Marubun Corporation · TSE:7537

Marubun — FY2014 Earnings Presentation

45 slides from Marubun's earnings presentation, May 2014

  1. Slide 1: Financial Results for the Fiscal Year Ended March 31, 2014

    Financial Results for the Fiscal Year Ended March 31, 2014 (Medium-Term Management Plan and Key Initiatives) May 2014 (Securities Code：7537 / TSE1st Section) Copyright © 2002-2014 MARUBUN CORPORATION All Rights Reserved.

  2. Slide 2: FY3/14 Summary of Consolidated Financial Results

    FY3/14 Summary of Consolidated Financial Results Copyright © 2002-2014 MARUBUN CORPORATION All Rights Reserved.

  3. Slide 3: FY3/14 Summary of Consolidated Financial Results

    FY3/14 Summary of Consolidated Financial Results Net sales increased by ¥40,244 million (+18.3% YoY)  Electronic Devices Business Increased 17.7% as a result of robust sales of Special-Use ICs for communication modules and Memory ICs for PCs and computer peripherals  Electronic Systems Business In

  4. Slide 4: FY3/14 Summary of Financial Results

    FY3/14 Summary of Financial Results [Reference] (\ million) FY3/13 FY3/14 YoY Changes FY3/14 Forecasts Composition Composition Composition Actual Actual Amount ％ Oct.2013 Ratio Ratio Ratio Net sales 220,200 100.0% 260,424 100.0% 40,224 18.3% 253,000 100.0% Electronic Devices 187,247 85.0% 220,325 84

  5. Slide 5: Electronic Devices Business Net Sales Breakdown by Product

    FY3/14 Electronic Devices Business Net Sales Breakdown by Product 13/3⽉期 1-2Q 14/3⽉期 1-2Q (¥ million) 220,325 Electronic Components 187,247 35,725 Increase in LCD panels for TVs and Tablet PCs 11,688 Custom IC 29,202 Decrease in ICs for consumer electronics 12,509 89,255 Special-Use IC Increase in I

  6. Slide 6: Electronic Devices Business Market Trend by Application

    FY3/14 Electronic Devices Business Market Trend by Application Application Market Trend Communication Equipment Increase in ICs for communication modules and smartphones Consumer Electronics Increase in LCD panels for TVs Computers & OA Equipment Increase in ICs for PCs , computer peripherals and Ta

  7. Slide 7: Electronic Systems Business Net Sales Breakdown by Product

    FY3/14 Electronic Systems Business Net Sales Breakdown by Product (¥ million) 40,098 32,953 Medical Equipment 17,251 Increase in dialysis imaging equipment 12,636 Laser Equipment 4,099 Increase in industrial laser and optical communication components 2,997 341 Scientific Equipment 2,620 Decrease in

  8. Slide 8: Factors Affecting Ordinary Income

    FY3/14 Factors Affecting Ordinary Income Increase in Improvement in （¥ million） SG&A Expenses Non-operating Income/Loss Increase in Gross Profit 525 3,944 1,079 (159) 2,500 FY3/13 1 2 3 4 FY3/14 5 Increase due to net sales increase Gross Profit FY3/13: ¥17.7 billion ⇒ FY3/14: ¥18.8 billion SG&A Incr

  9. Slide 9: Summary of Balance Sheets

    End FY3/14 Summary of Balance Sheets (\ million) FY3/13 End FY3/14 End YoY Changes Actual Actual Amount Current assets 93,799 99,510 5,711 Cash and deposits 17,440 19,151 1,711 Notes and accounts receivable-trade 48,299 60,944 12,645 Increase due to Inventories 25,426 16,931 (8,495) sales increase O

  10. Slide 10: Summary of Statements of Cash Flows

    3/14 Summary of Statements of Cash Flows (\ million) FY13/3 FY3/14 Actual Actual Net cash provided by (used in) operating 8,301 5,999 activities Income before income taxes 1,892 3,886 Decrease (increase) in notes and accounts 19,256 (10,445) receivable-trade (2,255) 9,089 Increase due to sales incre

  11. Slide 11: Medium-Term Vision: Progress of Business Strategies and Key Initiatives

    Medium-Term Vision Progress of Business Strategies and Key Initiatives Copyright © 2002-2014 MARUBUN CORPORATION All Rights Reserved.

