DAIHATSU DIESEL MFG. CO., LTD. Fiscal Year Ended March 31, … · 2020-05-22 · Market Trends for NewbuildVessels Volume of orders received, by country Volume of work in hand, by

Fiscal Year Ended March 31, 2020

Financial Results Briefing

DAIHATSU DIESEL MFG. CO., LTD.

May 2020

DAIHATSU DIESEL MFG. CO., LTD.2

Sales Breakdown/Market Share

Internal combustion engines 94％

Marine-use 82％

Auxiliary powergenerators 80％

Other 6％

Land-use 18％

Mainpropulsion systems 20％

Business

Section

Application

Sales Breakdown

Market Share (Auxiliary Engines for Large Ocean-going Vessels)

DAIHATSUDIESEL

23%

DAIHATSUDIESEL

50%

〈Share in Japan〉〈Overseas market share〉


POINT

Stable capture of earnings over life-cycle (30 years)▶Post-voyage maintenance services are key.

▶Cumulative total of engine units (number of ships carrying our engines) is decisive.

*Does not include technological partners in China

Remarks on Earnings

March

2004

March

2005

March

2006

March

2007

March

2008

March

2009

March

2010

March

2011

March

2012

March

2013

March

2014

March

2015

March

2016

March

2017

March

2018

March

2019

Sales by Horsepower(10,000 hp)


Strengthening Business in the After-sales-service Market/Overseas Strategy (Licensing)

Holding the line

10 years ago

Shifting to the offensiveNow

Business focus was selling engines to builders of new vessels.Sales for the after-sales-service did not really exist.

Creation of sales teams specializing in partsLaunch of strategic sales targeting ship-owners and ship-managers in the after-sales-service market

Issues for the future

Sales approx. ¥15.0 billion Sales approx. ¥26.0 billion

Major increase

Genuine parts usage ratio is approx. 50%.Scope exists for increasing this rate.

▶ Strategic deployment of CMAXS system.

Anqing CSSC Diesel Engine Co., Ltd.

Anqing DieselAnhui Province, China

(Yangtze River Basin, 600 km from Shanghai)

Licensing (in China)Contract partner since 1982

Granting of rights for Manufacture and marketing of certain classes of internal combustion engine

Expand market share of DAIHATSU brand

SHAANXI DIESEL ENGINE HEAVY INDUSTRY CO., LTD.Shaanxi Diesel

Shaanxi Province, China(50 km from Xi’an)


Market Trends for Newbuild Vessels

Volume of orders received, by country Volume of work in hand, by country

Orders received showed an uneven increase overall, with a spike in 2006 to 2007 just before the 2008 financial crisis. The marine cargo market is now on a recovery trend despite the downturn in the marine cargo market in 2016

Source: The Shipbuilders’ Association of Japan

(Unit: Thousand tons)

(Unit: Thousand tons)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Other countries total

European countries total

China

South Korea

Japan

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Other countries total

European countries total

China

South Korea

Japan

2017 2018 2019Japan ２，８３０（７％）１０，３１０（２０％）６，７１０（１６％）Korea １８，５００（４３％）２３，１１０（４６％）１７，３７０（４２％）China １５，２００（３５％）１３，０８０（２６％）１３，６６０（３３％）World total ４３，２００５０，４００４１，４９０

2017 2018 2019Japan ３０，４１０（２１％）３１，２７０（２１％）２２，５５０（１７％）Korea ３５，４５０（２５％）４４，９３０（３０％）４０，７６０（３１％）China ５６，５３０（３９％）５４，１４０（３６％）５０，３２０（３８％）World total １４３，６９０１５０，９７０１３２，０７０


Global shipping capacityGlobal ocean cargo volumes, by product

Increasing trend in shipping capacity in line with increase in ocean cargo volume → stable increase in maintenance demand expected

(Estimate) Source: The Shipbuilders’ Association of Japan

Market Trend for Marine Cargo

(Unit: Million tons) (Unit: Thousand tons)

