Mitsubishi Logisnext : ”Q1 Financial Results for FY2023" has been posted.

FY2023 Q1

Financial Results

(April 1 to June 30, 2023)

Aug. 10, 2023

© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

1. FY2023 Q1 Summary

Economic Market Trends

• The global economy has seen inflation persist despite the continuing monetary tightening by central banks in various countries 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 has subsided, inflation is driving not only higher labor costs but also higher costs in a wide range of areas including fuel and components costs, which is having a growing impact.
• The domestic market for material handling equipment remained firm at pre-COVID-19 levels. Overseas demand in the Americas has continued to exceed pre-COVID-19 levels, as it did in the previous fiscal year, due to stable logistics needs despite economic slowdowns. Europe's economy has stagnated, in part due to the impacts of inflation. Although demand is trending downward, it is remaining at pre-COVID-19 levels. Asia has weakened slightly because of inflation and increasing interest rates. China is showing signs of recovery due to the lifting of the zero-COVID policy but behind market expectations.
• At Mitsubishi Logisnext, the problem of longer lead times due to delays in the supply of various components is gradually abating but high costs persist. The Group as a whole secured sufficient orders and worked on achieving production improvements by eliminating components shortages in Japan and overseas, accelerating shipments.

Summary of FY2023 Q1 Results

• Net sales increased by 22.8% YoY due to an increase in units sold mainly in Japan and the Americas, as well as the effects of price optimization.
• Operating profit before amortization of goodwill increased 1,077.3% YoY despite inflationary cost increases because net sales increased contribute to the acceleration of shipments and the effects of price optimization.

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2. Financial Highlights

							Unit: Hundred million JPY
Profit and Loss
FY2022 Q1		FY2023 Q1		YoY Change
Statement
Net Sales	1,352.9		1,661.2	+308.3			+22.8％
Operating Profit	10.8		128.2	+117.4		+1,077.3％
(Before amortization of goodwill)	（0.8％）		（7.7％）
(Operating profit margin)
Amortization of	26.8		25.0	―				―
Goodwill
Operating Profit	-15.9		103.2	+119.2			―
(Operating profit margin)	―		（6.2％）
Ordinary Profit	-14.7		96.2	+111.0			―
(Ordinary profit margin)	―		（5.8％）
Profit Attributable to	-15.3		66.0		+81.4			―
Owners of Parent
―		（4.0％）
(Net income margin)
		FY2022 Q1 actual FX rates: USD=JPY129.57	EUR=JPY138.12	CNY=JPY19.58
		FY2022 Q4 actual FX rates: USD=JPY135.47	EUR=JPY140.97	CNY=JPY19.75
		FY2023 Q1 actual FX rates: USD=JPY137.37	EUR=JPY149.47	CNY=JPY19.56
Balance Sheet	FY2022 Q4		FY2023 Q1		YoY Change
	4,754.3	5,087.6	+333.3			+7.0
Total Assets								％
	3,994.0	4,188.9	+194.8			+4.9
Total Liabilities								％
Net Assets	760.2	898.7	+138.4			+18.2％

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3. Business Results by Segment

Net Sales

Operating Profit*

• Net sales increased by 22.8% YoY, due to an increase in units sold in Japan and the Americas, the contribution of the effects of price optimization and the tailwind from

the impact of yen depreciation.

Unit:			FY2023 Q1 Sales by Region
Hundred million JPY	Japan	Overseas

2,000			Increased 1,661.2	China&
		Europe Asia
		1,352.9	+308.3
1,500		15.5％	5.4％ Japan
		(+22.8％)
				（6.9％） 26.9％
1,000			1,214.2	（18.7％）	（28.8％）
	962.8
500		390.1	447.0	Americas
0		52.2％
		FY2022 Q1	FY2023 Q1	（45.6％）

() = previous year

• Operating profit increased by 1,077.3% YoY. In Japan, export business contributed due to the impact of yen depreciation despite higher costs, while overseas businesses contributed significantly due to the increase in units sold in the Americas, the effects of price optimization, and the yen depreciation.

Hundred million JPY	Japan Overseas		FY2023 Q1 Operating Profit by Segment
Unit:
150.0			Increased	128.2
			+117.4		Japan
100.0			(+1,077.3％)	98.5	23.2％
				(26.6％)
50.0			10.8		Overseas
			7.9	29.7	76.8%
			(73.4％)
0.0			2.8
			FY2022 Q1	FY2023 Q1	() = previous year

* Operating profit before amortization of goodwill

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4. Net Sales by Region (including FX impacts)

		Japan
(Unit: Hundred million JPY)	Increased
500		447.0
	+56.8
400	390.1	（+14.6％）
300
200
100
0
	FY2022 Q1		FY2023 Q1
		Europe
			FX impact
(Unit: Hundred million JPY)	Increased	16.5
300	253.4	256.9
+3.5
250		（+1.4％）
200
150
100
50
0
	FY2022 Q1		FY2023 Q1

© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

	Americas	FX impact
(Unit: Hundred million JPY)	Increased	49.2
1,000	866.9
+250.4
800	（+40.6％）
616.4
600
400
200
0
FY2022 Q1		FY2023 Q1

China & Asia

			FX impact
(Unit: Hundred million JPY)	Decreased	0.4
100	92.9	90.3
		-2.5
80		（-2.7％）
60
40
20
0
	FY2022 Q1		FY2023 Q1
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