fy2017 consolidated results - mitsubishi-logistics.co.jp · forecasts in this presentation are...

FY2017 Consolidated ResultsMay 8, 2018

FY2017 Consolidated Results PresentationCopyright 2018 Mitsubishi Logistics Corporation All Rights Reserved 1

FY2017 Consolidated Results Contents

1. FY2017 Consolidated Results Summary

2. FY2017 Consolidated Results (Consolidated Statement of Income)

3. FY2017 Consolidated Financial Condition (Consolidated Balance Sheet)

4. Full-Year FY2018 Consolidated Earnings Forecast

5. Miscellaneous Information

FY2017 Consolidated Results PresentationCopyright 2018 Mitsubishi Logistics Corporation All Rights Reserved


2


1-1 Business Environment and Policy

1-2 Subsidiaries and Affiliates

1-3 Consolidated Operating Results (by Segment)

1-4 Consolidated Financial Condition

1-5 Consolidated Cash Flows


1-1-1 Business Environment and Policy

Japan recovered moderately with consistently improved employment environment, a sign of recovery in consumer spending and export, and a moderate increase in capital

expenditure.

3

The rising trend in rent, due to improvement in demand for

rental office buildings, ceased partly.

In the global economy, steady economic recoverycontinued in the United States while the recovery in

Europe remained moderate and recovery continued in China.

Business Environment in FY2017

The competition with other companies has intensified despite

an increase in freight volume.

Warehouse and Logistics Real Estate


1-1-2 Business Environment and Policy

4

Our Policy

Logistics Real Estate

[Seishin Distribution Center] [Nihonbashi Dia Building]

Expansion of distribution operations especially for

pharmaceuticals, and expansion reinforcement of operational bases overseas

Securing tenants and maintaining and improving rent

levels

Thorough cost management and further improvement of efficiency in business operations


1-2-1 Subsidiaries and Affiliates

5

Consolidated Subsidiaries

Equity-MethodSubsidiaries No Change

ー

（ー）

ー

（ー）

-1(Real Estate -1)

51(Logistics 44/ Real Estate 7）

52(Logistics 44/ Real Estate 8）

56(Logistics 48/Real Estate 8)

57(Logistics 48/Real Estate 9)

Subsidiaries

No Change3(Logistics 3)

3(Logistics 3)

Equity-MethodAffiliates

No Change15(Logistics 15)

15(Logistics 15)

Affiliates

ChangeFY2017FY2016

-1(Real Estate -1)

Real estate management consolidated subsidiaries, Kobe Dia Maintenance Co., Ltd. and Kobe Dia Service Co., Ltd., merged in July 2017.


1-2-2 List of Consolidated Subsidiaries

6

Logistics Real Estate

Tohoku Ryoso Transportation Co., Ltd. Monryo Transport Corporation Dia Buil-Tech Co., Ltd.Sairyo Service Co., Ltd. Hakuryo Koun Co., Ltd. Yokohama Dia Building ManagementDia Pharmaceutical Network Co., Ltd. Seiho Kaiun Kaisha, Ltd. CorporationTokyo Dia Service Co., Ltd. Saryo Service Co., Ltd. Chubo Kaihatsu Co., Ltd.Dia Systems Corporation Mitsubishi Logistics America Corp. Nagoya Dia Buil-Tech Co., Ltd.Ryoso Transportation Co., Ltd. Mitsubishi Warehouse California Corp. Osaka Dia Buil-Tech Co., Ltd.Unitrans Ltd. Mitsubishi Logistics Europe B.V. Kobe Dia Maintenance Co., Ltd.Keihin Naigai Forwarding Co., Ltd. Fuji Logistics Europe B.V. T'ACT Co., Ltd.Touryo Kigyo Co., Ltd. Mitsubishi Logistics China Co., Ltd.Fuji Logistics Co., Ltd. Shanghai Linghua Logistics Co., Ltd.Tokyo Juki Transport Co., Ltd. Shanghai Qingke Warehouse SII Logistics Inc. Management Co., Ltd.Fuji Logistics Operations Co., Ltd. Shanghai Lingyun Global Forwarding Co., Ltd.

