Marubun Corporation · TSE:7537
Marubun — Q2 FY3/24 Earnings Presentation
49 slides from Marubun's earnings presentation, November 2023
Slide 1: Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2024
Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2024 November 2023 © 2023 MARUBUN CORPORATION
Slide 2: Agenda
Agenda 1. 2Q FY3/24 Summary of Consolidated Financial Results 2. FY3/24 Summary of Consolidated Financial Forecasts 3. Roadmap toward the Sustainable Growth of Marubun Corporate Value 4. About Marubun © 2023 MARUBUN CORPORATION 1
Slide 3: 1. 2Q FY3/24 Summary of Consolidated Financial Results
1. 2Q FY3/24 Summary of Consolidated Financial Results © 2023 MARUBUN CORPORATION
Slide 4: 2Q FY3/24 Summary of Consolidated Financial Results
2Q FY3/24 Summary of Consolidated Financial Results 2Q FY3/23 2Q FY3/24 ▶ Net sales increased due to YoY Forecast Composition Previous Composition Changes Contrast growth in the Electronic Device （Millions of Yen） Actual Forecast Actual Ratio Ratio Business. （May 13） +22,707 +10,229 ▶ Operating inco
Slide 5: 2Q FY3/24 Performance Summary by Business
2Q FY3/24 Performance Summary by Business ▍ Electronic Devices Business 2Q FY3/23 2Q FY3/24 YoY Changes ▶ Increased demand for (Millions of Yen) semiconductors for +23,032 consumer electronics, Net sales 76,320 99,352 (+30.2%) automotive, and industrial equipment. ▍ Electronic Systems Business 2Q FY
Slide 6: 2Q FY3/24 Electronic Devices Business Net Sales Breakdown by Product Category
2Q FY3/24 Electronic Devices Business Net Sales Breakdown by Product Category (Millions of Yen) 99,352 Reasons for changes 17,604 Electronic Components（△3,129） – Decrease in consumer equipment and increase in 76,320 industrial equipment 10,076 Custom IC（+4,795） 20,733 – Increase in data center and c
Slide 7: 2Q FY3/24 Electronic Devices Business Market Trend by Application
2Q FY3/24 Electronic Devices Business Market Trend by Application Reasons for Changes 5% 3% 12% Communication Equipment （△2%） 14% – Same level as previous year 19% 22% Computer ＆ Office Equipment （△2%） – Same level as previous year 20% Industrial Equipment & Other（△3%） 22% – The sales increased, but
Slide 8: 2Q FY3/24 Electronic Systems Business Net Sales Breakdown by Product
2Q FY3/24 Electronic Systems Business Net Sales Breakdown by Product (Millions of Yen) Reasons for changes 23,902 23,538 Medical Equipment（△740） – Decrease in diagnostic imaging equipment 9,926 9,186 Laser Equipment（△10） – Same level as previous year 3,059 3,049 Industrial Equipment（+476） – Increase
Slide 9: 2Q FY3/24 Electronic Solutions Business Net Sales Breakdown by Product
2Q FY3/24 Electronic Solutions Business Net Sales Breakdown by Product （Millions of Yen） Reasons for changes 838 799 33 37 AI・Robotics（△4） – Same level as previous year ICT Solution（+43） – Increased in time synchronization solutions 804 761 2Q FY3/23 2Q FY3/24 © 2023 MARUBUN CORPORATION 8
Slide 10: 2Q FY3/24 Summary of Balance Sheets
2Q FY3/24 Summary of Balance Sheets （Millions of Yen） FY 3/23 2Q FY3/24 Changes Amount ▶ The total assets increased by Total assets 175,998 203,651 +27,653 27.6 billion yen from the end of Current assets 166,143 193,183 +27,040 the previous fiscal year. Cash and deposits 21,253 21,091 △162 Notes and
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. FY3/24 Summary of Consolidated Financial Forecasts
2. FY3/24 Summary of Consolidated Financial Forecasts © 2023 MARUBUN CORPORATION
Slide 13: FY3/24 Summary of Consolidated Financial Forecasts
FY3/24 Summary of Consolidated Financial Forecasts FY2023 FY2024 YoY Forecast ▶ The performance forecast Composition Previous Current Composition Changes Contrast announced on May 12 has been （Millions of Yen） Results Forecast Forecast Ratio (May 13) (Oct 31) Ratio revised upward. +13,829 +4,000 ▶ W
Slide 14: 2Q FY3/24 Summary of Business Forecast by Business Segment
2Q FY3/24 Summary of Business Forecast by Business Segment ▍ Electronic Devices Business FY3/23 Actual FY3/24 Forecast YoY Changes ▶ Increase in semiconductors (Millions of Yen) for consumer electronics, Segment +13,128 automotive, and industrial Net Sales 168,872 182,000 (+7.8%) equipment ▍ Electro
Slide 15: FY3/24 Electronic Devices Business Net Sales Forecast Breakdown by Product Category
FY3/24 Electronic Devices Business Net Sales Forecast Breakdown by Product Category (Millions of Yen) 182,000 Reasons for Changes 168,872 34,698 Electronic Components（△7,611） – Decrease in consumer and industrial equipment 42,309 17,818 Custom IC（+7,069） – Increase in consumer equipment 10,749 Speci
