Marubun Corporation · TSE:7537
Marubun — 1H FY3/18 Earnings Presentation
31 slides from Marubun's earnings presentation, November 2017
Slide 1: Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2018
nd Financial Results for the 2 Quarter of Fiscal Year Ending March 31, 2018 November 2017 © 2017 MARUBUN CORPORATION
Slide 2: 1H FY3/18 Summary of Consolidated Financial Results
1H FY3/18 Summary of Consolidated Financial Results © 2017 MARUBUN CORPORATION
Slide 3: 1H FY3/18 Summary of Consolidated Financial Results
1H FY3/18 Summary of Consolidated Financial Results Net sales : ¥169.8 billion (+¥42.1 billion YoY) Electronic Devices Business Increase for communication equipment and industrial equipment, automobile, game consoles Electronic Systems Business Decrease in electronic components assembly and insp
Slide 4: 1H FY3/18 Summary of Financial Results
1H FY3/18 Summary of Financial Results (Millions of Yen) 1H FY3/17 1H FY3/18 YoY Changes Initial Composition Initial Composition Forecasts Actual Actual Amount ％ Ratio Forecasts Ratio vs Actual Net sales 127,741 100.0% 125,000 169,875 100.0% 42,134 33.0% 44,875 Electronic Devices 105,536 82.6% 104,5
Slide 5: 1H FY3/18 Electronic Devices Business
1H FY3/18 “Electronic Devices Business” Net Sales Breakdown by Product （Millions of Yen） 150,361 7,611 Electronic Components +799 5,808 Custom IC +612 105,536 6,812 5,196 Special- Use IC +41,174 Increase for communication equipment 85,173 and automobile 43,999 Micro-Processor (4,050) Decrease from t
Slide 6: 1H FY3/18 Electronic Devices Business: Market Trend by Application
1H FY3/18 “Electronic Devices Business” Market Trend by Application Application Market Trend Communication Equipment Increase Industrial Equipment & Other Increase for factory automation Computer & Office Equipment Increase for HDD Decrease from terminated contract with NXP; Automobile Incresse of o
Slide 7: 1H FY3/18 Electronic Systems Business
1H FY3/18 “Electronic Systems Business” Net Sales Breakdown by Product （Millions of Yen） 22,205 19,513 7,791 Medical Decrease in diagnostic imaging 6,346 (1,445) Equipment equipment 2,233 Increase in marking laser for 159 2,920 Laser Equipment +687 industrial equipment and laser processing equipment
Slide 8: 1H FY3/18 Factors Affecting Ordinary Income
1H FY3/18 Factors Affecting Ordinary Income (Millions of Yen) Decrease of foreign exchange gains Decrease in SG&A Expenses Other Non-operating Increase in Gross Profit Income & Losses 250 (118) (563) 1,939 1,314 1H FY3/17 (194) 1H FY3/18 Increase in gross profit Gross Profit 1H FY3/17: ¥8.3 billion
Slide 9: 1H FY3/18 Summary of Balance Sheets
1H FY3/18 Summary of Balance Sheets (Millions of Yen) FY3/17 1H FY3/18 Changes Reason for change Actual Actual Amount Total assets 125,984 144,773 18,789 Cash and deposits 3,256 Current assets 113,711 132,509 18,798 Notes and accounts receivable-trade 12,930 Noncurrent assets 12,273 12,263 (10) Merc
Slide 10: 1H FY3/18 Summary of Statements of Cash Flows
1H FY3/18 Summary of Statements of Cash Flows (Millions of Yen) 1H FY3/17 1H FY3/18 Reason for change Actual Actual Income before income taxes and minority 1,104 interests Increase in notes and accounts receivable- (13,240) Net cash provided by (used in) trade (6,505) (12,672) operating activities I
Slide 11: Medium-Term Vision: Business Strategies and Key Initiatives
Medium-Term Vision Business Strategies and Key Initiatives © 2017 MARUBUN CORPORATION
Slide 12: Management Environment and Business Outlook
Management Environment and Business Outlook Domestic market of Semiconductor manufacturers electronics manufacturers For Automobile Develop and for Industry Change of power relationships due to M&A For consumer equipment and computers Reduction Strive to expand business by utilizing our strengths an
Slide 13: Medium-Term Vision (2016-2018)
Medium-Term Vision(2016-2018) Catching up Creating new Improving with industry businesses through capital efficiency reorganization active investment ROE 8.0％ or above © 2017 MARUBUN CORPORATION 12
Slide 14: Four initiatives for Electronic Devices Business
Four initiatives for “Electronic Devices Business” (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 © 2017 MARUBUN CORPORATION 13
Slide 15: Outlook for Electronic Devices in the First Half of the Year
Outlook for “Electronic Devices” in the First Half of the Year Sales have drastically increased, and the same level of performance as in the previous year has been secured in the number of new projects While agency contracts with NXP were terminated at the end of February, other business has been
Slide 16: (1) Expansion of the Base Business