Fuji Logistics Support Co., Ltd. Fuji Logistics (China) Co., Ltd.Kinko Service Co., Ltd. Fuji Logistics (Dalian F.T.Z.) Co., Ltd.Chubu Trade Warehousing Co., Ltd. Fuji Logistics (Shanghai) Co., Ltd.Meiryo Kigyo Co., Ltd. Mitsubishi Logistics Hong Kong Ltd.Ryoyo Transportation Co., Ltd. Fuji Logistics (H.K.) Co., Ltd.Kyokuryo Warehouse Co., Ltd. Mitsubishi Logistics Thailand Co., Ltd.Hanryo Kigyo Co., Ltd. P.T. Mitsubishi Logistics IndonesiaShinryo Koun Co., Ltd. P.T.Dia-Jaya Forwarding IndonesiaNaigai Forwarding Co., Ltd. Fuji Logistics (Malaysia) SDN. BHD.Kyushu Ryoso Transportation Co., Ltd.

Nippon Container Terminals Co., Ltd. Jupiter Global LimitedKusatsu Soko Co., Ltd.

Equity-Method Affiliates (3)

Consolidated Subsidiaries (44) Consolidated Subsidiaries (7)


ProfitAttributable to Owners of Parent

Revenue : Revenue increased by 3% as a whole. In the Logistics Segment, revenue increased due to an increase in freight handled in the warehousing & distribution, land transportation, harbor transportation and international transportation businesses. In the Real Estate Segment, despite an increase in orders for design and construction, revenue decreased due to cancellation of sublease contract on facilities in Osaka area and a decrease in condominiums sold.

Operating Income : 3% decrease YOY reflecting the rise in revenue in the Logistics and the decline in revenue in the Real Estate.Ordinary Income : 1% increase YOY due partially to increases in dividend income and equity in earnings of unconsolidated

subsidiaries and affiliates despite an increase in foreign exchange losses. Profit Attributable to Owners of Parent :

1% decrease YOY due partially to a decrease in compensation income and an increase in loss on disposal of non-current assets.

1-3-1 Consolidated Operating Results

+217

+660

-478

+3,407

-1.4%

+0.7%

-2.6%

+3.2%

Difference Between the

Actual Results and the Forecast

*Initial Results

Forecast for FY2017

YOYFY2017FY2016

10,665

16,056

12,748

208,718

+2.1%10,300-14710,517

+4.3%15,500+10416,160Ordinary Income

-3.7%12,900-32712,421Operating Income

+1.6%212,000+6,689215,407Revenue

7

* Initial Results Forecast for FY2017 was announced on April 28, 2017.

(Unit: Millions of Yen)


1-3-2 Consolidated Operating Results

8

0

50,000

100,000

150,000

200,000

250,000

208,718215,407

0

4,000

8,000

12,000

16,000

20,000

12,748

16,056

10,665

12,421

16,160

10,517


R e v e n u e I n c o m e sOperatingIncome

OrdinaryIncome

Profit Attributable toOwners of Parent

FY2016 FY2017 FY2016 FY2017


1-3-3 Segment Information 1. Revenue

9

FY2016 FY2017 YOY

Logistics 167,907 【80%】 181,277 【83%】 +13,370 +8.0%

Real Estate 42,894 【20%】 36,025 【17%】 -6,868 -16.0%

Internal Transactions -2,083 － -1,895 － +187 －

Total 208,718 － 215,407 － +6,689 +3.2%

Logistics : 8% YOY increase as a whole, due to an increase of revenue resulting from an increase in freight handled in the warehousing & distribution, land transportation, harbor transportation and international transportation businesses.

Real Estate : 16% YOY decrease as a whole. Despite an increase in orders for design and construction, revenue decreased due to cancellation of sublease contract on facilities in Osaka area and a decrease in condominiums sold.


