Mitsubishi Logisnext : Integrated Report 2023（7.72MB）

Introduction / Contents

Our Value

Creation Story

Our Value Creation

Strategy

Value Creation

in Practice

Our Purpose

We positively impact the lives of people around the world by demonstrating a pioneering spirit and using emerging technologies to deliver safe, automated and decarbonized logistics solutions.

In December 2022, to clarify the significance of our presence in the logistics industry, we reiterated our purpose by presenting it in new terms.

As a comprehensive manufacturer of logistics equipment that contributes solutions to societal issues through our business, we remain committed to devising optimal solutions to the logistics challenges faced by our customers around the world.

Table of Contents

Chapter. 1

Our Value Creation Story ....01

01. Introduction / Contents

1. Corporate Philosophy / Management Policy
2. Our Value Creation Model
3. Advantage 1: Our Robust Technological Platform
4. Advantage 2: Our Extensive Product Line
5. Advantage 3: Our Global Network
6. Financial Highlights
7. Non-FinancialHighlights

Chapter. 2

Our Value Creation

Strategy ........................................................09

1. Establishment of "Vision 2035"
2. Message from the President

1. Overview and Progress of Medium-Term Business Plan "LS2023"
2. Our Approach to Sustainability Management

1. Special Feature 1: Contributing to Workstyle Reforms at Logistics Sites
2. Special Feature 2: Initiatives to Enhance Job Satisfaction
3. Message from the CFO

Chapter. 3

Value Creation in Practice.....23

24. Message from the Head of the Engineering Headquarters

26. Message from the Head of the Administration Headquarters

1. Overview of Sales in Japan
2. Overview of Sales Outside Japan

1. Environmental Initiatives

1. Societal Initiatives

1. Governance Initiatives

1. Directors and Audit and Supervisory Board Members

1. Message from Our External Director

1. ESG Summary of Activities

1. Five-yearFinancial Summary
2. Chronology

64. Corporate Profile­ / Network

Corporate Philosophy / Management Policy

Corporate Philosophy

Our Value

Creation Story

Our Value Creation

Strategy

Value Creation

in Practice

The Foundation of Our Value Creation

Corporate 02 Data

and customer interactions. Customers

We form long-lasting partnerships with our customers by helping them solve their material handling challenges with our innovative products and services.

Our Value Creation Model

Our Value

Creation Story

Our Value Creation

Strategy

Value Creation

in Practice

The Foundation of Our Value Creation

Corporate 03 Data

Inputs : Accumulated capital

Advantages

Global Logistics Challenges

Building a

sustainable

logistics network

Small-lot,

segmented, and

accelerated

delivery networks

Declining labor

pool in the

logistics industry

Financial Capital

Total assets: 475.4 billion yen

Net assets: 76.0 billion yen

Human Capital

Number of employees (consolidated): 12,056

Intellectual Capital

Number of patents held In Japan: 920 Outside Japan: 269

R&D Expenditures 5.04 billion yen

Manufacturing Capital

Production bases In Japan: 6 plants Outside Japan: 8 plants in 6 countries

Social and Related Capital

In Japan: Approximately 400 sales and service locations Outside Japan: Sold to more than 100 countries from 39 locations in 15 countries

Natural Capital

Water consumption (Kyoto, Shiga, and Azuchi Plants) 88,000 m3

1

1. technological platform derived from

multiple manufacturers

of material handling equipment

Page 04

2

A broad product

line combining

hardware & software

Page 05

3

An extensive

network to identify local needs around the world

Page 06

FY2021-23Medium-Term

Business Plan

Logisnext SolutionS

2023

Growth Strategy Page 15

With an integrated system encompassing upstream and downstream operations, we can respond to issues arising in the global logistics market in a timely and agile manner.

