Marubun Corporation · TSE:7537
Marubun — 1H FY3/19 Earnings Presentation
48 slides from Marubun's earnings presentation, November 2018
Slide 1: Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2019
nd Financial Results for the 2 Quarter of Fiscal Year Ending March 31, 2019 November 2018 © 2018 MARUBUN CORPORATION
Slide 2: 1H FY3/19 Summary of Consolidated Financial Results
1H FY3/19 Summary of Consolidated Financial Results © 2018 MARUBUN CORPORATION
Slide 3: 1H FY3/19 Summary of Consolidated Financial Results
1H FY3/19 Summary of Consolidated Financial Results Net sales : ¥166.4 billion (-¥3.4 billion YoY) Electronic Devices Business Decrease for TV and PC Electronic Systems Business Increase in Space and Defense Electronics, Medical Equipment Operating income : ¥2.5 billion (+¥0.8billion YoY) Gross
Slide 4: 1H FY3/19 Summary of Financial Results
1H FY3/19 Summary of Financial Results (Millions of Yen) 1H FY3/18 1H FY3/19 YoY Changes Initial Composition Initial Composition Forecasts Actual Actual Amount ％ Ratio Forecasts Ratio vs Actual Net sales 169,875 100.0% 160,000 166,434 100.0% (3,441) -2.0% 6,434 Electronic Devices 150,361 88.5% 139,0
Slide 5: 1H FY3/19 Electronic Devices Business Net Sales Breakdown by Product
1H FY3/1FY3/19 “Electronic Devices Business” Net Sales Breakdown by Product (Millions of Yen) 150,361 145,394 7,611 5,808 8,002 Electronic Components +391 4,971 Custom IC (837) Decrease for consumer equipment 85,173 Decrease for 82,355 Special- Use IC (2,818) communication equipment 6,686 7,673 Micr
Slide 6: 1H FY3/19 Electronic Devices Business Market Trend by Application
1H FY3/19 “Electronic Devices Business” Market Trend by Application Application Market Trend Industrial Equipment & Other Increase for factory automation Automobile Increase for connected car Communication Equipment Decrease for communication equipment Computer & Office Equipment Decrease for PC Con
Slide 7: 1H FY3/19 Electronic Systems Business Net Sales Breakdown by Product
1H FY3/19 “Electronic Systems Business” Net Sales Breakdown by Product （millons of Yen） 21,040 19,513 Medical Increase in diagnostic imaging 7,143 equipment Equipment +797 6,346 Information and 558 communication Equipment (30) 587 2,243 Laser Equipment (90) 2,333 Increase in electronic component 8,6
Slide 8: 1H FY3/19 Factors Affecting Ordinary Income
1H FY3/19 Factors Affecting Ordinary Income (Millions of Yen) Increase in SG&A Expenses Increase in Gross Profit Increase of foreign exchange losses Other Non-operating Income & Losses Increase in gross profit Gross Profit 1H FY3/18: ¥10.2 billion (6.0%) => 1H FY3/19: ¥11.3 billion (6.8%) SG&A Incre
Slide 9: 1H FY3/19 Summary of Balance Sheets
1H FY3/19 Summary of Balance Sheets (Millions of Yen) FY18/3 1H FY3/19 Changes Reason for change Actual Actual Amount Total assets 135,706 137,315 1,609 Notes and accounts receivable-trade 5,354 Current assets 122,297 123,569 1,272 Merchandise and finished goods (6,943) Noncurrent assets 13,408 13,7
Slide 10: Medium-Term Vision Business Strategies and Key Initiatives
Medium-Term Vision Business Strategies and Key Initiatives © 2018 MARUBUN CORPORATION
Slide 11: Management Environment
Management Environment Movements of industry Themes of semiconductor reorganization industry AI/Robots/IoT technology Semiconductor manufacturers Expansion of M&A Promotion of usage Electronics trading company Entry by many players Progress of business integration and M&A Chaotic situations © 2018 M
Slide 12: Medium-Term Vision: Realization of sustainable growth
Medium-Term Vision (2016-2018) Medium-Term Vision (FY3/19) Catching new Catching up with businesses Improving industry through capital efficiency reorganization active investment Realization of sustainable growth © 2018 MARUBUN CORPORATION 11
Slide 13: Four initiatives for Electronic Devices
Four initiatives for Electronic Devices (1) Expansion of the mainstay business (2) Development of businesses in Electronic growth markets Devices (3) Rapid commercialization of new products (4) Enhancement of global operations © 2018 MARUBUN CORPORATION 12
Slide 14: (1) Expansion of the Mainstay Business
(1) Expansion of the Mainstay Business Promotion of demand creation activities Trends in sales to the Expansion of sales system for key devices such as automotive sector (hundred million yen) analog and wireless 200 100 Enhancement of solutions in the automobile market 0 Focus on automated drivi
Slide 15: (1) Expansion of the Mainstay Business
(1) Expansion of the Mainstay Business Initiatives for industrial equipment and the mass market Establishment of specialized organization Effective promotion by digital marketing Strengthening of business foundation and realization of more efficient business management Integration of KTL Corp.
