1h fy2019 consolidated results - mitsubishi logistics · 2020-01-16 · fuji logistics support co.,...

1H FY2019 Consolidated Results

Nov. 7, 2019

1H FY2019 Consolidated Results PresentationCopyright 2019 Mitsubishi Logistics Corporation All Rights Reserved

1H FY2019 Consolidated Results Contents

1. 1H FY2019 Consolidated Results Summary

2. 1H FY2019 Consolidated Results (Consolidated Statement of Income)

3. 1H FY2019 Consolidated Financial Condition (Consolidated Balance Sheet)

4. FY2019 Consolidated Earnings Forecast

5. Miscellaneous Information

1




1-1 Business Environment and Policy

1-2 Subsidiaries and Affiliates

1-3 Consolidated Operating Results (Including Segment Information)

1-4 Consolidated Financial Condition

1-5 Consolidated Cash Flows

2


1-1-1 Business Environment and Policy

In the global economy, China slowed moderately, steady recovery continued in the United States, and the economy in

Europe also gradually improved despite some signs of weakness.

Japan recovered moderately as the country experienced a number of positive trends, including consistent improvement in

the employment environment and a recovery in consumer spending, despite certain signs of weakness, centering on

exports.

Warehouse and Logistics Real Estate

Business Environment in 1H FY2019

Costs increased due to factors including the slow rise in freight volume,

intensification of competition with other companies and labor shortage.

Partial rising trend in rent due to improved demand for rental office

buildings and others.

3


1-1-2 Business Environment and Policy

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

4


FY2018 1H FY2019 Change

Subsidiaries55

(Logistics 48/Real Estate 7)

55(Logistics 48/Real Estate 7)

No Change

Consolidated Subsidiaries



No Change

Equity-MethodSubsidiaries

ー

（ー）

ー

（ー）No Change

Affiliates15

（Logistics 15）

15（Logistics 15）

No Change

Equity-MethodAffiliates

3（Logistics 3）

3（Logistics 3）

No Change

1-2-1 Subsidiaries and Affiliates

5


1-2-2 List of Consolidated Subsidiaries

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 Management C orporation

Dia Pharmaceutical Network Co., Ltd. Seiho Kaiun Kaisha, Ltd. Chubo Kaihatsu Co., Ltd.

Tokyo Dia Service Co., Ltd. Saryo Service Co., Ltd. Nagoya Dia Buil-Tech Co., Ltd.

Dia Systems Corporation Mitsubishi Logistics America Corp. Osaka Dia Buil-Tech Co., Ltd.

Ryoso Transportation Co., Ltd. Mitsubishi Warehouse California Corp. Kobe Dia Maintenance Co., Ltd.

Unitrans Ltd. Mitsubishi Logistics Europe B.V. T'ACT Co., Ltd.

Keihin Naigai Forwarding Co., Ltd. Fuji Logistics Europe B.V.

Touryo Kigyo Co., Ltd. Mitsubishi Logistics China Co., Ltd.

Fuji Logistics Co., Ltd. Shanghai Linghua Logistics Co., Ltd.

Tokyo Juki Transport Co., Ltd. Shanghai Linghua Qingsheng Logistics Co., Ltd.

SII Logistics Inc. Shanghai Q ingke Warehouse Management C o., Ltd.

Fuji Logistics Support Co., Ltd. Shanghai Lingyun Global Forwarding Co., Ltd.

Kinko Service Co., Ltd. Fuji Logistics (China) Co., Ltd.

Chubu Trade Warehousing Co., Ltd. Fuji Logistics (Dalian F.T.Z.) Co., Ltd.

Meiryo Kigyo Co., Ltd. Fuji Logistics (Shanghai) Co., Ltd.

Ryoyo Transportation Co., Ltd. Mitsubishi Logistics Hong Kong Ltd.

Kyokuryo Warehouse Co., Ltd. Fuji Logistics (H.K.) Co., Ltd.