*The figures in [ ] show the size of the Logistics and Real Estate as percentages (excluding Internal Transactions), and therefore total 100% in both columns.


1-3-4 Segment Information 1. Revenue

10

Real Estate36,025

Logistics181,277

Revenue215,407

InternalTransactions-1,895

Real Estate42,894

Logistics167,907 Revenue

208,718

InternalTransactions

-2,083

FY2016 FY2017



1-3-5 Segment Information 2. Operating Income

FY2016 FY2017 YOY

Logistics 6,661 【36%】 7,662 【43%】 +1,001 +15.0%

Real Estate 11,719 【64%】 10,181 【57%】 -1,538 -13.1%

ParentCompany’sGeneral Expenses

-5,633 － -5,422 － +210 －

Total 12,748 － 12,421 － -327 -2.6%

11

Logistics : Operating income increased by 15% although there was an increase of operational and transportation consignment costs, etc., from increased freight handled.

Real Estate : Operating income decreased by 13% caused by an increase in the design and construction expenses resulting from an increase in orders acquired in design and construction business, despite a decline in real estate sales costs as sales of condominiums decreased.


*The figures in [ ] show the size of the Logistics and Real Estate as percentages (excluding Parent Company's General Expenses), and therefore total 100% in both columns.


1-3-6 Segment Information 2. Operating Income

12

Real Estate10,181

Logistics7,662

OperatingIncome12,421

Parent Company’sGeneral Expenses

-5,422

Real Estate11,719

Logistics6,661


Parent Company’sGeneral Expenses

–5,633

FY2016 FY2017



1-4-1 Consolidated Financial Condition

13

End ofFY2016

End ofFY2017 Change Explanation

TotalAssets

435,354 463,174+27,820 In addition to an increase in “Buildings

and structures,” etc. in connection with capital expenditure, “Investments in securities” also increased in connection with a rise of market value.+6.4%

Total Liabilities 158,484 168,624

+10,140Although borrowings decreased in connection with scheduled repayment, “Bonds payable,” etc. increased in connection with issuance of #16 and #17 unsecured corporate bonds in addition to an increase in “Deferred income taxes” in connection with a rise of market value. +6.4%

NetAssets

276,870 294,550

+17,679In addition to an increase of “Retained earnings” in connection with reporting of profit attributable to owners of parent, “Net unrealized holding gains on securities” also increased in connection with a rise of market value.+6.4％

Equity Ratio 63.0% 63.0% －



1-4-2 Consolidated Financial Condition

14

100,000

200,000

300,000

400,000

0

435,354

276,870

52.0%

54.0%

56.0%

58.0%

64.0%63.0% 63.0%

463,174

294,550

500,00060.0%

50.0%

62.0%

End of FY2017Mar. 31, 2018

End of FY2016Mar. 31, 2017

Equity Ratio

Net Assets

Total Assets



1-5-1 Consolidated Cash Flows

15

FY2017 Explanation

Balance at the Beginning ofFiscal Year (Apr. 1, 2017)

36,921

Change during the Period +2,658

Cash Flows from OperatingActivities

+21,481Increase of 21.4 billion yen retained from profit before income taxes and depreciation and amortization, etc.

Cash Flows from InvestingActivities

-22,219 Decrease of 22.2 billion yen from acquiring non-current assets, etc.

Cash Flows from FinancingActivities

+3,419

Increase of 3.4 billion yen due to proceeds from issuance of bonds, despite repayment of borrowings and payment of dividends, etc.

