Marubun Corporation · TSE:7537

Marubun — Q2 FY3/22 Earnings Presentation

42 slides from Marubun's earnings presentation, November 2021

  1. Slide 1: Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2022

    Confidential Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2022 November 2021 © 2021 MARUBUN CORPORATION

  2. Slide 2: Agenda

    Confidential Agenda 1. 2Q FY3/22 Summary of Consolidated Financial Results 2. Medium-Term Vision Business Strategies and Key Initiatives 3. FY3/22 Summary of Consolidated Financial Forecasts 4. Return to Shareholders 5. About Marubun © 2020 MARUBUN CORPORATION

  3. Slide 3: 2Q FY3/22 Summary of Consolidated Financial Results

    Confidential 2Q FY3/22 Summary of Consolidated Financial Results © 2021 MARUBUN CORPORATION

  4. Slide 4: 2Q FY3/22 Summary of Consolidated Financial Results

    Confidential 2Q FY3/22 Summary of Consolidated Financial Results  The market has recovered. Various measures in the medium-term management plan are also progressing, and the initial forecast for the fiscal year has been significantly exceeded. (Millions of Yen) 2Q FY３/21 2Q FY3/22 YoY Changes Initi

  5. Slide 5: 2Q FY3/22 Electronic Devices Business Net Sales Breakdown by Product

    2Q FY3/22 Electronic Devices Business Confidential Net Sales Breakdown by Product  In addition to increased demand for PC peripherals and consumer equipment, software products business grew. (Millions of Yen) 2Q FY３/21 2Q FY3/22 2Q FY3/22 Actual Actual YoY Actual reasons for changes Changes （Revenu

  6. Slide 6: 2Q FY3/22 Electronic Devices Business Market Trend by Application

    2Q FY3/22 Electronic Devices Business Confidential Market Trend by Application Previous method Market Trend Communication Equipment the same level as last year Automobile Increase in sales for entertainment equipment Consumer Equipment Increase in sales for electronic control equipment Computer & Of

  7. Slide 7: 2Q FY3/22 Electronic Systems Business Net Sales Breakdown by Product

    2Q FY3/22 Electronic Systems Business Confidential Net Sales Breakdown by Product  Sales of industrial equipment and laser equipment increased due to recovery in equipment investment. (Millions of Yen) 2Q FY３/21 2Q FY3/22 2Q FY3/22 Actual Actual YoY Actual reasons for changes Changes （Revenue recog

  8. Slide 8: 2Q FY3/22 Summary of Balance Sheets

    Confidential 2Q FY3/22 Summary of Balance Sheets Previous method (Millions of Yen) FY3/21 2Q FY3/21 Changes Reason for change Actual Actual Amount Total assets 127,006 141,275 +14,269 Current assets 114,804 129,706 +14,902 Cash and deposits (3,160) Notes and accounts receivable-trade (8,465) Merchan

  9. Slide 9: Medium-Term Vision Business Strategies and Key Initiatives

    Confidential Medium-Term Vision Business Strategies and Key Initiatives © 2021 MARUBUN CORPORATION

  10. Slide 10: Medium-Term Vision

    Confidential Medium-Term Vision In the spirit of Foresight and Preemption since our founding Medium-Term Management Plan Initiative （ FY2019 ～ FY2021 ） Building a business model that creates new value Promote business development for growth markets Strengthen efforts to contribute to a sustainable s

  11. Slide 11: Theme: Maximize business profit

    Confidential Initiatives for Electronic Devices Theme Business portfolio Productivity enhancement enhancement Maximize business profit © 2021 MARUBUN CORPORATION 10

  12. Slide 12: Initiatives for Electronic Devices

    Confidential Initiatives for Electronic Devices 1 Expand commercial rights with value-added products and services Promote 高付加価値 high  Growth in new commercial rights of existing suppliers and products of new suppliers. value-added ビジネスの推進  Promote further discovery of commercial products and busin

  13. Slide 13: New Products for Electronic Devices

    Confidential New Products for Electronic Devices Aeolus Robotics Ossia Inc. StethoMe sp. z o.o. AI autonomous robots Image of wireless power transfer Electronic stethoscope technology Cota eYs3D Microelectronics, Co. ScaleFlux Inc. Stereo 3D Camera Module Computational Storage Drives © 2021 MARUBUN

  14. Slide 14: Initiatives for Electronic Systems

    Confidential Initiatives for Electronic Systems Market-in Customer first Customer-in Demonstrate Differentiation of Service comprehensive products handled differentiation group strength Promoting initiatives aiming for higher profitability © 2021 MARUBUN CORPORATION 13

