Marubun Corporation · TSE:7537
Marubun — FY2023 Earnings Presentation
46 slides from Marubun's earnings presentation, May 16, 2024
Slide 1: Financial Results the Fiscal Year Ending March 31, 2024
Financial Results the Fiscal Year Ending March 31, 2024 16 May 2024 © 2024 MARUBUN CORPORATION
Slide 2: Agenda
Agenda 1. FY2023 Summary of Consolidated Financial Results 2. FY2024 Summary of Consolidated Financial Forecasts 3. Shareholder Returns 4. FY2022-2024Medium-term Business Plan Initiatives 5. About Marubun © 2024 MARUBUN CORPORATION 1
Slide 3: 1. FY2023 Summary of Consolidated Financial Results
1. FY2023 Summary of Consolidated Financial Results © 2024 MARUBUN CORPORATION
Slide 4: FY2023 Summary of Consolidated Financial Results
FY2023 Summary of Consolidated Financial Results FY2022 FY2023 Compared ▶ Net sales rose following an YoY to improvement in performance, Composition Forecast Composition Changes Actual Actual forecast chiefly in the Electronic （Millions of Yen） Ratio （10/31） Ratio Devices Business. +10,319 △3,510 Ne
Slide 5: FY2023 Performance Summary by Business
FY2023 Performance Summary by Business ▍ Electronic Devices Business (Millions of Yen) FY2022 FY2023 YoY Changes ▶ Increased demand for +10,139 semiconductors for Net sales 168,872 179,011 consumer equipment. (+6.0%) ▍ Electronic Systems Business (Millions of Yen) FY2022 FY2023 YoY Changes ▶ Increas
Slide 6: FY2023 Electronic Devices Business Net Sales Breakdown by Product Category
FY2023 Electronic Devices Business Net Sales Breakdown by Product Category (Millions of Yen) Reasons for changes 179,011 168,872 Electronic Components（△8,469） 33,840 – Decrease in industrial equipment and communication equipment 42,309 16,085 Custom IC（+5,336） – Increase in consumer equipment 10,749
Slide 7: FY2023 Electronic Devices Business Market Trend by Application
FY2023 Electronic Devices Business Market Trend by Application Reasons for Changes 4% 4% 12% 11% Communication Equipment （±0pt） – Same level as previous year 21% 20% Computer ＆ Office Equipment （△1pt） – Same level as previous year 21% 22% Industrial Equipment & Other（△1pt） – Same level as previous y
Slide 8: FY2023 Electronic Systems Business Net Sales Breakdown by Product
FY2023 Electronic Systems Business Net Sales Breakdown by Product (Millions of Yen) Reasons for changes 54,494 54,941 Medical Equipment（+1,964） – Increase in diagnostic imaging equipment and radiation therapy equipment 21,035 22,999 Laser Equipment（△482） – Decrease in light source components and las
Slide 9: FY2023 Electronic Solutions Business Net Sales Breakdown by Product
FY2023 Electronic Solutions Business Net Sales Breakdown by Product （Millions of Yen） Reasons for changes 2,805 163 2,536 AI・Robotics（△47） 116 – Same level as previous year ICT Solution（△222） – Decrease in optical communication products 2,642 2,420 FY2022 FY2023 © 2024 MARUBUN CORPORATION 8
Slide 10: FY2023 Summary of Balance Sheets
FY2023 Summary of Balance Sheets （Millions of Yen） FY2022 FY2023 Changes Amount ▶ The total assets decreased by Total assets 175,998 174,137 △1,861 1.8 billion yen from the end of Current assets 166,143 162,616 △3,257 the previous fiscal year. Cash and deposits 21,253 23,823 +2,570 Notes and account
Slide 11: Mechanism of Accounting Recognition for FX Gains/Losses under J-GAAP
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, thereby convers
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 ▶ Net sales are set to decrease FY2024 YoY due to a reactionary fall in Composition Composition Changes sales of consumer equipment Results Forecasts （Millions of Yen） Ratio Ratio in the Electronic Devices Business, inventory △24,490 Net sale
Slide 14: FY2024 Summary of Business Forecast by Business Segment
FY2024 Summary of Business Forecast by Business Segment ▍ Electronic Devices Business (Millions of Yen) FY2023 FY2024 YoY Changes ▶ Sales of consumer equipment △28,311 and semiconductors for Net sales 179,011 150,700 automobiles are expected to fall. (△15.8%) ▍ Electronic Systems Business (Millions
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（+1,701） 33,840 150,700 – Same level as previous year Custom IC（+5,096） 16,085 – Increase in consumer equipment 35,541 Special-Use IC（△22,302） 21,181
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 58,000 54,941 Medical Equipment（+1,964） – Same level as previous year 22,580 22,999 Laser Equipment（+1,716） – Increase in laser diodes and laser material processing systems 7,979
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 3,300 AI・Robotics（+531） 647 – Increase in AI-equipped robots 2,536 116 ICT Solution（△222） – Same level as previous year 2,653 2,420 FY2023 FY2024 © 2024 MARUBUN CORPORATION 16
