Marubun Corporation · TSE:7537
Marubun — 1H FY3/20 Earnings Presentation
40 slides from Marubun's earnings presentation, November 2019
Slide 1: Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2020
Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2020 November 2019 © 2019 MARUBUN CORPORATION
Slide 2: 1H FY3/20 Summary of Consolidated Financial Results
1H FY3/20 Summary of Consolidated Financial Results © 2019 MARUBUN CORPORATION
Slide 3: 1H FY3/20 Summary of Financial Results
1H FY3/20 Summary of Financial Results (Millions of Yen) 1H FY3/19 1H FY3/20 YoY Changes Initial Forecasts Actual Composition Ratio Initial Forecasts Actual Composition Ratio Amount ％ vs Actual Net sales 166,434 100.0% 140,000 138,703 100.0% (27,731) -16.7% (1,297) Electronic Devices 145,394 87.4% 1
Slide 4: 1H FY3/20 Electronic Devices Business Net Sales Breakdown by Product
1H FY3/20 Electronic Devices Business Net Sales Breakdown by Product (Millions of Yen) 145,394 8,002 4,971 117,020 Increase in connectors for industrial Electronic Components +592 equipment 8,594 2,545 Custom IC (2,426) Decrease by transfer of Samsung business 82,355 Decrease for communication equip
Slide 5: 1H FY3/20 Electronic Devices Business Market Trend by Application
1H FY3/20 Electronic Devices Business Market Trend by Application Application Market Trend Communication Equipment Decrease for communication equipment Automobile Decrease for in-vehicle infotainment Consumer Equipment Contributing to the acquisition of new commercial rights Computer & Office Equipm
Slide 6: 1H FY3/20 Electronic Systems Business Net Sales Breakdown by Product
1H FY3/20 Electronic Systems Business Net Sales Breakdown by Product （millons of Yen） 21,683 21,041 7,143 Medical Equipment +2,003 9,146 Increase in Diagnostic imaging equipment 558 Increase in measuring equipment for 2,243 841 ICT Equipment +283 communication infrastructure 1,922 Laser Equipment (3
Slide 7: 1H FY3/20 Factors Affecting Ordinary Income
1H FY3/20 Factors Affecting Ordinary Income （millons of Yen） Foreign exchange 1H FY3/19 gains / losses 1H FY3/20 617 (247) 2,599 323 Decrease in Other Non-operating Income (3,396) SG&A & Losses Expenses 750 Decrease in Gross Profit Decrease in sales, Decrease in gross profit due to yen appreciation
Slide 8: 1H FY3/20 Summary of Balance Sheets
1H FY3/20 Summary of Balance Sheets (Millions of Yen) FY19/3 1H FY3/20 Changes Reason for change Actual Actual Amount Total assets 128,163 123,182 (4,981) Cash and deposits 8,038 Current assets 113,985 109,167 (4,818) Notes and accounts receivable-trade (3,547) Noncurrent assets 14,177 14,014 (163)
Slide 9: Medium-Term Vision Business Strategies and Key Initiatives
Medium-Term Vision Business Strategies and Key Initiatives © 2019 MARUBUN CORPORATION
Slide 10: Status of Business Initiatives: Corporate Philosophy and Medium-Term Vision
Status of Business Initiatives 1 Corporate philosophy “We contribute to the development of a sustainable society by creating value for our customers by providing our solutions with professionalism.” Medium-Term Vision Development of business models to create new value Promotion of business developme
Slide 11: Status of Business Initiatives
Status of Business Initiatives 2 Responding to changes in the market environment, and promoting the development and strengthening of business bases 5G Security IoT Expansion of high value-added solutions Robots Automobile applications © 2019 MARUBUN CORPORATION 10
Slide 12: Initiatives for Electronic Devices
Initiatives for Electronic Devices Increase our market share and acquire new commercial distribution ➡ Expand customer bases with Cypress Semiconductor and ABLIC Deepening of existing line cards Develop new suppliers to boost and complement product lineups ➡ e.g. Autotalks, GOWIN Semiconductor
Slide 13: Initiatives for Electronic Systems
Initiatives for Electronic Systems Market-in Customer first Customer-in Strengthening Exercising the Enhancing products competitiveness by comprehensive in strategic markets promoting strength of the differentiation Group © 2019 MARUBUN CORPORATION 12
Slide 14: Initiatives for Electronic Systems by Segment
