financial results meeting · 2016. 11. 9. · financial results meeting: the 1st 6 months of fy...
TRANSCRIPT
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Financial Results Meeting: The 1st 6 Months of FY Ending March 2017(April 1, 2016 – September 30, 2016)
November 9, 2016
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Summary of Business Results for Six Months ended September 30, 2016, for FY Ending March 2017 and Forecast for FY Ending March 2017
Business Strategies and Measures
02 Financial Summary03 Year over Year Comparisons of Net Sales,
Cost of Sales, and SGA Expenses04 Balance Sheets05 Cash Flow Statements06 Net Sales and Operating Income by Segment 07 Operating Margins by Segment08-09 Highlights10 Net Sales by Business11 Gross Margin by Transportation Mode12 Performance Forecast for FY Ending March 201713 Performance Forecast by Business & Segment
for FY Ending March 2017
15 Outline of Medium-Term Management Plan16 Medium-Term Management Plan Numerical Targets17 Basic Strategies18 KWE - APLL: Direction19-20 Enhancing Freight Forwarding Business21 Dividends
Contents
Supplemental Materials
1
23 Business Composition of Net Sales by Segment24 Freight Volume by Segment (Air Freight)25 Freight Volume by Segment (Sea Freight)26 Our Global Network
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Financial Summary
2
ItemSix months ended September 30
2015 2016YoY change YoY change
Net sales 164,620 7.4% 227,362 38.1%
Operating gross profit 25,853 6.9% 39,633 53.3%
Operating income 6,595 2.0% 4,287 (35.0%)
Ordinary income 7,038 0.6% 4,691 (33.4%)
Income beforeincome taxes 7,034 34.6% 5,076 (27.8%)
Net income attributable to owners of the parent 4,140 40.4% 1,177 (71.6%)
Amount (¥ million)FY ending March 31, 2017
Forecasts(Announced on August 9, 2016)
232,000
―
5,000
5,000
―
1,500
Conversion Rate
1st 6 months of FY ended March 2016 FY ended March 2016
1st 6 months of FY ending March 2017
US-Dollar ¥120.23 ¥121.05 ¥105.29EURO ¥134.17 ¥134.31 ¥118.15HK-Dollar ¥15.51 ¥15.61 ¥13.57Chinese yuan ¥19.32 ¥19.22 ¥15.94
* APLL was included in the scope of consolidation from the 3Q of FY ended March 31, 2016.
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164,620
227,362
138,767
187,728
19,25835,346
0
50,000
100,000
150,000
200,000
250,000
September 30, 2015 September 30, 2016
Net sales
Cost of sales
SGA expenses
Year over Year Comparisons of Net Sales,Cost of Sales, and SGA Expenses
(Millions of yen)
Six months ended September 30
2015 Ratio to net sales 2016 Ratio to net sales
Net sales 164,620 100.0% 227,362 100.0%
Cost of sales 138,767 84.3% 187,728 82.6%
SGA expenses 19,258 11.7% 35,346 15.5%
Operating income 6,595 4.0% 4,287 1.9%
(Millions of yen)
3
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Balance Sheets
March 31, 2016 September 30, 2016 Differences
Assets
Current assets 178,454 157,332 (21,122)Non-current assets 207,447 184,317 (23,130)
Property, plant and equipment 45,944 44,195 (1,749)Intangible assets 134,117 114,573 (19,544)Total investments and other assets 27,386 25,548 (1,838)
Total assets 385,902 341,649 (44,252)Liabilities
Current liabilities 98,406 96,386 (2,019)Non-current liabilities 152,296 145,007 (7,288)Total liabilities 250,703 241,394 (9,308)
Net assetsTotal net assets 135,199 100,255 (34,944)Total liabilities and net assets 385,902 341,649 (44,252)
(Millions of yen)
4
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Cash Flow Statements
Six months ended September 30Differences
2015 2016
Net cash provided by (used in) operating activities 5,983 7,498 1,514
Net cash provided by (used in) investing activities (142,149) (2,784) 139,365
Net cash provided by (used in) financing activities 145,844 (1,654) (147,499)
Effect of exchange rate change on cash and cash equivalents 283 (6,200) (6,483)
Net increase (decrease) in cash and cash equivalents 9,962 (3,710) (13,672)
Cash and cash equivalents at beginning of period 48,700 63,903 15,203
Cash and cash equivalents at end of period 58,662 60,193 1,531
(Millions of yen)
5
* Net decrease in cash and cash equivalents of the six months ended September 30, 2016 includes a decrease of 569 million yen resulting from change in fiscal year-end of consolidated subsidiaries.
