Marubun Corporation · TSE:7537
Marubun — FY2018 Earnings Presentation
47 slides from Marubun's earnings presentation, May 2018
Slide 1: Financial Results for Fiscal Year Ended March 31, 2018
Financial Results for Fiscal Year Ended March 31, 2018 May 2018 © 2017 MARUBUN CORPORATION
Slide 2: FY3/18 Summary of Consolidated Financial Results
FY3/18 Summary of Consolidated Financial Results © 2017 MARUBUN CORPORATION
Slide 3: FY3/18 Summary of Consolidated Financial Results (YoY Change)
FY3/18 Summary of Consolidated Financial Results (YoY Change) Net sales : ¥347.5 billion (＋¥76.8 billion YoY) Electronic Devices Business Increase in semiconductors for communication modules Electronic Systems Business Increase in Laser equipment Operating income : ¥3.7 billion (＋¥0.8 billion Yo
Slide 4: FY3/18 Summary of Financial Results
FY3/18 Summary of Financial Results (Millions of Yen) FY3/17 FY3/18 YoY Changes Composition Composition Actual Actual Amount ％ Ratio Ratio Net sales 270,698 100.0% 347,508 100.0% 76,810 28.4% Electronic Devices 220,184 81.3% 296,524 85.3% 76,340 34.7% Electronic Systems 50,513 18.7% 50,983 14.7% 470
Slide 5: FY3/18 Electronic Devices Business Net Sales Breakdown by Product
FY3/18 Electronic Devices Business Net Sales Breakdown by Product （Millions of Yen） 296,524 17,053 Increase in connector and electronic Electronic Components ＋1,285 10,943 paper Custom IC (96) 220,184 15,768 11,040 167,998 Special-Use IC ＋73,612 Increase for communication equipment 94,386 Decrease f
Slide 6: FY3/18 Electronic Devices Business Market Trend by Application
FY3/18 Electronic Devices Business Market Trend by Application Application Market Trend Industrial Equipment & Other Increase for factory automation Decrease from terminated contract with NXP Automobile Increasae for connected car Computer & Office Equipment Decrease for PC Communication Equipment I
Slide 7: FY3/18 Electronic Systems Business Net Sales Breakdown by Product
FY3/18 Electronic Systems Business Net Sales Breakdown by Product （Millions of Yen） 50,513 50,983 19,116 Medical 19,407 (291) Equipment Increase in LD for industrial equipment 5,453 6,699 Laser Equipment +1,246 and laser micro processing equipment 804 1,112 Scientific Equipment +308 19,849 Measureme
Slide 8: FY3/18 Factors Affecting Ordinary Income
FY3/18 Factors Affecting Ordinary Income Improvement of Foreign exchange gains / losses Other Non-operating Income (Millions of Yen) & Losses Decrease in SG&A Expenses Increase in Gross Profit Increase in gross margin due to increased sales Gross Profit FY3/17 : ¥20.6 billion (7.6%) => FY3/18: ¥ 21.
Slide 9: FY3/18 Summary of Balance Sheets
FY3/18 Summary of Balance Sheets (Millions of Yen) FY3/17 FY3/18 Changes Main Reason for Change Actual Actual Amount Total assets 125,984 135,796 9,812 Cash and deposits 1,405 Current assets 113,711 123,322 9,611 Notes and accounts receivable-trade (4,623) Noncurrent assets 12,273 12,474 201 Merchan
Slide 10: FY3/19 Summary of Consolidated Financial Forecasts
FY3/19 Summary of Consolidated Financial Forecasts © 2017 MARUBUN CORPORATION
Slide 11: FY3/19 Summary of Consolidated Financial Forecasts
FY3/19 Summary of Consolidated Financial Forecasts Net sales : ¥315 billion (- ¥32.5 billion YoY) Electronic Devices Business Decrease in semiconductors for communication equipment. Decrease by transfer of Samsung business. Electronic Systems Business Increase in Space & Defense Electronics and
Slide 12: FY3/19 Financial Forecasts
FY3/19 Financial Forecasts (Millions of Yen) FY3/18 FY3/19 YoY Changes Composition Composition Actual Forecasts Amount ％ Ratio Ratio Net sales 347,508 100.0% 315,000 100.0% (32,508) -9.4% Electronic Devices 296,524 85.3% 262,500 83.3% (34,024) -11.5% Electronic Systems 50,983 14.7% 52,500 16.7% 1,51
Slide 13: FY3/19 Electronic Devices Business Net Sales Forecasts by Product
FY3/19 Electronic Devices Business Net Sales Forecasts by Product (Millions of Yen) 296,524 17,053 10,943 262,500 Increase of connector and 19,987 Electronic Components + 2,935 solar panels 9,026 Custom IC (1,917) 167,998 Decrease for communication 146,660 Special-Use IC (21,338) equipment 14,142 De
Slide 14: FY3/19 Electronic Systems Business Net Sales Forecasts by Product
FY3/19 Electronic Systems Business Net Sales Forecasts by Product (Millions of Yen) Change of product segment in 52,500 50,983 Electronic Systems Business We integrated Measurement & Inspection Equipment and Scientific Equipment to Industrial Equipment. 19,140 Medical Equipment +24 And we separated
