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Mitsubishi Logistics Group New Medium-term Management Plan FY2019-2021

With a view to further enhancing its corporate value, the Group has conceived the MLC2030 Vision(*) and a new medium-term management plan covering the three-year period that ends in the fiscal year ending March 31, 2022.

 
(*)The MLC2030 Vision reflects goals that the Group aims to accomplish by 2030.
   MLC is the abbreviation of Mitsubishi Logistics Corporation, or the Company’s
   English name.

Outline of the New Medium-Term Management Plan [2019-2021](PDF 351KB)

The MLC2030 Vision

1Goal
For more than 130 years since our establishment, the Group has been contributing to the creation of an affluent and sustainable society through logistics businesses with a focus on warehousing. Going forward, the Group has conceived the following MLC2030 Vision to ensure that we continue to conduct customer-oriented operations and become an innovator in future society while simultaneously seeking to be a corporate group that remains the partner of choice for customers in Japan and abroad.

Contributing to the improvement of customer’s value,
we offer comprehensive logistics solutions to
the management of customer’s supply chains,
from procurement to distribution/sales, as their partner.

2Growth strategy
The Group will take the following steps under its growth strategy to accomplish the MLC2030 Vision.

(1) Establish a customer-oriented support system
The Group will establish a customer-oriented support system with a focus on the medical/health care, food/beverage, and machinery/electrical machine industries as priority areas, and will take on comprehensive supply chain challenges as the customer’s partner. Through these efforts, the Group will seek to expand its business domain and boost its market share.

(2) Expand overseas businesses
The Group will move forward with system enhancements to support customer supply chains in the medical/health care and food/beverage industries and strengthen its forwarding business with demand for high quality cold chains expected to grow in a number of regions such as Southeast Asia (ASEAN).

(3) Secure stable profits in the port and harbor transportation and real estate businesses
The Group will further enhance the competitiveness of its port and harbor transportation business by leveraging its cargo handling services, the efficiency of which is ranked among the highest globally, while at the same time developing complexes and facilities and boosting its operational capability in the real estate business. By doing so, it will seek to secure stable profits.

(4) Improve operational processes and further utilization of new technologies
The Group will review the operational processes of all businesses and facilitate efficient operations by utilizing new technologies such as IoT, AI and robotics. Through these efforts, it aims to improve service quality and production efficiency.

(5) Strengthen the Group management base
The Group aims for growth by strengthening cost competitiveness through organizational management across the Company and its Group companies and securing/developing human resources, particularly in the priority areas.

Mitsubishi Logistics Group New Medium-term Management Plan for FY2019 - FY2021

1Positioning of the new 2019-2021 Medium-term Management Plan
The Group positions the relevant three-year period as the first stage to make a step toward the achievement of the MLC2030 Vision, and will focus on the following measures.

(1) Strengthening the business foundations of the priority areas

(2) Establishing a system that leverages new technologies

(3) Maintaining competitiveness in the port and harbor transportation business

(4) Developing complexes and other facilities for the real estate business and improving the organizational structure thereof to strengthen operational capabilities

(5) Bolstering production efficiency through more efficient operational processes and other means

(6) Improving operational conditions to reform workstyles and create innovation

(7) Increasing shareholder returns

(8) Promoting CSR-oriented management

2Financial objectives and financial strategy

(1) For financial results in the fiscal year ending March 31, 2022, the Group aims to achieve the operating revenue of 240.0 billion yen and operating income of 14.5 billion yen, or an increase of 7% and 16%, respectively, over the fiscal 2018 levels.

(2) With respect to the raising of funds for new investments, the Group seeks to boost its financial leverage through a range of measures such as borrowings and the issuance of corporate bonds, while following the principle of maintaining financial soundness.

Consolidated Figures (Unit : billion yen)
    FY2018 FY2021 FY18/FY21 ratio
Amount of change Rate of change
Operating Revenue Total 224 240 +16 +7.1%
Logistics 187.4 198.7 +11.3 +6.0%
Real estate 38.6 43.6 +5 +13.0%
Inter-segment transactions -2 -2.3 -0.3 -
Operating Income Total 12.5 14.5 +2 +16.0%
Logistics 7.5 9.2 +1.7 +22.7%
Real estate 10.6 10.7 +0.1 +0.9%
Total group costs -5.6 -5.4 +0.2 -
Ordinary Income 16.5 17.1 +0.6 +3.6%
EBITDA (operating indcome +
depreciation)
25.6 30.1 +4.5 +17.6%

(Note) FY2018 shows assessment figures announced publically.

3Investment
The Group plans to make investments totaling approximately 100.0 billion yen (50.0 billion yen for logistics and 50.0 billion yen for real estate) during the term of this plan.
4Shareholder return
The Group will further enhance shareholder return programs through dividend increases and share buybacks

(1) The Group will seek to achieve a dividend on equity of 2% in the fiscal year ending March 31, 2022, the final year of the Plan, while following the principle of maintaining stable dividend payments, namely, a dividend per share of at least 60 yen per year during the term of this plan.

(2) The acquisition of treasury shares totaling approximately 15.0 billion yen will be carried out in a flexible manner during the term of the Plan.

5Corporate governance
The Group continues to improve programs to institute effective corporate governance.
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