  12. Slide 12: Medium-Term Management Vision

    Medium-Term Management Vision Medium-Term Management Vision “Transforming into a robust company that can realize sustainable growth” Medium-Term Management Slogan “Think & Action” Gain competitive advantage and achieve differentiation by capturing opportunities that emerge from the structural change

  13. Slide 13: Electronic Devices Business: Key Initiative 1

    Electronic Devices Business: Overview of Key Initiative ① Expand the base business Aim to increase the usage of our line card Enhance the in respective projects Demand Creation (DC) function Strengthen follow-up actions for clientsʼ respective projects Solution Proposals PCBs and Owing to enhanced D

  14. Slide 14: Electronic Devices Business: Key Initiative 2

    Electronic Devices Business: Overview of Key Initiative ② Develop businesses in growing markets Telecommunication Industrial Develop key devices and Equipment propose solutions Car Electronics Propose a combination of assembly and testing equipment with Medical Equipment semiconductors and electroni

  15. Slide 15: Electronic Devices Business: Key Initiative 3

    Electronic Devices Business: Overview of Key Initiative ③ Promote development of new products  Semiconductors  Custom ICs • Promote orders received for ASICs of Open-Silicon, Inc. and BaySand, Inc. BaySand, Inc.  Memory ICs ASIC • Launch sales of built-in flash memories and SSDs of SanDisk Corpor

  16. Slide 16: Electronic Devices Business: Key Initiative 4

    Electronic Devices Business: Overview of Key Initiative ④ Enhance global operations with a focus on regions where production sites for automobile-related industries are expanding Nanjing, China MARUBNU/ARROW USA, LLC MARUBUN/ARROW(SHANGHAI) CO., LTD Incorporation of the Shenzhen Office in (Shanghai

  17. Slide 17: Electronic Systems Business: FY3/15 Strategies and Key Initiatives

    Electronic Systems Business: Overview of FY3/15 Strategies and Key Initiatives Improve profitability and business stability under the Companyʼs “Customer-in” philosophy Enhance engineering services Boost sales activities by mobilizing the Strengthen system Enrich product line-up entire Group integra

  18. Slide 18: Electronic Systems Business: Topics

    Electronic Systems Business: Topics Launched sales of a Photonic Crystal Process Integration System Significantly improved luminous efficiency by using crystal technology Through a joint research with ULVAC, Inc., TOKYO OHKA KOGYO CO., LTD., TOSHIBA MACHINE CO., LTD., as well as The National Institu

  19. Slide 19: FY3/15 Summary of Consolidated Financial Forecasts

    FY3/15 Summary of Consolidated Financial Forecasts Copyright © 2002-2014 MARUBUN CORPORATION All Rights Reserved.

  20. Slide 20: FY3/15 Summary of Financial Forecasts

    FY3/15 Summary of Financial Forecasts Net sales expected ¥263 billion (+1.0% YoY)  Electronic Devices Business Expecting an increase in Micro-Processor for tablet PCs and a decrease in Special-Use ICs for communication modules  Electronic Systems Business Expecting a decrease in Medical Equipment

  21. Slide 21: FY3/15 Financial Forecasts

    FY3/15 Financial Forecasts (\ million) FY3/14 FY3/15 YoY Changes Composition Composition Actual Ratio Forcast Amount ％ Ratio Net sales 260,424 100.0% 263,000 100.0% 2,576 1.0% Electronic Devices 220,325 84.6% 224,000 85.2% 3,675 1.7% Electronic Systems 40,098 15.4% 39,000 14.8% (1,098) -2.7% Gross p

  22. Slide 22: Electronic Devices Net Sales Forecasts by Product

    FY3/15 Electronic Devices Business Net Sales Forecasts by Product (¥ million) 220,325 224,000 35,725 38,874 Electronic Components Increase in LCD panels for TV and Tablet PCs 11,688 13,387 Custom IC Increase in ICs for consumer electronics 89,255 81,507 Special-Use IC Decrease in ICs for communicati

  23. Slide 23: Electronic Systems Net Sales Forecasts by Product

    FY3/15 Electronic Systems Business Net Sales Forecasts by Product (¥ million) 40,098 39,000 17,251 15,300 Medical Equipment Decrease in diagnostic imageing equipments Laser Equipment 3,548 Decrease in optical communications components 4,099 341 1,736 Scientific Equipment Increase in thin-film equipm

  24. Slide 24: FY3/15 Factors Affecting Ordinary Income (Forecasts)

    FY3/15 Factors Affecting Ordinary Income (Forcasts) （¥ million） Increase in SG&A Expenses Decrease in Increase in Gross Profit Non-operating Income 258 4,000 3,944 (70) (133) FY 14/3 1 2 3 4 FY 515/3 Actual Forcasts Increase due to net sales increase Gross Profit FY3/14: ¥18.8 billion ⇒ FY3/15: ¥19.

