Mitsubishi Logisnext : Earnings Report for the three months ended June 30, 2023

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 4, 2023

Consolidated Financial Results

for the Three Months Ended June 30, 2023

(Under Japanese GAAP)

Company name:	Mitsubishi Logisnext Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	7105
URL:	https://www.logisnext.com/en/
Representative:	Yuichi Mano, Representative Director and President
Inquiries:	Hiroki Mochizuki, Division Head, General Manager, Corporate Finance and
	Accounting Division, Corporate Finance and Accounting Headquarters
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 10, 2023
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:	None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023 (April 1, 2023 to June 30, 2023)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

June 30, 2023

166,127

22.8

10,322

-

9,629

-

6,608

-

June 30, 2022

135,296

25.2

(1,597)

-

(1,470)

-

(1,539)

-

Note: Comprehensive income

For the three months ended June 30, 2023:

¥15,007 million

[112.9%]

For the three months ended June 30, 2022:

¥7,047 million

[-%]

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

June 30, 2023

61.96

61.76

June 30, 2022

(14.44)

-

Reference: Operating profit before amortization of goodwill

For the three months ended June 30, 2023:

¥12,829 million

[-%]

For the three months ended June 30, 2022:

¥1,089 million

[(68.7)%]

Mitsubishi Logisnext Co., Ltd. (the "Company") uses operating profit before amortization of goodwill as a key management indicator.

Note: The year-on-year change in operating profit before amortization of goodwill for the three months ended June 30, 2023 was 1,077.3%, and because the rate of increase exceeds 1,000% is shown as "-."

(2) Consolidated financial position

		Total assets	Net assets	Equity-to-asset ratio
As of		Millions of yen	Millions of yen	%
June 30, 2023		508,766	89,874	17.6
March 31, 2023		475,432	76,027	15.9
Reference: Equity	As of June 30, 2023:	¥89,289 million
	As of March 31, 2023:	¥75,455 million

Net assets per share

Yen

838.12

707.19

2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end		Third quarter-end	Fiscal year-end	Total
	Yen	Yen		Yen	Yen	Yen
Fiscal year ended	-	-		-	9.00	9.00
March 31, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending		-		-	16.00	16.00
March 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2024 (April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

									Profit attributable to	Basic
	Net sales		Operating profit	Ordinary profit		earnings
			owners of parent
									per share
	Millions of yen		%	Millions of yen	%	Millions of yen	%		Millions of yen	%	Yen
Fiscal year ending	630,000		2.4	25,000	70.0	23,000	97.5		13,000	88.0	121.89
March 31, 2024
Note: Revisions to the earnings forecasts most recently announced: None
Reference: Operating profit before amortization of goodwill	¥35,000 million	[40.0%]

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes

Excluded:

1 company (Mitsubishi Logisnext Americas (Marengo) Inc.)

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common stock)
5. 1. Total number of issued shares at the end of the period (including treasury stock)

As of June 30, 2023

As of March 31, 2023

106,712,013 shares

106,705,013 shares

(ii) Number of treasury stock at the end of the period

As of June 30, 2023

As of March 31, 2023

175,916 shares

7,216 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2023

Three months ended June 30, 2022

106,649,872 shares

106,640,797 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters Caution regarding forward-lookingstatements
  The forward-looking statements, including the financial forecasts shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may differ materially from these forecasts due to various factors. For matters related to the earnings forecasts, please see "1. Qualitative information regarding financial results for the first three months, (3) Explanation of consolidated earnings forecasts and other forward-looking statements" on page 4 of the attached material.

	Mitsubishi Logisnext Co., Ltd.
Attached Material
	Index
1. Qualitative information regarding financial results for the first three months	2
(1)	Explanation of operating results	2
(2)	Explanation of financial position	4
(3)	Explanation of consolidated earnings forecasts and other forward-looking statements	4
2. Quarterly consolidated financial statements and significant notes thereto	5
(1)	Quarterly consolidated balance sheet	5
(2)	Quarterly consolidated statement of income and quarterly consolidated statement of
	comprehensive income	7
	Quarterly consolidated statement of income (cumulative)	7
	Quarterly consolidated statement of comprehensive income (cumulative)	8
(3)	Notes to quarterly consolidated financial statements	9
	Notes on premise of going concern	9
	Notes on significant changes in the amount of shareholders' equity	9
	Segment information	9
3. Other	11

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Mitsubishi Logisnext Co., Ltd.

1. Qualitative information regarding financial results for the first three months

1. Explanation of operating results
   The global economy in the three months ended June 30, 2023, has seen inflation persist despite the continuing efforts of central banks in various countries to raise or maintain interest rates in order to control inflation and, with Russia's prolonged aggression in Ukraine showing no end in sight, its growth is slowing. Although the increase in transport costs caused by the rapid recovery phase out of the COVID-19 pandemic has subsided, inflation is driving not only higher labor costs but also higher costs in a wide range of areas including fuel and components. In Japan and overseas, this is having a growing impact.
   Against this backdrop, the domestic market for forklifts and other material handling equipment remained firm at pre-COVID-19 levels. Though overseas demand in the Americas is on a downward trend as buyers take a wait-and-see approach due to a sense of economic slowdown, demand continues to exceed pre-COVID-19 levels, as it did in the previous fiscal year, due to stable logistics needs. On the other hand, Europe's economy has stagnated, in part due to the impacts of inflation. Although demand is trending downward from the temporary rebound, it is remaining at pre-COVID-19 levels. In addition, Asia was relatively unaffected by the situation in Ukraine, although the market has weakened slightly because of inflation and interest rate hikes. China is showing signs of recovery due to the lifting of the zero-COVID policy but behind market expectations.
   At the Company, the major challenge of longer lead times due to delays in the supply of various components is gradually abating but high costs persist. Despite these circumstances, the Group as a whole secured sufficient orders. In addition, the Group worked on achieving production improvements by eliminating the components shortages in Japan and overseas, accelerating shipments. As a result, the effects of price optimization were effectively expanded. However, there are signs of interest rate policy reversal in Japan and the Americas at present, and the outlook for the global economy in the current inflationary environment remains unclear and unpredictable.
   Under these circumstances, net sales for the period under review totaled ¥166,127 million (up 22.8% year on year).
   Profits were affected by high costs but net sales increased contribute to the acceleration of shipments and the effect of price optimization, consequently operating profit was ¥10,322 million (compared to a loss of ¥1,597 million in the same period of the previous fiscal year), ordinary profit was ¥9,629 million (compared to a loss of ¥1,470 million in the same period of the previous fiscal year), and profit attributable to owners of parent was ¥6,608 million (compared to a loss of ¥1,539 million in the same period of the previous fiscal year).
   Operating profit before amortization of goodwill was ¥12,829 million (up 1,077.3% year on year), and the operating profit margin was 7.7% (up 6.9 percentage points year on year).

	Three months ended	Three months ended	Change
(Billions of yen)	June 30, 2022	June 30, 2023	(Billions of yen)	(%)
Net sales	135.29	166.12	30.83	22.8
Operating profit before	1.08	12.82	11.74	1,077.3
amortization of goodwill
(%)	0.8	7.7
Operating profit (loss)	(1.59)	10.32	11.92	-
(%)	-	6.2
Ordinary profit (loss)	(1.47)	9.62	11.10	-
(%)	-	5.8
Profit (loss) attributable to	(1.53)	6.60	8.14	-
owners of parent
(%)	-	4.0

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