A Foundation for Sustainable Growth

Environmental/Social/Governance

(ESG)

• Reducing environmental impacts and improving the social environment for sustainability
• Relationship with society (customers, business partners, employees, local communities, and shareholders)
• Corporate governance, compliance, and

risk management

In Japan

Sales volume: 26,000 units

Net sales: 176.32 billion yen Operating profit:­ 0.51 billion yen Operating profit­ before amortization of goodwill, etc.:

5.34 billion yen

Page 28

Outside Japan

Sales volume: 86,000 units

Net sales: 439.09 billion yen Operating profit:­ 14.2 billion yen Operating profit­ before amortization of goodwill, etc.:

19.65 billion yen

Page 29

Natural Capital

CO2 emissions

(Kyoto, Shiga, and Azuchi Plants)

12,144 tonnes

Provide additional

assistance options to help

operators perform their material handling tasks

Contributing labor-saving

solutions through

automation technology

Contributing to energy efficiency and reduced CO2 emissions with environment-friendly products

Contributing to achievement of the SDGs through our business operations

Page 16

Advantage 1: Our Robust Technological Platform

Our Value

Creation Story

Our Value Creation

Strategy

Value Creation

in Practice

The Foundation of Our Value Creation

Corporate 04 Data

Origins of

Our Advantages

Establishing a solid footing in the Japanese market

Our Technological Advantage

Technology for automation and

1937-

Nippon

Yusoki Co.,

Ltd.

A

Japan

first

1939

Electric forklift developed.

A

Japan

first

1958

PLATTER stand-on electric reach forklift developed.

A

world

first

1971

Automated guided forklift developed and introduced.

unmanned operation

ΣSynX autonomous and intelligent solutions

Environmental performance

1970-

Forklift

Division,

Mitsubishi

Heavy

Industries,

Ltd.

Focused on Europe and North America

PLATTER Auto

ERSIS

New rubber-tired gantry crane

Key components of our in-house group development

1949-

TCM Corporation

Advantages in large vehicles for handling specialized cargoes

A

Japan

first

1949

Completed Japan's first engine-powered forklift (certified in 2010 as an element of Japan's Mechanical Engineering Heritage by the Japan Society of Mechanical Engineers).

2008

Hybrid transfer crane wins the second Japan Material Handling Grand Prize.

FX

Environment-friendly clean engines, Models D04EG and GK21/25

Safety

Good Finder,

an AI-powered human detection system for large forklifts

1957-

Nissan

Forklift

Co., Ltd.

1975

Nissan Motor starts production at the Murayama Plant (following a transfer from the Nissan Shatai Kyoto Plant).

A

world

first

1986

Production and sales of H01 and H02 Series small engine vehicles with full floating cabs begins.

Transfer crane

Incorporating development and design innovations targeting enhanced functionality and ease of use

An extensive product line supporting

all aspects of logistics by combining hardware and software

Value Creation

in Practice

The Foundation of Our Value Creation

Corporate 05 Data

We support the safe and efficient transportation of a variety of materials and products in and between various locations, including indoor environments such as warehouses and low-temperature storage, and outdoor environments such as ports and in-between factories.

We contribute to not only the space efficiency, but also the time efficiency through work process improvement, such as location management based on the frequency of warehouse utilization, and the automation of routine operations.

By real-time monitoring of various data including product storage and forklift operational status, we enhance operational efficiency and performance.

Advantage 3: Our Global Network

Our Value

Creation Story

Our Value Creation

Strategy

Value Creation

in Practice

The Foundation of Our Value Creation

Corporate 06 Data

Europe is at the forefront of logistics. With our ability to develop products that meet customer needs, we emphasize steady growth as we pursue our global operations.

• Pursuing increased market share by promoting sales of new models introduced in fiscal 2022
• Differentiating our product offerings through mixed-fleet solutions (forklifts and AGVs) for markets where advances in decarbonization and automation are in demand

The Asia-Pacific region is expected to exhibit a high growth rate in the future due to the supply chain transition away from China. We will position ourselves to capture market growth in these promising markets.

• Promoting production and shipping while focusing on standardization of lead times

China's material handling equipment market is expanding rapidly. Amid the rise of local manufacturers who use low prices as a weapon, we will rebuild our sales network by reviewing our strategies.

Financial Highlights

Net Sales / Ratio of Outside Japan

Net sales (millions of yen)

Ratio of outside Japan (%)

Operating Profit / Operating Profit Margin

(Before amortization of goodwill)

Operating profit (millions of yen)

Operating profit margin (%)

Operating Profit / Operating Profit Margin

(After amortization of goodwill)

Operating profit (millions of yen)

Profit Attributable to Owners of Parent /

Earnings per Share

Profit attributable to owners of parent (millions of yen) Earnings per share (yen)

Sales outside Japan amounted to 439.095 billion yen due to increased unit sales in the Americas, Europe, and Asia, as well as tailwinds from the yen's depreciation. Moreover, consolidated sales reached a record high.