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19.0%
12.4%
4.6%
35.0%
17.0%
9.1% 2.9%
(Millions of yen)
Net Sales and Operating Income by SegmentComposition by segmentSix months ended September 30, 2016
6
The Americas
Japan
Europe, Middle East & AfricaEast Asia & Oceania
Southeast Asia
Other
APLL
* “Other” refers to business not included in reportable segments and provides incidental logistics related services within the Group.
22.7%
8.8%
6.0%
15.7%9.2%
37.2%
0.4%
Net Sales Operating IncomeSegment Net Sales YoY change Operating Income YoY change
Japan 52,778 (3.8%) 1,402 (6.5%) The Americas 20,369 (24.7%) 913 (53.0%) Europe, Middle East & Africa 14,022 (21.1%) 337 2.0% East Asia & Oceania 36,354 (20.4%) 2,575 0.7% Southeast Asia 21,437 (10.4%) 1,254 65.8% APLL 86,545 ― 666 ― Amortization of goodwill ― ― (3,081) ― Other 1,007 (17.3%) 217 (32.3%) Adjustment (5,153) ― 4 ―
Total 227,362 38.1% 4,287 (35.0%)
Sheet1
SegmentNet SalesYoY changeOperating IncomeYoY change
Japan52,778(3.8%)1,402(6.5%)
The Americas20,369(24.7%)913(53.0%)
Europe, Middle East & Africa14,022(21.1%)3372.0%
East Asia & Oceania36,354(20.4%)2,5750.7%
Southeast Asia21,437(10.4%)1,25465.8%
APLL86,545―666―
Amortization of goodwill――(3,081)―
Other1,007(17.3%)217(32.3%)
Adjustment(5,153)―4―
Total227,36238.1%4,287(35.0%)
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4.0%
2.7%
7.2%
1.9%
5.6%
3.2%
1.9%
2.7%
4.5%
2.4%
7.1%
5.8%
0.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
APLL
16/32Q
17/32Q
Operating Margins by Segment
Six months ended September 30 2015 and 2016
7
Japan The Americas Europe, Middle East & AfricaEast Asia &
OceaniaSoutheast
AsiaConsolidated
16/32Q
17/32Q
16/32Q
17/32Q
16/32Q
17/32Q
16/32Q
17/32Q
16/32Q
17/32Q
16/32Q
17/32Q
*Results for the 2nd quarter of FY ended March 2016 for the Americas, Europe, Middle East & Africa, East Asia & Oceania, Southeast Asia include those for the six months from January to June 2015.
* APLL’s operating margin is calculated based on the amount before amortization of goodwill.
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Highlights
8
KWE Japan affected by profitability decline in air freight export 1
Southeast Asia continuously performed well2
・KWE/Japan: Operating margin decreased from 2.2% to 1.4%・Subsidiaries in Japan: Steady growth
・Four regions’ operating margin increased from 4.9% to 5.5% (excluding APLL)
・Americas: A backlash from an increased air freight volume bound for the West Coast in 2015
・Europe, Middle East & Africa: Sluggish in Germany and Russia,but favorable in the U.K.
