Financial Results for the Fiscal Year Ended March 31, 2024

NIKKON Holdings Co., Ltd.

Security: 9072

May 23, 2024

1

0. Table of Contents

[Financial Results Explanation]

1.

Executive Summary

P. 4

2.

Financial Results for the Fiscal Year Ended March 31, 2024

P. 5-

3. Initiatives under Medium-Term Management Plan

P. 13-

4.

Forecast for the Fiscal Year Ending March 31, 2025

P. 14-

5.

Shareholder Returns

P. 15-

[ESG Initiatives]

1.

Thirteenth Medium-Term Management Plan (ESG)

P. 18

2.

ESG Initiatives

P. 19-

2

Financial Results Explanation

3

1. Executive Summary

Results for the Fiscal Year Ended March 31, 2024

Forecast for the Fiscal Year Ending March 31, 2025

83rd term results

Achievement rate

Category

FY2024/3

of the plan

Category

84th term forecast

FY2025/3

1H

2H

Net sales

YoY

Operating profit

Profit ratio

YoY

Ordinary profit

Profit ratio

YoY

Profit

222,324

96.7%

＋4.8%

21,235

96.5%

9.6%

＋8.5%

23,875

101.6%

10.7%

＋8.0%

16,608

103.8%

Net sales

YoY

Operating profit

Profit ratio

YoY

Ordinary profit

Profit ratio

YoY

Profit

120,000

130,000

250,000

＋10.8%

＋14.0%

＋12.4%

10,900

13,100

24,000

9.1%

10.1%

9.6%

＋5.6%

＋20.0%

＋13.0%

11,600

13,700

25,300

9.7%

10.5%

10.1%

-1.4%

＋13.2%

＋6.0%

7,800

9,200

17,000

Profit ratio

7.5%

YoY

＋4.3%

  • The economy showed a moderate recovery.
  • The shortage of auto-parts faded.
  • Fuel and personnel expenses soared.
  • Some auto manufacturers suspended production.

Profit ratio

6.5%

7.1%

6.8%

YoY

-2.3%

＋6.6%

＋2.4%

  • Pay increases will make a virtuous circle of the economy.
  • M&A transactions will produce an integration effect.
  • An upper limit will be imposed on overtime work and drivers will be in short supply.
  • Energy prices will stay high and economy trends will be
    uncertain.4

2. Financial Results for the Fiscal Year Ended March 31, 2024 (1)

1. Profit and Loss

82nd term results

Category

FY2023/3

83rd term results

Achievement

FY2024/3

rate of the plan

Proportion (%)

YoY

Net sales

Operating costs

General and administrative expenses

Operating profit

Non-operating income

Non-operating expenses

Ordinary profit

Extraordinary income

Extraordinary losses

Income before income taxes

Income taxes

Profit

212,071

181,502

10,988

19,580

2,853

325

22,108

957

289

22,776

6,864

15,913

222,324

100.0%

＋4.8%

96.7%

189,549

85.3%

＋4.4%

-

11,539

5.2%

＋5.0%

-

21,235

9.6%

＋8.5%

96.5%

2,998

1.3%

＋5.1%

-

358

0.2%

＋10.2%

-

23,875

10.7%

＋8.0%

101.6%

192

0.1%

-80%

-

432

0.2%

＋49.5%

-

23,634

10.6%

＋3.8% -

7,025

3.2%

＋2.3%

-

16,608

7.5%

＋4.4%

103.8%

5

2. Financial Results for the Fiscal Year Ended March 31, 2024 (2)

2. Balance Sheet

82nd term

83rd term

Assets

results

results

Changes

FY2023/3

FY2024/3

Current assets

83,026

87,981

+4,955

Cash and deposits

40,221

43,847

+3,626

Accounts receivable,

37,617

39,169

+1,552

inventories and others

Other

5,188

4,965

-223

Property, plant and equipment

242,671

254,064

+11,393

Lands

116,849

120,058

+3,209

Buildings and structures

110,320

115,109

+4,789

Machinery and equipment

4,029

3,861

-168

Construction in progress

6,037

8,222

+2,185

Vehicles

3,515

4,852

+1,337

Other

1,921

1,962

+41

Intangible assets

2,368

2,498

+130

Leasehold interests in land

1,265

1,312

+47

Software and others

1,103

1,186

+83

Investments, etc.

