MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of...

57
Daisuke Miyauchi MIURA CO.,LTD. All Rights Reserved. May 23 rd , 2018 (Wed) Financial Result and MIURA Growth Strategy President & CEO MIURA CO.,LTD.

Transcript of MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of...

Page 1: MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of the business results, etc., described in this material is based on information that

D a i s u k e M i y a u c h i

MIURA CO.,LTD. All Rights Reserved.

M a y 2 3 r d , 2 0 1 8 ( W e d )

Financial Result andMIURA Growth Strategy

President & CEOMIURA CO.,LTD.

Page 2: MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of the business results, etc., described in this material is based on information that

Attention

Contents

4FY2017 Summary Overview2

14Profit Share and Stock3

2Company Profile1

Mid-Term Management Plan for 20184 16

6 35

5 21

The future prospects of the business results, etc., described in this material is based on information that the Company has acquired as of the announcement date of financial report, and there is a possibility that actual business results, etc., will be materially different depending on various factors. Please note that although the Company has made careful efforts to ensure the accuracy of the content of this document, we assume no responsibility for any damage arising from use of this data.

MIURA CO.,LTD. All Rights Reserved.

Laundry Business

MIURA’s New Showroom

Reference 387

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1.Company Profile

2MIURA CO.,LTD. All Rights Reserved.

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3

1 Company Profile

MIURA CO.,LTD. All Rights Reserved.

Name MIURA CO.,LTD.

Location 7 Horie, Matsuyama, Ehime

Established May 1959

Group company(MIURA CO.,LTD. Included)

Japan: 13Overseas: 15※ As of March 31st, 2018

Employees Group total: 5,552(1,567 employees overseas included)

Business Manufacturing, sale, and maintenance of equipment

Rating “A” maintained as of October 2017 (Publicized by Rating and Investment Information, Inc.)

【Consolidated Net Sales】

83,017101,743

106,500

19,307

23,140 28,500

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

17.3 18.3 19.3

Overseas JapanUnit: Million yen

102,324

<Forecast>

124,883135,000

<IFRS> Unit FY2016 FY2017 Plan FY2017 FY2018 Plan

Revenue Million yen 102,324 120,000 124,883 135,000

Operating profit Million yen 12,401 14,000 13,868 14,800

Profit before income taxes

Million yen 12,898 14,300 14,183 15,000

Profit attributable to owners of parent

Million yen 9,012 9,700 10,363 10,700

Basic earningsper share Yen 80.08 86.19 92.09 95.08

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2.FY2017 Summary Overview

4MIURA CO.,LTD. All Rights Reserved.

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Result

5MIURA CO.,LTD. All Rights Reserved.

FY2017 Summary Overview

<IFRS> FY2016 FY2017 FY2018(Forecast)

Revenue 102,324 124,883 135,000Cost of revenue 60,176 75,946 81,700Selling, general and administrative expenses 30,247 35,551 39,000

Other income 622 575 500Other expenses 121 91 ーOperating profit 12,401 13,868 14,800Profit before incometaxes 12,898 14,183 15,000Profit attributable toowners of parent 9,012 10,363 10,700

[Unit: Million yen]

Overview of financial summaryJapan

Overseas

2

Stable sales of boiler and tunnel washerFavorable sales of food equipment

Small once-through boiler: Steady sales in steel and machine fieldsMarine business: Decrease in income due to decrease in medium/small

shipbuilding, etc.Laundry business: Steady sales due to hotel linen demand increase

China’s largely-increased income due to environmental regulation tightenedChina: Increasing demand of replacement by gas-fired boilerASEAN region, etc.: Favorable salesKorea and Americas: Steady sales

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1,200

1,248

1,180

1,200

1,220

1,240

6

2

MIURA CO.,LTD. All Rights Reserved.

143 141135

140

145

150

plan

△9

result

MarineUnit: 100 million yen△7

China

△2

11

Bonus, R&D expenses,etc.

