Marubun Corporation · TSE:7537
Marubun — H1 FY2004 Earnings Presentation
23 slides from Marubun's earnings presentation, Nov 16, 2004
Slide 1: Financial Information Meeting for the First Half of FY 2004
Financial Information Meeting for the First Half of FY 2004 November 16, 2004 Any statements in this document, other than those of historical facts, are forward-looking statements about the future performance of Marubun, which are based on management assumptions and beliefs in light of information c
Slide 2: Consolidated Business Results for First Half of FY 2004
Consolidated Business Results for First Half of FY 2004 (Million Yen) Sep/04 Sep/03 Change % Net Sales 83,504 71,349 17.0 Gross Profit on 9,295 7,690 20.9 Sales Operating 1,477 (186) - Income Ordinary 1,510 130 1,061.5 Income Net Income 924 56 1,550.0 1 [Consolidated Business Results for First Half
Slide 3: Sales by Segment
Sales by Segment (Million Yen) Electronic Devices Electronic Systems i 65,455 56,230 18,048 15,119 Sep/03 Sep/04 Sep/03 Sep/04 2 [Sales by Segment] Our Electronic Devices Business reported a 16% increase in net sales, to 65.4 billion yen, while our Electronic Systems Business reported a 19% increase
Slide 4: Electronic Devices Sales by Application
Electronic Devices Sales by Application Automotive Automotive Industrial 8% Industrial 7% Telecom Telecom YoY Comparison Equipment Equipment Terminals Terminals 7% Telecom Terminals +34% 21% 9% 25% Telecom Infrastructure +14% Consumer Electronics +26% Office Office PC & Peripherals -18% Equipment Te
Slide 5: Electronic Devices Sales by Product
Electronic Devices Sales by Product (Million Yen) 65,455 Total +9,225 6,416 Electronic Device +115 56,230 2,326 Discrete +761 6,301 5,436 Custom IC -1,431 Decrease in cellular phone products 1,565 Special-Use IC +8,800 6,867 <Breakdown> Micro processor +37 30,468 DSP +4,724 Increase in cellular phon
Slide 6: Electronic Systems Sales by Product
Electronic Systems Sales by Product (Million Yen) Total +2,929 18,048 15,119 4,663 Medical Equipment +112 4,551 1,641 Communication & Network Equipment +27 1,775 Laser Equipment +3 1,614 748 Scientific Equipment +251 1,772 497 Measurement & Inspection Equipment +2,362 7,276 Increase in sales of insp
Slide 7: Interim Results of Key Affiliates
Interim Results of Key Affiliates Company Marubun Tsusho Taiwan Marubun, Inc. Marubun/Arrow Name Co., Ltd. Investment 100% 100% 50% Percentage Segment Electronic Systems Electronic Devices Electronic Devices NT$420M $131M Net Sales ¥8,026M (¥1,359M ¥14,299M Interim Net -NT$1M $3M ¥113M Income -¥4M ¥
Slide 8: Factors Affecting Ordinary Income
Factors Affecting Ordinary Income (Million yen) 2,500 Personnel Expense Decrease +372 Gross Profit Margin 2,000 Ratio Improvement +295 Net Sales Increase Expense Increase 1,510 +1,310 -314 1,500 Non-operating Losses -283 1,000 500 130 0 Sep/03 +1,376 Sep/04 7 Factors Affecting Ordinary Income Moving
Slide 9: Interim Consolidated Balance Sheets
Interim Consolidated Balance Sheets (Million Yen) Sep/04 Sep/03 Change Current Assets 77,207 68,463 8,744 Cash and Bank Deposits 4,948 6,601 (1,653) Notes and Accounts Receivable, Trade 46,532 40,176 6,356 Inventories 23,319 18,773 4,546 Deferred Tax Assets 474 476 (2) Other 1,960 2,465 (505) Allowa
Slide 10: Interim Consolidated Statements of Cash Flows
Interim Consolidated Statements of Cash Flows (Million Yen) Sep/04 Sep/03 Change Income before Taxes 1,551 114 1,437 Depreciation and Amortization 464 459 5 Equity in Net Income/Losses of Affiliates (112) (172) 60 Increase/decrease in Accounts Receivable 1,131 2,306 (1,175) Increase/Decrease in Inve
Slide 11: Trends in Orders
Trends in Orders (Million Yen) 50,000 44,544 42,875 42,257 39,734 39,302 40,000 Electronic 34,844 Systems 30,000 20,000 Electronic Devices 10,000 0 Apr.-Jun./03 Jul.-Sep./03 Oct.-Dec./03 Jan.-Mar./04 Apr.-Jun./04 Jul.-Sep./04 (1Q) (2Q) (3Q) (4Q) (1Q) (2Q) 10 [Trends in Orders] Trends in orders by qu
Slide 12: Trends in Net Sales
