Morita Holdings Corporation · TSE:6455

Morita — FY2021 Earnings Presentation

27 slides from Morita's earnings presentation, May 17, 2022

  1. Slide 1: Financial Results for FY2021

    Financial Results for FY2021 May 17, 2022 Securities Code: 6455 https://www.morita119.com/en © 2022 MORITA HOLDINGS CORPORATION

  2. Slide 2: Company Outline

    Company Outline Company Name : MORITA HOLDINGS CORPORATION Founded : April 23, 1907 Established : July 23, 1932 Representative : Masahiro Nakajima, Chairman & CEO Kazumi Ogata, President Paid-in Capital : 4.75 bil. JPY Net Sales : 83.6 bil. JPY (Consolidated) (for the year ended March 31, 2022) Empl

  3. Slide 3: Business Segments

    Business Segments Fire Fighting Fire Protection Recycling Environmental Vehicles Equipment Machines Conservation Segment & Systems Vehicles (FFV) (FPES) (RM) (ECV) Business Lines Recycling facilities, Sanitary vehicles, Fire fighting vehicles, Extinguishers, fire waste disposal facilities, garbage t

  4. Slide 4: Market Share (2000-2021)

    Market Share (2000-2021) ※ ※ FFV FPES (Fire Fighting Vehicles) (Fire Extinguishers) 39% 12% ※ ※ RM ECV (Scrap Shears) (Sanitary Vehicles) 82% 22% ※ Internal investigation © 2022 MORITA HOLDINGS CORPORATION 4

  5. Slide 5: I. Financial Results for FY2021

    I. Financial Results for FY2021 © 2022 MORITA HOLDINGS CORPORATION

  6. Slide 6: Consolidated Statements of Income

    Consolidated Statements of Income (bil. JPY) 2020 2021 Change bil. JPY Net Sales 100 -1% Net Sales 84.7 100.0% 83.6 100.0% -1.1 91.5 80 85.1 85.5 86.9 84.7 83.6 Cost of Sales 62.5 73.8% 61.5 73.6% -1.0 -0.2pt. 71.7 71.9 60 67.1 68.6 Gross Profit 22.1 26.2% 22.1 26.4% -0.1 +0.2pt. 40 S,G&A Expenses 1

  7. Slide 7: Performance by Segment

    Performance by Segment Net Sales bil. JPY 2020A 2021E 2021A 60 51.8 50.0 49.1 40 20 18.0 18.1 19.4 5.2 4.0 4.5 10.9 10.4 9.9 0 FFV FPES RM ECV Operating Income bil. JPY 2020A 2021E 2021A 8 6 6.6 5.6 5.5 4 2 0.3 0.5 0.6 1.0 1.3 1.3 0.9 0.8 0.7 0 FFV FPES RM ECV © 2022 MORITA HOLDINGS CORPORATION 7

  8. Slide 8: Orders by Segment

    Orders by Segment Order Intake bil. JPY 2020A 2021A 60 -5% 50.6 48.1 40 20 +10% +13% +48% 7.9 8.9 6.9 10.5 11.5 0 4.7 FFV FPES RM ECV Order Backlog bil. JPY +13% 2020A 2021A 15 14.0 12.4 10 +18% +37% +64% 5 6.0 4.2 4.9 4.5 4.4 2.8 0 FFV FPES RM ECV © 2022 MORITA HOLDINGS CORPORATION 8

  9. Slide 9: Summary by Segment

    Summary by Segment  Fire Fighting Vehicles Overseas business were solid meanwhile demand in Japan domestic market were sluggish due to the impact of COVID-19.  Fire Protection Equipment & Systems Sales of fire extinguishers increased steadily due to recovery of upcycling demand. In addition, the s

  10. Slide 10: Performance Composition by Quarter

    Performance Composition by Quarter Net Sales Operating Income bil. JPY bil. JPY 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 100 11 91.5 9.5 86.9 10 8.9 90 85.5 8.9 84.7 83.6 8.5 8.1 9 80 37.3 8 70 35.2 (41%) 35.1 5.6 34.1 5.0 (41%) (40%) 36.1 7 (59%) (40%) 5.1 (56%) (43%) 4.8 (56%) (58%) 5.5 60 6 (68%) 50 5 22.2 20.1 2

  11. Slide 11: Consolidated Balance Sheets

    Consolidated Balance Sheets (bil. JPY) 2020 2021 Change Interest-bearing bil. JPY Current Assets 68.3 55.8% 71.6 57.2% +3.3 +1.5pt. 15 Liabilities 11.6 Long-term Non-Current Assets 54.2 44.2% 53.5 42.8% -0.6 -1.5pt. 9.9 Short-term 10 2.8 1.9 7.9 Total Assets 122.5 100.0% 125.2 100.0% +2.7 6.2 6.3 1.