  15. Slide 15: Initiatives for Electronic Systems

    Confidential Initiatives for Electronic Systems 1 高付加価値 Space & Defense ビジネスの推進 Electronics  Focus on capturing the demand for high reliability parts for satellites and rockets.  Expanding sales of driving simulators. 2  Expanded handling of advanced, high- performance assembly, inspection, and a

  16. Slide 16: Initiatives for Electronic Systems

    Confidential Initiatives for Electronic Systems ４ Information 高付加価値& Communication ビジネスの推進 Equipment  Sales Promotion for Data Center Market.  Expanding product lineup in line with 5G and local 5G market developments. ５ Medical Equipment  New products such as coronavirus-related products have bee

  17. Slide 17: FY3/22 Summary of Consolidated Financial Forecasts

    Confidential FY3/22 Summary of Consolidated Financial Forecasts © 2021 MARUBUN CORPORATION

  18. Slide 18: FY3/22 Financial Forecasts

    Confidential FY3/22 Financial Forecasts (Millions of Yen) Initial FY3/22 FY3/21 FY3/22 YoY Changes Forecast vs （Revenue recognition （Previous method） （Previous method） （Previous method） Actual accounting standards） Forecast Forecast Forecast Composition （As of May （As of Composition ％ Amount of （As

  19. Slide 19: FY3/22 Electronic Devices Business Financial Forecasts

    FY3/22 Electronic Devices Business Confidential Financial Forecasts (Millions of Yen) FY3/22 （Revenue FY3/21 FY3/22 Changes （Previous method） Reason for change recognition Actual Amount accounting standards） Decrease for industrial equipment and Analog IC 34,791 32,176 (2,615) 32,176 automotive Stan

  20. Slide 20: FY3/22 Electronic Systems Business Financial Forecasts

    FY3/22 Electronic Systems Business Confidential Financial Forecasts (Millions of Yen) FY3/22 （Revenue FY3/21 FY3/22 Changes （Previous method） Reason for change recognition Actual Amount accounting standards） Space & Defense Increase for high-reliability 4,355 5,497 +1,142 5,429 Electronics component

  21. Slide 21: Return to Shareholders

    Confidential Return to Shareholders © 2021 MARUBUN CORPORATION

  22. Slide 22: Return to Shareholders

    Confidential Return to Shareholders Dividend Policy Dividend Payout Ratio 30% or more (consolidated) Dividends Forecast （Yen) FY 21/3 FY 22/3 （Forecast） Annual Dividend Per Shere 16.00 30.00 Interim Dividend 8.00 10.00 Year-End Dividend 8.00 20.00 Payout Ratio(%) ー 27.0% © 2021 MARUBUN CORPORATION 2

  23. Slide 23: About Marubun

    Confidential About Marubun © 2021 MARUBUN CORPORATION

  24. Slide 24: Company Profile

    Confidential 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  Las

  25. Slide 25: History of Company Operations

    Confidential History of Company Operations Japan Overseas 2019 Hokushinrika merged with Marubun Tsusho 2017 2018 Established subsidiary in Hungary KTL Corporatioa merged with Marubun 2014 2016 Established subsidiary in Indonesia and Mexico Business acquisition of KTL Corporation 2015 2013 Business a

  26. Slide 26: Sales Trend for the Past 10 Years

    Confidential Sales Trend for the Past 10 Years （Billions of Yen） 400 70% Net sales Overseas sales ratio 350 60% 300 50% 250 40% 200 30% 150 20% 100 10% 50 0 0% FY 11/3 FY 12/3 FY 13/3 FY 14/3 FY 15/3 FY 16/3 FY 17/3 FY 18/3 FY 19/3 FY 20/3 FY 21/3 © 2021 MARUBUN CORPORATION 26

  27. Slide 27: Group Company

    Confidential Group Company Marubun Tsusho MARUBUN/ARROW ASIA, LTD. MARUBUN/ARROW USA, LLC Co., Ltd.  Electronic Devices Business  Electronic Devices Business  Electronic Systems Business Sales of semiconductors and electronic Sales of semiconductors and electronic Sales of medical equipment and t

  28. Slide 28: Domestic Offices

    Confidential Domestic Offices # of Marubun Offices：16 HQ Sales Office Marubun Tsusho Co.,Ltd. # of Logistics Center ： 3 Operations Logistics Center (HQ: Kanazawa City） # of Affiliates ： 3  Kanazawa  Nagano Branch Affiliated Company （as of May 2021）  Toyama  Hakusan Center  Fukui  Nanao  Matsu

  29. Slide 29: Worldwide Sales Network

    Confidential Worldwide Sales Network MARUBUN/ARROW ELECTRONICS (SHENZHEN) CO.,LTD. (Shenzhen) Marubun USA Corporation MARUBUN/ARROW (HK)LIMITED. Reno (Hong Kong) Marubun Arrow Europe Kft. Foothill Ranch (Budapest) MARUBUN/ARROW USA,LLC (Head Office:Centennial) Itasca Plymouth Addison MARUBUN CORPORA

  30. Slide 30: Value Provided

    Confidential value provided Global Support Extensive line cards and product synergy  Collaboration with Arrow Electronics  Lineup of competitive suppliers at home and abroad  Worldwide Japanese quality support by Marubun Arrow  A wide range of products, from standard products to custom products.

