Morita Holdings Corporation · TSE:6455

Morita — FY2017 Earnings Presentation

28 slides from Morita's earnings presentation, May 8, 2018

  1. Slide 1: Financial Results for FY2017

    Financial Results for FY2017 May 8, 2018 Securities Code: 6455 http://www.morita119.com/en © 2018 MORITA HOLDINGS CORPORATION

  2. Slide 2: Today's Bullet Points

    Today’s Bullet Points FY2017 Results • Net sales increased by 0.5%, exceeded the record high ⁻ Fire Protection Equipment & Systems business (FPES) contributed as the second core business, while the domestic demand decreased in Fire Fighting Vehicles business (FFV) due to a reactionary fall in the pr

  3. Slide 3: 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 : JPY 4.75 billion Net Sales : JPY 85.5 billion (Consolidated) (for the year ended March 31, 2018

  4. Slide 4: Business Segments

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

  5. Slide 5: Market Share (1998-2017)

    Market Share (1998-2017) ※ ※ FFV FEPS (Fire Fighting Vehicles) (Fire Extinguishers) 39% 12% ※ ※ RM ECV (Scrap Shears) (Sanitary Vehicles) 82.5% 22% * Internal investigation © 2018 MORITA HOLDINGS CORPORATION 5

  6. Slide 6: I. Financial Results for FY2017

    I. Financial Results for FY2017 © 2018 MORITA HOLDINGS CORPORATION

  7. Slide 7: Consolidated Statements of Income

    Consolidated Statements of Income Increase （bil. JPY） 2016 2017 /Decrease bil. JPY Net Sales 100 Net Sales 85.1 100.0% 85.5 100.0% +0.4 +0.5% 80 85.1 85.5 Cost of Sales 62.1 73.0% 63.8 74.6% +1.7 +1.6pt. 71.7 71.9 60 67.1 68.6 Gros Profit 22.9 27.0% 21.7 25.4% -1.2 -1.6pt. 61.7 59.7 63.7 56.7 40 S,G

  8. Slide 8: Performance by Segment

    Performance by Segment bil. JPY Net Sales 2016A 2017E 2017A 60 52.0 40 49.0 49.8 20 21.3 18.2 20.0 4.4 4.0 4.1 10.5 10.0 10.3 0 FFV FPES RM ECV bil. JPY Operating Income 2016A 2017E 2017A 8 6 7.2 5.8 5.5 4 2 2.0 2.1 0.05 0.10 0.19 1.2 1.2 0.8 0.6 0 FFV FPES RM ECV © 2018 MORITA HOLDINGS CORPORATION

  9. Slide 9: Orders by Segment

    Orders by Segment bil. JPY Order Intake 2016A 2017A 60 -4% 40 48.9 47.1 20 +52% -13% -2% 6.7 10.1 11.4 10.0 0 4.7 4.6 FFV FPES RM ECV bil. JPY Order Backlog 2016A 2017A 15 +1% 10 11.7 11.8 5 +104% -8% +25% 3.9 4.2 3.9 1.9 2.0 2.4 0 FFV FPES RM ECV © 2018 MORITA HOLDINGS CORPORATION 9

  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 9.6 10 90 85.1 85.5 8.2 8.5 9 80 71.7 71.9 8 7.5 4.4 68.6 32.2 70 35.2 6.7 (46%) (38%) (41%) 7 4.1 4.8 60 (49%) 3.0 28.3 28.5 6 (56%) (38%) (40%) 26.2 3.4 (40%) (39%) 50 5 (50%) 23.2 4 3.4

  11. Slide 11: Consolidated Balance Sheets

    Consolidated Balance Sheets Increase Interest-bearing （bil. JPY） 2016 2017 /Decrease bil. JPY Liabilities Current Assets 51.7 48.7% 59.9 52.2% +8.2 +3.4pt. 20 Long-term Short-term Non-Current Assets 54.4 51.3% 54.9 47.8% +0.6 -3.4pt. 15 13.7 13.7 10.8 11.6 2.5 Total Assets 106.0 100.0% 114.8 100.0%

  12. Slide 12: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows （bil. JPY） 2016 2017 Increase bil. JPY Cash Flow /Decrease Operating Investing Financing 10 Operating Activities 7.7 7.2 -0.5 5 7.7 7.2 4.5 5.9 5.6 4.3 1.9 0 -3.1 -2.4 -5.6 -4.2 -0.9 -3.5 -6.6 -5 -10.2 Investing Activities -6.6 -2.4 +4.2 -10 -15 Financing Activit

  13. Slide 13: II. Financial Outlook for FY2018

    II. Financial Outlook for FY2018 © 2018 MORITA HOLDINGS CORPORATION

  14. Slide 14: Outlook for Consolidated Performance

    Outlook for Consolidated Performance bil. JPY Net Sales bil. JPY Operating Income 100 10 +8.4% +3% 9.6 80 8 9.2 85.1 85.5 88.0 8.5 8.2 71.9 7.5 60 68.6 6 40 4 20 2 0 0 '14 '15 '16 '17 '18E '14 '15 '16 '17 '18E bil. JPY Ordinary Income bil. JPY Net Income 12 10 +6.3% 10 8 10.1 9.6 8 9.0 +1.0% 8.4 8.1