  25. Slide 25: Return to Shareholders: Dividends Forecast

    Return to Shareholders  Dividends Forecast FY3/14 FY3/15 （\） Forecasts Annual Dividend per Share 19.00 20.00 Interim Dividend 6.00 7.00 Year-End Dividend 13.00 13.00 25 Copyright © 2002-2014 MARUBUN CORPORATION All Rights Reserved.

  26. Slide 26: Medium-Term Quantitative Target

    Medium-Term Quantitative Target (FY3/15-FY3/17)  Aim to achieve net sales of ¥280 billion and ordinary income of ¥6 billion in FY3/17 by aggressively implementing initiatives of the medium-term vision Electronic Devices Business (LHS) Electronic Systems Business (LHS) (¥ billion) （¥ billion) Ordina

  27. Slide 27: Appendix

    Appendix Copyright © 2002-2014 MARUBUN CORPORATION All Rights Reserved.

  28. Slide 28: Corporate Outline

    Corporate Outline Net Sales  Establishment July 1947 Electronic Devices 84.6% Electronic Systems 15.4%  Capital ¥6,214 million  Activities Distribution of Cutting-edge Electronics Products FY2013 Share of Sales  Headquarters Chuo-ku, Tokyo by Segment  Consolidated 260,424 million yen(FY2013) Ne

  29. Slide 29: History of Company Operations

    History of Company Operations Japan Over Seas 2013 2013 Established subsidiary in Shenzhen, Business acquisition Hokushin Rika. China and Indonesia. 2006 2007 Established subsidiary in Malaysia. Business acquisition of Foresight Techno Co.,Ltd. 2002 Established subsidiary in Shanghai 2005 and Philip

  30. Slide 30: Trend of 10 years

    Trend of 10 years （¥ million） Net Sales Foreign Sales Ratio 300,000 50.0% 250,000 40.0% 200,000 30.0% 150,000 20.0% 100,000 10.0% 50,000 0 0.0% FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 30 Copyright © 2002-2014 MARUBUN CORPORATION All Rights Reserved.

  31. Slide 31: Domestic Offices

    Domestic Offices Operations IKEDA IRYOUDENNKI CO., LTD Branch (Head Office:Niigata) Sales Office MARUBUN TSUSHO CO., LTD.(Head Office:Kanazawa) Kanazawa Nanao Logistics Center Toyama Tama Affiliated Company Fukui Hakusan Center Matsumoto Tokyo HOKUSHIN RIKA Nagano Kofu (Head Office:Nagano) Omiya Mat

  32. Slide 32: World-wide Sales Network

    World-wide Sales Network Marubun/Arrow USA, LLC Marubun/Arrow (Shanghai) Co., Ltd (Head Office：Santa Clara) （Shanghai） Chicago Nanjing,China Dalian,China Denver Detroit Marubun Corporation Marubun/Arrow (Shenzhen) Electronic Products Consulting Co., Ltd. (Shenzhen,China) Marubun/Arrow Asia, Ltd. Mar

  33. Slide 33: Characteristic and Strength - Electronic Devices

    Characteristic and Strength -Electronic Devices- Electronic Devices  Wide Range of Products made by Leading Semiconductor Manufacturers  Global Sales Network in alliance with Arrow Electronics, Inc.  Broad Customer base. Broad Product Lineup Design Activity Marketing Order Order Customer Supplier

  34. Slide 34: Affiliations - Electronic Devices

    Affiliations -Electronic Devices- Electronic Devices Company Headquarters Establishment Shares Principal Business Marubun Semicon Corporation Minato-ku, Tokyo Mar. 2005 100.0% Marubun Semicon (Shanghai) Co., Ltd. Shanghai, China Mar. 2005 100.0% Devices Business Marubun Semicon (H.K.) Ltd. Hong Kong

  35. Slide 35: Main Products (by Application) - Electronic Devices

    Main Products (by Application) -Electronic Devices- Application Electronic Devices Computer & OA Communication Automobile Equipment Equipment Equipment Consumer Industrial Indstrial Semiconductor Equipmet Analog ● ● ● ● ● 7.4% Analog IC Automobile Discrete ● ● ● ● 8.8% Communication Standard Logic I