・East Asia & Oceania: Profitability improved despite a decrease in air freight volume・Southeast Asia: Steady volume growth in air and sea freight forwarding
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Highlights
9
APLL’s performance on previous year level
・Steady growth in automotive-related. Retail, consumer, and industrial field lacked active movements overall due to soft demand
・Soft demand in sea freight forwarding
・Operating income of 666 million yen before amortization of goodwill, however, recorded operating loss of 2,416 million yen after goodwill amortization
3
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52.0%
25.0%
12.9%
10.1%
31.4%
28.3%
33.4%
6.9%
Net Sales by Business
BusinessSix months ended September 30
2015 2016Net sales Net sales YoY change
Frei
ght
trans
porta
tion Air Freight 85,594 71,476 83.5%
Sea Freight 41,086 64,419 156.8%Logistics 21,247 75,837 356.9%Other 16,692 15,628 93.6%
Total 164,620 227,362 138.1%
Air Freight
Sea Freight
Logistics
Other
Composition by business
(Millions of yen)
Six months ended September 30 2015 Six months ended September 30 2016
10
Graph1
フォワーディングフォワーディングフォワーディングフォワーディングフォワーディングフォワーディングフォワーディング
ロジスティクスロジスティクスロジスティクスロジスティクスロジスティクスロジスティクスロジスティクス
海上貨物海上貨物海上貨物海上貨物海上貨物海上貨物海上貨物
その他その他その他その他その他その他その他
営業収入
52.0%
12.9%
52
25
12.9
10.1
Sheet1
フォワーディングロジスティクス海上貨物その他
営業収入52.025.012.910.1
Graph1
フォワーディング
ロジスティクス
海上貨物
その他
営業収入
31.4%
33.4%
6.9%
0.314
0.283
0.334
0.069
Sheet1
フォワーディングロジスティクス海上貨物その他
営業収入31.4%28.3%33.4%6.9%
85594410862124716692164620
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Gross Margin by Transportation Mode
11
FY ended March 31,
2015
Six months ended
September 30, 2015
FY ended March 31,
2016
Six months ended
September 30, 2016
Air 26.9% 28.5% 29.3% 30.2%
Sea 22.4% 22.1% 27.8% 30.8%
*Gross profit=Net sales-Direct cost
*Added APLL's sea freight forwarding (including PO Management and Buyer’s Consolidation related to sea freight operation) from the 3Q of FY ended March 31, 2016.
* *
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Performance Forecast for FY Ending March 2017
Item
FY ended March 31, 2016 (Results)
FY ending March 31, 2017 (Forecasts)
YoY change YoY change
Net sales 420,252 28.4% 481,000 14.5%
Operating gross profit 71,762 36.5% 86,097 20.0%
Operating income 15,356 (7.3%) 12,500 (18.6%)
Ordinary income 17,907 (2.8%) 13,000 (27.4%)
Income before income taxes 17,847 9.0% 13,500 (24.4%)
Net income attributable to owners of the parent 9,773 (6.8%) 7,000 (28.4%)
(Millions of yen)
12
*Not changed from the figures released on August 9, 2016
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31.6%
29.1%
32.4%
6.9%
Performance Forecast by Business & Segment for FY Ending March 2017
Net Sales by Business
BusinessFY ending March 31, 2017
(Forecasts)Net sales Composition
Frei
ght
trans
porta
tion Air Freight 152,100 31.6%
Sea Freight 139,700 29.1%
Logistics 155,900 32.4%
Other 33,300 6.9%Total 481,000 100.0%
Air Freight
Sea Freight
Logistics
Other
21.4%
9.3%
6.2%
16.7%8.4%
37.6%
0.4%
(Millions of yen)
Net Sales by Segment
(Millions of yen, %)
The Americas
Japan
Europe, Middle East & AfricaEast Asia & Oceania
Southeast Asia
APLL
13
Other
*Not changed from the figures released on August 9, 2016
SegmentFY ending March 31, 2017 (Forecasts)
Net sales Operating incomeJapan 105,300 4,000The Americas 46,000 2,900Europe, Middle East & Africa 30,400 900East Asia & Oceania 82,000 5,200Southeast Asia 41,100 2,000APLL 184,600 3,300Amortization of goodwill ― (6,100)
Other 2,000 300Adjustments (10,400) 0
Total 481,000 12,500
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14
Business Strategies and Measures
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Net Sales: 634 billion yen Operating Income: 22 billion yenVolume Targets: Air Freight export 700,000 tons Sea Freight export 700,000 TEUs
Target by March 2019
15
Outline of Medium-Term Management Plan
“ Going to the Next Phase !”