Hanryo Kigyo Co., Ltd. Mitsubishi Logistics Thailand Co., Ltd.

Shinryo Koun Co., Ltd. P.T. Mitsubishi Logistics Indonesia

Naigai Forwarding Co., Ltd. P.T.Dia-Jaya Forwarding Indonesia

Kyushu Ryoso Transportation Co., Ltd. Fuji Logistics (Malaysia) SDN. BHD.

MY Terminals Holdings, Limited Jupiter Global Limited

Kusatsu Soko Co., Ltd.

Equity-Method Affiliates (3)

Consolidated Subsidiaries (44) Consolidated Subsidiaries (7)

6


1-3-1 Consolidated Operating Results

(Unit: Millions of Yen)

* The initial results forecast for 1H FY2019 was announced on April 26, 2019.

Revenue : Revenue increased by 5% overall. In the Logistics Segment, revenue increased due to a number of reasons including increases in freight handled, although revenue decreased in the international transportation business due to a decrease in freight handled in the warehousing & distribution, land transportation and harbor transportation businesses. In the Real Estate Segment, revenue increased due to an increase in sales of condominiums, although there was a decrease in revenue in the real estate leasing business due to movement of tenants, etc. in the condominium sales business.

Operating Income : 1% increase YOY overall, reflecting increased revenue in the Logistics Segment and decreased revenue in the Real Estate Segment.

Ordinary Income : 3% increase YOY as although equity in earnings of unconsolidated subsidiaries and affiliates decreased, there was improvement in foreign exchange gains and losses.

Profit Attributable to Owners of Parent :

24% increase YOY due to an increase in gain on sales of investment securities, etc.

Initial Results Forecast for 1H FY2019*

Difference between the

Actual Results and the Forecast

115,500 -521 -0.5%

6,200 +409 +6.6%

8,300 +910 +11.0%

6,400 +545 +8.5%

1H

FY2018

1H

FY2019YOY

Revenue 109,979 114,978 +4,999 +4.5%

Operating Income

6,557 6,609 +51 +0.8%

Ordinary Income

8,917 9,210 +292 +3.3%

Profit

Attributable to Owners of Parent

5,598 6,945 +1,347 +24.1%

7


1-3-2 Consolidated Operating Results

6,557 6,609

8,9179,210

5,598

6,945

0

2,000

4,000

6,000

8,000

10,000

1H FY2018 1H FY20191H FY20191H FY2018

109,979114,978

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

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

OrdinaryIncome

Profit Attributable toOwners of Parent


8


1-3-3 Segment Information 1. Revenue

1H FY2018 1H FY2019 YOY

Logistics 93,928 【85%】 95,604 【82%】 +1,676 +1.8%

Real Estate 17,011 【15%】 20,314 【18%】 +3,303 +19.4%

Internal Transactions

-959 － -939 － +19 －

Total 109,979 － 114,978 － +4,999 +4.5%

Logistics : 2% YOY increase overall as although freight handled in the international

transportation business decreased, increases were seen in freight handled in the

warehousing & distribution, land transportation, and harbor transportation businesses.

Real Estate : 19% YOY increase overall as although there was a decrease in revenue in the real

estate leasing business due to movement of tenants, etc. in the condominium sales

business, revenue increased due to an increase in sales of condominiums.


* Note: Figures in [ ] show the size of the Logistics and Real Estate Segments as percentages (excluding internal transactions), and therefore total 100% in both columns.

9


1-3-4 Segment Information 1. Revenue


Real Estate17,011

Real Estate20,314

Logistics

93,928

Logistics

95,604

Revenue109,979

Revenue114,978

InternalTransactions

-959

InternalTransactions

-939

1H FY2018 1H FY2019


10


1-3-5 Segment Information 2. Operating Income

1H FY2018 1H FY2019 YOY

Logistics 3,712 【39%】 4,013 【43%】 +300 +8.1%

Real Estate 5,699 【61%】 5,419 【57%】 -280 -4.9%

ParentCompany’sGeneral Expenses

-2,853 － -2,822 － +31 －

Total 6,557 － 6,609 － +51 +0.8%

Logistics : Operating income increased by 8% although there were increases in personnel

expenses, depreciation and amortization, etc. accompanying increases in freight

handled and reinforcement of facilities.