Slide 15: FY3/19 Factors Affecting Ordinary Income (last FY vs forecasts)
FY3/19 Factors Affecting Ordinary Income (last FY vs forecasts) (Millions of Yen) (410) Other Non-operating Income & 1,339 Losses (846) Increase in SG&A Expenses 4,218 Increase in Gross 4,300 Profit FY3/18 Actual FY3/19 Forecasts Increase due to improvement in gross profit margin Gross Profit FY3/18
Slide 16: Return to Shareholders
Return to Shareholders © 2017 MARUBUN CORPORATION
Slide 17: Return to Shareholders
Return to Shareholders Dividend Policy Dividend Payout Ratio 30% or more (consolidated) Dividends Forecast FY3/18 FY3/19 (Yen) (Forecast) Annual Dividend Per Share 30.00 30.00 Interim Dividend 10.00 10.00 20.00 Year-End Dividend including memorial 20.00 devidend 5.00 © 2017 MARUBUN CORPORATION 16
Slide 18: Medium-Term Vision Business Strategies and Key Initiatives
Medium-Term Vision Business Strategies and Key Initiatives © 2017 MARUBUN CORPORATION
Slide 19: Management Environment
Management Environment Semiconductor manufacturers Electronics Market Large M&As still New market is expanding attracts big attention by technology innovation Evolution of integrated technology Overseas (ex. IoT) Expansion of M&As Development of automatic driving technology Japan Spread of t
Slide 20: Medium-Term Vision
Medium-Term Vision Medium-Term Vision (FY3/19) Catching up Creating new Improving with industry businesses through capital efficiency reorganization active investment © 2017 MARUBUN CORPORATION 19
Slide 21: Four initiatives for Electronic Devices
Four initiatives for Electronic Devices Expansion of the mainstay business Development of businesses in Electronic growth markets Devices Rapid commercialization of new products Enhancement of global operations © 2017 MARUBUN CORPORATION 20
Slide 22: Expansion of the Mainstay Business 1
Expansion of the Mainstay Business 1 Expanding share in customers Enhancement of solution proposals in power supply, sensors, and automotive fields. Expansion of sales system for key devices such as analog and wireless Business for automobile market Number of new projects acquired （FY2013=100） （
Slide 23: Expansion of the Mainstay Business 2
Expansion of the Mainstay Business 2 Strengthening sales structure towards mass market Establishment of specialized organization and develop new customers Effective promote by digital marketing Business integration of Marubun and KTL Marubun integrate KTL at 2018.10.1 Concentrate resources t
Slide 24: Development of Businesses in Growth Markets 1
Development of Businesses in Growth Markets 1 IoT Solution We provide Eco-systems, from end devices to cloud services by LoRa/LoRaWan Water quality monitoring Crop growth management in water purification plant Smart Lock・Care Service Monitoring of heavy industry machinery operations Advertisement・Si
Slide 25: Development of Businesses in Growth Markets 2
Development of Businesses in Growth Markets 2 IoT Cypress Telit Afero IoT Wireless IoT Platform Increase for automobile communication IC Adapted for smart lock Adopted for smart meter Expansion to infrastructure Medical MC10 Bio sensor Knee prosthesis for rehabilitation Promote j
Slide 26: Rapid Commercialization of New Products
Rapid Commercialization of New Products Aiming at the most advanced technologies FINsix New business start Ultra small adapter for PC FINsix and Toyota Industries 「Dart」 Corporation sign a development Development of USB model agreement (Type C) Reduction in size, weight and B2C Business
Slide 27: Enhancement of Global Operations
Enhancement of Global Operations Europe Asia / North America New offices in Europe Expand of net sales by open Japanese factories in Mexico Expanding new customers Early expansion of Railway related business scale customer development Marubun Arrow Europe Kft. © 2017 MARUBUN CORPORATION 26
Slide 28: Electronic Systems Customer First
Electronic Systems Customer Market-in Customer-in First Enhancing engineering services Strengthening system integration capability © 2017 MARUBUN CORPORATION 27
Slide 29: Initiatives for Electronic Systems 1
Initiatives for Electronic Systems 1 Concentrate for rocket, airplane and electronic Space & power equipment Defense Equipment Expansion of proofreading service of radar equipment and sensor Expansion of Marking laser for industrial equipment Laser Expansion of Light source parts for medical