Slide 16: FY3/24 Electronic Systems Business Net Sales Forecast Breakdown by Product Category
FY3/24 Electronic Systems Business Net Sales Forecast Breakdown by Product Category (Millions of Yen) Reasons for changes 54,494 55,000 Medical Equipment（+2,033） – Increase in radiotherapy machines 21,035 23,068 Laser Equipment（△136） – Same level as previous year 6,745 Industrial Equipment（△1,291） 6
Slide 17: FY3/24 Electronic Solutions Business Net Sales Forecast Breakdown by Product Category
FY3/24 Electronic Solutions Business Net Sales Forecast Breakdown by Product Category （Millions of Yen） Reasons for changes 3,000 2,805 298 163 AI・Robotics（+135） – Increase in medical solutions ICT Solution（+59） – Same level as previous year 2,642 2,701 FY 2023 FY 2024 © 2023 MARUBUN CORPORATION 16
Slide 18: Dividend Policy
Dividend Policy ▶ The dividend for the fiscal year ending March 2024 is planned at 25 yen for the interim period and 25 yen for the year-end, making a total annual dividend of 50 yen. ▶ The dividend payout ratio is expected to be 43.6%. （Yen） 80 Interim dividends Year-end dividend 50 60 30 30 30 30
Slide 19: Roadmap toward the Sustainable Growth of Marubun Corporate Value
Roadmap toward the Sustainable Growth of Marubun Corporate Value © 2023 MARUBUN CORPORATION
Slide 20: Current Status and Management Goals / Areas to Address
Current Status and Management Goals / Areas to Address ▶ For the fiscal year ended on March 31, 2023, we achieved record high ordinary income and the ROE (Return on Equity %) significantly improved to 11.5%. ▶ Although the latest ROE is considered to have reached within our estimated range of the ex
Slide 21: Initiatives for Sustainable Enhancement of Value
Initiatives for Sustainable Enhancement of Value ▶ Execute "Three Strategic Measures" (I. II. III.), aiming to "stabilize ROE above 8% and achieve PBR above x1.0 time" ▶ Steadily implement the current Medium-Term Business Plan (MTBP/2022-2024) for sustainable growth of enterprise value and also prep
Slide 22: I-(1) Growth Strategies
I-(1) Growth Strategies ▶ Implement initiatives relating to the three business growth policies included in the Basic Policy of the Medium-Term Business Plan, “Marubun Nextage 2024”. Basic Policy of Marubun Nextage 2024 Business Growth Policies Push forward with Improvement of Intends to focus on a f
Slide 23: I-(1) Growth Strategies: Initiatives for Electronic Devices Business
I-(1) Growth Strategies: Initiatives for Electronic Devices Business Position as "foundation strengthening business" and seek to maintain and expand global business operations through the development of highly value-added Growth products and the conversion of the product mix Strategies Strive fo
Slide 24: I-(2) Growth Strategies: Initiatives for Electronic Systems Business
I-(2) Growth Strategies: Initiatives for Electronic Systems Business Position as "growth driving business" and seek to expand revenue base in new business domains and new markets in addition to sustainable growth in existing Growth businesses Strategies Demonstrate group synergy through stronger
Slide 25: I-(3) Growth Strategies: Initiatives for Electronic Solutions Business
I-(3) Growth Strategies: Initiatives for Electronic Solutions Business Position as "value creating business" and accelerate development and creation of innovative products, technologies and services in growing markets Growth Contribute to inorganic growth through strategic business acquisitions,
Slide 26: II-(1) Basic Financial Policy and Financial Measures: Shareholder Returns
II-(1) Basic Financial Policy and Financial Measures: Shareholder Returns Basic Financial Policy ▶ We are to make strategic investments in growth areas and provide consistent / stable shareholder returns, while we aim for sustainable growth of the corporate value. ▶ We intend to improve capital effi
Slide 27: II-(2) Financial Measures: Utilization of Retained Earnings
II-(2) 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
Slide 28: III. Non-financial Measures
III. Non-financial Measures ▶ We are to implement initiatives in the "three thematic domains for non-financial measures" and translate these into "reduction in expected cost of shareholders' equity" ▶ We are to enhance the trustworthiness and appealing values of the Marubun brand, while ensuring man