  36. Slide 36: Main Products (by Supplier) - Electronic Devices

    Main Products(by Supplier) -Electronic Devices- Electronic Devices Supplier Microdevices Instruments Seiko Epson International Asahi Kasei Broadcom Freescale Samsung Rectifier Triquint Maxim Texas Molex ISSI Semiconductor Analog ● ● ● ● ● Analog IC Discrete ● ● Standard Logic IC ● DRAM ● ● Memory IC

  37. Slide 37: Characteristic and Strength - Electronic Systems

    Characteristic and Strength -Electronic Systems- Electronic Systems  Providing Unrivaled Products in High-end Markets  Value-added Technical Support (System Integration, Installation and Maintenance Services) Our Function  Marketing  Consultation Order Order  Technical support Customer Supplier

  38. Slide 38: Affiliations - Electronic Systems

    Affiliations -Electronic Systems- Electronic Systems Company Headquarters Establishment Shares Principal Business Marubun Tsusho Co.,Ltd. Kanazawa, Ishikawa Mar. 1961 100.0% Systems Business Hokushinrika Nagano, Nagano Nov. 1951 100.0% Systems Business Ikeda iryoudenki Co.,Ltd. * Niigata, Niigata Au

  39. Slide 39: Main Products - Electronic Systems

    Main Products -Electronic Systems- Electronic Systems Segment Main Products Major Supplier High-reliability Components, Tele Communication Systems、 Space and Sensors Plascore,Lavision Defense Avionics Test System, Electronics AAI,CPI,L3 Communications Microwave Equipment Measurement & Inspection Uni

  40. Slide 40: Trend in Net Sales/Gross Profit/SG&A expenses

    Trend in Net Sales/Gross Profit/SG&A expenses SG&A expenses SGA ratio Net Sales Gross Profit margin （¥ million） 4,005 20.0% （¥ million） 72,976 3,768 3,718 3,768 3,718 3,713 68,073 3,713 3,635 3,638 3,651 3,570 3,570 3,635 62,285 63,576 55,796 53,350 54,877 49,687 9.2% 10.0% 7.6% 7.9% 7.4% 7.9% 7.0%

  41. Slide 41: Trend in Orders/Sales

    Trend in Orders/Sales Orders Sales Electronic Devices Electronic Systems Electronic Devices Electronic Systems （¥ million） 72,976 （¥ million） 69,478 68,073 66,371 65,246 63,576 64,644 62,285 60,593 7,829 9,035 16,638 55,796 53,350 54,877 55,210 10,673 10,355 9,177 53,107 11,386 51,581 8,181 12,343 4

  42. Slide 42: Trend in Sales of Electronic Devices by Products

    Trend in Sales of Electronic Devices by Products （¥ million） 59,038 56,337 54,399 49,941 50,550 11,082 48,223 9,196 8,482 Electronic Components 44,536 44,546 7,877 6,966 2,803 6,501 3,290 3,431 Custom IC 2,163 7,931 6,893 3,151 3,040 2,568 Special-Use IC 3,749 19,434 24,618 17,865 22,750 22,453 Micr

  43. Slide 43: Trend in Sales of Electronic Devices by Applications

    Trend in Sales of Electronic Devices by Applications 7.0% 7.5% 6.7% 7.1% 7.2% 8.4% 12.0% 10.4% 9.7% 9.1% 9.0% 9.2% 7.3% Industrial 9.7% 9.5% 10.4% Equipment 13.8% 14.3% 13.6% 15.5% 12.1% 16.0% Automobile 29.6% 23.6% 24.4% 27.4% 25.7% 27.6% Computer & OA 31.6% 22.4% 17.5% 25.9% Consumer Equipment 43.

  44. Slide 44: Trend in Sales of Electronic Systems

    Trend in Sales of Electronic Systems 16,638 Medical Equipment （¥ million） 12,343 7,653 Laser Equipment 4,538 9,177 8,804 9,035 Scientific Equipment 1,628 3,470 6,654 1,085 3,881 3,635 164 1,266 5,246 5,151 2,330 719 984 805 Measurement & Inspection 60 5,087 2,299 640 2,082 73 656 3,543 Equipment 602

  45. Slide 45: Cautionary Statement and Contact

    Cautionary Statement Within the presentation, information on the future performance such as results forecasts is based on the data available at the time this presentation was prepared that the Company assumes reasonable. Actual performance depends on various important factors and may differ signific

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