Marubun Corporation · TSE:7537

Marubun — 1H FY3/14 Earnings Presentation

44 slides from Marubun's earnings presentation, November 2013

  1. Slide 1: Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2014

    Financial Results for the 2 nd Quarter of Fiscal Year Ending March 31, 2014 November 2013 (Securities Code：7537 / TSE1st Section) Copyright © 2002-2013 MARUBUN CORPORATION All Rights Reserved.

  2. Slide 2: 1H FY3/14 Summary of Consolidated Financial Results

    1H FY3/14 Summary of Consolidated Financial Results Copyright © 2002-2013 MARUBUN CORPORATION All Rights Reserved.

  3. Slide 3: 1H 3/14 Summary of Consolidated Financial Results

    1H 3/14 Summary of Consolidated Financial Results Net sales increased by ¥16,335 million (+15.9% YoY)  Electronic Devices Business Increased 17.8% as a result of robust sales of Special-Use ICs for communication modules and Memory ICs for PCs and computer peripherals  Electronic Systems Business I

  4. Slide 4: 1H FY3/14 Summary of Financial Results

    1H FY3/14 Summary of Financial Results [Reference] (\ million) 1H FY3/13 1H FY3/14 YoY Changes FY3/14 Initial Forecasts Composition Composition Composition Actual Actual Amount ％ 1H Ratio Ratio Ratio Net sales 103,038 100.0% 119,373 100.0% 16,335 15.9% 99,000 100.0% Electronic Devices 89,082 86.5% 1

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

    1H FY3/14 Electronic Devices Business Net Sales Breakdown by Product 13/3月期 1-2Q 14/3月期 1-2Q (¥ million) 104,950 89,082 Electronic Components 15,448 Increase in LCD panels for TVs and decrease in organic ELs for smartphones 5,594 14,824 Custom IC Decrease in ICs for consumer electronics 6,317 45,203

  6. Slide 6: Electronic Devices Business Market Trend by Application

    1H FY3/14 Electronic Devices Business Market Trend by Application Application Market Trend Communication Equipment Increase in ICs for communication modules and smartphones Consumer Electronics Increase in ICs for game consoles and increase in ICs for AVs Computers & OA Equipment Increase in ICs for

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

    1H FY3/14 Electronic Systems Business Net Sales Breakdown by Product (¥ million) 14,423 13,955 Medical Equipment Increase in dialysis equipment 5,963 5,768 Laser Equipment 1,256 1,665 Increase in optical communication components 752 116 Scientific Equipment Decrease in thin-film equipment for power

  8. Slide 8: Factors Affecting Ordinary Income

    1H FY3/14 Factors Affecting Ordinary Income Decrease in Improvement in (¥ million) SG&A Expenses Non-operating Income/Loss 139 1,173 Increase in Gross Profit 213 443 377 1H FY3/13 1 2 3 4 1H FY3/14 5 Increase due to net sales increase Gross Profit 1H FY3/13: ¥8 billion ⇒ 1H FY3/14: ¥8.4 billion SG&A

  9. Slide 9: Summary of Balance Sheets

    1H End FY3/14 Summary of Balance Sheets (\ million) FY3/13 End 1H FY3/14 End Changes in 6 m/s Actual Actual Amount Current assets 93,799 101,968 8,169 Cash and deposits 17,440 19,942 2,502 Notes and accounts receivable-trade 48,299 53,046 4,747 Increase mainly due to Inventories 25,425 25,945 520 sa

  10. Slide 10: Summary of Statements of Cash Flows

    1H FY3/14 Summary of Statements of Cash Flows (\ million) 1H FY13/3 1H FY3/14 Actual Actual Net cash provided by (used in) operating 8,378 2,114 activities Income before income taxes (6) 1,139 Increase in notes and accounts receivable-trade Decrease (increase) in notes and accounts receivable-trade

  11. Slide 11: Progress of Business Strategies and Key Initiatives

    Progress of Business Strategies and Key Initiatives Copyright © 2002-2013 MARUBUN CORPORATION All Rights Reserved.