  31. Slide 31: Characteristics and Strengths - Electronic Devices

    Confidential Characteristics and Strengths -Electronic Devices-  Wide Product Lineup through Overseas Suppliers  Global Sales Network in Alliance with Arrow Electronics, Inc.  Effective Solution Suggestion through High Technological Skill  Strong Customer Base Wide Product Lineup Marketing Desig

  32. Slide 32: Affiliations - Electronic Devices

    Confidential Affiliations -Electronic Devices- Company Head Quarter Establish Share Business Holding company of Marubun USA Corporation California, U.S.A. October 1983 100% Marubun/Arrow USA,LLC Supply of semiconductors and Marubun Taiwan, Inc. Taipei, Taiwan November 1989 100% electronic components

  33. Slide 33: Main Products (by Supplier) - Electronic Devices

    Confidential Main Products(by Supplier) -Electronic Devices- Semiconductor Electronic Components Item Electronic Analog IC Memory IC Microprocessor Special-use IC Custom IC Electrical Equipment Other Components Analog, Sensor, DRAM, Flash Memory MPU, MCU, DSP ASSP,LED Custom,ASIC,FPGA Display, Cryst

  34. Slide 34: Characteristics and Strengths - Electronic Systems

    Confidential 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  Technical Sup

  35. Slide 35: Affiliations - Electronic Systems

    Confidential Affiliations -Electronic Systems- Company Head Quarter Establish Share Business Sales of medical equipment and Marubun tsusho Co.,Ltd. Kanazawa City March 1961 100% measurement & inspection equipment Sales of measurement & inspection Marubun West Corporation Kobe City May 2005 100% equi

  36. Slide 36: Main Products - Electronic Systems

    Confidential Main Products -Electronic Systems- 1 Segment Main Produts Main Suppliers High-reliability Baker Hughes Company, Components,Measurement and PCB Piezotronics, Inc,Comtech Telecommunications Corp. Sensor Equipment Space& Defense Electronics Avionics Test System&Simulator Equipment, Bird Te

  37. Slide 37: Main Products - Electronic Systems

    Confidential Main Products -Electronic Systems- 2 Space & Defense Measurement & Inspection Equipment Electronics BEI Sensors Akim High-reliability Shimazu Electronic Components Components Gas Chromatography Inspection Equipment CPI FEI FUJI CORPORATION Microwave Infrared Inspection Ultra High Densit

  38. Slide 38: Main Products - Electronic Systems

    Confidential Main Products -Electronic Systems- 3 Laser Equipment nLIGHT Laserline Laser Diode Laser Processor Informaiton & Communication Medical Equipment Equipment Microchip Spirent Siemens Healthcare K.K. Network Timeserver GNSS Simulator Diagnostic Imaging Equipment © 2021 MARUBUN CORPORATION 3

  39. Slide 39: Quarterly Trend in Sales by Business

    Confidential Quarterly Trend in Sales by Business Previous method (Millions of Yen) 79,044 78,728 75,030 72,971 10,398 68,629 13,216 10,239 62,238 18,549 10,043 8,046 Electronic Systems Electronic Devices 68,646 64,790 65,512 58,585 54,191 54,422 1Q 2Q 3Q 4Q 1Q 2Q FY3/21 FY3/22 © 2021 MARUBUN CORPOR

  40. Slide 40: Quarterly Trend in Sales of Electronic Devices by Product

    Confidential Quarterly Trend in Sales of Electronic Devices by Product Previous method (Millions of Yen) 68,646 65,512 64,790 7,367 5,537 10,213 1,082 58,585 1,269 54,191 54,422 1,753 8,846 4,802 8,557 888 1,734 Electronic Components 1,312 Custom IC Special- Use IC 45,648 48,531 42,384 Micro-Process

  41. Slide 41: Trend in Sales of Electronic Systems

    Confidential Trend in Sales of Electronic Systems Previous method (Millions of Yen) 18,549 8,215 Medical Equipment 13,216 ICT Equipment 10,239 10,398 4,434 10,043 Laser Equipment 856 8,046 1,180 3,755 3,727 437 3,649 Industrial 1,302 Equipment 3,511 278 473 247 861 Space & defense 988 1,012 electron

  42. Slide 42: Cautionary Statement

    Confidential 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 CORPORATI

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