Initiatives for Electronic Systems by Segment Space and Promotion of applications for highly reliable parts in artificial defense satellites and antenna equipment for ground stations electronics Development of automobile simulators and other new products Information Strong sales of 5G communic
Slide 15: FY3/20 Summary of Consolidated Financial Forecasts
FY3/20 Summary of Consolidated Financial Forecasts © 2019 MARUBUN CORPORATION
Slide 16: FY3/20 Financial Forecasts
FY3/20 Financial Forecasts (Millions of Yen) FY3/19 FY3/20 YoY Changes Initial Forecasts Composition Initial Rivised Compositi vs Revised Actual Amount ％ Forecasts Ratio Forecasts Forecasts on Ratio Net sales 326,694 100.0% 291,500 285,000 100.0% (41,694) -12.8% (6,500) Electronic Devices 275,073 84
Slide 17: FY3/20 Electronic Devices Business Net Sales Forecasts by Product
FY3/20 Electronic Devices Business Net Sales Forecasts by Product （Millions of Yen） 275,073 17,305 8,248 233,300 Increase of connector for industrial Electronic Components +2,083 equipment 19,388 5,810 Custom IC (2,439) Decrease by transfer of Samsung business 162,361 Decrease for communication 134,
Slide 18: FY3/20 Electronic Systems Business Net Sales Forecasts by Product
FY3/20 Electronic Systems Business Net Sales Forecasts by Product (Millions of Yen) 51,621 51,700 Increase in Diagnostic imaging 18,359 18,832 Medical Equipment +473 equipment Information and Increase in measuring equipment 1,787 2,322 for communication infrastructure communication Equipment +535 5,
Slide 19: FY3/20 Factors Affecting Ordinary Income (last FY vs forecasts)
FY3/20 Factors Affecting Ordinary Income (last FY vs forecasts) (Millions of Yen) Decrease in Gross Profit FY3/19 FY3/20 Non-operating Losses Actual Forecasts Decrease in SG&A Expenses 1,196 3,020 2,800 (3,467) 732 1,319 Non-operating Income Decrease in sales, Decrease in gross profit due to yen app
Slide 20: Return to Shareholders
Return to Shareholders © 2019 MARUBUN CORPORATION
Slide 21: Return to Shareholders
Return to Shareholders Dividend Policy Dividend on equity (%) Dividend 30% or more 1.9 1.9 1.8 1.6 Payout Ratio (consolidated) 1.3 FY03/15 FY03/16 FY03/17 FY03/18 FY03/19 Dividends Forecast FY3/19 FY3/20 (Yen) (Forecast) Annual Dividend Per Share 30.00 30.00 Interim Dividend 10.00 10.00 Year-End Div
Slide 22: About Marubun
About Marubun © 2019 MARUBUN CORPORATION
Slide 23: Company Profile
Company Profile Profile Business Domains Electronic Devices Electronic Systems Founded 1844 Business Business Semiconductors Space & Defense Incorporated July 1947 Electronics Electronic Components Head Office 8-1, Niihonbashi Odenmacho, Chuo-ku, Tokyo Industrial Equipment Laser Equipment
Slide 24: History of Company Operations
History of Company Operations Japan Overseas 2019 Hokushinrika merged with Marubun Tsusho 2017 2018 Established subsidiary in Hungary KTL Corporatioa merged with Marubun 2014 2016 Established subsidiary in Indonesia and Mexico Business acquisition of KTL Corporation 2015 2013 Business acquisition of
Slide 25: Sales Trend for the Past Years
Sales Trend for the Past 10 Years （Billions of Yen） 4,000 Net sales 70% 3,500 Overseas sales ratio 60% 3,000 50% 2,500 40% 2,000 30% 1,500 20% 1,000 500 10% 0 0% © 2019 MARUBUN CORPORATION
Slide 26: Domestic Offices
Domestic Offices # of Marubun Offices：16 HQ Sales Office Marubun Tsusho Co.,Ltd. # of Logistics Center ： 3 Operations Logistics Center (HQ: Kanazawa City） # of Affiliates ： 3 Matsumoto Kanazawa Hakusan Center Branch Affiliated Company Toyama Nagano Nagano Fukui Nanao Matsumoto Tokyo
Slide 27: Worldwide Sales Network
Worldwide Sales Network Marubun/Arrow (Shenzhen) Electronic Product Consulting Co., Ltd. (Shenzhen, China) Marubun USA Corporation Marubun/Arrow (HK) Ltd. Reno (Hong Kong, China) Marubun Arrow Europe Kft. Foothil Ranch (Budapest) Marubun/Arrow (Shanghai) Co., Ltd. Marubun/Arrow USA, LLC. (Head Offic
Slide 28: Characteristics and Strengths - Electronic Devices
Characteristics and Strengths -Electronic Devices- Wide Product Lineup through Overseas Suppliers Global Sales Network in Alliance with Arrow Electronics, Inc. (80 countries, 345 bases) Effective Solution Suggestion through High Technological Skill Strong Customer Base Wide Product Lineup Ma