Despite the impact of soaring raw material and transportation costs, operating profit and operating profit before amortization of goodwill reached record highs due to increased sales and the significant contribution of price optimization.

Profit attributable to owners of parent was 6.913 billion yen and earnings per share were 64.82 yen due to an increase in operating profit.

ROA/ROE (%)

ROA ROE

11.2

10.0

-8.9

2018 2019 2020 2021 2022（FY）

Capital Expenditure (millions of yen)

Interest-bearing Debt / Interest-bearing Debt Ratio

Interest-bearing debt (millions of yen)

Capital Adequacy Ratio (%)

18.0

2018 2019 2020 2021 2022 （FY）

ROA was 1.6% and ROE was 10.0% due to an increase in profit attributable to owners of parent.

Our capital expenditures were 45.698 billion yen. Our book value investments consisted of the following: 9.547 billion yen was attributable to our business in Japan, mainly investments in forklift vehicles by sales subsidiaries for leasing and rental, while 62.371 billion yen was attributable to our business outside Japan, mainly investments in forklift vehicles by sales subsidiaries for leasing and rental as well as the purchase of machinery and equipment.

In fiscal 2016, we took on a large amount of debt to acquire shares of UniCarriers Corporation, so interest-bearing debt remains high compared to the scale of our business. We intend to increase free cash flow in order to improve our capital adequacy ratio as we continue to focus on strengthening our financial base.

Non-Financial Highlights

Personnel

Number of employees

The company employed 5,234 in its businesses in Japan and 6,822 employees in its businesses outside Japan, indicating that 56.6% are employed outside Japan.

Percentage of Female Hires (Recent University Graduates) and Female Managers

Percentage of female hires (recent university graduates; %) Percentage of managerial positions filled by female employees (%)

50.0

26.0

21.0

17.0 13.0

We remain focused on promoting diversity, which includes the active participation of our female employees. Under our Action Plan, which is related to Japan's Act on Promotion of Women's Participation and Advancement in the Workplace, we have adopted a target of at least 3.4% for female managers and at least 20% for new female hires. We are committed to achieving these targets.

*As of April 1

Percentage of Employees with Disabilities (%)

We are focused on creating a workplace in which individuals, regardless of their disability, can play an active role in accordance with their wishes and abilities.

Occurrence of Occupational Accidents

Kyoto, Shiga, and Azuchi Plants

• Data related to our affiliates and our production bases outside Japan have been collected only since fiscal 2019.

We remain focused on ensuring a safe and secure workplace environment in a multifaceted manner by adhering to our Group's safety credo: "Safety is the foundation of all that we do."

Number of Patents Held

Number of patents held in Japan

Number of patents held outside Japan

1,105 ＊1

277 ＊2 291 ＊2 284 ＊2 293 ＊2 269 ＊2

We have established a rewards system that motivates our employees to be inventive, and we are working to acquire intellectual property and enhance our intellectual creativity.

*1 Patents filed by the company in Japan and patents owned by the company in Japan

*2 Patents filed by the company outside Japan and patents owned by the company outside Japan (Patents filed and held by group companies outside Japan are not included.)

Looking to our R&D activity for fiscal 2022 under our medium-term business plan, Logisnext SolutionS 2023, while maximizing the strengths of our Engineering Headquarters, we worked closely with our development bases outside Japan to launch new products onto the market as planned. R&D expenses by segment were 3,076 million yen for our business in Japan and 1,963 million yen for our business outside Japan.

CO2 Emissions from Plants in Japan

(Kyoto, Shiga, and Azuchi Plants) (tonnes-CO2)

In fiscal 2022, CO2 emissions were 2,540 tonnes-CO2 from the Kyoto Plant, 6,461 tonnes-CO2 from the Shiga Plant, and 3,143 tonnes-CO2 from the Azuchi Plant, with all three plants posting a slight decrease in CO2 emissions compared to the previous year.

Water Consumption at Plants in Japan

(Kyoto, Shiga, and Azuchi Plants) (1,000 m3)

In fiscal 2022, water consumption decreased at the Kyoto Plant due to a decrease in production; increased at the Shiga Plant due to an increase in production; and increased slightly at the Azuchi Plant due to an increase in production.