9067.T

Company Overview & Core Positioning

• Founded in 1892 (over 130 years of history), listed on the Tokyo Stock Exchange Standard market, with over 2,100 group employees, operating as a comprehensive logistics company focused on general cargo, petroleum, lubricants, and chemical products, with four core business lines.
• Core competitive advantages: Rare dual-wheel business model of freight + energy transportation among listed peers; 130+ years of experience and a highly integrated global logistics network; capability to handle diverse cargo types from consumer goods to heavy industrial machinery and hazardous materials; low-carbon forwarding business that addresses driver shortage challenges; stable long-term relationships with ENEOS Group and JX Metal Group; experienced, high-quality industrial machinery installation services.

Long-term & Mid-term Strategy

• 2030 Marun Group Long-term Vision targets: 1) Continue the dual-wheel freight + energy business model; 2) Become a leading logistics expert enterprise; 3) Strengthen integrated domestic and overseas logistics; 4) Actively invest in high-growth future sectors; 5) Drive efficiency improvements in the petroleum segment.
• This fiscal year is the final year of the 4th Mid-term Management Plan, focused on laying foundations and seeding growth for the long-term vision, with two core priorities:
  • Foundation building & growth seeding: Three key initiatives: strengthen proposal-based sales, improve cost competitiveness, seed growth for next-generation sectors. Progress includes: launched sales information system for faster information sharing, introduced linked subsystems to improve work efficiency, planning construction of a hazardous material warehouse in the Tokyo metropolitan area.
  • Appropriate response to the 2024 Logistics Problem: Steadily implementing measures to address regulatory changes and industry challenges, entered the execution phase this fiscal year.

Mid-term Plan Progress & Operational Updates

• Appropriate freight rate collection: Achieved results exceeding initial plan.
• Proposal-based sales strengthening: The newly established Business Development Department is gradually acquiring new projects; a capital alliance with a local packaging material company in Vietnam was formed to expand the overseas logistics business.
• Cost competitiveness strengthening: Rolled out handheld terminals at locations as planned, is implementing DX initiatives planned last fiscal year this year.
• Next-generation growth seeding: Added Nakamura Transport Machinery as a group company to expand the industrial machinery business; is participating in two pilot projects to prepare for expansion of recycling business. Expansion of hazardous material warehouses has been delayed due to various circumstances, will not be completed within the current mid-term plan period, but the company continues to target early execution.
• 2024 Problem response: Actively improving wages and increasing hiring for drivers and workers, completed preparations for compliance with the revised two logistics laws, entered execution this fiscal year.

Recent Operational Highlights

• Introduced a hydrogen fuel cell truck (FCV) with zero on-road CO2 emissions in August as part of decarbonization efforts, joined a government/Tokyo metropolitan government pilot project to provide operational data to support carbon neutrality goals.
• Held the annual Safety Driver Contest for tank truck drivers in October, included the first female contestant, to improve safe driving skills and embed the "safety first" corporate culture.

• The company upward revised its full-year 2026 March fiscal year guidance, reflecting better-than-expected first half performance. The new full-year guidance targets 47.1 billion yen in operating revenue and 1.4 billion yen in ordinary profit.
• The 4th Mid-term Management Plan's full-year operating revenue target was 49 billion yen; due to reduced volume from existing clients, the company now forecasts full-year revenue will come in around 47 billion yen. The ordinary profit target of 1.4 billion yen was achieved one year early in the prior fiscal year, and full-year 2026 profit is forecast to maintain roughly the same level as last year.
• Per the company's dividend policy (target 50%+ consolidated payout ratio, 8 yen per share annual minimum dividend), the company set an interim dividend of 8 yen per share (up 3 yen year-over-year), a year-end dividend of 8 yen per share, for a total annual planned dividend of 16 yen per share.

1. Freight Transportation Segment: Operating revenue increased 2.0% year-over-year to 11.317 billion yen, accounting for ~50% of total group revenue; ordinary profit increased 127 million yen year-over-year to 365 million yen, grew to profit despite one-time large-scale repair costs, driven by increased aluminum material shipment volume, freight rate adjustments, and cost cuts from prior-year logistics hub reviews.
2. Energy Transportation Segment: Operating revenue increased 4.9% year-over-year to 8.123 billion yen; ordinary profit increased 100 million yen year-over-year to 259 million yen, achieved growth despite shipment volume declines (2.9% for oil products, 9.0% for lubricants/chemicals) and higher wage and subcontractor costs, driven by customer freight rate adjustments and expansion of existing chemical business.
3. Overseas Logistics Segment: Operating revenue decreased 2.8% year-over-year to 2.69 billion yen; ordinary profit increased 19 million yen year-over-year to 11 million yen (return to surplus), turned to profit despite reduced shipment volume from European/Japanese automaker clients in China, driven by increased domestic air/industrial equipment shipment volume and improved warehouse operation efficiency in China.
4. Techno Support Segment: Operating revenue increased 9.3% year-over-year to 1.03 billion yen; ordinary profit increased 17 million yen year-over-year to 75 million yen, driven by service contract price adjustments for oil terminal and refinery on-site work, and increased construction-related service volume.

• Persistent geopolitical risks (including concerns over US trade policy, instability in the Middle East) and volatility in exchange rates and resource prices keep the overall business outlook uncertain.
• Domestic logistics industry headwinds: continuing fuel and labor cost increases that pressure profitability, ongoing regulatory changes requiring industry practice overhauls, and domestic total freight shipment volume is forecast to remain below prior-year levels for the second consecutive year, with persistent driver shortages.
• Trade uncertainty is expected to lead to lower shipment volume from key clients and reduced trade volumes, creating downside risk to full-year profit; higher US tariff impacts are expected to emerge starting from the third quarter.
• Additional cost increases are expected for talent acquisition, work environment improvement, regulatory compliance, and further DX implementation to support sustainable logistics services.
• Expansion of hazardous material warehouse capacity has been delayed and cannot be completed within the current mid-term plan period.

No Question and Answer section was included in the provided earnings call transcript.