Real Estate : Operating income decreased by 5% as an increase in real estate sales costs

accompanied an increase in sales of condominiums in addition to an increase in

repair expenses for facilities for lease.


* Note: Figures in [ ] show the size of the Logistics and Real Estate Segments as percentages (excluding parent company's general expenses), and therefore total 100% in both columns.

11


1-3-6 Segment Information 2. Operating Income

Real Estate5,699

Real Estate5,419

Logistics3,712

Logistics4,013

OperatingIncome

6,557

OperatingIncome

6,609

Parent Company’sGeneral Expenses

-2,853

Parent Company’sGeneral Expenses

-2,822

1H FY2018 1H FY2019


12


1-4-1 Consolidated Financial Condition

End of

FY2018

End of

1H FY2019Change Explanation

Total

Assets482,575 476,510

-6,064 Mainly due to a decrease in investments in securitiesaccompanying a decrease in the market value of shares-1.3%

Total Liabilities

183,470 183,266

-203

Although short-term bank loans and current maturities of long-term debt increased as a result of fund procurement, operating accounts payable decreased in connection with the payment of obligations concerning the condominium sales business for the previous term and deferred income taxes decreased accompanying a decrease in the market value of shares

-0.1%

Net

Assets299,104 293,243

-5,861

Although there was an increase in retained earnings in connection with reporting of profit attributable to owners of parent, shareholders' equity decreased on the whole due to a reacquisition of treasury stock, while net unrealized holding gains on securities decreased accompanying a decrease in the market value of shares

-2.0％

Equity Ratio 61.4% 60.9% -0.5


13


1-4-2 Consolidated Financial Condition


482,575 476,510

299,104 293,243

61.4%60.9%

50.0%

52.0%

54.0%

56.0%

58.0%

60.0%

62.0%

64.0%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

End of 1H FY2019

Sept. 30, 2019

End of FY2018

Mar. 31, 2019

Equity Ratio

Net Assets

Total Assets

14


1-5-1 Consolidated Cash Flows

1H FY2019 Explanation

Balance at the Beginning of

Fiscal Year (Apr. 1, 2019)42,972

Change during the Period +2,175

Cash Flows from Operating

Activities+8,602

Increase of 8.6 billion yen retained from profit before income taxes, depreciation and amortization, etc.

Cash Flows from Investing

Activities-7,473

Decrease of 7.4 billion yen from acquiring fixed assets, etc.

Cash Flows from Financing

Activities+1,175

Increase of 1.1 billion yen due to an increase in borrowings despite a requisition of treasury stock, payments of dividends, and other factors

Exchange Rate Change -129

Balance at the End of the Period (Sept. 30, 2019)

45,147Increase of 2.2 billion yen from the beginning of FY2019


15


1-5-2 Consolidated Cash Flows (YOY)

1H FY2018 1H FY2019 YOY Explanation

Balance at the

Beginning of FY39,580 42,972 +3,391

Change during the

Period-2,895 +2,175 +5,070

Cash Flows from

Operating

Activities

+9,112 +8,602 -510

Decreased YOY as notes and accounts payable in the condominium sales business in the previous term decreased, despite an increase in profit before income taxes

Cash Flows from

Investing

Activities

-9,413 -7,473 +1,939Increased YOY due to substantial proceeds from sales of investment securities

Cash Flows from

Financing

Activities

-2,418 +1,175 +3,594

Increased YOY due to redemption of bonds, despite substantial reacquisition of treasury stock

