Morita Holdings Corporation · TSE:6455

Morita — FY2020 Earnings Presentation

25 slides from Morita's earnings presentation, May 10, 2021

  1. Slide 1: Financial Results for FY2020

    Financial Results for FY2020 May 10, 2021 Securities Code: 6455 https://www.morita119.com/en © 2021 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 : 84.7 bil. JPY (Consolidated) (for the year ended March 31, 2021) 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 (2000-2020)

    Market Share (2000-2020) ※ ※ FFV FPES (Fire Fighting Vehicles) (Fire Extinguishers) 39% 12% ※ ※ RM ECV (Scrap Shears) (Sanitary Vehicles) 82% 22% ※ Internal investigation © 2021 MORITA HOLDINGS CORPORATION 4

  5. Slide 5: I. Financial Results for FY2020

    I. Financial Results for FY2020 © 2021 MORITA HOLDINGS CORPORATION

  6. Slide 6: Consolidated Statements of Income

    Consolidated Statements of Income (bil. JPY) 2019 2020 Change bil. JPY Net Sales 100 -3% Net Sales 86.9 100.0% 84.7 100.0% -2.3 91.5 80 85.1 85.5 86.9 84.7 Cost of Sales 64.2 73.9% 62.5 73.8% -1.7 -0.0pt. 71.7 71.9 60 67.1 68.6 63.7 Gross Profit 22.7 26.1% 22.1 26.2% -0.6 +0.0pt. 40 S,G&A Expenses 1

  7. Slide 7: Performance by Segment

    Performance by Segment Net Sales bil. JPY 2019A 2020E 2020A 60 51.0 50.5 51.8 40 20 19.8 18.0 18.0 5.4 4.0 4.0 10.8 10.5 10.9 0 FFV FPES RM ECV Operating Income bil. JPY 2019A 2020E 2020A 8 6 6.6 5.7 5.9 4 2 1.7 0.5 1.2 0.2 0.3 1.0 0.9 0.8 0.9 0 FFV FPES RM ECV © 2021 MORITA HOLDINGS CORPORATION 7

  8. Slide 8: Orders by Segment

    Orders by Segment Order Intake bil. JPY 2019A 2020A 60 +2% 49.4 50.6 40 20 -3% -13% +3% 9.1 7.9 10.8 10.5 0 4.5 4.7 FFV FPES RM ECV Order Backlog bil. JPY 2019A 2020A 15 +7% 12.4 10 11.6 +13% -8% 5 +34% 4.8 4.4 3.7 4.2 2.1 2.8 0 FFV FPES RM ECV © 2021 MORITA HOLDINGS CORPORATION 8

  9. Slide 9: Summary by Segment

    Summary by Segment  Fire Fighting Vehicles Both sales and operating income increased due to the solid domestic sales and overseas sales recovering in the second half from the delay caused by the impact of COVID-19 in the first half of the year.  Fire Protection Equipment & Systems Although fire ex

  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 9.7 9.5 86.9 10 8.9 90 85.1 85.5 8.9 84.7 8.5 9 80 37.3 8 4.4 70 32.2 35.2 (41%) 35.1 (46%) 5.6 34.1 5.0 (38%) (41%) (40%) 7 (59%) (40%) 5.1 (56%) 4.8 (56%) (58%) 60 6 50 5 22.2 20.1 2

  11. Slide 11: Consolidated Balance Sheets

    Consolidated Balance Sheets (bil. JPY) 2019 2020 Change Interest-bearing bil. JPY 20 Liabilities Current Assets 64.2 55.4% 68.3 55.8% +4.2 +0.3pt. Long-term Short-term Non-Current Assets 51.6 44.6% 54.2 44.2% +2.6 -0.3pt. 15 13.7 11.6 2.5 9.9 Total Assets 115.8 100.0% 122.5 100.0% +6.8 2.8 10 7.9 1.

