Morita Holdings Corporation · TSE:6455

Morita — FY2019 Earnings Presentation

24 slides from Morita's earnings presentation, May 11, 2020

  1. Slide 1: Financial Results for FY2019

    Financial Results for FY2019 May 11, 2020 Securities Code: 6455 https://www.morita119.com/en © 2020 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 : 86.9 bil. JPY (Consolidated) (for the year ended March 31, 2020) 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 (2000-2019)

    Market Share (2000-2019) ※ ※ FFV FPES (Fire Fighting Vehicles) (Fire Extinguishers) 39% 12% ※ ※ RM ECV (Scrap Shears) (Sanitary Vehicles) 82% 22% ※ Internal investigation © 2020 MORITA HOLDINGS CORPORATION 4

  5. Slide 5: I. Financial Results for FY2019

    I. Financial Results for FY2019 © 2020 MORITA HOLDINGS CORPORATION

  6. Slide 6: Consolidated Statements of Income

    Consolidated Statements of Income (bil. JPY) 2018 2019 Change bil. JPY Net Sales 100 -5.0% Net Sales 91.5 100.0% 86.9 100.0% -4.6 91.5 80 85.1 85.5 86.9 Cost of Sales 67.9 74.1% 64.2 73.9% -3.7 -0.3pt. 71.7 71.9 60 67.1 68.6 63.7 59.7 Gross Profit 23.7 25.9% 22.7 26.1% -0.9 +0.3pt. 40 S,G&A Expenses

  7. Slide 7: Performance by Segment

    Performance by Segment Net Sales bil. JPY 2018A 2019E 2019A 60 +0% 54.6 51.0 51.0 40 -9% 20 21.6 21.7 19.8 +13% +1% 4.7 4.8 5.4 10.6 10.6 10.8 0 FFV FPES RM ECV Operating Income bil. JPY 2018A 2019E 2019A 8 -2% 6 6.3 5.9 5.7 4 -20% +27% 2 2.2 +10% 2.1 1.7 0.38 0.40 0.51 0.78 0.80 0.88 0 FFV FPES RM

  8. Slide 8: Orders by Segment

    Orders by Segment Order Intake bil. JPY 2018A 2019A 60 -5% 51.7 49.4 40 20 -5% -9% -12% 10.0 9.1 11.4 10.8 0 5.2 4.5 FFV FPES RM ECV Order Backlog bil. JPY 2018A 2019A 15 +1% 10 11.6 11.6 +0% 5 +3% -29% 4.7 4.8 3.6 3.7 2.9 2.1 0 FFV FPES RM ECV © 2020 MORITA HOLDINGS CORPORATION 8

  9. Slide 9: Summary by Segment

    Summary by Segment  Fire Fighting Vehicles While overseas business and domestic market share improved, adverse product mix affected.  Fire Protection Equipment & Systems Demand for SPRINEX was sluggish as there is still time before the installation deadline of sprinkler system in the medical clini

  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 9.6 9.5 86.9 10 90 85.1 85.5 8.9 8.5 9 80 37.3 8 7.5 4.4 68.6 32.2 (41%) 35.1 (46%) 5.6 70 35.2 (38%) (41%) (40%) 7 (59%) 4.8 5.1 3.0 (56%) (58%) 60 6 26.2 (40%) (39%) 50 5 22.2 20.1 2

  11. Slide 11: Consolidated Balance Sheets

    Consolidated Balance Sheets (bil. JPY) 2018 2019 Change Interest-bearing bil. JPY 20 Liabilities Current Assets 62.3 53.2% 64.2 55.4% +1.8 +2.3pt. Long-term Short-term Non-Current Assets 54.9 46.8% 51.6 44.6% -3.3 -2.3pt. 15 13.7 13.7 11.6 2.5 9.9 Total Assets 117.2 100.0% 115.8 100.0% -1.5 10 2.8 7

  12. Slide 12: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows Cash Flow (bil. JPY) 2018 2019 Change bil. JPY Operating CF Investing CF Financing CF 10 7.7 8.4 5 5.6 7.2 Operating Activities 8.4 5.1 -3.3 5.9 5.1 0.9 0 -2.4 -0.9 -3.5 -1.4 -3.0 -3.8 -5 -10.2 -6.6 Investing Activities -1.4 0.9 +2.4 -10 -15 Financing Activities

  13. Slide 13: 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 2% 1.8% 1.7% 1.6% 1.7% 1.6 1.6 1.5 1.5 1.4 2.5 2 1 1% 2.0 2.1 2.1 2.1 2.1 1.8 1.5 1.6 0 0 0% '16 '17 '18 '19

  14. Slide 14: 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%

  15. Slide 15: II. COVID-19 Business Impact and Measures

    Ⅱ. COVID-19 Business Impact and Measures © 2020 MORITA HOLDINGS CORPORATION

  16. Slide 16: COVID-19 Business Impact and Measures

    COVID-19 Business Impact and Measures  Potential Business Risks › Interruptions to business/reduced efficiency due to possible infection of our employees, customers and suppliers’ employees › Product/service supply capacity issues caused by long-term restrictions on movement and lockdowns around th

  17. Slide 17: III. Overview by Segment

    Ⅲ. Overview by Segment © 2020 MORITA HOLDINGS CORPORATION

  18. Slide 18: Fire Fighting Vehicles

    Fire Fighting Vehicles ※ ※ Unit Domestic Market Size Global Market Size by Area kUnit 2,000 & Number of Orders 60% 22 1,800 20 18 1,600 55% 16 1,400 14 1,200 50% 12 1,000 10 800 45% 8 600 6 400 40% 4 200 2 0 35% 0 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '1

  19. Slide 19: Fire Fighting Vehicles IoT

    Fire Fighting Vehicles Bronto Skylift Product Development Utilizing IoT Drone, Visualization of Basket Camera, Fire Scenes etc. Multi-Purpose Fire Fighting Vehicle with 21m Aerial Platform Control of Pump Control Operation Conditions Panel Morita Various Fighter Safety Confirmation Wearable Devices

  20. Slide 20: 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 '00'01'02'03'04'05'06'07'08'09'10'11'12'13'14'15'16'17'18'19

  21. Slide 21: Fire Protection Equipment & Systems

    Fire Protection Equipment & Systems Packaged Automatic Fire  System Configuration Extinguishing System TypeⅠ Sensor  High extinguish performance (4 times better than that of water and prevents recombustion)  Senses a fire in its early stage  Prevents water damage  Available even when the water

  22. Slide 22: Recycling Machines

    Recycling Machines ※ Explosion Protection System Iron Scrap Price & “Hyper Guard” Scrap Shear Market Size A device that instantly detects the explosion inside the shredder and release the extinguishing agents at high speed H2 Scrap Average Price Scrap Shear Demand with the unique "high-speed opening

  23. Slide 23: Environmental Conservation Vehicles

    Environmental Conservation Vehicles ※ New Garbage Truck Unit Sanitary Vehicles 1,500 Series Development Market Size Improved Safety Improved rearward visibility by integrating 1,000 indicators on the high-mounted rear panel Labor-saving Input port designed to be lower which enables to reduce the wor

  24. Slide 24: Forward-looking statements notice

    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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