[Company analysis] Mitsubishi Logistics Corporation (三菱倉庫)

「Mitsubishi Logistics Corporation (三菱倉庫)」is a major company in the Japanese warehouse industry with the largest warehouse infrastructure in Japan. They have strong ties with subsidiaries operating around the world and specialize in handling pharmaceuticals and chemical substances. As its name indicates, this company is a member of the Mitsubishi Conglomerate and has a history of 130 years. The number of consolidated employees is approximately 4,466.,466

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Mitsubishi Logistics Corp.
Company name (Japanese)	三菱倉庫
Date of establishment	April 15, 1887
Headquarters location	〒103-8630 東京都中央区日本橋1-19-1
Capital	22,393
Consolidated sales	227,185
Consolidated operating profit	12,660
Consolidated total assets	482,575
Consolidated capital	299,104
Capital adequacy ratio	62.0%
Consolidated number of employees	4,466

 

 

 

2. Summary and Features

 
「Mitsubishi Logistics 」is a initial member of the Mitsubishi Conglomerate, just like「Nippon Yusen KK(日本郵船)」,「 Mitsubishi Corporation(三菱商事)」,「Mitsubishi Heavy Industries(三菱重工業)」,「Mitsubishi UFJ Financial(三菱UFJファイナンシャル)」. This company was established in 1887 under the name of「Tokyo warehouse(東京倉庫)」, and changed its name to「Mitsubishi Warehouse」in 1918. It has more than 130 years of history, and can be said to be a symbol of the Japanese warehouse industry.

 

Basically, the main business of「Mitsubishi Logistics」is logistics. It owns the largest warehouse infrastructure in Japan and is they devised the "Trunk room" service. This company specializes in the handling of pharmaceuticals and chemical substances, and they have refrigerated warehouses with a total capacity of 63,000 refrigeration tons across Japan. As for the international logistics, they own and maintain their own cross-border logistics channels in collaboration with subsidiaries around the world.

Another main business is the real estate business, which has a relatively high profit margin. In the construction business,「Mitsubishi Logistics」mainly deals with data center support buildings such as "Tokyo Diamond Building(東京ダイヤモンドビル)". They also have the top share in Japan in the field of buildings that is equipped with emergency generators, high seismic performance, and multi-carrier. In addition,「Mitsubishi Logistics」is also involved in commercial real estate business such as "Kobe Harborland(神戸ハーバーランド)", which is a commercial complex, and housing business represented by "Nabure Yokohama Tower Residence(ナビューレ横浜タワーレジデンス)" and "M.M.TOWERS".

 

The greatest strength of「Mitsubishi Logistics」is, know-how that they accumulated by many achievements in the Japanese warehouse industry. However, the weak point is, just like other major Mitsubishi company, they are lack of swiftness in decision making. The company has established a stubborn lifetime employment system and seniority system, and is evaluated to be slightly inferior in its ability to quickly respond to changes.

 

 

3. Major Business

 

■ Warehouse business
Through robot operations, they are engaged in the operation of automated warehouses and the development of logistics information systems that make use of IT networks.

■ Port transportation business
「Mitsubishi Logistics」has built a high-level logistics information system based on the know-how, that they have accumulated over many years, centering on the container terminal that connects the sea and land, supporting the operational safety and kinship of ships.

■ International transportation business
On an international basis,「Mitsubishi Logistics」provides a service to transport cargo safely and promptly through the optimal transportation method from the selection of logistics channels such as ships, railroads and trucks to the destination.

■ Real estate business
In addition to data center-supported building businesses, they also carry out commercial real estate businesses such as Kobe Harborland.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		208,718	215,407	227,185
Consolidated operating profit		12,748	12,421	12,660
Consolidated total assets		435,354	463,174	482,575
Consolidated net assets		276,870	294,550	299,104
Breakdown of sales	Logistics business	167,197	180,558	189,695
	Real estate business	41,521	34,848	37,490