Morita Holdings Corporation · TSE:6455

Morita — FY2022 Earnings Presentation

30 slides from Morita's earnings presentation, May 16, 2023

  1. Slide 1: Financial Results for FY2022

    Financial Results for FY2022 May 16, 2023 Securities Code: 6455 https://www.morita119.com/en © 2023 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 Shinichi Kanaoka, President Paid-in Capital : 4.75 bil. JPY Net Sales : 81.3 bil. JPY (Consolidated) (for the year ended March 31, 2023)

  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 (2000-2022)

    Market Share (2000-2022) ※ ※ FFV FPES (Fire Fighting Vehicles) (Fire Extinguishers) 39% 12% ※ ※ RM ECV (Scrap Shears) (Sanitary Vehicles) 82% 22% ※ Internal investigation © 2023 MORITA HOLDINGS CORPORATION 4

  5. Slide 5: I. Financial Results for FY2022

    I. Financial Results for FY2022 © 2023 MORITA HOLDINGS CORPORATION

  6. Slide 6: Consolidated Statements of Income

    Consolidated Statements of Income (bil. JPY) 2021 2022 Change bil. JPY Net Sales 100 Net Sales 83.6 100.0% 81.3 100.0% -2.3 -3% 91.5 80 85.1 85.5 86.9 84.7 83.6 81.3 Cost of Sales 61.5 73.6% 62.0 76.2% +0.5 +2.6pt. 71.7 71.9 60 68.6 Gross Profit 22.1 26.4% 19.3 23.8% -2.7 -2.6pt. 40 S,G&A Expenses 1

  7. Slide 7: Performance by Segment

    Performance by Segment Net Sales bil. JPY 2021A 2022E 2022A 60 49.1 40 44.9 37.5 20 19.4 21.0 20.8 5.9 5.9 5.2 9.9 9.6 9.8 0 FFV FPES RM ECV Operating Income bil. JPY 2021A 2022E 2022A 6 5.5 4 1.8 2 0.7 1.9 2.0 0.7 0.7 0.7 0.6 0.6 0.4 1.3 0 FFV FPES RM ECV © 2023 MORITA HOLDINGS CORPORATION 7

  8. Slide 8: Orders by Segment

    Orders by Segment Order Intake bil. JPY +19% 2021A 2022A 60 57.5 40 48.1 20 +9% -0% -11% 8.9 9.7 6.9 11.5 11.5 6.2 0 FFV FPES RM ECV Order Backlog bil. JPY +108% 2021A 2022A 30 29.1 20 10 14.0 +29% +22% +6% 7.8 4.9 6.0 4.5 4.8 6.0 0 FFV FPES RM ECV © 2023 MORITA HOLDINGS CORPORATION 8

  9. Slide 9: Orders and Backlog

    Orders and Backlog Order Intake Order Backlog bil. JPY bil. JPY FFV FPES RM ECV FFV FPES RM ECV 90 50 48 85 78 80 75 12 8 74 74 11 40 70 12 6 11 11 5 5 10 60 5 5 7 10 29 6 9 8 30 9 50 24 6 23 22 40 4 5 5 20 5 3 30 3 2 5 57 52 51 4 29 49 48 4 4 20 10 12 14 10 12 12 0 0 ’18 ’19 ’20 ’21 ’22 ’18 ’19 ’20

  10. Slide 10: Summary by Segment

    Summary by Segment  Fire Fighting Vehicles While incoming orders are solid both domestic and overseas, overall sales and operating income decreased. Domestic sales and operating income decreased due to a decline in production volume and lower productivity caused by delayed supply of chassis. Althou

  11. Slide 11: 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 8.9 84.7 83.6 81.3 8.1 9 80 37.3 8 70 (41%) 35.1 5.6 34.1 5.0 (40%) 36.1 7 (59%) (40%) 37.5 5.1 (56%) (43%) (46%) (58%) 5.5 60 6 (68%) 5.1 50 5 22.2 20.1 （24%） 22.4

  12. Slide 12: Consolidated Balance Sheets

    Consolidated Balance Sheets (bil. JPY) 2021 2022 Change Interest-bearing bil. JPY Current Assets 71.6 57.2% 70.8 57.1% -0.9 -0.1pt. 15 Liabilities Long-term Non-Current Assets 53.5 42.8% 53.2 42.9% -0.3 +0.1pt. 9.9 Short-term 10 1.9 7.9 Total Assets 125.2 100.0% 124.0 100.0% -1.2 6.2 6.3 1.8 0.8 5 7

  13. Slide 13: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows Cash Flow (bil. JPY) 2021 2022 Change bil. JPY Operating CF Investing CF Financing CF 15 Operating Activities 10.5 2.1 -8.4 10 11.7 10.5 8.4 5 5.1 0.9 Investing Activities -0.7 -2.7 -2.0 2.1 0 -3.0 -0.6 -0.7-3.6 -2.7 -1.4 -3.8 -3.6 -9.0 -5 Financing Activities -3