Income increase effect

ChinaOther

(exchange, etc.)

△2

59

△4

Boiler, laundry,ASEAN, etc.

FY2017 Summary Overview

Analysis

Unit: 100 million yen

Sale

s re

venu

ePr

etax

pro

fit

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7MIURA CO.,LTD. All Rights Reserved.

2 FY2017 Summary Overview

Domestic/overseas sales (IFRS)

8301017

1065193

231 285

18.9%

18.5%

21.1%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

0

200

400

600

800

1,000

1,200

1,400

1,600

FY2016 FY2017 FY2018(Plan)

Unit: 100 million yen

Overseas Japan Overseas sales ratio

1,248

1,023

1,350

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8MIURA CO.,LTD. All Rights Reserved.

2Analysis of Japan domestic sales

28

87 91

69

29

86

104

139

72

35

90

106

170

70

0

20

40

60

80

100

120

140

160

180

Water treatmentequipment &

chemicals

Marineequipment

Food & Medicalequipment

Laundryequipment

Others

Unit: 100 million yen

FY2016 FY2017 FY2018(Plan)

*Nine m

onths only

FY2017 Summary Overview

(Special equipment, New business, Environmental business, group company)

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192231

285

170190210230250270290

FY2016 FY2017 FY2018(Plan)

Unit: 100 million yen

9MIURA CO.,LTD. All Rights Reserved.

2

Average exchange rate FY2016 FY2017 Increase rate FY2018 plan Increase rate

USD 108.34 110.85 2.3% 105.00 -5.3%

CAD 82.50 86.43 4.8% 82.00 -5.1%

CNY 16.10 16.74 4.0% 16.40 -2.0%

KRW (100 W) 9.45 10.00 5.8% 9.60 -4.0%

IDR (100 Rp) 0.82 0.83 1.0% 0.80 -3.6%

NTD 3.42 3.70 8.2% 3.50 -5.4%

BRL 32.93 34.47 4.7% 32.00 -7.2%

THB 3.08 3.36 9.1% 3.20 -4.8%

Apart from currency exchange influence, overseas sale increasing actually

9 30

64△10

FY2017 Summary Overview

Factor analysis of overseas sales increaseActual increase

Actualincrease

Currencyexchange

Currencyexchange

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2

37

65 67

23

44

69

83

3545

70

130

40

0

15

30

45

60

75

90

105

120

135

Americas Korea China ASEAN & others

Unit: 100 million yen

FY2016 FY2017 FY2018(Plan)

FY2017 Summary Overview

Overseas sales

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11MIURA CO.,LTD. All Rights Reserved.

2

2,717

2,844

3,047

2,000

2,200

2,400

2,600

2,800

3,000

3,200

US

688 694

729

500

550

600

650

700

750

Korea

416

497

792

200

300

400

500

600

700

800

China

FY2017 Summary Overview

Main overseas sales (in local currency)

Unit: million USD Unit: 100 million KRW Unit: million CNY

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12MIURA CO.,LTD. All Rights Reserved.

3,618 3,090

5,250 5,949

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY2015 FY2016 FY2017 FY2018(Forecast)

2,855 2,825

3,644 3,588

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY2015 FY2016 FY2017 FY2018(Forecast)

2

FY2016 FY2017 FY2018 (Plan)

・New HQ building ・Multipurpose factory ・New showroom opening

・Multipurpose factory ・New showroom construction ・Second factory in China

・Renovation for environment analysis equipment factory

・Air conditioning facility renovation in HQ building

FY2017 Summary Overview

Business investment

Investment examples

[Unit: Million yen] [Unit: Million yen]【Capital investment】 【 Depreciation and amortization 】

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13

2

MIURA CO.,LTD. All Rights Reserved.

