Change Explanation

Total Assets

413,264 411,670

-1,594 Although “Investments in Securities” increased due to a rise in market value of stocks, “Cash and Deposits” decreased due to payments of current liabilities of operating accounts payable, accounts payable, etc. -0.4%

Net Assets

257,524 260,381

+2,857 Although “Foreign Currency Translation Adjustment” decreased following strong yen rates, “Retained Earnings” increased from posting of profit attributable to owners of parent. +1.1％

Equity Ratio 61.7% 62.6% +0.9



1-4-2 Consolidated Financial Condition

14

100,000

200,000

300,000

400,000

0

413,264

257,524

52.0%

54.0%

56.0%

58.0%

64.0%

61.7% 62.6%

411,670

260,381

500,000 60.0%

50.0%

62.0% Equity Ratio

Net Assets

Total Assets


End of FY2015 Mar. 31, 2016

End of 1H FY2016 Sept. 30, 2016


1-5-1 Consolidated Cash Flows

15

1H FY2016 Explanation

Balance at the Beginning of Fiscal Year (Apr. 1, 2016)

45,658

Change during the Period -3,637

Cash Flows from Operating Activities

+8,022 Increase of 8.0 billion yen retained from profit before income taxes and depreciation, etc.

Cash Flows from Investing Activities

-9,446 Decrease of 9.4 billion yen from acquiring fixed assets, etc.

Cash Flows from Financing Activities

-1,555 Decrease of 1.5 billion yen from payment of dividends, etc.

Exchange Rate Change -658

Balance at the End of the Period (Sept. 30, 2016) 42,020 Decrease of 3.6 billion yen from the

beginning of FY2016



1-5-2 Consolidated Cash Flows (YOY)

16

1H FY2015 1H FY2016 YOY Explanation

Balance at the Beginning of FY

43,276 45,658 +2,381

Change During Period

+5 -3,637 -3,643

Cash Flows from Operating Activities

+9,700 +8,022 -1,677 Decreased YOY, caused by an increase in real estate for sale purchased

Cash Flows from Investing Activities

-4,106 -9,446 -5,339 Decreased YOY, caused by an increase in expenses from acquiring fixed assets

Cash Flows from Financing Activities

-5,554 -1,555 +3,999 Increased YOY, due to redemption of bonds in the corresponding period of last year

Exchange Rate Change -33 -658 -624

Change of Scope of Consolidation +360 － -360

Balance at the End of the Period

43,642 42,020 -1,621




17


2-1 Consolidated Statement of Income

2-2 Breakdown of Revenue

2-3 Breakdown of Cost of Services


2-1 Consolidated Statement of Income

1H FY2015 1H FY2016 YOY

Revenue 104,386 97,636 -6,749 -6.5％

Cost of Services 93,834 86,253 -7,581 -8.1％

Gross Profit 10,551 11,382 +831 +7.9％

SG&A 4,909 5,123 +213 +4.4％

Operating Income 5,641 6,258 +617 +10.9％

Non-Operating Income 1,696 1,736 +40

Non-Operating Expenses 385 339 -46

Ordinary Income 6,952 7,656 +704 +10.1％

Extraordinary Income 1,286 220 -1,065

Extraordinary Loss 544 456 -88

Profit before Income Taxes 7,694 7,420 -273 -3.6％

Income Taxes 2,555 2,335 -220

Profit 5,138 5,085 -53 -1.0％ Profit Attributable to Non-controlling Interests

27 23 -4

Profit Attributable to Owners of Parent

5,111 5,062 -49 -1.0％

18



2-2 Breakdown of Revenue

19


Revenue 104,386 97,636 -6,749 -6.5％

Warehouse Storage 11,854 11,756 -97 -0.8％

Although handling of pharmaceuticals increased, handling of nonferrous metals decreased

Warehouse Cargo Handling 8,197 8,098 -99 -1.2％

Land Transportation 21,962 21,915 -47 -0.2％

Port and Harbor Operations 8,361 8,896 +534 +6.4％ The handling of container freight

increased, etc.