Slide 29: III-(1) Non-financial Measures: Promotion of Sustainability Management
III-(1) Non-financial Measures: Promotion of Sustainability Management ▍ Approval of the TCFD ▍ Ensuring diversity and strengthening ▍ Promoting active participation of recommendations and participation human resources development female employees in the TCFD consortium Joined the TCFD consortium
Slide 30: III-(2) Non-financial Measures: Strengthening of Corporate Governance
III-(2) Non-financial Measures: Strengthening of Corporate Governance ▍ Promoting development of the corporate governance structure Redefinition of Management Philosophy (FY2022) Ensuring the diversity of the Board of Directors – Appointment of a female director – Appointment of four Outside Dir
Slide 31: III-(3) Non-financial Measures: Improvement of Stakeholder Engagement
III-(3) Non-financial Measures: Improvement of Stakeholder Engagement ▍ Further strengthening IR, SR and PR activities Enhance information disclosure and Give internal feedback on IR endeavor to eliminate/reduce activities information asymmetry between – Give effective feedback for reflection in
Slide 32: Overview of Initiatives for Sustainable Growth of Marubun Corporate Value
Conclusion Summary: Overview of Initiatives for Sustainable Growth of Marubun Corporate Value ▶ By promoting initiatives with "execution of growth strategies," "implementation of financial strategies" and "deployment of non-financial measures" as the value creation process, we seek "stabilization of
Slide 33: © Marubun
© Marubun
Slide 34: 5. About Marubun
5. About Marubun © 2023 MARUBUN CORPORATION
Slide 35: 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 Electronics AI ＆ Robotics 8-1, Niihonbashi Odenmacho, Components Indus
Slide 36: Corporate History
Corporate History Japan Overseas 2022 Moved to the Prime Market due to a review of the Tokyo Stock Exchange's market classification 2017 2008 Established subsidiary in Hungary First electronics trading company to be certified as a authorized exporter 2014 Established subsidiary in Indonesia and Mexi
Slide 37: 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 38: 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 39: 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 40: 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 41: 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. © 2023 MARUBUN CORP
Slide 42: Main Products (by Supplier) - Electronic Devices
Main Products(by Supplier) -Electronic Devices- Semiconductors Electronic components Item Electronic Electrical Analog IC Memory IC Microprocessor Special-use IC Custom IC Other Components Equipment Display, Power supply, Suppliers Analog, IoT, Flash Memory, MPU, MCU, Custom, Crystal Devise, Board P
Slide 43: 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 44: Main Products - Electronic Solutions
Main Products -Electronic Solutions- Segment Major products Major supplier Microchip Technology、Spirent Communications、 RF・IP communication, GNSS Positioning, HUBER+SUHNER Polatis、Coherent、Calnex Solutions、 ICT Solutions Network Sychronization, Secuirty, IoT PCTEL、Accedian、Ranplan Wireless、 Bristol
Slide 45: Quarterly Trend in Sales by Business
Quarterly Trend in Sales by Business （Millions of Yen） 62,214 62,935 63,314 507 715 1,291 60,414 330 54,865 478 12,208 12,837 10,700 18,382 46,156 320 13,477 Electronic Solutions Business 10,425 Electronic Systems Business Electronic Devices Business 49,291 49,383 49,969 40,910 43,261 35,409 1Q 2Q 3
Slide 46: 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 9,018 8,585 40,910 11,502 3,033 35,409 10,073 7,042 Electronic Components 10,787 4,700 767 Custom IC 9,945 17,461 Special-Use IC 2,811 14,084 Micro-Processor 15,425 14,122 2,469 Memory IC 11,483 2
Slide 47: Quarterly Trend in Sales of Electronic Systems
Quarterly Trend in Sales of Electronic Systems （Millions of Yen） 18,382 7,181 13,477 12,837 12,208 10,425 10,700 Medical Equipment 5,710 1,795 4,791 3,928 Laser Equipment Industrial Equipment 4,216 4,395 1,379 Space & Defense Electronics 1,890 1,722 1,337 7,633 1,670 4,845 5,196 4,978 3,641 3,899 1,
Slide 48: Quarterly Trend in Sales of Electronic Solutions
Quarterly Trend in Sales of Electronic Solutions （Millions of Yen） 1,291 105 AI & Robotics 715 ICT Solution 20 1185 507 478 12 21 320 330 694 16 20 456 495 304 309 1Q 2Q 3Q 4Q 1Q 2Q FY2022 FY2023 © 2023 MARUBUN CORPORATION 47
Slide 49: 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