Slide 29: Affiliations - Electronic Devices
Affiliations -Electronic Devices- Comnany Head Quarter Establish Share Business Holding company of Marubun/Arrow Marubun USA Corporation California, U.S.A. October 1983 100.0% USA,LLC Supply of semiconductors and Marubun Taiwan, Inc. Taipei, Taiwan November 1989 100.0% electronic components made in
Slide 30: Main Products (by Supplier) - Electronic Devices
Main Products(by Supplier) -Electronic Devices- Supplier Seiko Epson Instruments Electronics Asahikasei Broadcom Littlefuse Cypress Sandisk Maxim FINsix Qurvo Molex Texes Other Ablic Eink IDT Analog IC ● ● ● ● ● ● ● ● Standard Logic IC ● DRAM ● Memory IC Flash Memory ● ● Semiconductors Other Memory
Slide 31: Main Products (by Application) - Electronic Devices
Main Products (by Application) -Electronic Devices- Applications Communication Automobile Equipment Equipment Equipment Consumer Computer Industry OA Consumer Equipment Semcionductor Communication 9% Equipment Analog IC ● ● ● ● ● Computer & 54% Standard Logic IC ● ● ● ● Office DRAM ● ● ● ● Equipment
Slide 32: Characteristics and Strengths - Electronic Systems
Characteristics and Strengths -Electronic Systems- Providing Technologically Competitive Products in High-End Markets Consistent, High-Leve Technical Support (from system integration, installation to maintenance services) Our Function Marketing Consultation Order Order Technical Support Cu
Slide 33: Affiliations - Electronic Systems
Affiliations -Electronic Systems- Comnany Head Quarter Establish Share Business Sales of medical equipment and Marubun Tsusho Co.,Ltd. Kanazawa City March 1961 100.0% measurement & inspection equipment Sales of measurement & inspection Marubun West Corporation Kobe City May 2005 100.0% equipment Hig
Slide 34: Main Products - Electronic Systems 1
Main Products -Electronic Systems- 1 Products Supplier Electronic Components Inspection Akim,Unihite System, Information & Equipment Seiko Epson,FEI,Shimadzu Industrial Communication Equipment ARTESYN,Aitech,ADLINK, Equipment Embedded computer system LayTec, Riber Laser Equipment 3% Siemens,Shimazu,
Slide 35: Main Products - Electronic Systems 2
Main Products -Electronic Systems- 2 Space & Defense Measurement & Inspection Equipment Electronics Akim BEI Sensors Shimazu Electronic Components High-reliability Gas Chromatography Inspection Equipment Components CPI FUJI CORPORATION FEI Microwave Ultra High Density Atmospheric Infrared Inspection
Slide 36: Main Products - Electronic Systems 3
Main Products -Electronic Systems- 3 Laser Equipment nLIGHT Laserline Laser Diode Laser Processor Informaiton & Medical Equipment Communication Microsemi Spirent Siemens Japan Network Timeserver GNSS Simulator Diagnostic Imaging Equipment © 2019 MARUBUN CORPORATION
Slide 37: Quarterly Trend in Orders/Sales by Business
Quarterly Trend in Orders/Sales by Business (Millions of Yen) Orders Sales Electronic Devices Electronic Systems 96,812 95,222 92,954 91,565 13,146 10,749 83,182 11,827 12,209 79,521 75,380 14,165 71,211 70,319 12,408 68,694 11,966 10,291 12,050 59,182 18,371 9,275 45,093 84,666 84,473 80,126 11,692
Slide 38: Quarterly Trend in Sales of Electronic Devices by Product
Quarterly Trend in Sales of Electronic Devices by Product (Millions of Yen) 84,473 4,248 79,356 2,430 4,747 2,092 67,114 4,512 60,920 1,184 3,753 2,541 Electronic Components 50,323 49,906 52,737 4,556 4,082 52,524 Custom IC 1,185 1,361 29,618 45,666 Special-Use IC 27,482 27,062 Micro-Processor 3,956
Slide 39: Trend in Sales of Electronic Systems
Trend in Sales of Electronic Systems 18,371 (Millions of Yen) 6,997 12,209 12,408 Medical Equipment 10,749 10,291 598 ICT Equipment 4,219 9,275 1,900 5,944 3,586 3,557 631 3,202 Laser Equipment 183 375 1,288 254 1,228 1,015 6,582 587 995 927 Industrial Equipment 4,204 4,328 4,348 4,148 3,604 Space a
Slide 40: Cautionary Statement
Cautionary Statement I nf or mati on on f ut ur e p erf or mance cont ai ned w ith i n th i sp resent ati on mat eri al, such as th e resul t sf or ecast s, i sb ased on th e dat a avail ab l e and assu mp ti ons j udg ed t ob e r easonab l e as of wh en th e C om p any p rep ar ed th i sp resent at