Financial Results for the 3rd Quarter of Fiscal Year Ending

March 31, 2024

Konoike Transport Co., Ltd.

（Securities Code 9025/Prime Market）

Copyright © KONOIKE TRANSPORT CO.,LTD. ALL Rights Reserved.

Summary of Consolidated Financial Results for Q2 FY3/24

Copyright © KONOIKE TRANSPORT CO.,LTD. ALL Rights Reserved.

2

(￥million) FY 3/24(Reference)
Latest Forecasts(※1)

Summary of Consolidated Financial Results for Q3 FY 3/24（YoY）

  • Net sales decreased despite higher volume in the Airport-Related Business stemming from the resumption of international passenger flights; higher unit prices, mainly in contract production services; increased production due to ongoing large -lot spot work, a recovery in customer production, and heat waves; and increased sales from the receipt of orders for large-scale projects in Engineering-Related. This decrease was due to lower demand for ocean and air cargo, as well as significant negative impacts from the freight rate market.
  • Although fuel and electricity prices remained high, operating income rose due to factors including improved profitability, particularly in the Airport-Related Business; ongoing efforts to improve profitability, which is the basic policy of our new FY3/2023 - FY3/2025 medium-term management plan launched in April 2022; the receipt of appropriate unit prices, and improved efficiencies.
  • Non-operatingincome decreased due to the end of special measures related to employment adjustment subsidies.
  • Cumulative Q3 FY3/24 operating income and ordinary income increased by 441 million yen and 136 million yen respectively due to the

employee fraud disclosed on February 9.

FY 3/23

Actual

Q3

Composition

Ratio

Net sales

237,119

100.0%

Gross profit

21,673

9.1%

 SG&A expenses

10,892

4.6%

Operating income

10,781

4.5%

 Non-operating income

1,323

0.6%

 Non-operating exspenses

479

0.2%

Ordinary income

11,624

4.9%

 Extraordinary income

167

0.1%

 Extraordinary loss

576

0.2%

Profit attributable to

6,926

2.9%

owners of parent

FY 3/24

Actual

Q3

Composition

Ratio

235,875

100.0%

25,607

10.9%

12,354

5.2%

13,253

5.6%

955

0.4%

758

0.3%

13,450

5.7%

17

0.0%

78

0.0%

8,559

3.6%

YoY

Amount

Ratio

(1,243) (0.5%)

3,934 18.2%

1,461 13.4%

2,472 22.9%

  1. (27.8%)
    278 58.0%

1,826 15.7%

  1. (89.8%)
  1. (86.4%)

1,633 23.6%

Q4

313,500

16,400

16,600

10,800

Composition

Ratio

100.0%

5.2%

5.3%

3.4%

※:3/14 disclosure Revised forecasts Copyright © KONOIKE TRANSPORT CO.,LTD. ALL Rights Reserved.

2

Latest Forecasts（※3）
(￥million) FY 3/24(Reference)

Summary of Financial Results by Segment for Q3 FY 3/24 （YoY）

  • Integrated Solutions Business: Despite the completion of earthquake reconstruction projects in September 2022, revenue increased due to factors including the resumption of international flights in the Airport-Related Business, as well as ongoing large-lot spot work and higher unit prices for production contract work in the Steel-Related Business. Although fuel and electricity costs remained high, profit rose due to improved profitability mainly in Airport-Related, the receipt of appropriate unit prices, and the results of thorough operational efficiency.
  • Domestic Logistics Business: Revenue increased due to an increase in transaction volume in the Food-Related Business, including operations at a new temperature-controlled warehouse. Profit increased despite further increases in fuel prices and high electricity prices. This increase is due to higher revenue, the receipt of appropriate unit prices, and the result of our efforts to improve profitability by increasing operational efficiency.
  • International Logistics Business: Revenue and profit decreased due to lower demand for ocean and air cargo and negative impacts from the freight rate market, despite an increase in warehousing and transportation volume in America, India, Thailand, and other regions and large-scale projects.

