Morita Holdings Corporation · TSE:6455

Morita — FY2018 Earnings Presentation

31 slides from Morita's earnings presentation, May 9, 2019

  1. Slide 1: Financial Results for FY2018

    Financial Results for FY2018 May 9, 2019 Securities Code: 6455 https://www.morita119.com/en © 2019 MORITA HOLDINGS CORPORATION

  2. Slide 2: Today's Bullet Points

    Today’s Bullet Points FY2018 Results • Net sales increased by 7.0%, net income increased by 11.3%, exceeded the record high, and operating income increased 11.8%, reached the second highest record. ⁻ Net sales and operating income increased in all segments. • Annual DPS is 34 yen, increased 8 yen co

  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 : 4.75 bil. JPY Net Sales : 91.5 bil. JPY (Consolidated) (for the year ended March 31, 2019) Empl

  4. Slide 4: 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 c

  5. Slide 5: I. Financial Results for FY2018

    I. Financial Results for FY2018 © 2019 MORITA HOLDINGS CORPORATION

  6. Slide 6: Consolidated Statements of Income

    Consolidated Statements of Income (bil. JPY) 2017 2018 Change bil. JPY Net Sales 100 +7.0% Net Sales 85.5 100.0% 91.5 100.0% +6.0 91.5 80 85.1 85.5 Cost of Sales 63.8 74.6% 67.9 74.2% +4.1 -0.4pt. 71.7 71.9 60 67.1 68.6 61.7 59.7 63.7 Gross Profit 21.7 25.4% 23.7 25.9% +2.0 +0.5pt. 40 S,G&A Expenses

  7. Slide 7: Performance by Segment

    Performance by Segment Net sales bil. JPY 2017A 2018E 2018A 60 54.6 49.8 51.5 40 20 21.3 21.5 21.6 4.1 4.5 4.7 10.3 10.5 10.6 0 FFV FPES RM ECV Operating Income bil. JPY 2017A 2018E 2018A 8 6 6.0 6.3 5.5 4 2 2.1 2.3 2.1 0.19 0.20 0.38 0 0.61 0.70 0.78 FFV FPES RM ECV © 2019 MORITA HOLDINGS CORPORATI

  8. Slide 8: Orders by Segment

    Orders by Segment Order Intake bil. JPY 2017A 2018A 60 +10% 51.7 40 47.1 20 +14% -1% +12% 10.1 10.0 10.0 11.4 0 4.6 5.2 FFV FPES RM ECV Order Backlog bil. JPY 2017A 2018A 15 -2% 10 11.8 11.6 +22% 5 -9% +19% 4.7 3.9 3.6 3.9 2.4 2.9 0 FFV FPES RM ECV © 2019 MORITA HOLDINGS CORPORATION 8

  9. Slide 9: 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 9.6 9.5 10 90 85.1 85.5 8.2 8.5 9 80 71.9 37.3 8 7.5 4.4 68.6 32.2 (41%) (46%) 5.6 70 35.2 (38%) (41%) 7 4.1 (59%) (49%) 4.8 60 28.5 3.0 (56%) 26.2 6 (40%) (40%) (39%) 50 5 22.3 23.2 4

  10. Slide 10: Consolidated Balance Sheets

    Consolidated Balance Sheets (bil. JPY) 2017 2018 Change Interest-bearing bil. JPY Liabilities Current Assets 58.7 51.3% 62.3 53.2% +3.6 +1.9pt. 20 Long-term Short-term Non-Current Assets 55.7 48.7% 54.9 46.8% -0.9 -1.9pt. 15 13.7 13.7 11.6 2.5 9.9 Total Assets 114.4 100.0% 117.2 100.0% +2.8 10 2.8 9

  11. Slide 11: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows Cash Flow (bil. JPY) 2017 2018 Change bil. JPY Operating CF Investing CF Financing CF 10 7.7 8.4 5 7.2 Operating Activities 7.2 8.4 +1.2 5.9 5.6 4.5 0 -1.4 -2.4 -3.1 -0.9 -3.5 -3.0 -4.2 -6.6 -5 Investing Activities -2.4 -1.4 +0.9 -10.2 -10 -15 Financing Activitie

  12. Slide 12: II. Mid-term Plan

    Ⅱ. Mid-term Plan © 2019 MORITA HOLDINGS CORPORATION

  13. Slide 13: Review of the Previous Mid-term Plan

    Review of the Previous Mid-term Plan Level of achievement against financial target achievement (bil. JPY) FY2015 FY2018 FY2018 Actual Target Actual Net Sales 68.6 100.0 91.5 Operating 7.5 10.0 9.5 Income Review of the basic policies ① Exploiting new businesses ⁻ Establishing new businesses in FFV bu

  14. Slide 14: Outline of New Mid-term Plan

    Outline of New Mid-term Plan Basic Policies Financial Targets≪FY2025≫ ① Increasing profitability of existing business Operating Margin ② Cultivate and expand overseas 12% businesses and new businesses Growth strategy ③ Enhance basic research capabilities investment budget ROE and new product develop