(1) Expansion of the Base Business Automobile market Transition period once per Trends of sales to the automotive sector (Billion hundred years yen) Up 8.7% 20 YoY On-vehicle applications on which we should focus in the future Network Drive assist connection Driver 10 EV/HEV monitoring Industrial eq
Slide 17: (2) Development of Businesses in Growth Markets
(2) Development of Businesses in Growth Markets Strengthening IoT business Afero, Inc. MC10 companies IoT Bio Sensor Platform Original sensor modules, microprocessors, and wireless communications technology Proposals for solutions Explore new markets © 2017 MARUBUN CORPORATION 16
Slide 18: (3) Rapid Commercialization of New Products
(3) Rapid Commercialization of New Products Aiming at the next generation and the most advanced technology Cypress FINsix Eink Semiconductor Launch of sales in Growth in sales of Introducing at CEATEC, a home appliance exhibition Japan of the small PC wireless products for Electronic comic b
Slide 19: (4) Enhancement of Global Operations
(4) Enhancement of Global Operations Europe Asia/North America Strong sales for Opening Marubun Arrow automobile applications Europe in Budapest, Hungary Strengthening of relationships Expansion of bases with customers’ headquarters in Euro zone in Japan Meeting the local needs Expecting steady grow
Slide 20: Initiatives of Electronic Systems
Initiatives of “Electronic Systems” Customer Market-in Customer-in First Enhancing engineering services Strengthening system integration capability Expansion of customers Improvement of profitability © 2017 MARUBUN CORPORATION 19
Slide 21: Initiatives of Electronic Systems by Segment
Initiatives of “Electronic Systems” by Segment Manufacturing and sales of original systems Micromachining equipment, hardening Laser equipment, and others Equipment Expansion of demand for consumer equipment and automobiles FORESIGHT TECHNO micromachining equipment Promotion of sales in the
Slide 22: Initiatives of Electronic Systems by Segment
Initiatives of “Electronic Systems” by Segment Promotion of orders for highly reliable Space and components defense electronics Expansion of product lineup Sales of solar panels for artificial satellites Merging Ikeda Iryou Denki into Marubun Tsusho Strengthening sales capabilities through
Slide 23: FY3/18 Summary of Consolidated Financial Forecasts
FY3/18 Summary of Consolidated Financial Forecasts © 2017 MARUBUN CORPORATION
Slide 24: FY3/18 Summary of Consolidated Financial Forecasts
FY3/18 Summary of Consolidated Financial Forecasts Net sales : ¥326 billion (＋ ¥55.3 billion YoY) Electronic Devices Business Increase for communication equipment, Industrial equipment and game consoles. Electronic Systems Business Increase in laser equipment and space & defense electronics. Dec
Slide 25: FY3/18 Financial Forecasts
FY3/18 Financial Forecasts (Millions of Yen) FY3/17 FY3/18 YoY Changes Initial Forecasts Composition Initial Rivised Composition Actual Amount ％ vs Revised Ratio Forecasts Forecasts Ratio Forecasts Net sales 270,698 100.0% 260,000 326,000 100.0% 55,302 20.4% 66,000 Electronic Devices 220,184 81.3% 2
Slide 26: FY3/18 Electronic Devices Business
FY3/18 “Electronic Devices Business” Net Sales Forecasts by Product (Millions of Yen) 274,000 Increase of connector for 17,974 Electronic Components + 2,206 industrial equipment and 10,328 Custom IC (712) electronic paper 220,184 15,768 11,040 152,169 Increase for communication Special-Use IC + 57,7
Slide 27: FY3/18 Electronic Systems Business
FY3/18 “Electronic Systems Business” Net Sales Forecasts by Product (Millions of Yen) 50,513 52,000 Medical Decrease in diagnostic imaging 18,290 Equipment (1,117) 19,407 equipment Increase in marking laser for industrial Laser Equipment +1,690 equipment and laser processing 7,144 equipment 5,453 1,
Slide 28: FY3/18 Factors Affecting Ordinary Income
FY3/18 Factors Affecting Ordinary Income (last FY vs forecasts) Decrease in SG&A Expenses Other Non-operating Income & Losses Increase in Gross Profit 329 (268) (Millions of Yen) 1,288 4,000 2,651 FY3/17 FY3/18 Actual Forecasts Increase in gross profit Gross Profit FY3/17:¥20.6billion(7.6%) → FY3/18
Slide 29: Return to Shareholders
Return to Shareholders © 2017 MARUBUN CORPORATION
Slide 30: Return to Shareholders
Return to Shareholders Dividend Policy Dividend Payout Ratio 30% or more (consolidated) Dividends Forecast FY3/17 FY3/18 (Yen) (Forecast) Annual Dividend Per Share 25.00 30.00 Interim Dividend 10.00 10.00 15.00 20.00 Year-End Dividend (Year-end dividend 15.00) (Commemorative dividend 5.00) © 2017 MA
Slide 31: 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