  12. Slide 12: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows Cash Flow (bil. JPY) 2019 2020 Change bil. JPY Operating CF Investing CF Financing CF 15 10 11.7 Operating Activities 5.1 11.7 +6.6 7.7 8.4 5 7.2 5.1 0.9 0 -2.4 -3.0 Investing Activities 0.9 -0.6 -1.6 -0.9 -3.5 -1.4 -3.8 -0.6 -3.6 -5 -6.6 -10 Financing Activities

  13. Slide 13: II. Financial Outlook for FY2021

    Ⅱ. Financial Outlook for FY2021 © 2021 MORITA HOLDINGS CORPORATION

  14. Slide 14: Outlook for Consolidated Performance

    Outlook for Consolidated Performance bil. JPY Net Sales bil. JPY Operating Income 100 10 -2% -9% 91.5 9.5 80 86.9 8 8.9 8.9 85.5 84.7 83.0 8.5 8.1 60 6 40 4 20 2 0 0 '17 '18 '19 '20 '21E '17 '18 '19 '20 '21E bil. JPY Ordinary Income bil. JPY Net Income 12 10 10 -9% 8 10.1 8 9.3 9.5 9.0 8.6 -12% 6 7.

  15. Slide 15: Outlook for Segment Performance

    Outlook for Segment Performance bil. JPY Net Sales 2020A 2021E 60 -3% 51.8 50.0 40 +0% 20 +1% +0% 18.0 18.1 4.0 4.0 10.9 10.9 0 FFV FPES RM ECV bil. JPY Operating Income 2020A 2021E 8 -14% 6 6.6 5.7 4 2 +21% +1% +1% 0.3 0.3 1.0 1.2 0.9 0.9 0 FFV FPES RM ECV © 2021 MORITA HOLDINGS CORPORATION 15

  16. Slide 16: Summary by Segment

    Summary by Segment  Fire Fighting Vehicles Overseas sales are expected to grow steadily, but domestic demand is uncertain due to the impact of COVID-19, sales and operating income are expected to decrease.  Fire Protection Equipment & Systems Although the impact of COVID-19 on demand for SPRINEX a

  17. Slide 17: Fire Fighting Vehicles

    Fire Fighting Vehicles ※ Domestic Market Size Unit Market Development 2,000 & Number of Orders 60% ⁃ Products to support large-scale natural disasters such as wind and flood damage 1,800 added to lineup 1,600 55% 1,400 1,200 50% Rescue Airboat Electric All –Terrain Vehicle 1,000 800 45% 600 Compact

  18. Slide 18: Fire Fighting Vehicles

    Fire Fighting Vehicles Operating Income '15 '16 '17 '18 '19 '20 '21E Service Service AMER APAC Access Sales by Sales by Product MEAI Region (2016-2020) (2016-2020) Fire EU © 2021 MORITA HOLDINGS CORPORATION 18

  19. Slide 19: Fire Protection Equipment & Systems

    Fire Protection Equipment & Systems ※ bil. JPY Net Sales Fire Extinguisher Market Size mil. unit 25 7 Others SPRINEX 6 Fire Extinguishers 20 5 Acquired Miyata Industry 15 4 3 10 2 5 1 0 0 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21E '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21E ※ Inte

  20. Slide 20: Fire Protection Equipment & Systems

    Fire Protection Equipment & Systems Packaged Automatic Fire Extinguishing System TypeⅠ Others  Product Features Apartment Sales of houses ⁃ High extinguish performance (4 times better than that of water and prevents Medical SPRINEX by clinics recombustion) Customer (2020) ⁃ Senses a fire in its ear

  21. Slide 21: Recycling Machines

    Recycling Machines thou. JPY/t Iron Scrap Price ※ Iron scrap reevaluated 80 internationally ⁃ Reducing CO2 emissions is an international 60 challenge to achieve carbon neutrality. ⁃ Iron scrap, the main raw material for electric 40 furnaces, a method of steel production with low CO2 emissions, is be

  22. Slide 22: 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 '21E '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21E ※ Internal investigation © 2021 MORITA HOLDINGS CORPO

  23. Slide 23: 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% 4 2 1.8% 1.9% 2% 1.8% 1.7% 1.7% 3.2 1.6 1.5 1.5 1.6 1.5 2 1 1% 2.0 2.1 2.1 2.1 2.0 2.0 1.5 1.6 0.9 0 0 0% '17 '18 '1

  24. Slide 24: 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%

  25. Slide 25: This document contains forward-looking statements

    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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