International Transportation 25,746 20,957 -4,788 -18.6％

Due to decreased cargo handling, drop in ocean freight rates, and strong yen rates

Real Estate Rent 16,377 16,129 -248 -1.5％ Decrease of miscellaneous income, such as electric power income, etc.

Other 11,886 9,882 -2,003 -16.9％ Decrease in number of condominiums for sale in condominium sales business



2-3 Breakdown of Cost of Services

20


Cost of Services 93,834 86,253 -7,581 -8.1％

Operational and Transportation Consignment Costs

44,447 40,067 -4,380 -9.9％ Decrease of revenue in logistics

Personnel Expenses 17,449 17,693 +243 +1.4％

Facility Rental Expenses 4,564 4,397 -166 -3.6％ Decrease in logistics

Depreciation 6,595 6,157 -437 -6.6％ Decrease in both logistics and real estate

Other 20,777 17,937 -2,840 -13.7％ Decrease of cost of sales of real estate, etc. from a decrease of the number of condominiums for sale




21


3-1 Assets

3-2 Liabilities and Net Assets


3-1 Assets

22

End of FY2015 End of 1H FY2016 Change Explanation

Assets 413,264 411,670 -1,594

Cash and Deposits 45,398 38,644 -6,754 Decrease due to capital expenditure, payment of income taxes, payment of dividends, increase in investment of negotiable deposit, etc.

Securities 2,000 5,000 +3,000 Increase in investment of negotiable deposit

Buildings and Structures 112,241 107,356 -4,884 Decrease due to depreciation

Land 74,322 79,614 +5,292 Increase due to acquisition of right of using land in Indonesia, etc.

Investments in Securities 98,237 99,374 +1,137 Increase in market value of stocks



3-2 Liabilities and Net Assets

23

End of FY2015 End of 1H FY2016 Change Explanation

Liabilities 155,740 151,288 -4,451

Notes and Operating Accounts payable – trade

18,954 17,732 -1,222 Payment of operating accounts payable, etc.

Current Liabilities Other 11,621 8,998 -2,622 Payment of accounts payable, etc.

Net Assets 257,524 260,381 +2,857

Retained Earnings 172,200 176,210 +4,010 Reporting profit attributable to owners of parent

Net Unrealized Holding Gains on Securities

40,282 41,479 +1,197 Increase in valuation difference after deducting tax effect, due to a rise in market value of stocks

Foreign Currency Translation Adjustment

1,703 -595 -2,299 Decrease due to strong yen rates




24


4-1 Forecast for Revenue and Expenses

4-2 Income (Estimate)


4-1-1 Forecast for Revenue and Expenses

25

FY2015 Results

FY2016 Full-Year Forecast

YOY

Revenue 206,831 215,000 +8,168 +3.9％

Logistics 169,006 174,000 +4,993 +3.0％

Real Estate 39,876 43,200 +3,323 +8.3％

Internal Transactions -2,051 -2,200 -148 －

Cost of Services 185,838 192,600 +6,761 +3.6%

SG&A 9,684 10,300 +615 +6.4%



4-1-2 Revenue (Estimate)

26


FY2015 Results

FY2016 Estimate


Real Estate 39,876


206,831


Real Estate

Logistics Revenue

-2,051

43,200

-2,200

215,000 174,000


4-2-1 Income (Estimate)

27

FY2015 Results

FY2016 Full-Year Estimate

YOY

Operating Income 11,309 12,100 +790 +7.0%

Logistics 5,579 6,700 +1,120 +20.1%

Real Estate 10,614 10,800 +185 +1.7%

Parent’s General Administrative Expenses

-4,885 -5,400 -514 －

Ordinary Income 14,025 14,800 +774 +5.5%

Profit Attributable to Owners of Parent 9,350 9,600 +249 +2.7%


In this second quarter under review, there will be no changes to the forecast of performance results for the full fiscal year. Although a decrease of cargo handling in the international transportation business, a drop in the ocean freight rates, and strong yen rates, have resulted in revenue weaknesses, performance in general followed the forecast announced at the beginning of the term.