32,681

43,901

+11,220

Investment securities

19,512

29,715

+10,203

Shares and investments in capital

7,289

7,838

+549

of subsidiaries and associates

Deferred tax assets

3,603

3,669

+66

Other

2,277

2,679

+402

360,748

388,446

+27,698

Total assets

82nd term

83rd term

Liabilities

results

results

Changes

FY2023/3

FY2024/3

58,358

59,366

+1,008

Current liabilities

Notes and accounts payable - trade

17,922

17,948

+26

and electronically recorded

obligations - operating

Short-term borrowings

13,151

12,025

-1,126

and bonds

Income taxes payable

4,467

4,002

-465

Deposits received

1,783

3,376

+1,593

Accounts payable - other

8,645

8,899

+254

Provision for bonuses

4,143

4,775

+632

Electronically recorded

4,299

4,405

+106

obligations - non-operating

Other

3,948

3,936

-12

72,990

82,634

+9,644

Non-current liabilities

Bonds payable and long-term

60,059

67,034

+6,975

borrowings

Deferred tax liabilities

5,481

8,571

+3,090

Retirement benefit obligations

5,399

4,940

-459

Other

2,051

2,089

+38

Net assets

229,399

246,445

+17,046

Shareholders' equity

214,926

221,322

+6,396

Total accumulated other

13,947

17,477

+3,530

comprehensive income

Share acquisition rights

210

161

-49

Non-controlling interests

314

344

+30

6

360,748

388,446

+27,698

Total liabilities and net assets

2. Financial Results for the Fiscal Year Ended March 31, 2024 (3)

3. By Business Segment

2023/3

2024/3

(Millions of yen)

Net sales

Operating

Profit ratio

Net sales

Change

Operating

Change

profit

(%)

profit

(%)

Other

Outside: Net sales

Inside: Operating profit

Testing

Other

Profit ratio

Transportation

96,744

5,062

5.2%

100,398

+3.8%

5,585

+10.3%

Warehousing

37,729

8,422

22.2%

38,863

+3.0%

8,328

-1.1%

Packaging

49,591

3,008

6.0%

53,809

+8.5%

3,320

+10.4%

5.5%

Testing

21.3%

6.1%

Packaging

Packaging

Transportation Transportation

Testing

Other

20,942

2,223

10.6%

22,881

+9.3%

3,329

+49.8%

14.5%

7,063

1,103

9.2%

6,370

-9.8%

943

-14.5%

9.5%

Warehousing

Total

212,071

19,818

9.2%

222,324 +4.8%

21,235

+7.2%

9.6%

Warehousing

* Profit rates reflect adjustment to figures after elimination of intra-group transactions.

Transportation: Net sales rose with a turnaround in cargo volumes from automobile and auto-parts sectors. Operating profit surged after the increase in sales, cost reduction and revision of fares to appropriate levels.

Warehousing: Net sales increased after the disappearance of idle spaces in existing facilities and the inauguration of new facilities while operating profit decreased due to a rise in the depreciation of new facilities.

Packaging: Net sales and operating profit both expanded in line with growth in internal work and packaging operations following a turnaround in the volume of cargo mainly from the automobile industry.

Testing:

Net sales and operating profit both increased, reflecting the climbing business volume in line with the recovery from

the COVID-19 pandemic and a reduction in cost after the easing of the burdens of personnel investment in the

previous year.

Other:

Net sales and operating profit dropped, attributable to a slide in international trading and a decline in unit price after

easing of the demand-supply balance in air and marine transport.

7

2. Financial Results for the Fiscal Year Ended March 31, 2024 (4)

4. By Industry Segment

2023/3

(Millions of yen)

Net sales

Proportion (%)

Automobile

78,787

37.2%

Auto-Parts

32,590

15.4%

Housing

27,710

13.1%

Tires

12,245

5.8%

Agricultural Machinery

7,397

3.5%

Industrial Machinery

5,809

2.7%

Food and beverages

4,629

2.2%

Newspapers and publications 4,670

2.2%

Other

38,231

18.0%

212,071

100.0%

Total

5. By Regional Segment

2023/3

(Millions of yen)

Net sales

Operating

Profit ratio

Net sales

profit

2024/3

Net sales

Change (%)

Proportion (%)

89,649

+13.8%

40.3%

34,047

+4.5%

15.3%

27,441

-1.0%

12.3%

10,278

-16.1%

4.6%

7,315

-1.1%

3.3%

5,110

-12.0%

2.3%

4,858

+4.9%

2.2%

4,723

+1.1%

2.1%

38,898

+1.7%

17.5%

222,324

+4.8%

100.0%

2024/3

Change

Operating

Change

Profit ratio

(%)

profit

(%)

Newspapers and

publications

Other

Food and

4.7

beverages

38.9

4.9

Automobile

89.6

Industrial

Machinery

5.1

Agricultural

Machinery

Housing

7.3

Tires

27.4

10.3

Auto-Parts

34.0

Asia

17.7

North America

15.5

Asia

North

1.54

America

0.87

Japan

180,469

16,983

9.4%

North America

12,767

1,084

8.4%

Asia

18,834

1,566

8.1%

189,075

+4.8%

18,878

+11.2%

10.0%

15,507

+21.5%

872

-19.6%

5.5%

17,741

-5.8%

1,542

-1.5%

8.5%

Japan

Japan

189.1

18.88

Total

212,071

19,580

9.2%

222,324

+4.8%

21,235

+8.5%

9.6%

* Profit rates reflect adjustment to figures after elimination of intra-group transactions.

Outside: Net sales

Inside: Operating profit

8

Unit: billion yen

2. Financial Results for the Fiscal Year Ended March 31, 2024 (5)

6. Capital Investment (excluding M&A)

Capital investment (billion yen)

30.0

28.3

28.3

25.9

25.0

23.0

23.0

22.5

22.2

20.0

16.5

15.2

15.0

10.0

5.0

0.0

Company name

Location

Date of

Buildings

Total floor

Applications

completion

area

1

NK Parts Industries Inc

Ohio, U.S.A.

