DAIHATSU DIESEL MFG. CO., LTD.

Fiscal Year Ended March 31, 2020

Financial Results Briefing
May 2020

Sales Breakdown/Market Share
Sales Breakdown
Business

Internal combustion engines

SectionMarine-use

Application

Auxiliary power
generators

Other

6％

Land-use

18％

Main
propulsion systems

20％

94％

82％
80％

Market Share (Auxiliary Engines for Large Ocean-going Vessels)〈Share in Japan〉〈Overseas market share〉

DAIHATSUDIESELDAIHATSUDIESEL%%

50232

DAIHATSU DIESEL MFG. CO., LTD.

Remarks on Earnings

POINT

Stable capture of earnings overlife-cycle (30 years)▶Post-voyage maintenance services are key.
▶Cumulative total of engine units (number ofships carrying our engines) is decisive.

Sales by Horsepower(10,000 hp)

March March March March March March March March March March March March March March March March
2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

*Does not include technological partners in China

3

DAIHATSU DIESEL MFG. CO., LTD.

Strengthening Business in the After-sales-service
Market/Overseas Strategy (Licensing)
10 years ago Sales approx. ¥15.0 billion

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

Issuesfor thefuture

NowMajor
increase

Sales approx. ¥26.0 billion

Shifting to the offensive
Creation of sales teams specializing inparts
Launch of strategic sales targeting shipowners and ship-managers in the aftersales-service market

Genuine parts usage ratio is approx. 50%.
Scope exists for increasing this rate.
▶ Strategic deployment of CMAXS system.

Licensing (in China)

Anqing CSSC Diesel Engine Co., Ltd.

Anqing Diesel

Contract partner since 1982

Anhui Province, China(Yangtze River Basin, 600 km from Shanghai)

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

SHAANXI DIESEL ENGINE HEAVY
INDUSTRY CO., LTD.

Shaanxi Diesel

Expand market share of DAIHATSU
brand

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

4

DAIHATSU DIESEL MFG. CO., LTD.

Market Trends for Newbuild Vessels
Source: The Shipbuilders’ Association of Japan

Volume of orders received, by country(Unit:Thousandtons)

JapanKorea
China
World total

2017
２，８３０（ ７％）
１８，５００（４３％）
１５，２００（３５％）
４３，２００2019
６，７１０（１６％）
１７，３７０（４２％）
１３，６６０（３３％）
４１，４９０(Unit:Thousandtons)

160,000

Other countries total
European countries total

350,000

300,000

China
120,000

100,000

Japan
Korea
China
World total

2017
３０，４１０（２１％）
３５，４５０（２５％）
５６，５３０（３９％）
１４３，６９０2018
３１，２７０（２１％）
４４，９３０（３０％）
５４，１４０（３６％）
１５０，９７０2019
２２，５５０（１７％）
４０，７６０（３１％）
５０，３２０（３８％）
１３２，０７０

400,000

180,000

140,0002018
１０，３１０（２０％）
２３，１１０（４６％）
１３，０８０（２６％）
５０，４００Volume of work in hand, by country

South Korea

Other countries total
European countries total
China

250,000

JapanSouth Korea
Japan

200,000
80,000150,000
60,00040,000100,000

50,00020,00000Orders 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

5DAIHATSU DIESEL MFG. CO., LTD.

Market Trend for Marine Cargo
Global ocean cargo volumes, by product

Global shipping capacity(Unit: Thousand tons)(Unit: Million tons)

1,400,000

12,000

Other

Crude oil

10,000Compared to 2000

The average increase
rate of + 3.5% / year

Petroleum productsContainers

Bulk carriers

Grain

1,000,000

Coal

8,000

109% increase

1,200,000

Iron ore

Tankers
Other（cargo vessels, etc.）

800,000

6,000

600,000

4,000
400,000

2,000

200,000

0
2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

0(Estimate)

Source: The Shipbuilders’ Association of Japan

Increasing trend in shipping capacity in line with increase in ocean cargo volume→ stable increase in maintenance demand expected6DAIHATSU DIESEL MFG. CO., LTD.

