Marubun Corporation · TSE:7537
Marubun — Q2 FY2024 Earnings Presentation
42 slides from Marubun's earnings presentation, November 2024
Slide 1: Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2025
Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2025 November 2024 © 2024 MARUBUN CORPORATION
Slide 2: Agenda
Agenda 1. 2Q FY2024 Summary of Consolidated Financial Results 2. FY2024 Summary of Consolidated Financial Forecasts 3. Shareholder Returns 4. FY2022-2024 Medium-term Business Plan Initiatives 5. About Marubun © 2024 MARUBUN CORPORATION 1
Slide 3: 1. 2Q FY2024 Summary of Consolidated Financial Results
1. 2Q FY2024 Summary of Consolidated Financial Results © 2024 MARUBUN CORPORATION
Slide 4: 2Q FY2024 Summary of Consolidated Financial Results
2Q FY2024 Summary of Consolidated Financial Results 2Q FY2023 2Q FY2024 ▶ Net sales decreased due to a YoY Forecast Previous decrease in overall demand, Composition Composition Changes Contrast （Millions of Yen） Actual Forecast Actual including semiconductors for Ratio Ratio （May 10） consumer equipm
Slide 5: 2Q FY2024 Performance Summary by Business
2Q FY2024 Performance Summary by Business ▍ Electronic Devices Business 2Q FY2023 2Q FY2024 YoY Changes ▶ Decrease in semiconductors for (Millions of Yen) consumer equipment, PC and △24,535 computer peripherals, and Net sales 99,352 74,817 (△24.7%) automobiles ▍ Electronic Systems Business (Millions
Slide 6: 2Q FY2024 Electronic Devices Business Net Sales Breakdown by Product Category
2Q FY2024 Electronic Devices Business Net Sales Breakdown by Product Category (Millions of Yen) Reasons for changes 99,352 Electronic Components（△298） 17,604 – Same level as previous year 74,817 10,076 Custom IC（△3,815） – Decrease in PC and computer peripherals 17,306 Special-Use IC（△10,916） 31,545
Slide 7: 2Q FY2024 Electronic Devices Business Market Trend by Application
2Q FY2024 Electronic Devices Business Market Trend by Application Reasons for Changes 3% 4% 12% 8% Communication Equipment （+1point） – Same level as previous year 19% 22% Computer ＆ Office Equipment （△4points） – Decrease in demand from data centers 20% 18% Industrial Equipment & Other（+3points） – Th
Slide 8: 2Q FY2024 Electronic Systems Business Net Sales Breakdown by Product
2Q FY2024 Electronic Systems Business Net Sales Breakdown by Product (Millions of Yen) Reasons for changes 23,538 22,807 Medical Equipment（△772） – Decrease in radiation therapy equipment 9,186 8,414 Laser Equipment（△293） – Decrease in light source components 3,049 2,756 Industrial Equipment（△305） –
Slide 9: 2Q FY2024 Electronic Solutions Business Net Sales Breakdown by Product
2Q FY2024 Electronic Solutions Business Net Sales Breakdown by Product （Millions of Yen） 957 Reasons for changes 52 838 AI・Robotics（+19） 33 – Same level as previous year ICT Solution（+101） – Increased in time synchronization solutions 905 804 2Q FY2023 2Q FY2024 © 2024 MARUBUN CORPORATION 8
Slide 10: 2Q FY2024 Summary of Balance Sheets
2Q FY2024 Summary of Balance Sheets （Millions of Yen） FY2023 2Q FY2024 Changes Amount ▶ Total assets decreased by 200 Total assets 174,120 173,835 △284 million yen compared to the Current assets 162,616 160,720 △1,895 end of the previous fiscal Cash and deposits 23,823 21,333 △2,489 year. Notes and
Slide 11: Reference: Mechanism of Accounting Recognition for FX Gains/Losses under J-GAAP
<Reference> Mechanism of Accounting Recognition for FX Gains/Losses under J-GAAP ▶ I. Our policy for addressing FX (foreign exchange) risk ・ Since the majority of our purchases are denominated in US dollars (USD), we employ a "natural hedge" method for our corresponding sales denominated in USD, the
Slide 12: 2. FY2024 Summary of Consolidated Financial Forecasts
2. FY2024 Summary of Consolidated Financial Forecasts © 2024 MARUBUN CORPORATION
Slide 13: FY2024 Summary of Consolidated Financial Forecasts
FY2024 Summary of Consolidated Financial Forecasts FY2023 FY2024 ▶ Revised the financial forecasts YoY Forecast Previous Current announced on May 10, 2024 Composition Composition Changes Contrast （Millions of Yen） Results Forecast Forecast Ratio Ratio ▶ Net sales are expected to fall (May 13) (Oct 3
Slide 14: 2Q FY2024 Summary of Business Forecast by Business Segment
2Q FY2024 Summary of Business Forecast by Business Segment ▍ Electronic Devices Business FY2023 Actual FY2024 Forecast YoY Changes ▶ Following the first half of the (Millions of Yen) current fiscal year, sales of Segment △29,811 semiconductors for consumer Net Sales 179,011 149,200 equipment, PC and
Slide 15: FY2024 Electronic Devices Business Net Sales Forecast Breakdown by Product Category