Slide 16: (2) Development of Businesses in Growth Markets
(2) Development of Businesses in Growth Markets Medical/healthcare IoT MC10 Afero Bio sensor IoT platform Demonstration experiment for Promotion of adoption with smart lock, healthcare with various companies, etc. including fitness and wear Cypress Wireless-related products for IoT Growi
Slide 17: (3) Rapid Commercialization of New Products
(3) Rapid Commercialization of New Products Launch of new business model different from the conventional sales of semiconductors FINsix Nanoramic Laboratories Joint development with Toyota Handling of nano carbon products Industries Corporation High-quality head conductive materials Inverter
Slide 18: (4) Enhancement of Global Operations
(4) Enhancement of Global Operations Europe Asia/North America Smooth launch of Strong performance of the business the business for automobiles for automobiles Expectations of further growth Marubun Arrow Europe Marubun Arrow USA Marubun Arrow Asia © 2018 MARUBUN CORPORATION 17
Slide 19: Initiatives of Electronic Systems
Initiatives of "Electronic Systems" Market-in Customer Customer-in First Enhancing engineering services Strengthening system integration capability © 2018 MARUBUN CORPORATION 18
Slide 20: Initiatives of Electronic Systems by Segment
Initiatives of "Electronic Systems" by Segment Focus on the capture of highly reliable parts Space and and components for artificial satellites and defense robots electronics Focus on sales of inspection equipment and failure analysis equipment for electronic parts for Industrial on-vehicle use/
Slide 21: Initiatives of Electronic Systems by Segment
Initiatives of "Electronic Systems" by Segment Active sales to carriers and communications infrastructure manufacturers ahead of Information and commercialization of 5G mobile communications Communication system Equipment Start of sales of high-precision GPS receiver of Septentrio Septentrio for
Slide 22: FY3/19 Summary of Consolidated Financial Forecasts
FY3/19 Summary of Consolidated Financial Forecasts © 2018 MARUBUN CORPORATION
Slide 23: FY3/19 Summary of Consolidated Financial Forecasts
FY3/19 Summary of Consolidated Financial Forecasts Net sales : ¥325 billion (- ¥22.5 billion YoY) Electronic Devices Business Decrease for communication equipment, TV and PC. Electronic Systems Business Increase in laser equipment , space & defense electronics, and Industrial Equipment. Operatin
Slide 24: FY3/19 Financial Forecasts
FY3/19 Financial Forecasts (Millions of Yen) FY3/18 FY3/19 YoY Changes Initial Forecasts Composition Initial Rivised Compositi vs Revised Actual Amount ％ Ratio Forecasts Forecasts on Ratio Forecasts Net sales 347,508 100.0% 315,000 325,000 100.0% (22,508) -6.5% 10,000 Electronic Devices 296,524 85.3
Slide 25: 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 17,053 272,000 10,943 Increase of connector for 20,581 Electronic Components + 3,528 industrial equipment 7,040 Custom IC (3,904) Decrease for consumer equipment 167,998 Decrease for communication 157,984 S
Slide 26: FY3/19 Electronic Systems Business Net Sales Forecasts by Product
FY3/19 “Electronic Systems Business” Net Sales Forecasts by Product (Millions of Yen) 53,00 50,98 0 3 18,27 Medical Decrease in diagnostic imaging 19,11 Equipment (846) 0 equipment 6 1,733 Information & +219 Communication Equipment 1,514 6,156 Laser Equipment +971 Increase in laser processing 5,186
Slide 27: FY3/19 Factors Affecting Ordinary Income
FY3/19 Factors Affecting Ordinary Income (last FY vs forecasts) Increase in SG&A Expenses Other Non-operating Income & Increase in Gross Profit Losses (110) (Millions of Yen) 2,139 (2,796) 4,218 3,450 FY3/18 FY3/19 Actual Forecasts Increase in gross profit Gross Profit FY3/18:¥21.1billion(6.1%) => F
Slide 28: Return to Shareholders
Return to Shareholders © 2018 MARUBUN CORPORATION
Slide 29: 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 (Year-end dividend 15.00) 20.00 (Commemorative dividend 5.00) © 2018 MA
Slide 30: About Marubun