FY 3/23（※1）

FY 3/24

Actual

Actual

Q3

Composition

Q3

Composition

Ratio

Ratio

Net sales

237,119

100.0%

235,875

100.0%

Integrated Solutions

142,564

60.1%

151,999

64.4%

Domestic Logistics

39,801

16.8%

40,863

17.3%

International Logistics

54,744

23.1%

42,992

18.2%

Other(※2)

8

0.0%

21

0.0%

Q3

Margin

Q3

Margin

Segment income

10,781

4.5%

13,253

5.6%

Integrated Solutions

10,271

7.2%

13,264

8.7%

Domestic Logistics

2,513

6.3%

2,586

6.3%

International Logistics

2,650

4.8%

2,334

5.4%

Other(※2)

(98)

－

(160)

－

Adjustments

(4,555)

－

(4,772)

－

YoY

Amount Ratio

( 1,243) (0.5%)

9,434 6.6%

1,061 2.7%

  • 11,752) (21.5%)
    12 149.1%

Amount

Ratio

2,472

22.9%

2,993

29.1%

73

2.9%

( 315)

(11.9%)

( 61)

－

( 216)

－

Full year

313,500

200,540

53,903

58,976

84 Full year

16,400

16,892

3,268

2,985

  • 197) ( 6,493)

Composition

Ratio

100.0%

64.1%

17.2%

18.8%

0.0%

Margin

5.2%

8.4%

6.1%

5.1%

－

－

※1:FY3/23 actual segment figures correspond to the organization of FY 3/24.

※2:"Other" represents business segments such as software development and other operations, and is not subject to reporting.    

※3:3/14 disclosure Revised forecasts

Copyright © KONOIKE TRANSPORT CO.,LTD. ALL Rights Reserved.

3

(￥million) FY 3/24(Reference)
Latest Forecasts(※2)

Summary of Net Sales Breakdown by Service for Q3 FY 3/24（YoY）

  • Steel-Related:Revenue increased, despite the completion of earthquake reconstruction projects in September 2022, due to ongoing large-lot spot work and higher unit prices for production contracts.
  • Engineering-Related:Revenue increased due to large-scale construction projects and other factors.
  • Food Products-Related: Revenue increased due to new facility operations and increased transaction volume as a result of rising production among customers stemming mainly from the extremely hot summer.
  • Airport-RelatedBusiness: Revenue increased, mainly due to an increase in transaction volume with the resumption of international flights.
  • Food-Related(Temperature Controlled): Revenue increased due to an increase in volume stemming from the operation of a new warehouse, etc.
  • International-Related:Revenue decreased due to lower demand for ocean and air cargo and negative impacts from the freight rate market.

Business

Segments

Integrated

Solutions

Domestic

Logistics

International

Logistics

-

Net sales

Steel-Related

Engineering -Related

Food-Related(Food)

Food Products -Related

Medical-Related

Airport-Related

Life-Related(Life)

Life-Related(Logistics)

Food-Related(Temp-Cntl-Related)

International-Related

Other

FY 3/23（※1）

Actual

Q3

Composition

Ratio

237,119 100.0%

37,744 15.9%

8,375 3.5%

24,952 10.5%

37,742 15.9%

10,126 4.3%

8,865 3.7%

14,757 6.2%

26,132 11.0%

13,669 5.8%

54,744 23.1%

  • 0.0%

FY 3/24

Actual

Q3

Composition

Ratio

235,875 100.0%

38,707 16.4%

9,371 4.0%

25,113 10.6%

39,224 16.6%

10,542 4.5%

14,062 6.0%

14,976 6.3%

26,365 11.2%

14,498 6.1%

42,992 18.2%

21 0.0%

YoY

Amount

ratio

(1,243) (0.5%)

  1. 2.6%
  1. 11.9%
  1. 0.6%

1,482 3.9%

  1. 4.1%
    5,197 58.6%
  1. 1.5%
  1. 0.9%
  1. 6.1%

(11,752) (21.5%)

12 149.1%

Full year

Composition

Ratio

313,500

100.0%

51,392

16.4%

12,203

3.9%

32,864

10.5%

50,602

16.2%

13,995

4.5%

19,810

6.3%

19,671

6.3%

34,898

11.1%

19,004

6.1%

58,976

18.8%

84

0.0%

※1: FY3/23 actual segment figures correspond to the organization of FY 3/24.