FY2024 Electronic Devices Business Net Sales Forecast Breakdown by Product Category (Millions of Yen) Reasons for changes 179,011 Electronic Components（△1,001） 33,840 149,200 – Same level as previous year Custom IC（△5,333） 16,085 – Decrease in PC and computer peripherals 32,839 Special-Use IC（△11,95
Slide 16: FY2024 Electronic Systems Business Net Sales Forecast Breakdown by Product Category
FY2024 Electronic Systems Business Net Sales Forecast Breakdown by Product Category (Millions of Yen) Reasons for changes 57,800 54,941 Medical Equipment（+196） – Same level as previous year 23,195 22,999 Laser Equipment（+1,036） – Increase in laser diodes and laser material processing systems 7,299 6
Slide 17: FY2024 Electronic Solutions Business Net Sales Forecast Breakdown by Product Category
FY2024 Electronic Solutions Business Net Sales Forecast Breakdown by Product Category （Millions of Yen） Reasons for changes 3,000 AI・Robotics（+185） 301 – Increase in AI-equipped robots 2,536 116 ICT Solution（△279） – Increase in time synchronization systems 2,699 2,420 FY2023 FY2024 © 2024 MARUBUN CO
Slide 18: 3. Shareholder Returns
3. Shareholder Returns © 2024 MARUBUN CORPORATION
Slide 19: Shareholder returns
Shareholder returns The basic dividend policy of the Company shall be the continuous and stable distribution Dividend of dividends, targeting a consolidated payout ratio of 40% or dividend on equity ratio policy (DOE) of 2.5%, whichever is higher. Dividend for FY2024: Annual dividend of 52 yen plann
Slide 20: 4. FY2022-2024 Medium-term Business Plan Initiatives
4. FY2022-2024Medium-term Business Plan Initiatives © 2024 MARUBUN CORPORATION
Slide 21: Medium-Term Business Plan Marubun Nextage 2024
Medium-Term Business Plan「Marubun Nextage 2024」 ▶ Carry out initiatives towards sustainability, construction of business foundation and internal process improvement while pursuing three business growth policies Basic Policy of Marubun Nextage 2024 Basic Policies Business Growth Policies Push forward
Slide 22: Growth Policies in Individual Businesses
Growth Policies in Individual Businesses ▶ Seek to produce synergy between business segments while conducting efforts in individual business segments Electronic Devices Electronic Systems Electronic Solutions Business Business Business ▶ Position as "foundation ▶ Position as "growth driving ▶ Positi
Slide 23: Progress and Outlook for FY2024
Progress and Outlook for FY2024 ▶ The sales target set in the medium-term business plan is not expected to be achieved in the Electronic Systems Business and Electronic Solutions Business, but it is expected to be achieved overall because the Electronic Devices Business will make up for these shortf
Slide 24: Review and Initiatives on Electronic Devices Business
Review and Initiatives on Electronic Devices Business ▍Review of first half of FY2024 and full-year forecast Trend in net sales （Millions of Yen） First half Second half ▶ Net sales have remained in a phase of inventory adjustment, mainly for industrial Target under the medium-term equipment, since t
Slide 25: Review and Initiatives on Electronic Systems Business
Review and Initiatives on Electronic Systems Business ▍Review of first half of FY2024 and full-year forecast Trend in net sales Target under ▶ Net sales in the Space and Defense sector increased following expansion of defense the medium-term （Millions of Yen） First half Second half business plan and
Slide 26: Review and Initiatives on Electronic Solutions Business
Review and Initiatives on Electronic Solutions Business ▍Review of first half of FY2024 and full-year forecast Trend in net sales First half Second half Target under ▶ We promoted development of our unique cloud services, and the launch of AI robots （Millions of Yen） the medium-term business plan an
Slide 27: Publication of MARUBUN REPORT 2024
Publication of MARUBUN REPORT 2024 ▶ We have published the Marubun Report 2024, the Group's first integrated report, for all stakeholders, including shareholders and investors. We describe the strengths of our value creation models and value chain in order to deepen stakeholders’ understanding of Ma
Slide 28: Company Profile
Company Profile Profile Business Domains Electronic Devices Electronic Systems Electronic Solutions Founded 1844 Business Business Business Semiconductors Space & Defense ICT Solution Incorporated July 1947 Electronic Equipment AI ＆ Robotics 8-1, Niihonbashi Odenmacho, Components Industr
Slide 29: Corporate History