Exchange Rate Change -22

Balance at the End of the Fiscal Year (Mar. 31, 2018) 39,580 Increase of 2.6 billion yen from the

beginning of FY2017



1-5-2 Consolidated Cash Flows (YOY)

16

FY2016 FY2017 YOY Explanation

Balance at theBeginning of FY

45,658 36,921 -8,736

Change during the Period -8,736 +2,658 +11,395

Cash Flows fromOperatingActivities

+21,466 +21,481 +14

Cash Flows fromInvestingActivities

-22,270 -22,219 +50

Cash Flows fromFinancingActivities

-7,819 +3,419 +11,238Increased YOY, due to proceeds from issuance of bonds, despite large expenses for repayment of borrowings

Exchange RateChange -113 -22 +91

Balance at theEnd of the FY

36,921 39,580 +2,658




17


2-1 Consolidated Statement of Income

2-2 Breakdown of Revenue

2-3 Breakdown of Cost of Services


2-1 Consolidated Statement of Income

FY2016 FY2017 YOY

Revenue 208,718 215,407 +6,689 +3.2％

Cost of Services 185,573 192,593 +7,019 +3.8％

Gross Profit 23,144 22,814 -330 -1.4％

SG&A 10,396 10,393 -2 -0.0％

Operating Income 12,748 12,421 -327 -2.6％

Non-Operating Income 4,116 4,784 +667

Non-Operating Expenses 808 1,044 +235

Ordinary Income 16,056 16,160 +104 +0.7％

Extraordinary Income 639 464 -175

Extraordinary Losses 900 1,254 +354

Profit before Income Taxes 15,796 15,370 -425 -2.7％

Income Taxes 5,032 4,698 -334

Profit 10,763 10,672 -91 -0.8％Profit Attributable toNon-controlling Interests

97 154 +56

Profit Attributable toOwners of Parent

10,665 10,517 -147 -1.4％

18



2-2 Breakdown of Revenue

19


Revenue 208,718 215,407 +6,689 +3.2％

Warehouse Storage 23,749 24,954 +1,204 +5.1％

The handling of autoparts, food, etc. increased

WarehouseCargo Handling 16,797 17,846 +1,048 +6.2％

LandTransportation 45,731 49,017 +3,286 +7.2％

Port and HarborOperations 17,834 18,498 +663 +3.7％ The handling of container freight

increased, etc.

InternationalTransportation 44,026 49,887 +5,860 +13.3％ The handling of exported and

imported freight increased, etc.

Real Estate Rent 32,025 30,916 -1,108 -3.5％Termination of a contract for sublease of a facility in Osaka area, etc.

Other 28,554 24,287 -4,267 -14.9％

While orders in design and construction business increased, sales of condominiums in condominium sales business decreased



2-3 Breakdown of Cost of Services

20


Cost of Services 185,573 192,593 +7,019 +3.8％

OperationalandTransportationConsignmentCosts

83,840 93,090 +9,250 +11.0％ Due to an increase in the freight handled in the Logistics

Personnel Expenses 35,790 36,813 +1,022 +2.9％

Facility RentalExpenses 9,075 9,170 +95 +1.0％

Depreciation and amortization

12,565 12,363 -201 -1.6％ Decreased in the Real Estate

Other 44,301 41,154 -3,147 -7.1％A decrease in real estate sales cost, etc. due to a decrease in sales of condominiums




21


3-1 Assets

3-2 Liabilities and Net Assets


3-1 Assets

22

End of FY2016 End of FY2017 Change Explanation

Assets 435,354 463,174 +27,820

Cash and Deposits 37,841 38,329 +488There were increases in “Cash and deposits” and “Securities (Certificate of deposit),” thanks to an increase in retention of funds from operating activities, depreciation and amortization, and dividends received during the current term, as well as an increase in proceeds from issuance of #16 and #17 unsecured corporate bonds, etc.

Securities ― 2,000 +2,000

Real Estate held for sale 9,846 11,712 +1,865

Increase due to purchases of land for condominiums, payment of construction cost, etc.

Buildings and Structures 108,550 114,569 +6,019 Increase due to completion of the Seishin

Distribution Center, etc.

Construction in progress 1,534 3,539 +2,004

Increase due to payment of the cost of construction of Ibaraki No.4 Distribution Center, S-GATE NIHONBASHI-HONCHO, etc.