※2:3/14 disclosure Revised forecasts

Copyright © KONOIKE TRANSPORT CO.,LTD. ALL Rights Reserved.

4

Summary of Financial Results by Segment for FY 3/24(vs. Forecasts)

  • Integrated Solutions Business: Revenue and profit increased, mainly due to an increase in transaction volume in the Airport-Related Business with the resumption of international flights and large-scale temporary operations in the Steel-Related and Engineering-Related Businesses.
  • International-RelatedBusiness: Revenue decreased and profit increased in Food-Related (Temperature Controlled) despite lower handling volume of loading and unloading storage. This result was due to lower-than-expected impacts of high electricity prices.
  • International Logistics Business: Revenue decreased due to lower cargo volume handled and lower rail transportation volume handled in India. Profit increased due to the receipt of appropriate unit prices, and cost reductions resulting from a review of personnel assignments and other factors.

Net sales Integrated Solutions

（Airport-Related ）Domestic Logistics International Logistics Other(Note)（※）

Segment income Integrated Solutions

（Airport-Related ）Domestic Logistics International Logistics Other(Note)（※） Adjustments

FY 3/24

Previous Forecasts

Q3

Composition Ratio

235,000

100.0%

150,991

64.3%

13,841

5.9%

40,883

17.4%

43,177

18.4%

74

0.0%

Q3

Margin

11,600

4.9%

12,302

8.1%

  1. －
    2,548 6.2%
    2,214 5.1%
  1. －
    (5,253) －

FY 3/24

Actual

Q3

Composition Ratio

235,875 100.0%

151,999 64.4%

14,062 6.0%

40,863 17.3%

42,992 18.2%

21 0.0%

Q3 Margin

13,253 5.6%

13,264 8.7%

  1. －
    2,586 6.3%
    2,334 5.4%
  1. －
    (4,772) －

Vs. Forecasts

Amount

Ratio

  1. 0.4%

1,007 0.7%

  1. 1.6%
  1. (0.0%)
  1. (0.4%)
  1. (71.6%)

Amount Ratio

1,653 14.3%

  1. 7.8%
  1. －
  1. 1.5%

120 5.4%

  1. －
    480 －

Note: "Other" represents business segments such as software development and other operations, and is not subject to reporting.    

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5

Summary of Net Sales Breakdown by Service for Q3 FY 3/24(vs. Forecasts)

  • Steel-Related:Revenue increased due to the acquisition of spot work.
  • Engineering-Related:Revenue increased mainly due to the acquisition of on-site spot work and major start-up work.
  • Airport-Related:Revenue increased due to increased transaction volumes with the resumption of international flights.
  • Life-Related(Life): Revenue increased mainly due to the acquisition of major pipework.
  • International-Related:Revenue decreased due to lower cargo volume handled and lower rail transportation volume handled in India.

Business

Segments

Integrated

Solutions

Domestic

Logistics

International

Logistics

-

Net sales

Steel-Related

Engineering -Related

Food-Related(Food)

Food Products -Related

Medical-Related

Airport-Related

Life-Related(Life)

Life-Related(Logistics)

Food-Related(Temp-Cntl-Related)

International-Related

Other

FY 3/24

Previous Forecasts

Q3 Composition Ratio

235,000 100.0%

38,432 16.4%

9,055 3.9%

25,119 10.7%

39,285 16.7%

10,507 4.5%

13,841 5.9%

14,749 6.3%

26,339 11.2%

14,544 6.2%

43,177 18.4%

74 0.0%

FY 3/24

Actual

Q3 Composition

Ratio

235,875 100.0%

38,707 16.4%

9,371 4.0%

25,113 10.6%

39,224 16.6%

10,542 4.5%

14,062 6.0%

14,976 6.3%

26,365 11.2%

14,498 6.1%

42,992 18.2%

21 0.0%

(￥million)

Vs.Forecasts

Amount ratio

  1. 0.4%
  1. 0.7%
  1. 3.5%
  1. (0.0%)
  1. (0.2%)
    34 0.3%

220 1.6%

  1. 1.5%
  1. 0.1%
  1. (0.3%)
  1. (0.4%)
  1. (71.6%)

Copyright © KONOIKE TRANSPORT CO.,LTD. ALL Rights Reserved.