Fiscal Year Ended March 31, 2020
Summary of Earnings

DAIHATSUDIESELDIESEL MFG.
MFG. CO.,DAIHATSU
CO.,LTD.
LTD.

Summary(Unit: Million yen)

YoY difference

March 2018
Results

March 2019
Results

March 2020
Results

Net sales

60,16657,27060,0872,816

4.9

Operatingincome

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

Basicearnings pershare

65.83

57.11

62.80

5.69

10.0

Total assets

80,96982,51285,5583,045

3.7

Equity ratio

47.0%

47.5％

47.5％

－POINT

Increase/decrease(%)－Engine sales and maintenance-related sales both increased
Profitability in engines remains bleak
Earnings increased due to improved maintenance-related sales

8

DAIHATSU DIESELDIESEL MFG.
MFG.CO.,
CO., LTD.
LTD.
DAIHATSU

Trend of Sales and Earnings
Operating income(Unit: Million yen)

7,000

6,000

5,000

57,01958,934

Ordinary income

Net income

60,166

Net sales
60,08757,27065,00060,00055,000

5,493
5,438

50,000

4,000

3,000

(Unit: Million yen)

45,0003,596

3,498
3,4412,319

2,000

3,104
3,044
2,095

40,000
2,626
2,576
1,818

2,915
2,674
1,996

1,000

35,00030,00025,0000

20,000
16/3

17/3

18/3

919/3

20/3

DAIHATSU DIESELDIESEL MFG.
MFG.CO.,
CO., LTD.
LTD.
DAIHATSUNet Sales and Earnings for the Internal
Combustion Engine Section(Unit: Million yen)

70,00060,00050,000Net sales

Marine-use (Japan)
Land-use (Japan)

56,495688

9,978Internal combustion engine section earnings
Marine-use (Overseas)
Land-use (Overseas)

54,013
1,020
8,544(Unit: Million yen)

6,000

57,2105,295

6598,811

40,00030,00025,081

25,497

4,641

4,579

FY2019FY20204,500

26,19220,00010,00020,747

18,951

21,5470
FY2018POINT

FY20193,000

FY2020FY2018

Sales rose due to an increase in marine-use engine
sales
Profitability deterioration for sales of diesel engine units
continued
10

DAIHATSUDAIHATSU DIESELDIESEL MFG.
MFG.CO.,
CO., LTD.
LTD.

Unit Sales and Maintenance-related Net Sales
Units sold(Unit: Units)

1200

Maintenance-related net sales

Marine-use (Japan)

Marine-use (Overseas)

Land-use (Japan)

Land-use (Overseas)

1000
800

749

825
7284600215258866
68242

400
200

(Unit: Million yen)

30,00025,00024,62725,35026,911

20,00015,00010,0004484925525,000

0FY2018POINT

FY20190

FY2020FY2018FY2019FY2020Total units sold increased
Maintenance-related sales showed signs ofimprovement
11

DAIHATSUDAIHATSU DIESELDIESEL MFG.
MFG.CO.,
CO., LTD.
LTD.

Earnings Forecasts(Unit: Million yen)March 2021

March 2020
Results

Forecast

Net sales

60,087

Operatingincome2,674

Ordinary income

2,915

Net income

1,996

Basic earnings
per share

62.80

Increase/decrease(%)

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

Forecast

The earnings forecasts for FY2021 are pending in view of thecurrent difficulty in reasonably calculating the impact ofCOVID-19. Earnings forecasts will be announced promptly
once reasonable forecasts become possible.
12DAIHATSU DIESELDIESEL MFG.
MFG.CO.,
CO., LTD.
LTD.
DAIHATSU

These materials contain statements relating to future earnings and businessstrategy, 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 undertakenby the Company, and no guarantee is offered regarding the accuracy orappropriateness of such information.
The information contained in these materials is intended only for purposes ofprovision of information, and not for solicitation to purchase securities.

Daihatsu Diesel Mfg. Co., Ltd.