0

2,000

4,000

6,000

8,000

10,000

12,0001996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Other

Petroleum products

Crude oil

Containers

Grain

Coal

Iron ore

The average increase rate of + 3.5% / year

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Bulk carriers

Tankers

Other（cargo vessels, etc.）

Compared to 2000

109% increase


Fiscal Year Ended March 31, 2020 Summary of Earnings



Summary

March 2018 Results

March 2019 Results

March 2020 Results

YoY difference

Increase/decrease

(%)

Net sales 60,166 57,270 60,087 2,816 4.9

Operating income 3,044 2,626 2,674 48 1.9

Ordinary income 3,104 2,576 2,915 339 13.2

Net income 2,095 1,818 1,996 178 9.8

Basic earnings per share

65.83 57.11 62.80 5.69 10.0

Total assets 80,969 82,512 85,558 3,045 3.7

Equity ratio 47.0% 47.5％ 47.5％－－

(Unit: Million yen)

POINTEngine sales and maintenance-related sales both increasedProfitability in engines remains bleakEarnings increased due to improved maintenance-related sales



Trend of Sales and Earnings

5,493

3,498

3,044 2,626

2,674

5,438

3,441 3,104

2,576

2,915

3,596

2,319 2,095

1,818 1,996

57,019 58,934

60,166

57,270

60,087

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

16/3 17/3 18/3 19/3 20/3

Operating income Ordinary income Net income Net sales (Unit: Million yen)(Unit: Million yen)



Net Sales and Earnings for the Internal Combustion Engine Section

20,747 18,951 21,547

25,081 25,497 26,192

9,978 8,544

8,811

688 1,020

659

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

FY2018 FY2019 FY2020

Marine-use (Japan) Marine-use (Overseas)

Land-use (Japan) Land-use (Overseas)

54,01356,495 57,210

Net sales(Unit: Million yen)

5,295

4,641 4,579

3,000

4,500

6,000

FY2018 FY2019 FY2020

(Unit: Million yen)

Internal combustion engine section earnings

POINTSales rose due to an increase in marine-use engine salesProfitability deterioration for sales of diesel engine units continued



Unit Sales and Maintenance-related Net Sales

POINTTotal units sold increased

Maintenance-related sales showed signs of improvement

448 492552

215258

24284

72 68

0

200

400

600

800

1000

1200

FY2018 FY2019 FY2020

Marine-use (Japan) Marine-use (Overseas)

Land-use (Japan) Land-use (Overseas)

Units sold

866

749

24,627 25,350 26,911

0

5,000

10,000

15,000

20,000

25,000

30,000

FY2018 FY2019 FY2020

Maintenance-related net sales

(Unit: Units) (Unit: Million yen)

825



Earnings Forecasts

March 2020 Results

March 2021

ForecastIncrease/decrease

(%)

Net sales 60,087

Pending

Operating income

2,674

Ordinary income 2,915

Net income 1,996

Basic earnings per share 62.80

(Unit: Million yen)

The earnings forecasts for FY2021 are pending in view of the current difficulty in reasonably calculating the impact of COVID-19. Earnings forecasts will be announced promptly once reasonable forecasts become possible.

* Exchange rates: March 2020 (Results): ¥107.96, March 2021 (Pending)

Forecast


Daihatsu Diesel Mfg. Co., Ltd.

These materials contain statements relating to future earnings and business strategy, etc. Inherent in these statements are risk and uncertainty; they form no guarantee of future performance.

Please be aware that actual results may differ significantly from forecasts, due to changes in the business environment, etc.

Furthermore, information relating to companies other than the Company or the Company group, etc., contained here has been taken from publicly available information, etc. No verification of any kind has been undertaken by the Company, and no guarantee is offered regarding the accuracy or appropriateness of such information.

The information contained in these materials is intended only for purposes of provision of information, and not for solicitation to purchase securities.

Documents

DAIHATSU DIESEL MFG. CO., LTD. Fiscal Year Ended March 31, … · 2020-05-22 · Market Trends for NewbuildVessels Volume of orders received, by country Volume of work in hand, by