Corporate History Japan Overseas 2022 Moved to the Prime Market due to a review of the Tokyo Stock Exchange's market classification 2014 2008 Established subsidiary in Indonesia and Mexico First electronics trading company to be certified as a authorized exporter 2013 2007 Established subsidiary in
Slide 30: Group Company
Group Company Marubun Tsusho Marubun/Arrow Asia, LTD. MARUBUN/ARROW USA, LLC Co., Ltd. Electronic Systems Business Electronic Devices Business Electronic Devices Business Sales of medical equipment and test Sales of semiconductors and electronic Sales of semiconductors and electronic and measu
Slide 31: Japan Officers & Affiliates
Japan Officers & Affiliates Marubun Tsusho Co.,Ltd. (HQ: Kanazawa City） Kanazawa Nagano # of Marubun Offices：16 HQ Sales Office Toyama Hakusan Center # of Logistics Center ： 3 Operations Logistics Center Fukui Nanao # of Affiliates ： 3 Matsumoto Tokyo Branch Affiliated Company Kofu
Slide 32: Global Network
Global Network Marubun/Arrow Electronics (Shenzhen) Company Limited（Shenzhen, China） Marubun USA Corporation Reno Office Marubun/Arrow (HK) Ltd.（Hong Kong, China） Marubun/Arrow USA,LLC （Head Office: Centennial） Itasca Office Plymouth Office Marubun/Arrow (Thailand) Co Ltd MARUBUN CORPORATION （Bangko
Slide 33: Philosophy & Principles
Philosophy & Principles Purpose Contribute to a brighter future through technologies. Be the unrivaled and most trusted electronics trading company with Vision unique and original values. Looking forward and staying ahead, address societal themes and Mission solve customers’ issues by leveraging the
Slide 34: Business segments
Business segments ▶ Marubun’s six functions provide consistent support to our volved customers for their procurement, manufucturing and all relevant operations. ▶ As an electronics trading company, we provide solutions that directly benefit our customers in most optimized manner. © 2024 MARUBUN CORP
Slide 35: Main Products (by Supplier) - Electronic Devices
Main Products(by Supplier) -Electronic Devices- Semiconductors Electronic components Electronic Electrical Items Analog IC Memory IC Microprocessor Special-use IC Custom IC Other Components Equipment IoT, Analog, Sensor, Flash Memory, MPU, MCU, Custom, Display, Crystal Devise, Power supply, Board PC
Slide 36: Main Products - Electronic Systems
Main Products -Electronic Systems- Segment Major products Major supplier Space and Defense Electronics SAAB AB、Textron Systems、 Naval ESM System, Boresight calibration system, L3Harris Technologies Telemetry & RF Products、 Avionics equipment Telemetry processing/acquisition system, Tracking antenna,
Slide 37: Main Products - Electronic Solutions
Main Products -Electronic Solutions- Segment Major products Major supplier ICT Solutions Microchip Technology、Spirent Communications、HUBER+SUHNER ICT Solutions RF・IP communication, GNSS Positioning, Network Sychronization, Secuirty, IoT Polatis、Coherent、Calnex Solutions、PCTEL、Accedian、Ranplan Wirele
Slide 38: Quarterly Trend in Sales by Business
Quarterly Trend in Sales by Business （Millions of Yen） 63,314 507 60,414 330 55,785 56,975 1,100 597 12,837 10,700 50,788 389 11,285 47,794 567 20,117 9,781 Electronic Solutions Business 13,026 Electronic Systems Business Electronic Devices Business 49,383 49,969 43,901 40,618 35,757 34,199 1Q 2Q 3Q
Slide 39: Quarterly Trend in Sales of Electronic Devices by Product
Quarterly Trend in Sales of Electronic Devices by Product （Millions of Yen） 49,383 49,969 8,585 43,901 9,018 40,618 3,033 8,182 35,757 Electronic Components 7,042 8,265 34,199 2,633 Custom IC 8,053 3,317 Special-Use IC 17,461 9,041 14,084 13,982 3,375 Micro-Processor 12,168 2,944 Memory IC 2,092 9,6
Slide 40: Quarterly Trend in Sales of Electronic Systems
Quarterly Trend in Sales of Electronic Systems （Millions of Yen） 20,117 9,253 12,837 13,026 11,285 Medical Equipment 10,700 4,791 9,781 4,928 Laser Equipment 1,980 4,558 Industrial Equipment 4,395 3,486 Space & Defense Electronics 1,379 1,849 1,232 907 1,670 7,061 5,196 4,784 4,407 4,007 3,899 1,470
Slide 41: Quarterly Trend in Sales of Electronic Solutions
Quarterly Trend in Sales of Electronic Solutions （Millions of Yen） 1,100 32 AI & Robotics 597 ICT Solution 567 507 49 34 1,067 12 389 330 18 20 548 534 495 371 309 1Q 2Q 3Q 4Q 1Q 2Q FY2023 FY2024 © 2024 MARUBUN CORPORATION
Slide 42: Cautionary Statement
Cautionary Statement Information on future performance contained within this presentation material, such as the results forecasts, is based on the data available and assumptions judged to be reasonable as of when the Company prepared this presentation material. Contact MARUBUN CORPORATION CORPORATE