20

30

40

50

60

70

80

90

100

FY2016 FY2017 FY2018 FY2019 FY2020

【USCG TA obtaining plan changed】

New schedule: Application by March 2019

(In-service vessels)During regular inspection from

September 2017

【BWMS installation timing changed】As of November

2017 revision

As of May 2017 (In-service vessels)

During regular inspection from September 2019

As of May 2018 revision

By March 2018

FY2017 Summary Overview

Sale plan revision of BWMS

2 year postponement

delay

Unit: 100 million yen

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3.Profit Share and Stock

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15MIURA CO.,LTD. All Rights Reserved.

7 8.67 10 10 11 12

11.3311 11 12

17 17

0

5

10

15

20

25

30

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018(Forecast)

【Dividend per share】 Middle End

3

【 Reference 】※ As of March 31st, 2018

・ Total issued shares( treasury stock excluded )

112,546,472 shares・ Treasury stock

12,744,640 shares

Profit Share and Stock

① Sustaining stable dividends② Targeting 30%consolidated payout ratio

FY2017

Total: 28 yen

Middle: 11 yenEnd: 17 yen

FY2018

Total: 29 yen - Forecast

Middle: 12 yenEnd: 17 yen

(Yen)

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4.Mid-Term Management Plan for 2018

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Page 18: MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of the business results, etc., described in this material is based on information that

Mid-term management planning

15

4 Mid-Term Management Plan for 2018

Ideal business modelthree years ahead

Plan for next FY

Business environment change

Mid-term management plan for coming years

Annual correction in response to economic fluctuations

Rolling plan

To respond to business environment change, MIURA updates its three-year mid-term management plan every year.

FY2016

FY2017

FY2018

FY2019

FY2020

Mid-termmanagement

plan 20162016-2018

Mid-term management

plan 20172017-2019

Mid-term management

plan 20182018-2020

MIURA CO.,LTD. All Rights Reserved.

Page 19: MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of the business results, etc., described in this material is based on information that

FY2017 FY2018Plan

FY2019Plan

FY2020Plan

Net sales 1,248 1,350 1,480 1,600Operating profit 138 148 165 180

Operating profit rate 11.1% 11.0% 11.1% 11.3%

18MIURA CO.,LTD. All Rights Reserved.

4

1017 1065 1125 1175

231 285 355425

18.5%

21.1%

24.0%

26.6%

17%

19%

21%

23%

25%

27%

29%

0

200

400

600

800

1,000

1,200

1,400

1,600

2017 2018(Plan) 2019(Plan) 2020(Plan)

Unit: Hundred million yen

Overseas Japan Overseas ratio

Mid-Term Management Plan for 2018

SummaryUnit: 100 million yen

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4

FY2017 FY2018Plan FY2019Plan FY2020PlanJa

pan

Boiler 588 594 600 608Water treatment equipment 29 35 37 39Marine equipment 86 90 108 120Food & Medical equipment 104 106 117 124Laundry equipment 139 170 185 195Others (Special equipment, New business, Environmental business) 71 70 79 89

Subtotal 1,017 1,065 1,125 1,175

Ove

rsea

s

Americas (US, Canada, Brazil) 44 45 53 59Korea 69 70 72 75China 83 130 180 230ASEAN & others 35 40 50 61

Subtotal 231 285 355 425Total 1,248 1,350 1,480 1,600

By business category

Mid-Term Management Plan for 2018

Unit: 100 million yen

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4

980

140 138 130 148 145 165180

ReleaseNov.2017

ReleaseMay2017

ReleaseMay2017

FY2017 FY2018(Plan)

220 231

1017

275

925

1065

325

975

1125

355

425

1175

2851,200 1,248 1,200

1,3501,480

1,300

1,600

Laundry business addition

Mid-Term Management Plan for 2018

Comparison with figure released in FY2017

Unit: 100million yen

Year of release FY2017 FY2018Overseas salesJapan salesOperating profit

Result Present plan

Present plan

Present plan

FY2019(Plan) FY2020(Plan)

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5.Laundry Business

MIURA CO.,LTD. All Rights Reserved. 21

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INAX Inamoto’s future

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5 Laundry Business

×<MIURA Group><INAX Inamoto>

Leading company ofcommercial cleaning equipment

We will contribute to creating a society that is environmentally friendly and ways of living that are clean and comfortable through our work in the field of the Energy,Water, and Environment.

