Marubun Corporation · TSE:7537

Marubun — FY2018 Earnings Presentation

43 slides from Marubun's earnings presentation, May 14, 2019

  1. Slide 1: Financial Results for Fiscal Year Ended March 31, 2019

    Financial Results for Fiscal Year Ended March 31, 2019 May 2019 © 2019 MARUBUN CORPORATION

  2. Slide 2: Today's explanation point

    Today's explanation point FY3/19 Summary of Financial Results Net sales : ¥326.6 billion ( －6.0% YoY) Ordinary income : ¥3.0 billion ( －28.4% YoY) FY3/20 Summary of Consolidated Financial Forecasts Net sales : ¥291.5 billion ( －10.8% YoY) Ordinary income : ¥3.1 billion ( ＋4.3% YoY) Medium-Term Visio

  3. Slide 3: FY3/19 Summary of Consolidated Financial Results

    FY3/19 Summary of Consolidated Financial Results © 2019 MARUBUN CORPORATION

  4. Slide 4: FY3/19 Summary of Financial Results

    FY3/19 Summary of Financial Results (Millions of Yen) FY3/18 FY3/19 YoY Changes Composition Composition Actual Actual Amount ％ Ratio Ratio Net sales 347,508 100.0% 326,694 100.0% (20,814) -6.0% Electronic Devices 296,524 85.3% 275,073 84.2% (21,451) -7.2% Electronic Systems 50,983 14.7% 51,621 15.8%

  5. Slide 5: FY3/19 Electronic Devices Business Net Sales Breakdown by Product

    FY3/19 Electronic Devices Business Net Sales Breakdown by Product （Millions of Yen） 296,524 17,053 275,073 10,943 Electronic Components ＋252 17,305 8,248 Custom IC (2,695) Decrease by transfer of Samsung business 167,998 162,361 Special-Use IC (5,637) Decrease for communication equipment Decrease fo

  6. Slide 6: FY3/19 Electronic Devices Business Market Trend by Application

    FY3/19 Electronic Devices Business Market Trend by Application Application Market Trend Automobile Increase for In-vehicle communication Industrial Equipment & Other Decrease for factory automation Communication Equipment Decrease for communication equipment Computer & Office Equipment Decrease for

  7. Slide 7: FY3/19 Electronic Systems Business Net Sales Breakdown by Product

    FY3/19 Electronic Systems Business Net Sales Breakdown by Product （Millions of Yen） 50,984 51,621 Decrease in 18,359 Medical Equipment ( 757) Diagnostic imaging device 19,116 Information and communication Equipment +273 1,787 1,514 5,431 Laser Equipment +245 5,186 19,462 Industrial Equipment ( 300)

  8. Slide 8: FY3/19 Factors Affecting Ordinary Income

    FY3/19 Factors Affecting Ordinary Income (Millions of Yen) Foreign exchange gains / losses Increase in Gross Profit △ 329 Other Non-operating Income 1,606 & Losses ▲ 2,352 △ 123 Increase in 4,218 SG&A Expenses 3,020 FY18/3 FY19/3 Increase in gross profit Gross Profit FY3/18 : ¥21.1 billion (6.1%) =>

  9. Slide 9: FY3/19 Summary of Balance Sheets

    FY3/19 Summary of Balance Sheets (Millions of Yen) FY3/18 FY3/19 Changes Main Reason for Change Actual Actual Amount Total assets 135,796 128,163 (7,633) Current assets 123,322 113,985 (9,337) Notes and accounts receivable-trade (7,954) Noncurrent assets 12,474 14,177 1,703 Total liabilities 86,619

  10. Slide 10: FY3/20 Summary of Consolidated Financial Forecasts

    FY3/20 Summary of Consolidated Financial Forecasts © 2019 MARUBUN CORPORATION

  11. Slide 11: FY3/20 Financial Forecasts

    FY3/19 Financial Forecasts (Millions of Yen) FY3/19 FY3/20 YoY Changes Composition Composition FY3/19 Forecasts Amount ％ Ratio Ratio Net sales 326,694 100.0% 291,500 100.0% (35,194) -10.8% Electronic Devices 275,073 84.2% 236,000 81.0% (39,073) -14.2% Electronic Systems 51,621 15.8% 55,500 19.0% 3,8