  12. Slide 12: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows Cash Flow (bil. JPY) 2020 2021 Change bil. JPY Operating CF Investing CF Financing CF 15 Operating Activities 11.7 10.5 -1.1 10 11.7 10.5 8.4 5 7.2 5.1 0.9 Investing Activities -0.6 -0.7 -0.1 0 -2.4 -1.4 -3.5 -3.0 -0.6-3.6 -0.7 -3.6 -3.8 -5 '17 '18 '19 '20 '21 Fi

  13. Slide 13: II. Investment & Shareholder Return

    Ⅱ. Investment & Shareholder Return © 2022 MORITA HOLDINGS CORPORATION

  14. Slide 14: Capital Expenditure・Depreciation・R&D Cost

    Capital Expenditure・Depreciation・R&D Cost Capital Expenditure・Depreciation 研究開発費 R&D Cost bil. JPY bil. JPY Capital Expenditure Depreciation R&D Cost Ratio of R&D Cost to Sales 6 3 3% 2.1% 4 2 1.8% 2% 1.7% 1.7% 1.8 1.8 1.6 3.0 1.5 1.5 2 1 1% 2.1 2.1 2.0 2.0 1.9 1.5 1.6 1.3 0.9 0 0 0% '18 '19 '20 '21

  15. Slide 15: Shareholder Return

    Shareholder Return Dividend policy Increasing dividend payments in a stable and sustainable manner, strengthening financial structure and business foundation, and DOE (Dividend on Equity) is targeted around 2.5% or higher. DPS and DOE JPY Ordinary Dividend Commemorative Dividend DOE 60 3% 2.5% 2.5%

  16. Slide 16: III. Financial Outlook for FY2022

    Ⅲ. Financial Outlook for FY2022 © 2022 MORITA HOLDINGS CORPORATION

  17. Slide 17: Financial Outlook for FY2022

    Financial Outlook for FY2022  Financial Outlook › The financial outlook for FY2022 will be announced when it becomes reasonably predictable, due to uncertain factors related to chassis supply caused by the global IC chip shortage.  Outlook by segment Fire Fighting Vehicles Order intake is expected

  18. Slide 18: IV. Performance by Segment

    Ⅳ. Performance by Segment © 2022 MORITA HOLDINGS CORPORATION

  19. Slide 19: Fire Fighting Vehicles

    Fire Fighting Vehicles ※ Unit Domestic Market Size Japan domestic 2,000 & Number of Orders 70% Order Intake bil. JPY Net Sales bil. JPY Order Backlog at 1,800 65% 40 40 the beginning of FY 1,600 60% 20 20 1,400 55% 1,200 50% 0 0 '19 '20 '21 '19 '20 '21 1,000 45% Overseas Order Intake 800 40% bil. JP

  20. Slide 20: Fire Fighting Vehicles

    Fire Fighting Vehicles Operating Income Service Service AMER APAC Sales by Sales by Access Product MEAI Region (2016-2021) Fire (2016-2021) EU '15 '16 '17 '18 '19 '20 '21 Large scale order in the US Fire and rescue Access ⁃ In FY2022, Bronto received a large order which is one of the biggest deal in

  21. Slide 21: Fire Protection Equipment & Systems

    Fire Protection Equipment & Systems mil.unit ※ Net Sales 7 Fire Extinguisher Market Size bil. JPY 25 6 Others 5 SPRINEX 4 Fire Extinguishers 20 3 2 Acquired Miyata Industry 1 15 0 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 Packaged Automatic Fire Extinguishing System TypeⅠ 10 Others  Product Featu

  22. Slide 22: Recycling Machines

    Recycling Machines Iron Scrap Price thou. JPY/t ※ 80 Product Order Intake 60 40 20 ※ 0 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ’20 ’21 系列 106 系列 113 系列 120 系列 127 系列 134 系列 141 系列 148 系列 155 系列 162 系列 1 系列 8 系列 15 系列 22 系列 29 系列 36 系列 43 系列 50 系列 57 系列 64 系列 71 系列 78 系列 85 系列 92 系列 99 '16 '1

  23. Slide 23: Environmental Conservation Vehicles

    Environmental Conservation Vehicles ※ ※ Unit Sanitary Vehicles Unit Garbage Trucks Market Size Market Size 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 ※ Internal investigation © 2022 MORITA HOLDINGS CORPORA

  24. Slide 24: V. Towards Sustainable Management

    Ⅴ. Towards Sustainable Management © 2022 MORITA HOLDINGS CORPORATION

  25. Slide 25: Towards Sustainable Management

    Towards Sustainable Management Aiming further improvement of corporate value in the mid-long term through endeavors toward sustainable management including actions for the environment and corporate governance, in addition to our business operations of each segment itself which are providing solution

  26. Slide 26: Sustainability in Morita Group

    Sustainability in Morita Group Business Growth Compliance Existing environmental & social Current and future environmental & challenges and solutions social challenges and solutions © 2022 MORITA HOLDINGS CORPORATION 26

  27. Slide 27: Forward-looking statements disclaimer

    This document contains forward-looking statements. Where any such forward-looking statement includes a statement of the assumptions, bases underlying such a forward-looking statement, or economic environment in the primary markets and fluctuations of demand and supply, Morita Holdings cautions that

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