About Marubun © 2018 MARUBUN CORPORATION
Slide 31: 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 32: History of Company Operations
History of Company Operations Japan Overseas 2018 KTL Corporation merged with Marubun Corporation 2017 2017 Established subsidiary in Hungary Ikeda Iryou Denki merged with Marubun Tsusho 2014 2016 Established subsidiary in Indonesia and Mexico Business acquisition of KTL Corporation 2013 2015 Establ
Slide 33: 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 © 2018 MARUBUN CORPORATION 32
Slide 34: Domestic Offices
Domestic Offices # of Marubun Offices︓16 MARUBUN TSUSYO CO., LTD. # of Logistics Center ︓ 3 Kanazawa Hakusan # of Affiliates ︓ 4 Toyama Nagano Fukui Nanao Matsumoto Kofu Niigata Tokyo HQ Office HOKUSHINRIKA Operations Logistics Center Matsumoto Branch Affiliated Company Kofu
Slide 35: Worldwide Sales Network
Worldwide Sales Network Marubun/Arrow (Shenzhen) Electronic Product Consulting Co., Ltd. (Shenzhen, China) Marubun/Arrow (HK) Ltd. Marubun USA Corporation (Hong Kong, China) Reno Marubun Arrow Europe Kft. Orange County Marubun/Arrow (Shanghai) Co., Ltd. Denver (Shanghai) Chicago China/Dalian Detroit
Slide 36: 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 37: 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 electronic Marubun Taiwan, Inc. Taipei, Taiwan November 1989 100.0% components made in
Slide 38: Main Products (by Supplier) - Electronic Devices
Main Products(by Supplier) -Electronic Devices- Supplier Seiko Epson Instruments Asahikasei Electronics Broadcom Littlefuse Cypress Sandisk ABLIC Maxim FINsix Qurvo Molex Texes Other Eink IDT Analog IC ● ● ● ● ● ● ● ● Standard Logic IC ● DRAM ● Memory IC Flash Memory ● ● Semiconductors Other Memory
Slide 39: 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 11% Analog IC ● ● ● ● ● Communication Standard Logic IC Equipment ● ● ● ● Computer & 51% DRAM ● ● ● ● Office Memory I
Slide 40: 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 41: 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 42: Main Products - Electronic Systems 1
Main Products -Electronic Systems- 1 Products Supplier Information & Electronic Components Inspection Akim,Unihite System, Industrial Equipment Seiko Epson,FEI,Shimadzu Communication Equipment Equipment ARTESYN,Aitech,ADLINK, Embedded computer system Laser Equipment LayTec, Riber 3% 10% Siemens,Shim
Slide 43: Main Products - Electronic Systems 2
Main Products -Electronic Systems- 2 Space & Defense Measurement & Inspection Electronics Equipment BEI Sensors Shimazu Akim High-reliability Gas Chromatography Electronic Components Components Inspection Equipment FEI FUJI CPI Infrared Inspection Ultra High Density Atmospheric Microwave Equipment E
Slide 44: Main Products - Electronic Systems 3
Main Products -Electronic Systems- 3 Laser Equipment nLIGHT Laserline Laser Diode Laser Processor Informaiton & Communication Medical Equipment Microsemi Spirent Siemens Japan Network Timeserver GNSS Simulator Diagnostic Imaging Equipment © 2018 MARUBUN CORPORATION 45
Slide 45: 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 95,222 11,167 11,622 96,546 96,812 10,749 13,189 13,146 77,785 82,720 83,182 70,464 71,211 11,915 14,165 19,848 8,345 10,291 66,412 12,498 104,477 88,243 88,2
Slide 46: Quarterly Trend in Sales of Electronic Devices by Product
Quarterly Trend in Sales of Electronic Devices by Product 88,243 88,225 （Millions of Yen） 3,715 4,954 84,473 2,965 2,911 4,248 2,430 Electronic Components Custam IC Special Use IC 62,118 Microprocesser 60,920 3,896 57,937 3,753 Memory IC 2,843 4,488 2,541 55,097 54,816 Standard Logic IC 2,224 52,737
Slide 47: Trend in Sales of Electronic Systems
Trend in Sales of Electronic Systems 19,852 (Millions of Yen) Medical Equipment 8,437 Information and Communication 11,622 Equipment 11,167 604 10,749 10,291 1,479 Laser Equipment 3,715 4,333 8,345 3,586 3,557 294 322 183 2,631 375 1,228 Industrial 1,468 1,374 293 7,089 1,015 Equipment 865 4,623 4,3
Slide 48: 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