Slide 30: Initiatives for Electronic Systems 2
Initiatives for Electronic Systems 2 Expansion of investment in 5G communication and automatic driving technologies Scanning receiver (PCTEL) Information and Network adapter (Napatech) Communication Equipment Expansion of sales for network carrier and date center Optical transceiver(Finsar
Slide 31: About Marubun
About Marubun © 2017 MARUBUN CORPORATION
Slide 32: 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 33: History of Company Operations
History of Company Operations Japan Overseas 2017 Ikeda Iryou Denki merged with Marubun Tsusho 2017 2016 Established subsidiary in Hungary Business acquisition of KTL Corporation 2014 2015 Established subsidiary in Indonesia and Mexico Business acquisition of Ikeda Iryou Denki 2013 2013 Established
Slide 34: Sales Trend for the Past 10 Years
Sales Trend for the Past 10 Years （Billions of Yen） 400 60% Net sales Overseas sales ratio 350 50% 300 40% 250 200 30% 150 20% 100 10% 50 0 0% FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 © 2017 MARUBUN CORPORATION 33
Slide 35: Domestic Offices
Domestic Offices # of Marubun Offices︓11 HQ Sales Office Marubun Tsusho Co.,Ltd. # of Logistics Center ︓ 3 Operations Logistics Center (HQ: Kanazawa City） # of Affiliates ︓ 6 Kanazawa Hakusan Center Branch Affiliated Company Toyama Nagano Nagano Fukui Nanao Matsumoto Hokushinrika Co.,
Slide 36: Worldwide Sales Network
Worldwide Sales Network Marubun/Arrow (Shenzhen) Electronic Product Consulting Co., Ltd. (Shenzhen, China) KTL Corporation Europe Branch Marubun/Arrow (HK) Ltd. Marubun USA Corporation (Hong Kong, China) Reno Marubun Arrow Europe Kft. Orange County Marubun/Arrow (Shanghai) Co., Ltd. Denver (Shanghai
Slide 37: 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 38: Affiliations - Electronic Devices
Affiliations -Electronic Devices- Comnany Head Quarter Establish Share Business Marubun Semicon Corporation Minatoku, Tokyo March 2005 100.0% Marubun Semicon (H.K.) Ltd. Hong Kong, China January 2010 100.0% Sales of Samsung semiconductors and electronic components Marubun Semicon (S) Pte. Ltd. Alexa
Slide 39: Main Products (by Supplier) - Electronic Devices
Main Products(by Supplier) -Electronic Devices- Supplier Seiko Epson Instrulments Instruments Electronics Asahikasei Broadcom Samsung Littlefuse Cypress Sandisk Maxim FINsix Qurvo Molex Texes Seiko Eink IDT Analog IC ● ● ● ● ● ● ● Standard Logic IC ● DRAM ● Memory IC Flash Memory ● ● Semiconductors
Slide 40: Main Products (by Application) - Electronic Devices
Main Products (by Application) -Electronic Devices- Applications Communication Automobile Equipment Equipment Equipment Consumer Computer Industry OA Consumer Semcionductor Equipment Analog IC ● ● ● ● ● 11% Communication Standard Logic IC ● ● ● ● Equipment Computer & 51% DRAM ● ● ● ● Memory IC Offic
Slide 41: 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 Customer Technical S
Slide 42: 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 Sal
Slide 43: Main Products - Electronic Systems
Main Products -Electronic Systems- 1 Products Supplier Information & Electronic Components Inspection Akim,Unihite System, Communication Equipment Seiko Epson,FEI,Shimadzu Industrial Equipment Equipment ARTESYN,Aitech,ADLINK, Embedded computer system Laser Equipment 3% LayTec, Riber 10% Siemens,Shim
Slide 44: Quarterly Trend in Orders/Sales by Business
Quarterly Trend in Orders/Sales by Business Orders Sales (Millions of Yen) Electronic Devices Electronic Systems 120,180 99,410 99,847 15,702 11,167 11,622 96,546 76,344 77,785 13,189 82,720 70,985 70,464 75,391 66,612 71,970 11,915 17,924 8,345 19,848 13,441 12,197 65,018 65,754 66,412 56,755 10,38
Slide 45: Quarterly Trend in Sales of Electronic Devices by Product
Quarterly Trend in Sales of Electronic Devices by Product (Millions of Yen) 88,243 88,225 3,715 4,954 2,965 2,911 Electronic Components 62,118 Custom IC 57,544 58,420 57,937 56,228 3,896 3,421 4,318 2,843 4,488 ASSP 2,473 4,637 2,875 55,097 54,816 2,224 47,991 2,969 3,391 Micro-Processor 2,723 24,95
Slide 46: Trend in Sales of Electronic Systems
Trend in Sales of Electronic Systems 19,848 17,924 (Millions of Yen) Medical Equipment 8,437 13,441 Laser Equipment 8,363 11,622 11,167 5,211 10,384 2,083 Scientific Equipment 8,764 8,345 3,715 4,333 3,254 1,895 498 2,580 1,211 250 Measurement & Inspection 2,631 80 1,325 1,762 1,696 Equipment 1,022
Slide 47: 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