Jul. 2023

Warehouse

19,835 m2

Work and storage of

auto-parts

2

NIPPON KONPO UNYU SOKO CO., LTD. Koga, Ibaraki Pref.

Oct. 2023

Warehouse

23,066 m2

Storage of auto-parts,

etc.

3

NIPPON KONPO UNYU SOKO CO., LTD.

Miyoshi-machi,

Oct. 2023

Warehouse

35,557 m2

Storage of EC-related

Saitama Pref.

goods

4

NIKKON KITAKYU Co., Ltd.

Kitakyushu, Fukuoka

Feb. 2024

Buildings

Head office and garage

Pref.

Under construction

Company name

Location

Scheduled

Buildings

Total floor

Applications

completion

area

1

PT.Nippon Konpo Indonesia

West Java, Indonesia

Jul. 2024

Warehouse

15,000 m2

Establishment of new

bases in industrial parks

2

NIPPON KONPO UNYU SOKO CO., LTD. Sendai, Miyagi Pref.

Aug. 2024

Warehouse

1,040 m2

Construction of a base

in the new port district

3

NIKKON Holdings Co., Ltd.

Utsunomiya, Tochigi

Jan. 2025

Warehouse

43,585 m2

Storage of food-related

Pref.

goods

4

NIPPON KONPO UNYU SOKO CO., LTD.

Kanegasaki-cho, Iwate

Feb. 2025

Warehouse

24,578 m2

Storage of auto-parts,

Pref.

etc.

5

NIPPON KONPO UNYU SOKO CO., LTD. Tokai, Aichi Pref.

Feb. 2025

Warehouse

19,490 m2

A hub facility in the

Chubu region

6

ITO-EXPRESS CO., LTD.

Koga, Ibaraki Pref.

Second half

Warehouse

2,498 m2

Newly-launched Koga

of FY2025

Office

7

NIPPON KONPO UNYU SOKO CO., LTD. Suzuka, Mie Pref.

Apr. 2025

Warehouse

15,840 m2

Storage of auto-parts,

etc.

8

NIPPON KONPO UNYU SOKO CO., LTD. Suzuka, Mie Pref.

May 2025

Warehouse

7,384 m2

Truck depot, automobile

maintenance and others

9

NIPPON RIKUSO Co., Ltd.

Suzuka, Mie Pref.

Jul. 2025

Warehouse

33,914 m2

Auto-parts and a relay

and logistics center

2

Auto-parts, including

10 NIPPON UNYU CO., LTD.

Ota, Gunma Pref.

Aug. 2025

Warehouse

8,082 m

those for new customers

(billion yen)

Amount

Descriptions

Operating Fleets

3.1

283 units (Additional trucks or replacements)

Land and buildings

13.2

Land for business and warehouse construction

Other

6.2

Facilities for the testing business and warehouse

construction in progress

Total

22.5

Conceptional drawing of

New warehouse at the

Sanwa Sales Office in Koga

NIKKON KITAKYU

9

Nippon Konpo Indonesia

Miyoshi Sales Office

2. Financial Results for the Fiscal Year Ended March 31, 2024 (6) M&A

Company name

Location

Acquisition date

Business outline

1

MP., Co. Ltd

Chikuma, Nagano Pref.

Nov. 2023

Manufacturing and sales of cardboard products

2

Koga Kankyo Service Co., Ltd.

Koga, Ibaraki Pref.

Dec. 2023

Collection and transportation of industrial and

general waste

3

Mitsuba Logistics Co., Ltd.

Ota, Gunma Pref.

Apr. 2024

A subsidiary engaged in logistics for auto-parts

(Nikkon Ryomo Co., Ltd.)

manufacturers

4

Supreme Auto Transport, Inc.

Colorado, USA

May 2024

Automobile transportation operator

M&A target companies

  1. Covering blank areas
    • Land for sales offices and warehouses (Higashi Osaka, Chugoku region: Mihara, Fukuyama and Asakuchi)
  3. Logistical operators (for development of new shippers)
    • Logistics, warehousing and distribution processing operators mainly for manufacturers as shippers (through direct contracts)
    • Logistics operators mainly serving customers in the sectors of pharmaceuticals, precision machinery and food (frozen and refrigerated warehouses)
    • Manufacturers' subsidiaries engaged in logistics
  5. Upstream and downstream logistical operations
    • Packaging operations, packaged materials, distribution processing operators, driving schools, industrial waste treatment, and recycling operations
    • Staffing agencies for research and development on automobiles, testing operations and industrial work
  7. Overseas business
    • General logistical support for Japanese manufacturers operating overseas (e.g. USA and India)
    • Business expected to expand into import and export, customs clearance, warehousing, transportation, distribution

processing and others

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Nikkon Holdings Co. Ltd. published this content on 04 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2024 02:06:07 UTC.