Mitsubishi Logisnext : Script/Q＆A for Financial Results Briefing of FY2022（1.77MB）

Mitsubishi Logisnext Co., Ltd.

Financial Results Briefing for the Fiscal Year Ended March 2023

June 1, 2023

Event Summary

[Company Name]	Mitsubishi Logisnext Co., Ltd.
[Company ID]	7105-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Financial Results Briefing for the Fiscal Year Ended March 2023
[Fiscal Period]	FY2023 Annual
[Date]	June 1, 2023
[Number of Pages]	35
[Time]	15:30 - 16:35
	(Total: 65 minutes, Presentation: 40 minutes, Q&A: 25 minutes)
[Venue]	Webcast
[Number of Speakers]	4
	Takashi Mikogami	Representative Director and Chairman
	Yuichi Mano	Representative Director and President
	Takatoshi Uno	Director, Executive Officer, CFO, Division
		Head, General Manager, Corporate Strategy
		and Planning Office
	Junichi Oi	Member of the Executive Team, Head of
		Corporate Finance and Accounting
		Headquarters

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Presentation

Moderator: Thank you for standing by. Welcome to the financial results briefing of Mitsubishi Logisnext Co., Ltd. for the fiscal year ended March 2023. Thank you very much for taking time out of your busy schedule to participate in our financial results briefing.

Today, we would like to explain our financial results for the fiscal year ended March 2023 and our management policy for the fiscal year ended March 2023.

Now, let me introduce today's attendees. Takashi Mikogami, Representative Director and Chairman.

Mikogami: I am Mikogami. Hello.

Moderator: Yuichi Mano, Representative Director and President.

Mano: I am Mano. Hello.

Moderator: Takatoshi Uno, Executive Officer, CFO, and Head of Corporate Finance and Accounting Headquarters.

Uno: I am Uno. Hello.

Moderator: Junichi Oi, Member of the Executive Team and Head of Corporate Finance and Accounting Headquarters.

Oi: I am Oi. Hello.

Moderator: That is all. As for today's proceedings, Mr. Uno, Head of Corporate Finance and Accounting Headquarters, will provide an overview of the financial results for the fiscal year ended March 2023, and Mr. Mano, Representative Director and President, will explain the management policy for FY2023.

We will now move on to an overview of the financial results for the fiscal year ended March 2023. Please go ahead, Mr. Uno.

Uno: I am Uno from Mitsubishi Logisnext. Thank you very much for attending our FY2022 financial results briefing today.

I would like to begin with an overview of the first half of today's presentation.

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Please begin by looking at page three of the material.

The market environment surrounding our company. The global economy continued to stagnate and slow down due to monetary tightening in the US and Europe and Russia's invasion of Ukraine. Overall, the rising cost of materials and transportation and supply chain disruptions, while improving, have yet to dispel concerns.

Against this backdrop, the domestic forklift market has been firm. Overseas, although the level of sales has remained higher than before the COVID-19 disaster, Europe and China are in a contractionary trend, and the Americas and Asia are also experiencing a slight slowdown in the current situation.

In the Company, although the large rebound from the COVID-19 disaster in FY2021 has slowed down, orders are still steady. In H2, we were able to increase production and shipments both domestically and overseas compared to H1, and this has enabled us to achieve price optimization.

This is a summary of our consolidated financial results under these circumstances. Sales increased 32.2% YoY due to increased production and sales in the Americas and Europe, strong performance by the US sales subsidiary, Equipment Depot, EQD for short, as well as the contribution of the weaker yen.

Operating income before amortization of goodwill and other items increased by 92.1% YoY due to the increase in net sales, strong performance of the rental business, profit contributions from price optimization, and the effect of the yen's depreciation.

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Please continue with the financial highlights on page four. I will again explain the main financial values.

Net sales were JPY615.4 billion, operating income before amortization of goodwill and other items was JPY25 billion, and operating income under the system accounting after amortization of goodwill and other items was JPY14.7 billion, all record highs. Net sales for H1 were JPY279.6 billion and operating income before amortization of goodwill and other items was JPY6.2 billion. This was a result of the production and shipments proceeded in H2 and the benefits of price optimization, which led to improved profitability.

Ordinary income and net income also increased significantly in H2, to JPY11.6 billion and JPY6.9 billion, respectively, up 259% and 864% from the previous fiscal year. Unfortunately, however, we were not able to reach the amount recorded in FY2018, and our goals for the current progressive fiscal year, FY2023, are to reach record highs in ordinary profit and net income.

The table below shows the balance sheet, which will be explained later on page nine.

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