Exchange Rate

Change-175 -129 +46

Balance at the End of the Period

36,684 45,147 +8,462


16




2-1 Consolidated Statement of Income

2-2 Breakdown of Revenue

2-3 Breakdown of Cost of Services

17


2-1 Consolidated Statement of Income

1H FY2018 1H FY2019 YOY

Revenue 109,979 114,978 +4,999 +4.5％

Cost of Services 98,089 103,115 +5,025 +5.1％

Gross Profit 11,889 11,863 -26 -0.2％

SG&A 5,332 5,253 -78 -1.5％

Operating Income 6,557 6,609 +51 +0.8％

Non-Operating Income 3,181 2,934 -247

Non-Operating Expenses 821 333 -488

Ordinary Income 8,917 9,210 +292 +3.3％

Extraordinary Income 68 1,723 +1,655

Extraordinary Losses 943 1,093 +150

Profit before Income Taxes 8,042 9,840 +1,798 +22.4％

Income Taxes 2,319 2,806 +487

Profit 5,722 7,033 +1,311 +22.9％

Profit Attributable to

Non-Controlling Interests124 87 -36

Profit Attributable to

Owners of Parent5,598 6,945 +1,347 +24.1％


18


2-2 Breakdown of Revenue


Revenue 109,979 114,978 +4,999 +4.5％

Warehouse Storage

12,920 13,629 +708 +5.5％

Increase in the handling of foods, medical supplies, autoparts, etc.

WarehouseCargo Handling

8,855 9,094 +239 +2.7％

LandTransportation

25,788 26,136 +347 +1.3％

Port and HarborOperations

9,517 9,443 -73 -0.8％

InternationalTransportation

25,818 25,434 -384 -1.5％Decrease in the handling of exported and imported freight, etc.

Real Estate Rent 15,781 15,773 -8 -0.1％

Other 11,297 15,466 +4,169 +36.9％Increase in condominium sales in the condominium sales business, etc.


19


2-3 Breakdown of Cost of Services


Cost of Services

98,089 103,115 +5,025 +5.1％

OperationalandTransportationConsignmentCosts

48,564 48,554 -10 -0.0％

Personnel Expenses

18,965 19,272 +306 +1.6％Increased due to increases in freight handled and reinforcement of facilities

Facility Rental

Expenses4,767 4,614 -152 -3.2％

Increased in the Logistics Segment overall, due to launches of newly established distribution centers, etc., as well as the transfer of facility rental expenses to depreciation and amortization accompanying the application of IFRS 16 Leases

Depreciation and Amortization

6,121 6,684 +562 +9.2％

Other 19,669 23,988 +4,319 +22.0％Increased real estate sales costs as sales of condominiums increased


20


3. 1H FY2019 Consolidated Financial Condition (Consolidated Balance Sheet)

3. 1H FY2019 Consolidated Financial Condition

(Consolidated Balance Sheet)

3-1 Assets

3-2 Liabilities and Net Assets

21


3-1 Assets

End of FY2018End of


Assets 482,575 476,510 -6,064

Cash and Deposits 41,337 43,693 +2,356

Increased due to an increase in retention of funds from operating activities, depreciation and amortization, and dividends received during the current term, as well as new loans from banks taken out in the year under review

Real Estate Held for Sale

14,332 12,466 -1,865 Decreased due to sales of condominiums

Buildings and Structures

117,254 115,221 -2,033Decreased due to depreciation and amortization in the first half of the year under review, etc.

Construction in Progress

2,068 7,799 +5,731

Increased as a result of payments for construction work on the SeishinDistribution Center (Phase 2), Minami Honmoku Distribution Center, etc.