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23MIURA CO.,LTD. All Rights Reserved.

5Typical customers

Laundry Business

・Railroad/airline company・Taxi company・Building material company・Livestock company・Sugar manufacturer

Dry cleaning Hotel linens-supply

Hospital bedding

Diaper or wet towel rental Dust control

In-house equipment

Coin-operated laundry

Textile processing Uniforms

Laundry cleaning of ordinary households

・Suit・Shirt・Skirt・Dress

Rental &cleaning

・Sheets・Towel・Pillowcase・Yukata

・Blanket・Wiping cloth・Patient’s garment・Mattress

Rental & cleaning・Wet towel・Diaper

Facility-dedicated washing

equipment・Welfare facility・Bath facility・Workwear・Brewery・Medical institution

Rental & cleaning・Mop・Door mat・Roll towel・Workshop rag

Dyeing, stonewashing, etc.・Jeans・Socks・Stockings

Rental & cleaning

・Surgical/nursing gown・Car manufacturing factory・Semiconductor factory・Food factory・Restaurant・Conveniencestore

Others

Rental & cleaningof textile products,

building materials, etc.・Coin-operated laundry store

Washer/dryer

Rental & cleaning

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5Domestic market share of commercial cleaning equipment*As of March 2018

INAX InamotoApprox. 50%

Tokyo Sensen Kikai Seisakusho

Approx. 30%

Asahi Seisakusho

Approx. 20% ・The largest manufacturer of commercial cleaning equipment・Domestic top share (50%) of large commercial washer and its related equipment・Appealing products・Solutions-oriented sales・Japan’s largest maintenance system in the industry

“Engineering” and “Maintenance” for large-scale linens-supply factories and cleaning

factories

Laundry Business

Page 26: MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of the business results, etc., described in this material is based on information that

Provides rental linen items and washes them after use

Combined service of rental & cleaning

Difference between cleaning and linens-supply

25MIURA CO.,LTD. All Rights Reserved.

Laundry Business5

Cleaning

ContractorHotel,

restaurant, etc.

Linens-supply

companyWashing,

finishing, & management

Delivery

Collection

<Advantages>① The fund for linens procurement is not required.② Inventory management is not required.→Reduction of labor costs and stock spaces③ Massive washing & hygienic finishing

Washes goods in terms of general cleaning

Linens-supply

CleaningWelcome!

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5Main demand of linens-supply

Laundry Business

Business category Demand

Rental of hotel bedding, towels, etc.

Rental of hospital bedding, etc.

Rental of cleaning mop, floor cloth, door mat, etc.

Hotel linens

Hospital linens

Dust control goods

Page 28: MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of the business results, etc., described in this material is based on information that

Linens-supply factory

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5 Laundry Business

Video Approx. 5 min.

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Typical linens-supply factory and main products

Dirty zone Sorting

Gray zoneWashing

Clean zoneDryingFinishing/inspection

Assembling zone

Tunnel washerLarge dryer

Extraction

Extractor

Ultra-high pressure extraction largely saves drying costs.

Short time drying with horizontal opposed heated air flow system (Patented)

Energy saving operation software installed (steam consumption reduced by 24% max. compared with our earlier model)

Shipping Zone Receipt Collecting linens from hotels, hospitals, etc.