Investments in Securities 114,545 126,739 +12,194 Increase in market value of stocks



3-2 Liabilities and Net Assets

23

End of FY2016 End of FY2017 Change Explanation

Liabilities 158,484 168,624 +10,140

Short-term loans payable and current portion of long-term loans payable

20,546 12,130 -8,416Decrease due to scheduled repayment of borrowings

Long-term loans payable 18,053 16,782 -1,271

Current portion of bonds ― 7,000 +7,000 Transfer of #11 unsecured corporate bonds

to short-term bondsIssuance of #16 and #17 unsecured corporate bondsBonds Payable 27,000 36,000 +9,000

Deferred Income Taxes 20,424 24,610 +4,185

Increase in deferred tax payment onevaluation difference due to increasedmarket value of stocks

Net Assets 276,870 294,550 +17,679

Retained Earnings 180,762 188,651 +7,888 In connection with reporting of profit attributable to owners of parent, etc.

Net Unrealized Holding Gains on Securities

51,422 60,873 +9,451Increase in valuation difference afterdeducting tax effect, due to a rise inmarket value of stocks




24


4-1 Forecast for Revenue

4-2 Forecast for Expenses

4-3 Income (Forecast)


4-1-1 Forecast for Revenue

25

FY2017Results

FY2018YOY1H

Forecast2H

ForecastFull-YearForecast

Revenue 215,407 108,600 115,400 224,000 +8,592 +4.0％

Logistics 181,277 92,500 94,900 187,400 +6,122 +3.4％

Real Estate 36,025 17,100 21,500 38,600 +2,574 +7.1％

Internal Transactions -1,895 -1,000 -1,000 -2,000 -104 －


Logistics : We expect revenue to increase from expansion of distribution center operation in both warehousing and land transportation, increase of containerized cargo handled by port and harbor operations, and increase of cargo of ocean freight and air cargo handled by international transportation business.

Real Estate : We expect revenue to increase due to a recovery in revenue of real estate leasing business and an increase in sales of condominiums, despite a decrease in orders acquired in design and construction business.

Increase of revenue is expected on the whole.


4-1-2 Forecast for Revenue

26


FY2017Results

FY2018Forecast



-1,895 -2,000

Logistics181,277 Revenue

215,407

Real Estate36,025

Real Estate

LogisticsRevenue224,000

187,400

38,600


4-2 Forecast for Expenses

27

FY2017Results

FY2018YOY

1H Forecast

2H Forecast

Full-Year Forecast

Cost ofServices 192,593 96,100 104,200 200,300 +7,706 +4.0%

SG&A 10,393 5,400 5,100 10,500 +106 +1.0%


We expect an overall increase. In Logistics, we expect operational and transportation consignment costs to increase following an increase of cargo handling. In Real Estate, we expect an increase in real estate sales cost following an increase in condominiums for sale.

We expect an increase in SG&A due to an increase in expenses.


4-3-1 Income (Forecast)

28

FY2017Results

FY2018YOY

1H Forecast

2H Forecast

Full-Year Forecast

Operating Income 12,421 7,100 6,100 13,200 +778 +6.3%

Logistics 7,662 4,400 3,900 8,300 +637 +8.3%

Real Estate 10,181 5,500 4,900 10,400 +218 +2.1%

ParentCompany’sGeneral Expenses

-5,422 -2,800 -2,700 -5,500 -77 －

Ordinary Income 16,160 8,700 7,800 16,500 +339 +2.1%

Profit Attributable to Owners of Parent

10,517 5,800 5,200 11,000 +482 +4.6%


Operating Income : Expect to increase YOY as a whole. We expect income increased in both Logistics and Real Estate.

Ordinary Income : Expect to increase YOY, although we expect a decrease in equity in earnings of unconsolidated subsidiaries and affiliates.

Profit Attributable to Owners of Parent :Expect to increase YOY, as we expect improvement in extraordinary income/losses.