Trends in Net Sales (Million Yen) 47,924 50,000 43,564 38,987 39,939 40,000 38,036 Electronic 32,361 Systems 30,000 20,000 Electronic Devices 10,000 0 Apr.-Jun./03 Jul.-Sep./03 Oct.-Dec./03 Jan.-Mar./04 Apr.-Jun./04 Jul.-Sep./04 (1Q) (2Q) (3Q) (4Q) (1Q) (2Q) 11 [Trends in Net Sales] Trends in Net Sa
Slide 13: Consolidated Forecasts for FY 2004
Consolidated Forecasts for FY 2004 (Million Yen) Mar/05 Forecast Mar/04 Result Change % Net Sales 174,700 157,310 11.1 Gross Profit on 19,400 17,593 10.3 Sales Operating 3,390 1,636 107.2 Income Ordinary 3,640 2,071 75.8 Income Net Income 2,090 1,214 72.2 12 [Consolidated Forecasts for FY 2004] Movi
Slide 14: Forecasts for Electronic Devices Sales by Product
Forecasts for Electronic Devices Sales by Product (Million Yen) 132,740 Total +13,308 Electronic Device -682 119,432 12,713 4,881 Discrete +1,128 13,395 12,338 Custom IC -478 3,753 12,816 Special-Use IC +13,977 <Breakdown> Micro processor +298 59,846 DSP +10,854 Increase in cellular phone and DSC IC
Slide 15: Forecasts for Electronic Systems Sales by Product
Forecasts for Electronic Systems Sales by Product (Million Yen) 41,960 Total +4,082 37,878 10,634 Medical Equipment -506 11,140 3,717 Communication & Network Equipment +54 3,663 5,331 Laser Equipment +300 5,031 3,130 Scientific Equipment +1,726 1,404 Increase in MOCVD systems 15,222 Measurement & In
Slide 16: Factors Affecting Ordinary Income
Factors Affecting Ordinary Income (Million Yen) Personnel Expense Decrease 5,000 +637 Net Sales Increase Gross Profit Margin +1,945 4,000 Ratio Decrease -138 3,640 -690 3,000 Expense Increase -186 Non-Operating 2,071 Gains/Losses 2,000 1,000 0 Mar/04 +1,569 Mar/05 Forecast 15 Factors Affecting Ordin
Slide 17: Issues for the Electronic Devices Business
Issues for the Electronic Devices Business Securing Growth Capability Profit Margin Improvement Creation of Added Value Unique to Marubun 16 Issues for the Electronic Devices Business Now, I’ll move on to a discussion of the business strategies we are pursuing. To begin with, I will discuss the meas
Slide 18: Development Strategy for Electronic Devices Business
Development Strategy for Electronic Devices Business Increased Marketing Power through Enhanced Line Cards Acquisition of Marketing Rights for Samsung Electronics Semiconductors Semiconductors from ISECO Co., Ltd. X Strengthen ability to offer comprehensive semiconductor solutions solutions by addin
Slide 19: Development Strategy for Electronic Devices Business
Development Strategy for Electronic Devices Business Strengthen Sales in the Area of Car Electronics X Add East Japan sales promotion team to existing West Japan team X Strengthen support system by establishing quality management department department X Strengthen ties with existing suppliers and de
Slide 20: Development Strategy for Electronic Devices Business
Development Strategy for Electronic Devices Business Development of More Business Among Mid-Size Customers X Target the industrial equipment market High-Performance Analog IC Market for expanded sales of high- high-performance (Million Yen) analog ICs 12,000 8,000 Promote the Solution Business X Est
Slide 21: Development Strategy for Electronic Devices Business
Development Strategy for Electronic Devices Business Strengthen Overseas Business X China / Establishment of Three Offices in East China (FY2005) Net Sales Target FY2003 252 Million Yen FY2006 500 Million Million Yen Marubun/Arrow Net Sales $Million 600 500 500 400 198% Growth 300 252 200 144 135 10
Slide 22: Development Strategy for Electronic Systems Business
Development Strategy for Electronic Systems Business Redouble Promotion of Added-Value Business in High-End / Niche Markets First Half Results X Won large orders for MOCVD (Metal Organic Chemical Vapor Deposition) Deposition) systems by AIXTRON X Entered the field of nanotechnology through joint res
Slide 23: Shareholder Returns
Shareholder Returns 2 Yen Per Share Higher Interim Dividend Based on 1st Half Performance Performance FY3/05 FY3/04 Forecast Annual Dividend Per Share 18 Yen 16 Yen Interim Dividend 9 Yen 7 Yen Year-End Dividend 9 Yen 9 Yen 22 Returns to Shareholders Finally, I would like to say a few words about re