Sorting by item type

Automatically-controlled large washerFinishing and

automatic foldingRewashing or replacement of items

Sorting and assembling items for each customer

Loading onto delivery trucks and shipping

Specialized large dryer

Linen factory

5 Laundry Business

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Roll ironerSteam Steam

Steam

Flexible compartment according to the volume of laundry

Delivery

Shipping preparation

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Main product: Tunnel washer

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5 Laundry Business

Massive washer at a linens-supply factory

<Features>① Hygienic thanks to use of high-temperature cleaning

in washing process ② Washing up to 60 kg of clothing per batch for 2 to 3

minutes continuously③ Water saving thanks to rinse water recycling④ Compact design

Tunnel washer

Yamanote line train

Total length: 17.8 m

Total length: 20.0 m

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5Solution for challenging problem in linens-supply factory

Laundry Business

Problem in linens-supply factoryWashing machines are too large for factory spaces.

Wet laundry items such as sheets are too heavy to handle.

Much laundry needs considerable labor and time.

Washing method differs according to the category of business(e.g. Food industry, manufacturing industry, medical industry, etc.)

Energy saving

Labor saving Automating

INAX Inamoto’s specialty”Engineering” totally solves problems!

What a heavy sheet!Too many・・・Do

I have to work overtime?

Suggestion regarding new establishment/renovation of factory, manufacture, installation, and operation regarding equipment, as well as

after-sales follow-ups

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Engineering improves productivity!

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5 Laundry Business

Sorting

Washing &

Extraction

DryingSorting &Inspection

Shipping preparation

Linens-supply factoryBoiler room

Staffing

Flow of goods

Equipment and systems optimal for limited spaces

Calculation ofrequired steam amount

Optimal peripheral equipment selection

Efficiency improvement of labor and workflow enables massive processing in a short time.

Productivity increase & energy saving by fuel cost cut

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Meticulous follow-ups *As of March 2018

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5 Laundry Business

Maintenance offices 10 locations

INAX Inamoto: 18 locationsMIURA: 100 locations

Our 24 customer service centers respond to you 24/7.

*Separate 8 sales offices (including the Head office in Tokyo)*Hakusan factory and Hakusan technical center in Ishikawa pref. are not included above.

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Mid-term management of laundry business

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5

175 170 185

195

100

125

150

175

200

March 2018 March 2019 March 2020 March 2021

(Unit: 100 million yen) Sales

Laundry Business

<Growth factor>・Foreign tourist increase attributing to the government’s tourism nation promotion policy・Demands of factory capacity expansion and new facility installation regarding international competitions

The cabinet of the Japanese government approved the “Tourism Nation Promotion Basic Plan” to boost inbound tourism consumption.

Item Target from 2017 to 2020 2015 resultJapanese domestic travel expenditure 21 trillion yen 20.4 trillion yenNumber of international visitors 40 million 19.74 millionTravel expenditure of international visitors 8 trillion yen 3.5 trillion yenNumber of repeaters out of international visitors 24 million 11.59 millionNumber of total guests out of international visitors inrural areas

70 million person-nights 25.14 million person-nights

Source: Internet site of the Japan Tourism Agency of the Ministry of Land, Infrastructure, Transport and Tourism

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Overseas prosperity in the future

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5

164 171 177 192 206

280321

350

409

488

404458

517

617

741

150

250

350

450

550

650

750

2010 2013 2016(Forecast)

2019(Forecast)

2022(Forecast)

(Unit: 100 million yen)

Demand for commercial cleaning equipment

Japan China

Others

<Others*>・Living standard improvement

<China>・Elder care facility increase due to proportional increase of elder people・Living standard improvement

<Japan>・Elder care facility increase due to proportional increase of elder people・Foreign tourist increase

Laundry Business

*Australia, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, and ThailandNote 1: Global Industry Analysts' estimateNote 2: Displayed in yen. 1 USD = yen 111.4 at the exchange rate of the end of April 2017Source:COMMERCIAL LAUNDRY MACHINERY - A GLOBAL STRATEGIC BUSINESS REPORT 06/16 (Global Industry Analysts, Inc.)

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6.MIURA’s New Showroom

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“Total solutions” for customers all over the world

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MIURA’s New Showroom6

Construction started: March 2017Completion: May 2018Total construction costs:Approx. 2.2 billion yen

・Equipment exhibition・Introduction of our history and founder Tamotsu Miura・Theater room, etc.