4-2-2 Operating Income (Estimate)

28

FY2015 Results

FY2016 Estimate

Real Estate 10,614

Logistics 5,579



Real Estate 10,800

Logistics 6,700






29


5-1 Volume Handled in Logistics (Parent)

5-2 Warehouse and Real Estate Leasing Area (Parent)

5-3 Capital Expenditure

5-4 Depreciation

5-5 New Facilities


5-1 Volume Handled in Logistics (Parent)

30

1H FY2015 1H FY2016 YOY

Warehouse Inbound Volume Quantity 1,256 1,000

tons 1,270 1,000 tons +1.1 %

Warehouse Outbound Volume

Quantity 1,221 1,000 tons 1,256 1,000

tons +2.8 %

Warehouse Storage Balance

Quantity 588 1,000 tons 565 1,000

tons -3.9 %

Amount 381,229 million Yen 388,201 million

Yen +1.8 %

Warehouse Freight Turnover Rate

Quantity 35.1 % 37.2 % +2.1

Land Transport Quantity 6,271 1,000 tons 6,252 1,000

tons -0.3 %

Port and Harbor Operations

Shore Handling Quantity 36,914 1,000

tons 35,076 1,000 tons -5.0 %

Onboard Handling Quantity 23,699 1,000

tons 27,429 1,000 tons +15.7 %

International Transportation Quantity 3,206 1,000

tons 3,050 1,000 tons -4.9 %


5-2 Warehouse and Real Estate Leasing Area (Parent)

31

Sept. 30, 2015 March 31, 2016 Sept. 30, 2016

Building Leasing Vacancy Rate 2.3％ 2.0％ 1.8％

1H FY2015 1H FY2016 YOY

894 1,000㎡ 914 1,000

㎡ +2.2 %

1,048 1,000㎡ 1,034 1,000

㎡ -1.3 %

927 1,000㎡ 919 1,000

㎡ -0.9 %

Warehouse Storage Area (Monthly Average)

Building Leasing Area (Monthly Average)

Real Estate Leasing Area (excludes warehouse leasing)


5-3 Capital Expenditure

32

FY2015 Results: 9.677 Billion Yen (Consolidated Cash Flow Statement “Spending on Fixed Asset Acquisition”) [Major Projects]

Expansion of warehouse, maintenance and renewal of logistics and real estate facilities, etc.

FY2016 Estimate: 19.5 Billion Yen [Major Projects]

Acquisition of warehouse site, construction of facilities for leasing, etc.


5-4 Depreciation

33

FY2015 Results FY2016 Estimate Explanation

Total 13.830 billion

Yen 12.9 billion

Yen

Logistics 6.785 billion

Yen 6.2 billion

Yen

Although there is an increase due to reinforcement of transportation vehicles, etc., expected to decrease on the whole due to a gradual decrease resulting from calculating by a declining-balance method

Real Estate 6.809 billion

Yen 6.5 billion

Yen

Expected to decrease due to a gradual decrease resulting from calculating by a declining-balance method

Corporate Expense

0.235 billion Yen

0.2 billion Yen


P.T. Mitsubishi Logistics Indonesia MM2100 Distribution Center

34

5-5 New Facilities

Minami Honmoku MC-3 terminal

Rendering

Operations started April 2015 Location: Naka-ku, Yokohama-shi, Kanagawa Facility area: Approx. 225,000 ㎡

Scheduled for completion in July 2017 Construction of a new distribution center for P.T. Mitsubishi Logistics Indonesia Location: Bekasi, West Java Total Floor Area: Approx. 18,000 ㎡

Forecasts in this presentation are based on the information available to the Company’s management as of the date of release, and certain assumptions judged rational. Accordingly, there might be cases in which actual results differ from forecasts in this presentation.

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