Investments in Securities

134,578 126,724 -7,854 Decrease in the market value of shares


22


3-2 Liabilities and Net Assets

End of FY2018End of


Liabilities 183,470 183,266 -203

Notes and Operating Accounts Payable

27,396 21,707 -5,689

Decreased in connection with the payment of obligations concerning the condominium sales business for the previous term

Short-Term Loans Payable and Current Portion of Long-Term Loans Payable

26,467 36,258 +9,791 Increased due to new borrowings

Deferred Income Taxes

21,870 19,877 -1,992

Decreased as a result of a decrease in deferred tax payment on evaluation difference due to a decline in the market value of shares

Net Assets 299,104 293,243 -5,861

Retained Earnings 197,675 201,992 +4,317Booked as profit attributable to owners of parent, etc.

Treasury Stock -844 -5,846 -5,001 Purchase of treasury stock

Net Unrealized Holding Gains on Securities

57,098 52,380 -4,717

Decreased as a result of a decrease in valuation difference after deducting tax effect due to a decline in the market value of shares


23




4-1 Forecast for Revenue

4-2 Forecast for Expenses

4-3 Forecast for Income

24


4-1-1 Forecast for Revenue

FY2018

Results

FY2019

YOY1H

Results

2H

Forecast

Full-Year

Forecast

Revenue 227,185 114,978 117,021 232,000 +4,814 +2.1％

Logistics 190,434 95,604 97,295 192,900 +2,465 +1.3％

Real Estate 38,679 20,314 20,785 41,100 +2,420 +6.3％

Internal Transactions

-1,928 -939 -1,060 -2,000 -71 －


Logistics : We expect revenue to increase due to an expansion of operations by distribution centers in

both the warehousing & distribution and land transportation businesses and an increase in

revenue from handling containerized cargo in the harbor transportation business, etc.

Real Estate : Although the real estate leasing business is influenced by movement of tenants, etc., we

expect revenue to increase due to an increase in sales of condominiums in the condominium

sales business.

Increased revenue is forecast overall.

25


4-1-2 Forecast for Revenue


FY2018

Results

FY2019

Forecast

Internal

Transactions

Internal

Transactions

-1,928 -2,000

Logistics

190,434 Revenue

227,185

Real Estate

38,679

Real Estate

Logistics

Revenue

232,000192,900

41,100

26


4-2 Forecast for Expenses

FY2018

Results

FY2019

YOY1H

Results 2H

ForecastFull-Year Forecast

Cost ofServices

203,825 103,115 106,684 209,800 +5,974 +2.9%

SG&A 10,699 5,253 5,246 10,500 -199 -1.9%


We expect an overall increase in the cost of services. In the Logistics Segment, personnel expenses and

depreciation and amortization are expected to increase accompanying increases in freight handled and

reinforcement of facilities, while in the Real Estate Segment, we expect an increase in real estate sales

costs to accompany an increase in sales of condominiums.

SG&A is expected to decrease due to a decrease in expenses.

27


4-3-1 Forecast for Income

FY2018

Results

FY2019

YOY1H

Results

2H Forecast

Full-Year Forecast

Operating Income

12,660 6,609 5,090 11,700 -960 -7.6%

Logistics 7,609 4,013 3,886 7,900 +290 +3.8%

Real Estate 10,783 5,419 3,880 9,300 -1,483 -13.8%

ParentCompany’sGeneral Expenses

-5,731 -2,822 -2,677 -5,500 +231 －

Ordinary Income

17,333 9,210 6,689 15,900 -1,433 -8.3%

Profit Attributable to Owners of Parent

11,564 6,945 5,554 12,500 +935 +8.1%


Operating Income : We expect an overall decrease from the previous year with an increase in the Logistics Segment and a decrease in the Real Estate Segment.

Ordinary Income : We expect a decrease from the previous year.

Profit Attributable to Owners of Parent : We forecast an increase from the previous year due to expected improvements inincome from recording a gain on sales of investment securities, etc.