・Boiler demonstration room・Soft water experience・CSR initiatives, etc.

Building areaShow room building: Approx. 400 ㎡West unit: Approx. 1,200 ㎡Architectural areaShow room building: Approx. 770 ㎡West unit: Approx. 4,600 ㎡

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Total solutions

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6

Utility equipment

Production equipment

Boiler

Steam Food equipment

Medical equipment

Water treatment equipment

Marine equipment

Laundry equipment

Special boiler

Marine boiler

Unused heatWasted hot

water

Water for boiler, etc.

Air compressorBoiler feed

water heating unit

Closed condensate

recovery system

Effective energy

utilization equipment

MIURA’s New Showroom

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7.Reference

MIURA CO.,LTD. All Rights Reserved. 38

Page 40: MIURA Growth Strategy · 4 Mid-Term Management Plan for 2018 16 6 35 5 21 The future prospects of the business results, etc., described in this material is based on information that

History

39

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1959 1970 1980 1990 2000 2010 2017

1991

2004

(Million yen)

1978

Online maintenance started1986

2009

MI system sale begun

1989

ZMP contract

introduced19741972

(FY)Initial period of boiler business

Growth period of boiler businessInitial period of

diversified business

1959 Incorporation. Full scale production of the Z boiler began.1972 Development of high efficiency boiler. ZMP Contract started.1974 Development of gas-fired boiler with Tokyo Gas Company1977 Commercialization of the MI (Multiple Installation) system1978 Diversified business started1982 Listed shares on the 2nd Section of the Osaka Securities Exchange1984 Listed shares on the 2nd Section of the Tokyo Stock Exchange1986 Patent received for the MI system

1989 Listed shares on the 1st Sections of the Tokyo and Osaka Stock ExchangeDevelopment of AI controlled boiler and ZIS Online Maintenance begun

1991 Development of low NOx boiler

2004 Sale of SQ-2500ZS, the world’s first gas-fired boiler with an NOx value of 25 ppm begun

2009 50th Anniversary. Launch of the SQ-7000Z, high pressure steam boiler.2017 Acquisition of a laundry business company

MI system patented

1977

19841982

F Y 2 0 1 8 s a l e s t a r g e t : 1 3 5 b i l l i o n y e n !

7

Initial period of the Best Partner Strategy

Rearing period of globalization

Growth period of total solution and globalization

Acquisition of a

laundry business company

2017

Reference

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Once-through boiler Water tube boilerFire tube boiler

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Types of boilers — Same capacity

Reference7

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Human activities MI system(Multiple installation) Large boiler

Day

time:

Hig

hlo

adN

ight

tim

e:Lo

wlo

ad

Fire tube boiler

Operation regardless of load

Only required number of boiler in operation

Once-through boilers

◎ Higher efficiency × Poor efficiency

Merit of Once-through Boiler

MIURA CO.,LTD. All Rights Reserved. 41

Reference7

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Small capacity boilers in MI system

MIURA MI (Multiple Installation) SystemProvides steam of required amount when needed, reducing operation costs and emission of CO₂ and NOx.

Energy Saving Space Saving Labor Saving Low pollution

Same water content even if the number of potatoes reduced

Water content reduced when the number of potatoes reduced

3 pcs

1 pc

One large capacity boiler

Why is MI system efficient?

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Reference7

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In 1986 MI system patentedMI system

・Energy-saving・Space-saving・Labor-saving・Low pollution

Provide steam when needed and only when needed, low operation costs and reduction of CO2 and NOx.

(Multiple Installation system)Once-through boiler design makes energy savings a reality.

