Logisnext Transform 2026

Mitsubishi Logisnext Medium-Term Plan (FY2024 to FY2026)

Broad-line provider of logistics equipment headquartered

in Kyoto, Japan.

L o g i s n e x t s o l u t i o n s a r e s u p p o r t i n g l o g i s t i c a l

o p e r a t i o n s t h r o u g h o u t t h e w o r l d .

March 22, 2024

Mitsubishi Logisnext Co., Ltd.

© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

Contents

  1. Review of the Current Medium-Term Plan
  2. Business Conditions
  3. Vision 2035
  4. Medium-TermPlan

"Logisnext Transform 2026"

  1. Core Strategies
  2. Financial and Non-Financial Targets

© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

2

1. Review of the Current Medium-Term Plan

"Logisnext Solutions 2023" Medium-Term Management Plan (abbreviated "LS23")

Build up Business

Accelerate Growth

Resilience

Strategy

Further Develop

Our Global and

Regional Branding Strategies

Net sales of 500 billion yen

Operating profit* of 30 billion yen and operating profit margin* of 6%

(*before amortization of goodwill, etc.)

Capital adequacy ratio of 20% or more

(Units: B Yen)

Net sales

Net Sales

already

690

achieved

◼ The "LS23" target of 500 billion yen

615.4

8.0%

was significantly exceeded in FY2022.

(revised

◼ 690 billion yen estimated for FY2023,

estimate)

due to promotion of shipments in the

Net Sales

20%

Americas

465.4

55.0

520.9 estimate)(revised

Operating Profit and Operating Profit Margin

(3Q

◼ "LS23" target is expected to be

Operating

4.1%

actual)

Profit Margin

43.6

significantly exceeded due to increased

2.8%

15.9%

sales, appropriate pricing, and

(3Q actual)

exchange rate effects.

Capital

15.6%

adequacy

24.9

Capital adequacy ratio

ratio

Operating Profit

◼ 20% target achieved due to higher

13.0

retained earnings from increased

FY21

FY22

"LS23"

FY23

profits and exchange rate effects.

© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

Outlook

3

1. Review of the Current Medium-Term Plan

Current "LS23" Medium-Term Plan Accomplishments and Challenges

Accomplishments

◼ In terms of numerical targets, net sales were achieved ahead of schedule in

FY2022 and both operating profit and operating profit margin results are

expected to significantly exceed targets.

◼ In terms of core strategies, profitability was improved in North America due

to growth, reorganization, and other factors at EQD*1 direct-sales businesses,

implementation of growth strategies by the Solutions Business, and

increasing brand strength by establishing the long-term management vision

and expanding/improving public relations functions.

◼ Major changes in business conditions caused by the pandemic were

appropriately addressed.

*1 EQD: Equipment Depot, Inc. (direct-sales company in the United States)

◼ Sales and profit targets were successfully achieved, but FCF improvements

and total asset reductions were inadequate and improving fundamental

Challenges

financial health continues to be a challenge.

◼

Also, due to the steady market penetration by Chinese forklifts in newly

◼

Broken down by region, challenges include improving the operating profit

margins of businesses in Japan, mitigating the risk of being overly dependent

on business in North America, and improving the profitability in Europe,

China, and APAC businesses.

emerging market, Europe, and the United States, urgent countermeasures

need to be implemented.

4

2. Business Conditions

Customer and Society

  • Reduce CO2 emissions in response to global climate changes.
  • Shrinking labor forces in developed economies due to declining birth rates and aging populations.
  • Logistics safety and security needs are expanding due to growing demands for working condition improvements.
  • Increasing needs for connected logistics with greater emphasis on inter-machine and human-machine cooperation.

Competitor

  • Release of new electric forklifts as an alternative to engine-powered models in response to environmental regulations and the transition to a decarbonizing society.
  • Technology development needs to be urgently accelerated due to intensifying competition from many new startups entering the logistics automation market in Japan and other countries.
  • Chinese forklifts are making steady market inroads in newly emerging economies, Europe, and the United States.

