DAIHATSU DIESEL MFG. CO., LTD. First Half of the …2019/11/05 · 2012 March 2013 March 2014 March...
Transcript of DAIHATSU DIESEL MFG. CO., LTD. First Half of the …2019/11/05 · 2012 March 2013 March 2014 March...
First Half of the Fiscal Year Ending March 31, 2020
Financial Results Briefing
DAIHATSU DIESEL MFG. CO., LTD.
November 2019
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〉
DAIHATSU DIESEL MFG. CO., LTD.3
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
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2019
Sales by Horsepower(10,000 hp)
DAIHATSU DIESEL MFG. CO., LTD.4
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)
DAIHATSU DIESEL MFG. CO., LTD.
Recent Major Initiatives in Line with Mid-term Management Plan
DAIHATSU DIESEL MFG. CO., LTD.
DAIHATSU DIESEL MFG. CO., LTD.6
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
2016 2017 2018
Japan 2,520(13%) 2,830( 7%) 10,310(20%)
Korea 5,780(31%) 18,500(43%) 23,110(46%)
China 6,650(35%) 15,200(35%) 13,080(26%)
World total 18,800 43,200 50,400
2017 2018
Japan 30,410(21%) 31,270(21%)
Korea 35,450(25%) 44,930(30%)
China 56,530(39%) 54,140(36%)
World total 143,690 150,970
DAIHATSU DIESEL MFG. CO., LTD.7
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
12,000
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
Compared to 2000
139% increase
DAIHATSU DIESEL MFG. CO., LTD.8
Initiatives in Line with Mid-term Management PlanTighter environmental regulations: Exhaust gas regulations (NOx, SOx, CO2, etc.), and diversification of fuels
2016 2017 2018 2019 2020 2021 2022 2023
Emissions standard: (80)%
Emissions standard: (80)%
NOx Tier III regulations: North America /Caribbean Sea
NOx Tier III regulations: North Sea /Baltic Sea
Operating data reporting systemCO2: Europe
Operating data reporting systemCO2: IMO
Fuel economy standard: (20)%CO2: EEDI regulations
Sulfur in fuel oil 0.1%SOx: Baltic Sea /North Sea /offshore USA and Canada /Caribbean Sea
Sulfur in fuel oil 0.5%SOx: Other marine areas currently 3.5% ->
Examples of exhaust gas regulations for vessels・NOx: Nitrogen oxide・SOx: Sulfur oxide
SCR(a selective catalytic reduction device)
dual fuel engines
(Use examples : Dual fuel engines for marine-use)
Within restricted area:
operate with gas
Outside restricted area:
operate with liquid fuel
Low carbon brand
certification from Shiga
DAIHATSU DIESEL MFG. CO., LTD.9
Larger engines: Aggressive capital investment by domestic shipyards, energy conservation
Utilization of IoT: Supporting autonomous ship operation and seafarer shortage
Initiatives in Line with Mid-term Management Plan
(Unit: person)
Num
ber of seafarers in Japan
010,00020,00030,00040,00050,00060,000
1980 1990 2004 2010
Foreign-going Domestic
10
Update on Recent Major Progress
New initiatives
To market launch in response to demand for small, lightweight and high-output engines for naval vessels
MTU engine:For propulsion power generatorOur engine:For emergency power generator
Accommodate needs of logistic support such as maintenance of engines after a new naval vessel is commissioned
DAIHATSU DIESEL MFG. CO., LTD.
First Half of the Fiscal Year Ending March 31,2020Summary of Earnings
DAIHATSU DIESEL MFG. CO., LTD.12
POINT
Summary(Unit: Million yen)
September2017
Results
September2018
Results
September 2019
Results
YoY difference March 2019
Increase/decrease
(%) Forecast* Progress
(%)
Net sales 29,557 26,729 27,321 591 2.2% 62,000 44.1%
Operating income 1,454 625 646 20 3.3% 3,000 21.5%
Ordinaryincome 1,540 752 852 99 13.2% 3,000 28.4%
Netincome 1,069 483 511 28 5.8% 2,100 24.4%
Basic earnings per share
33.58 15.18 16.10 0.92 6.1% 65.93 24.4%
Total assets 78,339 79,578 83,422 3,844 4.8% - -
Equity ratio 47.3% 47.8% 46.9% (0.9)% - - -
Despite increased unit sales of engines, profitability in engines remains bleakMaintenance-related sales improvedFinancial results forecast for the first half has been revised upward; however, the forecast for the full year remains unchanged
DAIHATSU DIESEL MFG. CO., LTD.13
5,493
3,498
3,044 2,626
3,000
5,438
3,441 3,104
2,576
3,000 3,596
2,319 2,095
1,818
2,100
57,019 58,934
60,166
57,270
62,000
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
646 852511
Trend of Sales and Earnings
(Est.)
(Unit: Million yen) (Unit: Million yen)
DAIHATSU DIESEL MFG. CO., LTD.14
Net sales Internal combustion engine section earnings
POINT
Net Sales and Earnings for the Internal Combustion Engine Section
(Unit: Million yen)(Unit: Million yen)
9,994 10,255 10,303
13,903 12,131 12,906
3,459 2,059 2,134
387
683 469
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1H FY2018 1H FY2019 1H FY2020
Marine-use (Japan) Marine-use (Over seas)Land-use (Japan) Land-use (Over seas)
27,74325,81325,129
2,636
1,725 1,690
0
500
1,000
1,500
2,000
2,500
3,000
1H FY2018 1H FY2019 1H FY2020
Proportion of larger engines for marine-use increased
Profitability deterioration for sales of diesel engine units continued
DAIHATSU DIESEL MFG. CO., LTD.15
POINT
Units sold Maintenance-related net sales
Unit Sales and Maintenance-related Net Sales
(Unit: Units) (Unit: Million yen)
221245
267
110
14113218
5 11
0
50
100
150
200
250
300
350
400
450
1H FY2018 1H FY2019 1H FY2020
Marine-use (Japan) Marine-use (Over seas)
Land-use (Japan) Land-use (Overseas)
351392
414
11,165 11,838
12,767
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1H FY2018 1H FY2019 1H FY2020
Total units sold increased
Maintenance-related sales recovered
DAIHATSU DIESEL MFG. CO., LTD.16
Forecast
Earnings Forecasts(Unit: Million yen)
March 2019Results
March 2020
ForecastIncrease/decrease
(%)
Net sales 57,270 62,000 8.3
Operating income 2,626 3,000 14.2
Ordinary income 2,576 3,000 16.4
Net income 1,818 2,100 15.5
Basic earnings per share 57.11 65.93 15.5
*Exchange rates: March 2019 (Results): ¥109.95, 1H 2020 (Results): ¥107.90, 2H 2020 (Estimate): ¥100.00
Unit sales of diesel engines for marine-use to increase
Sales of diesel engine units to remain bleak in profitability
Maintenance-related sales to be robust
Daihatsu Diesel Mfg. Co., Ltd.
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