MIURA CO.,LTD. All Rights Reserved. 43

Reference7

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44

What is ZMP Contract?Period

3 time inspections per year

Free replacement

Update every 3 years 5 terms (15 years)

Remedy for sudden troubles

Free replacement parts

Anomaly perception

Trouble factor check in advance

Water analysis Online maintenance

Customers’ safety &

relief

Early recovery

Contents

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Online Maintenance

Much more effective, easier maintenance work

Maintaining high profitability with “IoT” for 29 years

UserMonitoring

Troubleshooting via Telephone (Data

collection/analysis)

Remote monitoring Visit

Trouble factor grasped

Preparation in advance

Early recovery

45MIURA CO.,LTD. All Rights Reserved.

Reference7

Approx. 60,000 unitsunder contract

*Including equipment other than boiler

(As of April 2018)

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Boiler Lifespan and MIURA Business Model

Product sales

Maintenance and chemical sales

Continuous cash flow

Not only the product sales, but maintenance & consumables sales

High quality product

+Reliable

maintenance

Securing repeat customers +

Good relationship with customer

Assuming a boiler has a lifespan of 15 years,

Sales result 1,000 100 100 100 100 100 100 100 100 100 100 100 100 100 100

1st 2nd 3rd 4th 15th・・・

No effect of economic fluctuations

Additional sales of MIURA products other than boiler

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Reference7

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47

Product sales40.6%

Product sales61.1%

Maintenance59.0%

Maintenance27.8%

0% 20% 40% 60% 80% 100%

Profitratio

Salesratio

7

MIURA CO.,LTD. All Rights Reserved.

Laundry

11.1%

Laundry

0.4%

MIURA Maintenance

Network

Offices Approx. 100 offices

Service Engineers Approx. 1,100 engineers

*The whole MIURA group as of March, 2018Maintenance Brings Profits

Reference

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Mid & Long Term Management StrategyDomestic

① Total solution・Improving energy efficiency all over the factory & plant all equipped with MIURA products achieving one-stop maintenance

② BWMS・Obtaining USCG type approval ・Taking full advantages of our

technology, maintenance,and customers’ trust in MIURA

Overseas① Deployment of our

Japanese business model・Appealing advantages of MI

system and suggesting energy-saving boiler system

・Globalizing MIURAboiler while increasing installation

② Coal-fired boiler replacement in China

・Introducing gas-fired boiler technology in Japan to meet legal requirements on the fuel shift from coal to gas regarding serious air pollution in China which have been tightened

・Expanding maintenance network to provide maintenance as in Japan

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Domestic share

・NIPPON THERMOENER CO., LTD・IHI PACKAGED BOILER CO.,LTD・Hirakawa Corporation

Competitors・NIPPON THERMOENER CO., LTD・IHI PACKAGED BOILER CO.,LTD・Hirakawa Corporation

・NIPPON THERMOENER CO., LTD・IHI PACKAGED BOILER CO.,LTD・Hirakawa Corporation

CompetitorsCompetitors

Domestic boiler market

Total amount of steam output

Approx.150K t/h

(*) Estimated value

Others

Total amount of steam output of

the marketApprox. 200K t/h

(*) Estimated value

Fire tube boiler

Water tube boiler

74%

MIURAShare No.1 57%

(Note) The share of once-through boilers is based on MIURA’s investigation and the actual results may differ from that.

Once-through boiler

9%17%

Domestic once-through boiler market

*Boilers for power generation excluded(Based on an in-house investigation, September 2017)

49

“Once-through-ism” movement

・SAMSON CO.,LTD.・Kawasaki Thermal Engineering Co., Ltd.・YOSHIMINE CO.,LTD.

Once-through boiler

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50

Improve energy efficiency

throughout the factory

Unutilized heatRecoveryequipment

Steam drivenair compressor

Exhaustgas boiler

Water treatment equipment

Food processing equipment

Medical equipment

Marine boilersBallast water managementsystem

Laundryequipment

Maximize efficiency in Boiler

Other than Boilers

Marineequipment

What will we offer for the matured market in Japan?