4-3-2 Operating Income (Forecast)

29

FY2017Results

FY2018Forecast

Parent Company’sGeneral Expenses-5,422

Parent Company’sGeneral Expenses-5,500


Real Estate10,181

Logistics7,662

OperatingIncome12,421 Real Estate

10,400

Logistics8,300




30


5-1 Volume Handled in Logistics (Parent)

5-2 Warehouse and Real Estate Leasing Area (Parent)

5-3 Capital Expenditure

5-4 Depreciation and Amortization

5-5 New Facilities


5-1 Volume Handled in Logistics (Parent)

FY2016 FY2017 YOY

WarehouseInbound Volume Quantity 2,580 1,000

tons 2,807 1,000tons +8.8 %

WarehouseOutbound Volume

Quantity 2,578 1,000tons 2,794 1,000

tons +8.4 %

WarehouseStorage Balance

Quantity 563 1,000tons 574 1,000

tons +2.0 %

Amount 378,247 million Yen 378,249 million

Yen +0.0 %

WarehouseFreight Turnover Rate

Quantity 38.2 % 40.7 % +2.5

Land Transport Quantity 12,963 1,000tons 12,913 1,000

tons -0.4 %

Portand Harbor Operations

Shore Handling Quantity 71,484 1,000

tons 76,042 1,000tons +6.4 %

Onboard Handling Quantity 56,218 1,000

tons 60,607 1,000tons +7.8 %

International Transportation Quantity 6,153 1,000

tons 6,418 1,000tons +4.3 %

31


5-2 Warehouse and Real Estate Leasing Area (Parent)

32

March 31, 2017 Sept. 30, 2017 March 31, 2018

Building Leasing Vacancy Rate 3.3％ 2.6％ 1.7％

FY2016 FY2017 YOY

916 1,000㎡ 922 1,000

㎡ +0.8 %

1,033 1,000㎡ 1,017 1,000

㎡ -1.5 %

918 1,000㎡ 904 1,000

㎡ -1.6 %

Warehouse Storage Area (Monthly Average)

Building Leasing Area (Monthly Average)

Real Estate Leasing Area(excludes warehouse leasing)


5-3 Capital Expenditure

33

FY2017 Results: 22.814 Billion Yen(Consolidated Cash Flow Statement “Spending on Fixed Asset Acquisition”)

[Major Projects]Construction work of distribution center, maintenance and renewal of real estate facilities, etc.

FY2018 Forecast: 19.2 Billion Yen

[Major Projects]Construction work of distribution center, acquisition of site for distribution center, construction of rental facilities, and maintenance and renewal of real estate facilities, etc.


5-4 Depreciation and Amortization

34

FY2017 Results FY2018 Forecast Explanation

Total12.747 billion

Yen13.2 billion

Yen

Logistics6.365 billion

Yen7.0 billion

YenExpect to increase, due to operation start of a new distribution center.

Real Estate6.143 billion

Yen5.9 billion

Yen

Expect to be lower than the previous period as although there will probably be an increase due to new operation of rental facilities, as a result of computing on a declining balance method.

Corporate Expense

0.238 billionYen

0.3 billionYen


P.T. Mitsubishi Logistics IndonesiaMM2100 Distribution Center

35

5-5-1 New Facilities

Ibaraki No.4 Distribution Center

Rendering

Completed in August 2017Construction of a new distribution center for P.T. Mitsubishi Logistics IndonesiaLocation: Bekasi, West Java Total Floor Area: Approx. 18,000 m2

Scheduled for completion in July 2018Location: Ibaraki-shi, OsakaTotal Floor Area: Approx. 23,500 m2


S-GATE NIHONBASHI-HONCHO

36

5-5-2 New Facilities

Scheduled for completion in October 2018High-grade medium sized office building First joint project by Mitsubishi Logistics Corporation and THE SANKEI BUILDING CO.,LTD.Location: Chuo-ku, Tokyo Total Floor Area: Approx. 8,500 m2

Rendering

Forecasts in this presentation are based on the information available to the Company’s management as of the date of release, and certain assumptions judged rational. Accordingly, there might be cases in which actual results differ from forecasts in this presentation.

For the Realization of a Rich and Sustainable Society

fy2017 consolidated results - mitsubishi-logistics.co.jp · forecasts in this presentation are...

Documents