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 FY3/24: Annual dividend of 52 yen plann
Slide 20: Financial Measures: Utilization of Retained Earnings
Financial Measures: Utilization of Retained Earnings ▶ We strive for the efficient and effective allocation of capital resources for sustainable growth in the following four domains, taking into consideration management priorities depending on the situation and we will create a positive cycle of "ut
Slide 21: 4. FY2022-2024 Medium-term Business Plan Initiatives
4. FY2022-2024Medium-term Business Plan Initiatives © 2024 MARUBUN CORPORATION
Slide 22: 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 23: 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 24: Review on FY2023
Review on FY2023 ▶ While net sales hiked, ordinary income was down nearly 30%, impacted by the rise in U.S. dollar interest rates. ▶ The income fall led to an ROE fall. At the end of the fiscal year, PBR was merely 0.8. Net sales Ordinary income Ordinary income margin 236.4billion yen 5.6billion yen
Slide 25: Progress and Outlook for FY2024
Progress and Outlook for FY2024 ▶ Net sales will surpass the target set in the medium-term business plan, whereas ordinary income is expected to be severely impacted by the rise in U.S. dollar interest rates and to fall 1.0 billion yen below the target. ▶ The impacts of U.S. dollar interest rates ar
Slide 26: Review and Initiatives on Electronic Devices Business
Review and Initiatives on Electronic Devices Business ▍Review on FY2023 and outlook for FY2024 （Millions of Yen） Trend in net sales Target under the medium-term 179,011 business plan ▶ Net sales for FY2023 expanded to surpass the level achieved in the previous fiscal year. 168,872 150,700 143.0billi
Slide 27: Review and Initiatives on Electronic Systems Business
Review and Initiatives on Electronic Systems Business ▍Review on FY2023 and outlook for FY2024 Trend in net sales （Millions of Yen） Target under ▶ Net sales for FY2023 were almost on a par with those of the previous fiscal year. They eventually the medium-term business plan fell below the target at
Slide 28: Review and Initiatives on Electronic Solutions Business
Review and Initiatives on Electronic Solutions Business ▍Review on FY2023 and outlook for FY2024 Trend in net sales （Millions of Yen） Target under ▶ For FY2023, the launch of AI and robotics was delayed and performance declined in ICT solutions the medium-term business plan ▶ For FY2024, figures wil
Slide 29: Implementation of Sustainability Management and Improvement of Business Operation Base
Implementation of Sustainability Management and Improvement of Business Operation Base and Internal Processes Intends to focus on sustainability management ▶ Identify material issues (*See the next page) － Pursue initiatives under the next medium-term business plan and define specific KPIs ▶ Further
Slide 30: Determination of Material Issues
Determination of Material Issues ▍ Marubun Group Material Issues and Key Themes Material Issues Key themes* Contribution to restoration and Promote initiatives for a recirculating society conservation of the global environment Identify and introduce new clean technologies Environment and to its
Slide 31: Proven Sustainability
Proven Sustainability
Slide 32: 5. About Marubun
5. About Marubun © 2024 MARUBUN CORPORATION
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: Quarterly Trend in Sales by Business
Quarterly Trend in Sales by Business （Millions of Yen） 62,214 62,935 63,314 507 1,291 715 60,414 330 55,785 56,975 1,100 54,865 597 478 12,208 12,837 10,700 18,382 46,156 11,285 320 13,477 20,117 Electronic Solutions Business 10,425 Electronic Systems Business Electronic Devices Business 49,291 49,3
Slide 44: Quarterly Trend in Sales of Electronic Devices by Product
Quarterly Trend in Sales of Electronic Devices by Product （Millions of Yen） 49,291 49,383 49,969 43,261 8,585 43,901 9,018 40,910 11,502 3,033 8,182 35,409 10,073 35,757 Electronic Components 7,042 10,787 4,700 2,633 Custom IC 767 8,053 9,945 17,461 Special-Use IC 2,811 14,084 13,982 3,375 Micro-Pro
Slide 45: Quarterly Trend in Sales of Electronic Systems
Quarterly Trend in Sales of Electronic Systems （Millions of Yen） 20,117 18,382 9,253 7,181 13,477 12,837 12,208 11,285 Medical Equipment 10,425 10,700 Laser Equipment 5,710 1,795 4,791 3,928 1,980 Industrial Equipment 4,558 4,216 4,395 Space & Defense Electronics 1,890 1,379 1,722 1,232 1,337 7,633
Slide 46: Quarterly Trend in Sales of Electronic Solutions
Quarterly Trend in Sales of Electronic Solutions （Millions of Yen） 1,291 105 1,100 32 AI & Robotics 715 ICT Solution 20 597 1185 507 49 478 1,067 12 21 320 330 694 16 20 548 456 495 304 309 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 © 2024 MARUBUN CORPORATION 45