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Ehime Prefectural Central Hotel~Preparation for Emergencies regarding BCP (Business continuity planning)~

Fuel selectable boiler

Filtration equipment

Vacuum-boiling washer

Vacuum cooler

Toughness against disaster

Improved efficiency in cure &

care

Fully-equipped medical

treatment

Steam sterilizer system

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Reference7

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Convenience store

Total solution for food processing

equipment

Defrosting

Water-cooling

Cooking

Cooling Sterilizing

Food

Hospital

School

Nursing home

Total solution in food factory

Vacuum coolerIce storage

water cooler

Saturatedsteam cooker

Steam kettle

Vacuum defroster

Retort sterilizer

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Aquatic organisms

transferred from the

port of unloading to

that of loading

Environmental problems such as ecosystem destruction

“Ballast water” is the seawater taken into a ship’s tank to provide stability to the ship.

3 to 4 billion ton seawater

transferred per annum

Noload

Aquatic organisms

Waterfilled

Ballast tank

Water discharged

Fullload

53

The Ballast Water Management Convention (adopted in 2004)

→Installation of ballast water treatment equipment is obliged

Obligatorysince Sep. 2019

Obligatorysince Sep. 2017

Newly built ships

Existing ships

Ballast water problem “A new market born”

Port of loadingPort of unloading

Ecosystemdestruction

Reference: document issued by the MLIT

Sailing

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54MIURA CO.,LTD. All Rights Reserved.

7

ASEAN177,100 t/h

Boiler market share *Based on total amount of steam output(Based on an in-house investigation, March 2018)

Mainly Large, Low-efficiency boilers

80% of the market is coal-firedboilerswhich is rapidly switching over to natural gas.

Reference

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※As of March 2018

PhilippinesExpands our support area from Manila to remote islands.

MARUSE ENGINEERING(V)CO.,LTD.Establishes offices in major cities.

PT. MIURA INDONESIA

Handles exports to ASEAN.

7

55MIURA CO.,LTD. All Rights Reserved.

MIURA's Network

5 Factories95 Offices

1 Factory5 Offices

1 Factory116 Offices

MIURA BOILER BRAZIL LTD.Started manufacturing in March 2016.

MIURA BOILER MEXICO S.A. DE C.V.Provides solutions for the Mexican domestic market.

MIURA CANADA CO.,LTD.Provides solutions for the North American market.

MIURA AMERICA CO.,LTD.Handles North America market and exports to Central America.

KOREA MIURA CO.,LTD.Handles Korean domestic market and exports to Russia and CIS countries.

MIURA TAIWAN CO.,LTD.Handles Taiwan market and export to ASEAN.

MIURA INDUSTRIES(CHINA)CO.,LTD.Handles Chinese domestic market and exports to ASEAN.

MIURACO.,LTD.

MIURA NETHERLANDS B.V.Provides our services to ship owners in Europe.

RussiaHandles not only Russia domestic market but also exports to GOST countries.

MIURA TURKEY HEATING SYSTEMS INDUSTRY CO.,LTD.Looks toward the European and CIS country markets.

Sri LankaProvides sales and maintenance services through appointed dealers.

BangladeshProvides sales and maintenance services from Dhaka.

MIURA INDUSTRIES(THAILAND)CO.,LTD.Provides solutions for the Thai domestic market.

MIURA SINGAPORE CO PTE.LTD.An ASEAN hub office

MalaysiaHandles exports to ASEAN countries.

1 Factory37 Offices

1 Factory3 Offices

1 Factory10 Offices

3 Offices

1 Factory1 Office

3 Offices

1 Factory2 Office

1 Office

1 Office

2 Office

1 Office

1 Factory4 Offices

1 Office1 Office

MyanmarExpands our support area from Yangon area.

CambodiaSells products from Thailand and provides maintenance servicesthrough local dealers.

Reference

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MIURA CO.,LTD.Management Planning Department

TEL 089-979-7045FAX 089-979-7011

URL http://www.miuraz.co.jp

Contact

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