  12. Slide 12: Electronic Devices Business Net Sales Forecasts by Product

    FY3/19 Electronic Devices Business Net Sales Forecasts by Product (Millions of Yen) 275,073 17,305 Increase of connector and fuse for 8,248 industrial and automobile equipment 236,000 22,809 Electronic Components + 5,504 6,949 Custom IC (1,299) Decrease by transfer of Samsung business 162,361 Decrea

  13. Slide 13: Electronic Systems Business Net Sales Forecasts by Product

    FY3/19 Electronic Systems Business Net Sales Forecasts by Product (Millions of Yen) 55,500 51,621 18,800 Medical Equipment +441 18,359 2,456 Informaiton & +669 Communication Equipment 1,787 Increase in Lamp for medical 6,968 Laser Equipment +1,537 5,431 equipment & laser micro processing equipment +

  14. Slide 14: FY3/20 Factors Affecting Ordinary Income

    FY3/20 Factors Affecting Ordinary Income (last FY vs forecasts) (Millions of Yen) Other Non-operating Income & Losses 1,178 (1,267) 219 3,020 3,150 Increase in SG&A Expenses Decrease in Gross Profit FY3/19 Actual FY3/20 Forecasts Decrease due to decrease of Net sales and reflection of the reversal o

  15. Slide 15: Return to Shareholders

    Return to Shareholders © 2019 MARUBUN CORPORATION

  16. Slide 16: Return to Shareholders

    Return to Shareholders Dividend Policy Dividend Payout Ratio 30% or more (consolidated) Dividends Forecast FY3/19 FY3/20 (Yen) (Forecast) Annual Dividend Per Share 30.00 30.00 Interim Dividend 10.00 10.00 Year-End Dividend 20.00 20.00 Payout Ratio(%) 47.9 44.8 © 2019 MARUBUN CORPORATION

  17. Slide 17: Medium-Term Vision: Business Strategies and Key Initiatives

    Medium-Term Vision Business Strategies and Key Initiatives © 2019 MARUBUN CORPORATION

  18. Slide 18: Review of Medium-Term Vision for FY2016 to FY2018

    Review of Medium-Term Vision for FY2016 to FY2018 Electronic Devices Electronic Systems  Expansion of mainstay business  Enhancement of engineering services Business for automobiles expanded  Strengthening of system integration capability  Development of businesses in growth markets Focused on m

  19. Slide 19: Trends in Financial Results

    Trends in Financial Results FY2016 FY2017 FY2018 Net sales ¥270.6 billion ¥347.5 billion ¥326.6 billion Electronic Devices ¥220.1 billion ¥296.5 billion ¥275.0 billion Electronic Systems ¥50.5 billion ¥50.9 billion ¥51.6 billion Ordinary ¥2.6 billion ¥4.2 billion ¥3.0 billion income ROE 4.0% 4.9% 3.

  20. Slide 20: New Medium-Term Vision for FY2019 to FY2021

    New Medium-Term Vision for FY2019 to FY2021 Corporate philosophy “We contribute to the development of a sustainable society by creating value for our customers by providing our solutions with professionalism.” Spirit of being forward-looking and pre-emptive New technologies are expanding that will c

  21. Slide 21: Three Policies in New Medium-Term Vision

    Three Policies in New Medium-Term Vision ① Development of business models to create new value  Provide solutions with differentiated high Development of new business models value-added products and services Evolution of business portfolio ② Promotion of business development for growth markets  Sma

  22. Slide 22: Initiatives for Electronic Devices

    Initiatives for Electronic Devices  Propose solutions combined with line cards Deepening of existing line cards  Capture potential customer needs through digital marketing  Accelerate commercialization in areas where growth is expected  Automobile  Medical  Robotics Business expansion in growt

  23. Slide 23: Initiatives for Electronic Systems

    Initiatives for Electronic Systems Market-in Customer first Customer-in Strengthening Exercising the Enhancing products competitiveness by comprehensive in strategic markets promoting strength of the differentiation Group © 2019 MARUBUN CORPORATION 22

  24. Slide 24: Initiatives for Electronic Systems by Segment

    Initiatives for Electronic Systems by Segment  Expansion of orders for highly reliable parts for artificial satellite- Space and defense mounted modules electronics  Launch of new products Information and  Enhancement of a wide range of products from hardware communication to software equipment 