Needs Related in Logistics Equipment

Safety /

Automation /

Decarbonization

Security

Autonomy

Current Status of Mitsubishi Logisnext

  • Despite deploying sales networks globally for a full line of products, total assets are being expanded by M&A and the Capital adequacy ratio is low.
  • Revenue is skewed by North America market and brand presence in European and Chinese markets is low.
  • The corporate culture that enables a diversity of human resources from the former companies with access to a cumulative wealth of technology and expertise from those companies and the use of technologies available from Mitsubishi Heavy Industries.
  • The PMI process is close to completion but financial health needs to be improved by additional reorganization/rationalization of operating sites, improvement of operating efficiencies, and so on.

5

3. Vision 2035

Values Based on the Corporate Mission and Purpose

Corporate Vision

"Moving the world forward as the leading provider of innovative logistics and

material handling solutions"

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.

The Values We Support

Employee satisfaction: Each employee can think independently, attempt new challenges and take the risk of making mistakes without fear of failure, while growing day to day.

Market Conditions Affecting Logistics

(up to 2035)

  • Market conditions affecting logistics in 2035 will include a major shift toward decarbonization and general advancements in automation and autonomous operability, but manned forklifts will continue to be widely used.
  • That will result in increasing needs for connected logistics with greater importance placed on inter-machine and human- machine cooperation and logistics safety/security.

Business Scale and Numerical Targets in

2035

  • To fulfill our purpose, we will achieve additional growth by 2035 based on the slogan "Transition from integration to growth".

2035 Business Scale

Net Sales: 1 trillion yen

2035 Solutions Business Net Sales

Net Sales: 200 billion yen

2035 Ratio of Electric Forklift Ratio

90% or higher

6

3. Vision 2035

Promoting Sustainability Management

  • Basic policies for SDGs were revised to reflect the principles underlying our purpose. The following 4 basic policies have been specified.
    1. Conserve the global environment.
    2. Ensure customer safety and security and offer automation and autonomy (revised).
    3. Promote diversity and engagement (revised).
    4. Strengthen corporate governance.

(1) Conserve the global

(2) Ensure customer safety and

(3) Promote diversity and

(4) Strengthen corporate

security and offer automation

environment.

engagement.

governance.

Basic

and autonomy.

Policies

Reduce environmental

Offer safe and secure logistics

Ensure diversity in

Corporate governance

impact

equipment to customers

human resources

(Reduce scopes 1 and

Materiality

2)

Offer environmentally-

Offer automated and

Train human resources

Compliance

friendly products

autonomous systems to

(Reduce scope 3)

customers

Job satisfaction and labor

Risk management

productivity

Occupational safety and

health

© MITSUBISHI LOGISNEXT CO., LTD. All rights reserved.

7

4. Medium-Term Plan

"Logisnext Transform 2026"

8

4.1 Core Strategies

9

4.1 Core Strategies

Core Strategies in the Medium-Term Plan

of measures (value chain)

Vision 2035

◼

Strengthen logistics solutions

Net sales:

◼

Strengthen service business

1 T JPY

◼

Strengthen direct sales

Additional growth

(Japan, Americas, and Europe)

  • Strengthen leasing/rental business

FY26 Net sales:

700 B JPY

Medium-term plan key concepts

Values to

Operating profit margin:

8%

emphasize

scope

  • Improve fixed and variable cost
  • Global management capabilities
  • Emphasize job satisfaction
  • Provide support for customer safety/security
  • Develop automated/autonomous products (using ΣSynX*1)
  • Expand/improve the line of electric forklifts

(address decarbonization needs)

Expand

Industrial

◼ Deploy business in newly industrializing economies

*1 ΣSynX: Mitsubishi Heavy Industries "Sigma Synx" concept for

vehicles

autonomy and intelligence-based logistics solutions

Market Share and Product Competitiveness Expansion

"LS23":up to

Medium-term plan up to FY26

Vision 2035

10

FY23

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Disclaimer

Mitsubishi Logisnext Co. Ltd. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:25:07 UTC.