<Key Strategies>
Slogan
VisionA superior business partner supporting customers’ strategic objectives and activities by providing comprehensive innovative supply chain solution
Become an industry leader providing comprehensive services
Actively respond to customers’ logistics needs at production locations and consumer markets
Improve productivity by leveraging corporate capabilities
<Core Competences>Heighten quality of
operational performanceMaximize efficient utilization
of corporate resourcesStrengthen corporate risk management capabilities
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¥420.2 billion
¥534.0 billion
¥481.0 billion
¥569.0 billion
¥634.0 billion
¥15.3 billion¥16.4 billion
¥12.5 billion
¥19.0 billion
¥22.0 billion¥17.9 billion
¥17.0 billion
¥13.0 billion
¥19.5 billion
¥22.3 billion
¥9.7 billion ¥9.8 billion
¥7.0 billion
¥10.9 billion
¥13.3 billion
0
50
100
150
200
250
300
350
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Mar 2016 (Results) Mar 2017 (Initial Plan) Mar 2017 (Revised plan) Mar 2018 (Plan) Mar 2019 (Plan)
Net Sales
Operating Income
Ordinary Income
Net income attributableto owners of the parent
ROE9.0%
16
Medium-Term Management PlanNumerical Targets
(Billions of yen) (Billions of yen)
ROE7.9%
Unmodified
Revised onAugust 9, 2016
(As of November 8, 2016)
Released onMay 11, 2016
1st year 2nd year 3rd year
700
600
500
400
300
200
100
0
35
30
25
20
15
10
5
0
-
17
Basic Strategies
1. KWE is to focus on its core business, freight forwarding, while APLL on logistics solutions. Thus, we are going to expand business domains through collaboration.
2. KWE puts highest priority on volume growth both in air freight and sea freight. We believe it is indispensable for us to be recognized as one of the global players. "Going back to our roots."
3. APLL will ensure to early establish a solid management system following the separation from the former parent company.
During the three years of Mid-Term Management Plan, KWE and APLL will establish a management system to take a leap toward the future.
-
18
KWE - APLL: Direction
KWE and APLL refine each business, andcollaborate in sales operations
-
19
Market Share Expansion
Cost ReductionSales / Profit Increase
Business Expansion
Enhancing Freight Forwarding Business
Volume Growth = Increased CompetitivenessDefinite Targets:
700,000 tons Air Freight / 700,000 TEU Sea FreightMinimum Requirements
As a Global Player
-
20
1. TPEB(Trans-Pacific East Bound) Volume Growth
2. Expand Business with non-Japanese Companies
4. Forward-Looking Investments in IT & HR
3. Sales Force by Industry Verticals(Automotive, Healthcare, Retail, Consumer, Electronics)
Enhancing Freight Forwarding Business
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Dividends
10.0
16.0
14.6% 15.3% 15.8%19.2%
0
10
20
30
2013年3月期 2014年3月期 2015年3月期 2016年3月期 2017年3月期
Targeting more than 20% payout ratio in FY2019
Annual¥18.5
Annual¥20.0
Annual¥23.0
Annual dividends (yen)
Interim
(Plan)
Cash dividends per share(interim)
Cash dividends per share (year-end)
Payout ratio
Annual¥26.0
Annual¥26.0
(Note) The company conducted a stock split at a ratio of 1:2 of common stock on October 1, 2015. Cash dividends per share is calculated based on the assumption that the stock split was conducted on April 1, 2012.