  25. Slide 25: About Marubun

    About Marubun © 2019 MARUBUN CORPORATION

  26. Slide 26: 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

  27. Slide 27: History of Company Operations

    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 acquisition of

  28. Slide 28: Sales Trend for the Past 10 Years

    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 50 10% 0 0% FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 FY3/19 © 2019 MARUBUN CORPORATION

  29. Slide 29: Domestic Offices

    Domestic Offices # of Marubun Offices︓14 HQ Sales Office Marubun Tsusho Co.,Ltd. # of Logistics Center ︓ 3 Operations Logistics Center (HQ: Kanazawa City） # of Affiliates ︓ 3 Matsumoto  Kanazawa  Hakusan Center Branch Affiliated Company  Toyama  Nagano Nagano  Fukui  Nanao  Matsumoto  Tokyo

  30. Slide 30: Worldwide Sales Network

    Worldwide Sales Network Marubun/Arrow (Shenzhen) Electronic Product Consulting Co., Ltd. (Shenzhen, China) Marubun USA Corporation Marubun/Arrow (HK) Ltd. Reno (Hong Kong, China) Marubun Arrow Europe Kft. Orange County Marubun/Arrow (Shanghai) Co., Ltd. Denver (Shanghai) Chicago China/Dalian Detroit

  31. Slide 31: 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

  32. Slide 32: 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

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

    Main Products(by Supplier) -Electronic Devices- Supplier Seiko Epson Instruments Electronics Asahikasei Broadcom Littlefuse Cypress Sandisk Maxim FINsix Qurvo Molex Texes Other Ablic Eink IDT Analog IC ● ● ● ● ● ● ● ● Standard Logic IC ● DRAM ● Memory IC Flash Memory ● ● Semiconductors Other Memory

  34. Slide 34: Main Products (by Application) - Electronic Devices

    Main Products (by Application) -Electronic Devices- Applications Communication Automobile Equipment Equipment Equipment Consumer Computer Industry OA Consumer Equipment Semcionductor Communication 9% Equipment Analog IC ● ● ● ● ● Computer & 54% Standard Logic IC ● ● ● ● Office DRAM ● ● ● ● Equipment

  35. Slide 35: 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

  36. Slide 36: 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 Hig

  37. Slide 37: Main Products - Electronic Systems 1

    Main Products -Electronic Systems- 1 Products Supplier Electronic Components Inspection Akim,Unihite System, Information & Equipment Seiko Epson,FEI,Shimadzu Industrial Communication Equipment Embedded computer system ARTESYN,Aitech,ADLINK, Equipment LayTec, Riber Laser Equipment 3% Siemens,Shimazu,

  38. Slide 38: Main Products - Electronic Systems 2

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

  39. Slide 39: Main Products - Electronic Systems 3

    Main Products -Electronic Systems- 3 Laser Equipment nLIGHT Laserline Laser Diode Laser Processor Informaiton & Medical Equipment Communication Microsemi Spirent Siemens Japan Network Timeserver GNSS Simulator Diagnostic Imaging Equipment © 2019 MARUBUN CORPORATION

  40. Slide 40: 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 15,702 99,410 99,847 96,546 96,812 95,222 92,954 11,167 11,622 91,565 13,189 13,146 10,749 82,720 83,182 11,827 12,209 77,785 11,915 14,165 70,464 71,211 68,694 66,412 19,848 8,34

  41. Slide 41: Quarterly Trend in Sales of Electronic Devices by Product

    Quarterly Trend in Sales of Electronic Devices by Product (Millions of Yen) 88,243 88,225 3,715 84,473 4,954 2,965 2,911 4,248 79,356 2,430 4,747 Electronic Components 2,092 62,118 Custom IC 60,920 3,896 57,937 3,753 2,843 4,488 2,541 ASSP 55,097 54,816 2,224 50,323 52,737 4,556 52,524 1,185 Micro-P

  42. Slide 42: Trend in Sales of Electronic Systems

    Trend in Sales of Electronic Systems 19,852 18,371 (Millions of Yen) Medical Equipment 8,437 6,997 Informaiton & 12,209 Communication 11,622 11,167 604 10,749 10,291 598 Laser Equipment 1,479 4,219 3,715 4,333 1,900 3,586 3,557 8,345 631 294 322 183 Measurement & Inspection 375 1,228 1,288 Equipment

  43. Slide 43: 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

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