  15. Slide 15: III. Financial Outlook for FY2019

    Ⅲ. Financial Outlook for FY2019 © 2019 MORITA HOLDINGS CORPORATION

  16. Slide 16: Outlook for Consolidated Performance

    Outlook for Consolidated Performance bil. JPY Net Sales bil. JPY Operating Income 100 10 -3.0% -3.9% 9.6 9.5 80 91.5 8 9.2 85.1 85.5 88.0 8.5 7.5 60 68.6 6 40 4 20 2 0 0 '15 '16 '17 '18 '19E '15 '16 '17 '18 '19E bil. JPY Ordinary Income bil. JPY Net Income 12 10 -5.0% 10 8 10.1 10.1 9.6 8 9.0 -6.1%

  17. Slide 17: Outlook for Segment Performance

    Outlook for Segment Performance bil. JPY Net Sales 2018A 2019E 60 -7% 54.6 51.0 40 +0% 20 21.6 21.7 +1% +0% 4.7 4.8 10.6 10.6 0 FFV FPES RM ECV bil. JPY Operating Income 2018A 2019E 8 -6% 6 6.3 5.9 4 +2% 2 +5% 2.1 2.2 +2% 0.38 0.40 0.78 0.80 0 FFV FPES RM ECV © 2019 MORITA HOLDINGS CORPORATION 17

  18. Slide 18: IV. Overview by Segment

    Ⅳ. Overview by Segment © 2019 MORITA HOLDINGS CORPORATION

  19. Slide 19: Fire Fighting Vehicles Outlook for FY2019

    Fire Fighting Vehicles Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 60 7 14 50 54.6 6 12 6.3 51.0 5.9 11.8 11.6 5 10 40 4 8 30 3 6 20 2 4 10 1 2 0 0 0 2018A 2019E 2018A 2019E 2018A 2019A Outlook for FY2019 • The Fire and Disaster Management Agency made an announcement on “Maki

  20. Slide 20: Fire Fighting Vehicles

    Fire Fighting Vehicles ※ Domestic Market Size & Number of Orders Unit Morita Demand Market Share 1,600 60% 1,200 55% 800 50% 400 45% 0 40% '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19E Domestic Units Sold by Quarter Unit 400 [Present] Concentrate on the fourth quarter since the delivery times are

  21. Slide 21: Fire Fighting Vehicles

    Fire Fighting Vehicles Corresponding to Japanese ordinary driver’s license Miracle Light Number of Orders GVW<3.5t Unit March 2017 Revision of the Road Traffic Law 100 The range of vehicles that Old 旧 Ordinary driver’s license can be driven with ordinary driver’s license narrowed. 50 The first year

  22. Slide 22: Fire Protection Equipment & Systems Outlook for FY2019

    Fire Protection Equipment & Systems Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 25 2.5 5 20 21.6 21.7 2 2.2 4 2.1 3.9 15 1.5 3 3.6 10 1 2 5 0.5 1 0 0 0 2018A 2019E 2018A 2019E 2018A 2019A Outlook for FY2019 • Demand for fire extinguisher is expected to increase since the inst

  23. Slide 23: Fire Protection Equipment & Systems

    Fire Protection Equipment & Systems bil. JPY Net Sales ■ High extinguish performance (4 times 25 Others better than that of water and prevents recombustion) SPRINEX ■ Senses a fire in its early stage Fire Extinguishers ■ Prevents water damage 20 ■ Available even when the water supply is cut off, and

  24. Slide 24: Recycling Machines Outlook for FY2019

    Recycling Machines Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 6 0.6 3 2.9 4.7 4.8 2.4 4 0.4 2 0.38 0.40 2 0.2 1 0 0 0 2018A 2019E 2018A 2019E 2018A 2019A Outlook for FY2019 • Net sales and operating income is expected to increase since the demand for scrap shear is expected

  25. Slide 25: 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

  26. Slide 26: Environmental Conservation Vehicles Outlook for FY2019

    Environmental Conservation Vehicles Net Sales Operating Income Order Backlog bil. JPY bil. JPY bil. JPY 12 1 5 10 4.7 10.6 10.6 0.8 4 0.78 0.80 3.9 8 0.6 3 6 0.4 2 4 0.2 1 2 0 0 0 2018A 2019E 2018A 2019E 2018A 2019A Outlook for FY2019 • Last minutes demand occurred in 2018 since emission gas control

  27. Slide 27: 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 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19E '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19E ※ Internal investigation © 2019 MORITA HOLDINGS C

  28. Slide 28: V. Investment & Shareholder Return

    Ⅴ. Investment & Shareholder Return © 2019 MORITA HOLDINGS CORPORATION

  29. Slide 29: 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 2.0% 4 2 2% 1.8% 1.7% 1.6% 3.6 1.5% 1.7 1.6 1.5 1.4 2.5 2 2.2 1 1% 2.0 2.1 2.1 1.0 1.8 1.5 1.3 0 0 0% '15 '16 '1

  30. Slide 30: Shareholder Return: Change of Dividend Policy

    Shareholder Return Change of Dividend policy（April 26, 2019） （Before change） Increasing dividend payments in a stable and sustainable manner, strengthening financial structure and business foundation. （After change） Increasing dividend payments in a stable and sustainable manner, strengthening finan

  31. Slide 31: 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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