Year-end
21
(Plan)
2013/3 2014/3 2015/3 2016/3 2017/3(Plan)
Cash dividends per share, payout ratio
Graph1
2013年3月期2013年3月期2013年3月期2013年3月期
2014年3月期2014年3月期2014年3月期2014年3月期
2015年3月期2015年3月期2015年3月期2015年3月期
2016年3月期2016年3月期2016年3月期2016年3月期
2017年3月期2017年3月期2017年3月期2017年3月期
1株当たり配当金(中間)
1株当たり配当金(期末)
分割前
連結配当性向
19.2%
18.5
0.146
20
0.153
23
0.158
26
0.192
10
16
Sheet1
年度1株当たり配当金(中間) カブアハイトウキンチュウカン1株当たり配当金(期末) カブアハイトウキンキマツ分割前 ブンカツマエ連結配当性向 レンケツハイトウセイコウ
2013年3月期 ガツキ18.514.6%
2014年3月期 ガツキ20.015.3%
2015年3月期 ガツキ23.015.8%
2016年3月期 ガツキ26.019.2%
2017年3月期 ガツキ10.016.0
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Supplemental Materials
22
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Business Composition of Net Sales by Segment
Six months ended September 30, 2016
23
Japan The Americas Europe, Middle East & Africa East Asia & Oceania Southeast Asia APLL
Air FreightSea FreightLogistics/othersNet sales
(Millions of yen)
0%
20%
40%
60%
80%
100%
55.4% 58.3%
9.1% 12.3%
29.4%35.5%
46.6%
17.9%
21.1%
22.8%
30.6%
55.1%
23.0%
61.0%
1.9%
65.3%
32.8%
21.9%
52,778 36,35414,02220,369 86,54521,437
-
154,555 151,289
57,118 48,680
56,333 55,313
233,354 227,413
105,053 101,030
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Six months ended September 30, 2015
Six months ended September 30, 2016
59,577 65,676
44,424 39,063
22,621 22,768
59,980 52,637
39,297 48,913
0
50,000
100,000
150,000
200,000
250,000
Six months ended September 30, 2015
Six months ended September 30, 2016
Freight Volume by Segment (Air Freight)
(Shipments) (Weight: tons) Air Freight ImportsAir Freight Exports
100.6%
87.9%
110.2%
583,725
Y o Y96.3%
97.5%
98.2%
85.2%
97.9%
87.8%
96.2%
East Asia & Oceania
Europe, Middle East
& Africa
The Americas
Japan
Southeast Asia
606,413225,899
124.5%
Y o Y101.4%
24
229,057
*The YoY (%) above represents a comparison of the figures for April to September 2015 and April to September 2016.
-
56,794 61,869
20,317 21,0199,535 9,613
71,590 74,281
40,59547,077
51,085
0
50,000
100,000
150,000
200,000
250,000
300,000
Six months endedSeptember 30, 2015
Six months endedSeptember 30, 2016
49,587 50,860
14,447 14,9487,427 6,481
28,314 26,725
21,476 22,357
0
25,000
50,000
75,000
100,000
125,000
150,000
Six months endedSeptember 30, 2015
Six months endedSeptember 30, 2016
Freight Volume by Segment (Sea Freight)
(Shipments) (Volume: TEUs)Sea Freight Exports
133.3%
103.5%100.8%
103.8%
108.9%
121,371100.1%
94.4%
87.3%
103.5%
102.6%
116.0%
104.1%
East Asia & Oceania
Europe, Middle East &
Africa
The Americas
Japan
Southeast Asia
121,251264,944
Y o Y Y o Y
198,831
Sea Freight Imports
25
APLL
* APLL was included in the scope of consolidation from the 3Q of FY ended March 31, 2016, and therefore there are no YoY comparisons.*The YoY (%) above represents a comparison of the figures for April to September 2015 and April to September 2016.
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Other business(2 companies)
Our Global Network
45 countries, 346 cities, 823 locations (as of September 30, 2016)
KWE Group
Europe, Middle East & Africa
(15 companies)〔Includes 1 equity method affiliate〕
Japan(10 companies)
Includes KWE Japan and 3 equity method affiliates
The Americas(5 companies)
Southeast Asia(17 companies)
〔Includes 1 equity method affiliate〕
East Asia & Oceania(24 companies)
〔Includes 4 equity method affiliates〕APLL
(72 companies)〔Includes 1 equity method affiliate〕
Logistics facilities393 locations (2,726,532㎡)
26
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* The information contained herein does not constitute an offer to solicit investment which can only be made by formal prospectus. The forward-looking statements contained herein are not intended to assure or guarantee future performance. Actual results may vary from that projected herein.
Kintetsu World Express, Inc.Website: https://www.kwe.co.jp/en/ir
スライド番号 1Contentsスライド番号 3Year over Year Comparisons of Net Sales, �Cost of Sales, and SGA ExpensesBalance Sheets Cash Flow StatementsNet Sales and Operating Income by Segment Operating Margins by SegmentHighlights スライド番号 10Net Sales by BusinessGross Margin by Transportation ModePerformance Forecast for FY Ending March 2017 Performance Forecast by Business & Segment �for FY Ending March 2017 スライド番号 15スライド番号 16スライド番号 17スライド番号 18スライド番号 19スライド番号 20スライド番号 21スライド番号 22スライド番号 23Business Composition of Net Sales by SegmentFreight Volume by Segment (Air Freight)Freight Volume by Segment (Sea Freight)Our Global Networkスライド番号 28