  15. Slide 15: Outlook for Segment Performance

    Outlook for Segment Performance bil. JPY Net Sales 2017A 2018E 60 +3% 49.8 51.5 40 +1% 20 21.3 21.5 +9% +2% 4.1 4.5 10.3 10.5 0 FFV FPES RM ECV bil. JPY Operating Income 2017A 2018E 8 +9% 6 6.0 5.5 4 +9% 2 +4% +14% 2.1 2.3 0.19 0.20 0.6 0.7 0 FFV FPES RM ECV © 2018 MORITA HOLDINGS CORPORATION 15

  16. Slide 16: III. Overview by Segment

    Ⅲ. Overview by Segment © 2018 MORITA HOLDINGS CORPORATION

  17. Slide 17: Fire Fighting Vehicles

    Fire Fighting Vehicles Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 60 7 14 50 6 12 49.8 51.5 6.0 11.7 11.8 5 5.5 10 40 4 8 30 3 6 20 2 4 10 1 2 0 0 0 2017A 2018E 2017A 2018E 2017A 2018A Outlook for FY2018 • Net sales and operating income is expected to increase since the prod

  18. Slide 18: Fire Fighting Vehicles

    Fire Fighting Vehicles ※ ※ Domestic Market Size & Number of Orders CAFS Market Size & Number of Orders Unit Unit Morita Demand Market Share Morita Demand 1,500 60% 210 1,000 55% 140 500 50% 70 0 45% 0 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17'18E '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18E Sa

  19. Slide 19: Fire Protection Equipment & Systems

    Fire Protection Equipment & Systems Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 25 2.5 5 2.3 20 21.5 2 4 21.3 2.1 3.9 15 1.5 3 10 1 2 1.9 5 0.5 1 0 0 0 2017A 2018E 2017A 2018E 2017A 2018A Outlook for FY2018 • While fire extinguisher demand will be the same level as FY2017, ma

  20. Slide 20: Fire Protection Equipment & Systems

    Fire Protection Equipment & Systems bil. JPY Net Sales Others ■ High extinguish performance (4 times SPRINEX better than that of water and prevents recombustion) Fire Extinguishers 20 ■ Senses a fire in its early stage ■ Prevents water damage ■ Available even when the water supply is cut off, and Ac

  21. Slide 21: Recycling Machines

    Recycling Machines Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 5 0.25 3 4.5 2.5 4 0.2 4.1 0.2 2.4 0.2 2 3 0.15 2.0 1.5 2 0.1 1 1 0.05 0.5 0 0 0 2017A 2018E 2017A 2018E 2017A 2018A Outlook for FY2018 • Net sales and operating income is expected to increase since the scrap shea

  22. Slide 22: Recycling Machines

    Recycling Machines ※ Iron Scrap Price & ※ Scrap Shear Market Size H2 Scrap Average Price Scrap Shear Demand Process Electric furnace Unit manufacturers etc. 60 Guillotine Press® 50 40 Collect Recycle Process Sell of Iron 30 Consumers Market （Trading companies, 20 construction companies, etc. ） 10 Re

  23. Slide 23: Environmental Conservation Vehicles

    Environmental Conservation Vehicles Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 12 1 5 10 10.3 10.5 0.8 4 4.2 8 3.9 0.6 0.7 3 6 0.6 0.4 2 4 0.2 1 2 0 0 0 2017A 2018E 2017A 2018E 2017A 2018A Outlook for FY2018 • Demand for garbage collectors will be the same level as FY2017. D

  24. Slide 24: Environmental Conservation Vehicles

    Environmental Conservation Vehicles ※ Sanitary Vehicles ※ Garbage Collectors Unit Market Size Unit Market Size 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18E '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18E ※ Internal investigation © 2018 MORITA HOLDINGS C

  25. Slide 25: IV. Investment & Shareholder Return

    Ⅳ. Investment & Shareholder Return © 2018 MORITA HOLDINGS CORPORATION

  26. Slide 26: 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% 5.1 4 2 1.9% 2% 1.8% 1.6% 3.6 1.5% 1.4% 1.7 1.5 2.8 1.4 2 2.3 1 1% 2.0 2.1 1.9 1.0 1.0 1.8 1.4 1.3 0 0 0% '14 '15 '

  27. Slide 27: Shareholder Return Dividend policy

    Shareholder Return Dividend policy Sustainable, stable Increase dividend by reflecting the dividends performance Dividend Per Share JPY Ordinary Dividend Commemorative Dividend 30 30 5 25 26 24 20 20 20 18 15 16 10 5 0 '12 '13 '14 '15 '16 '17 '18E © 2018 MORITA HOLDINGS CORPORATION 27

  28. Slide 28: 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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