6

Changes in Consolidated Operating Income for FY 3/24 (YoY)

Increase in labor costs

Increase in Airport‐Related Business in response to recovery in demand for passenger flights(2,796)

Decrease in revenue

Decrease due to lower International-Related, despite an increase in Airport-Related Business sales (+5,197)

*Revised unit price (+2,195)

Decrease in outsourcing costs

Decrease due to our International-related.

Non-

International

Related

Increase in materials costs

(2,252)

+135

(727)

International

(1,461)

Related

+12,093

International

Related

10,781 (11,752)

Non-

International

Related

+10,508

(4,072)

13,253

Increase in other expenses

Increase due to legal welfare expenses stemming from higher labor costs, equipment and warehouse repair costs, and higher electricity, gas, and other utility fees

Increase in SG&A expenses

FY23/3

Increase mainly due to higher R&D expenses for next-

FY24/3

Q3

generation products and higher system-related expenses

Q3

Copyright ©

+2,472

ALL Rights Reserved.

(Millions of yen)

7

KONOIKE TRANSPORT CO.,LTD.

( ) Increase in costs

Summary of Consolidated Balance Sheets at the end of FY 3/24

Total

Assets 266,022

Current assets 132,254

Non- current assets 133,767

Total

Assets 273,854

Current assets 137,836

Non- current assets 136,017

Notes and accounts receivable 62,134(+4,548)

Other current assets 4,559(+983)

Land 43,792(+1,993)

Construction in progress 2,064(+1,195)

Deferred tax asset- noncurrent 4,049(△1,543)

Total

Total

liabilities and

liabilities and

net assets

net assets

266,022 273,854

Current

Current

liabilities

liabilities

50,444

52,526

Total long-

Total long-

term liabilities

term liabilities

89,444

89,701

Total net

Total net

assets

assets

133,965

123,793

Income Tax payable 796(△2,704)

Accrued expenses 9,320(△2,555)

Current liabilities-other 15,407(+4,262)

Long-term loans payable 5,100(△637)

Retirement Benefit Debt 21,504(+260)

Deferred tax liabilities- noncurrent 679(+98)

Retained earnings 127,365(+6,130)

Translation adjustment- capital 7,115(+3,029)

3/31/'23

12/31/'23

3/31/'23

12/31/'23

（￥million ）

8

Copyright © KONOIKE TRANSPORT CO.,LTD. ALL Rights Reserved.

【Reference】 Segment income after adjustments allocation

Segment income after adjustments (headquarters SG&A expenses, etc.) is as follows

(unallocated costs are prorated as a percentage of cost of sales)

(￥million)

( million)

Segment income before allocation

Integrated Solutions

Domestic Logistics

International Logistics

Other(※2)

Adjustments

FY 3/23（※1）

Actual

Q3

Composition Ratio

10,781

4.5%

10,271

7.2%

2,513

6.3%

2,650

4.8%

  1. －
    (4,555) －

FY 3/24

Actual

Q3

Composition Ratio

13,253

5.6%

13,264

8.7%

2,586

6.3%

2,334

5.4%

  1. －
    (4,772) －

YoY

Amount

Ratio

2,472

22.9%

2,993

29.1%

73 2.9%

  1. (11.9%)

(61)－

(216)－

( million)

Segment income after allocation

Integrated Solutions

Domestic Logistics

International Logistics

Other(※2)

Adjustments

FY 3/23（※1）

Actual

Q3 Margin

10,781 4.5%

7,505 5.3%

1,745 4.4%

1,632 3.0%

  1. －
  1. －

FY 3/24

Actual

Q3 Margin

13,253 5.6%

10,166 6.7%

1,728 4.2%

1,500 3.5%

  1. －
    17 －

YoY

Amount

Ratio

2,472

22.9%

2,660

35.4%

  1. (1.0%)
  1. (8.0%)

(61)

－

21

－

※1: FY 3/23 actual segment figures correspond to the organization of FY 3/24

※2: "Other" represents business segments such as software development and other operations, and is not subject to reporting.

9

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Konoike Transport Co. Ltd. published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 06:09:00 UTC.