28


4-3-2 Forecast for Operating Income

FY2018

Results

FY2019

Forecast

Parent Company’s

General Expenses

-5,731


Real Estate

10,783

Logistics

7,609

Operating

Income

12,660Real Estate

9,300

Logistics

7,900

Operating

Income

11,700

Parent Company’s

General Expenses

-5,500

29




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

30


5-1 Volume Handled in Logistics (Parent)

1H FY2018 1H FY2019 YOY

WarehouseInbound Volume

Quantity 1,3161,000

tons1,347

1,000

tons+2.3 %

Warehouse

Outbound VolumeQuantity 1,326

1,000

tons1,318

1,000

tons-0.6 %

Warehouse

Storage Balance

Quantity 5641,000

tons582

1,000

tons+3.2 %

Amount 384,548million

yen402,442

million yen

+4.7 %

Warehouse

Freight Turnover RateQuantity 39.0 % 38.1 % -0.9

Land Transport Quantity 6,3481,000

tons6,390

1,000

tons+0.7 %

Portand Harbor Operations

Shore Handling

Quantity 39,7711,000

tons39,608

1,000

tons-0.4 %

Onboard Handling

Quantity 31,2491,000

tons29,943

1,000

tons-4.2 %

International Transportation

Quantity 3,0991,000

tons3,203

1,000

tons+3.4 %

31


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

Sept. 30, 2018 Mar. 31, 2019 Sept. 30, 2019

Building Leasing Vacancy Rate

2.5％ 2.2％ 2.5％

1H FY2018 1H FY2019 YOY

9561,000㎡ 964

1,000㎡ +0.8 %

1,0611,000㎡ 1,086

1,000㎡ +2.4 %

9061,000㎡ 923

1,000㎡ +1.9 %

Warehouse Storage Area (Monthly Average)

Building Leasing Area (Monthly Average)

Real Estate Leasing Area

(Excludes Warehouse Leasing)

32


5-3 Capital Expenditure

FY2018 Results: 19.885 Billion Yen(Consolidated Cash Flow Statement “Spending on Fixed Asset Acquisition”)

[Major Projects]

Construction of distribution centers, acquisition of site for distribution center, construction of rental facilities and maintenance and renewal of real estate facilities, etc.

FY2019 Forecast: 24.8 Billion Yen

[Major Projects]

Construction of distribution centers, construction of rental facilities and maintenance and renewal of real estate facilities, etc.

33


5-4 Depreciation and Amortization

FY2018 Results FY2019 Forecast Explanation

Total12.995 billion

Yen

14.2 billion

Yen

Logistics6.954 billion

Yen

8.2 billion

Yen

Expected to increase due to launches of newly established distribution centers, etc., as well as the transfer of facility rental expenses accompanying the application of IFRS 16 Leases

Real Estate5.778 billion

Yen

5.8 billion

Yen

Expected to be on par with the previous year as calculations using the declining balance method forecast an increase due to new operation of rental facilities

Corporate Expense

0.262 billion

Yen

0.2 billion

Yen

34


5-5-1 New Facilities

Scheduled for completion in November 2019

Location: Suma-ku, Kobe, Hyogo

Total Floor Area: Approx. 57,400 m2

Seishin Distribution Center (Phase 2)

Rendering

Minami Honmoku Distribution Center

Scheduled for completion in February 2020

Location: Naka-ku, Yokohama, Kanagawa


Rendering

35


Misato No. 2 Distribution Center (Phase 2)

Suma Aqualife Park／Kaihin Park Restructuring Project

5-5-2 New Facilities

Scheduled for grand opening in March 2024

In the Suma Aqualife Park/Kaihin Park

Restructuring Project initiated by the City of

Kobe, the group, including our company and

represented by THE SANKEI BUILDING CO.,

LTD. was selected as one of the preferred

bidders.

Location: Suma-ku, Kobe, Hyogo

Development Area: Approx. 101,900 m2

Scheduled for completion in October 2020

Location: Misato, Saitama


Rendering

Perspective image

36

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

For the Realization of a Rich and Sustainable Society

37

1h fy2019 consolidated results - mitsubishi logistics · 2020-01-16 · fuji logistics support co.,...

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