  14. Slide 14: II. Financial Outlook for FY2023

    Ⅱ. Financial Outlook for FY2023 © 2023 MORITA HOLDINGS CORPORATION

  15. Slide 15: Outlook for Consolidated Performance

    Outlook for Consolidated Performance bil. JPY Net Sales bil. JPY Operating Income 100 +11% 10 +59% 80 86.9 90.0 8 8.9 8.9 84.7 83.6 81.3 8.1 8.1 60 6 40 4 5.1 20 2 0 0 '19 '20 '21 '22 '23E '19 '20 '21 '22 '23E bil. JPY Ordinary Income bil. JPY Net Income 12 10 10 +45% 8 8 9.3 9.5 8.8 8.6 +38% 6 7.0

  16. Slide 16: Outlook for Segment Performance

    Outlook for Segment Performance bil. JPY Net Sales 2022A 2023E 60 +16% 52.0 40 44.9 +1% 20 +5% 20.8 21.0 +10% 5.9 6.2 9.8 10.8 0 FFV FPES RM ECV bil. JPY Operating Income 2022A 2023E 6 +154% 4 4.5 +4% 2 2.0 2.1 +7% +28% 1.8 0.70 0.75 0.60 0.75 0 FFV FPES RM ECV © 2023 MORITA HOLDINGS CORPORATION 16

  17. Slide 17: III. Performance by Segment

    Ⅲ. Performance by Segment © 2023 MORITA HOLDINGS CORPORATION

  18. Slide 18: Fire Fighting Vehicles Outlook for FY2023

    Fire Fighting Vehicles Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 60 5 35 50 30 4 4.5 52.0 25 29.1 40 44.9 3 20 30 2 15 20 14.0 1.8 10 10 1 5 0 0 0 2022A 2023E 2022A 2023E 2022A 2023A Outlook for FY2023 • Sales and operating income are forecasted to increase both domestic an

  19. Slide 19: Fire Fighting Vehicles

    Fire Fighting Vehicles ※ Domestic Market Size bil. JPY Order Backlog Unit 2,000 & Number of Orders 70% 300 1,800 65% 1,600 60% 1,400 55% 200 1,200 50% 1,000 45% 800 40% 100 600 35% 400 30% 200 25% 0 20% 0 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '19 '20 '21 '22 '23 ※ Inter

  20. Slide 20: Fire Fighting Vehicles

    Fire Fighting Vehicles Service Service AMER APAC Sales by Sales by Access Product Region (2016-2022) Fire MEAI (2016-2022) EU Operating Income '15 '16 '17 '18 '19 '20 '21 '22 © 2023 MORITA HOLDINGS CORPORATION 20

  21. Slide 21: Fire Protection Equipment & Systems Outlook for FY2023

    Fire Protection Equipment & Systems Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 25 2.5 6 6.0 5 20 2 20.8 21.0 2.0 2.1 4.9 4 15 1.5 3 10 1 2 5 0.5 1 0 0 0 2022A 2023E 2022A 2023E 2022A 2023A Outlook for FY2023 • In addition to increasing the market share of fire extinguishers,

  22. Slide 22: 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 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Packaged Automatic Fire Extingui

  23. Slide 23: Recycling Machines Outlook for FY2023

    Recycling Machines Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 8 0.8 5 0.75 4.8 0.70 4 4.5 6 0.6 6.2 5.9 3 4 0.4 2 2 0.2 1 0 0 0 2022A 2023E 2022A 2023E 2022A 2023A Outlook for FY2023 • Sales and operating income are forecasted to increase as the high level of order backlog a

  24. Slide 24: Recycling Machines: Iron scrap reevaluated internationally

    Recycling Machines thou. JPY/t Iron Scrap Price Product Order Intake ※ 80 60 40 20 ※ 0 系列 1 系列 9 系列 17 系列 25 系列 33 系列 41 系列 49 系列 57 系列 65 系列 73 系列 81 系列 89 系列 97 系列 105 系列 113 系列 121 系列 129 系列 137 系列 145 系列 153 系列 161 系列 169 系列 177 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ’20 ’21 ’22 '16 '17

  25. Slide 25: Environmental Conservation Vehicles Outlook for FY2023

    Environmental Conservation Vehicles Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 12 1.0 9 10 10.8 0.8 7.8 9.8 8 0.75 6 0.6 6.0 6 0.59 0.4 4 3 2 0.2 0 0.0 0 2022A 2023E 2022A 2023E 2022A 2023A Outlook for FY2023 • Sales and operating income are forecasted to increase as the cha

  26. Slide 26: 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 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

  27. Slide 27: IV. Investment & Shareholder Return

    Ⅳ. Investment & Shareholder Return © 2023 MORITA HOLDINGS CORPORATION

  28. Slide 28: 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% 2.2% 2.2% 2.1% 4 2 1.8% 2% 4.0 1.7% 2.0 1.8 1.8 3.0 1.5 1.5 2 2.2 1 1% 2.1 2.0 1.9 1.9 1.6 1.3 0.9 0 0 0% '19 '20 '2

  29. Slide 29: 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% 2.6% 2.5%

  30. Slide 30: 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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