  12. Slide 12: Strategies for Electronic Devices Business

    Strategies for Electronic Devices Business Expand the base business  Introduce Key Performance Indicators (KPIs) representing the indices valued by suppliers  Strengthen sales for car electronics and industrial equipment  Enhance global services  Accelerate efforts to acquire new commercial righ

  13. Slide 13: Key Initiative 1: Expand the base business

    Electronic Devices Business: Progress of Key Initiative ① Expand the base business  Exploring clients’ needs with a focus on (¥ million) Sales trend of ICs for Automobile Installation Analog ICs, using our abundant products 20,000 and competency in technical support 15,000 2H fore- 2H cast 10,000 2

  14. Slide 14: Key Initiative 2: Enhance the Demand Creation Function

    Electronic Devices Business: Progress of Key Initiative ② Enhance the Demand Creation (DC) Function  Building a support system which links [ DC], [FAE] and [Account Sales]  Promoting solution proposals covering all signal chain FAE DC design-in, increase in shares New project development, Account

  15. Slide 15: Key Initiative 3: Promote development of new products

    Electronic Devices Business: Progress of Key Initiative ③ Promote development of new products  Semiconductors  Custom ICs  Promoting orders received for ASICs of Open Silicon Inc.  Started handling custom products of Quick Logic corporation  ICs for networks IDT Inc.  Started handling timing d

  16. Slide 16: Strategies for Electronic Systems Business

    Strategies for Electronic Systems Business From Market-in to Customer-in Enhance engineering services Enrich product line-up Strengthen system integration capability • Secure adoptions of assembling and inspection equipment for hybrid and Measurement & electric vehicles Inspection and • Boost sales

  17. Slide 17: Electronic Systems Business: Topics

    Electronic Systems Business: Topics Acquired the ISO/IEC17025 certification for calibration services Acquired “ISO/IEC17025” an international standard certification for calibration competence and quality, in calibration services for acceleration sensors ⇒ As a certified calibration institution, deve

  18. Slide 18: FY3/14 Summary of Consolidated Financial Forecasts

    FY3/14 Summary of Consolidated Financial Forecasts Copyright © 2002-2013 MARUBUN CORPORATION All Rights Reserved.

  19. Slide 19: FY3/14 Summary of Financial Forecasts

    FY3/14 Summary of Financial Forecasts (Based on Revised Forecasts) Net sales expected to increase ¥32,800 million (+14.9%) YoY, ¥27,500 million (+12.2％) vs. initial forecasts  Electronic Devices Business Expecting an increase in Special-Use ICs for communication modules and Memory ICs  Electronic

  20. Slide 20: FY3/14 Revised Financial Forecasts

    FY3/14 Revised Financial Forecasts (\ million) FY3/13 FY3/14 YoY Changes Changes vs. Initial Forecasts Composition Initial Forecasts Revised Forecasts Actual Amount ％ Amount ％ Ratio （As of May 8, 2013 (As of Oct xx, 2013) Net sales 220,200 100.0% 225,500 253,000 32,800 14.9% 27,500 12.2% Electronic

  21. Slide 21: Electronic Devices Net Sales Forecasts by Product

    FY3/14 Electronic Devices Business Net Sales Forecasts by Product [Reference] (¥ million) 214,800 Electronic Components Increase in PCBs for LCD panels for TVs and 187,247 31,758 smartphones 185,700 11,843 29,202 Custom IC 31,411 Decrease in ICs for consumer electronics 12,509 13,492 90,054 Special-

  22. Slide 22: Electronic Systems Net Sales Forecasts by Product

    FY3/14 Electronic Devices Business Net Sales Forecasts by Product [Reference] (¥ million) 39,800 38,200 32,953 Medical Equipment 15,432 Increase in dialysis, diagnostic image and other equipments 14,477 12,636 Laser Equipment 3,629 3,721 Increase in optical communications components 2,730 2,997 1,02

  23. Slide 23: Factors Affecting Ordinary Income (1H vs. Revised Forecasts)

    Factors Affecting Ordinary Income (1H vs. Revised Forecasts) SG&A Expenses Improvement in (¥ million) same level as the Non-operating Income/Loss previous term Increase in Gross Profit 342 3,350 21 487 2,500 FY3/131 Actual 2 3 4 FY3/14 Revised 5 Forecasts Increase generated by net sales increase Gro

  24. Slide 24: Return to Shareholders: Dividends Forecast

    Return to Shareholders  Dividends Forecast FY3/13 FY3/14 (\) Actual Forecasts Annual Dividend per Share 15.00 16.00 Interim Dividend 6.00 6.00 Year-End Dividend 9.00 10.00 24 Copyright © 2002-2013 MARUBUN CORPORATION All Rights Reserved.

  25. Slide 25: New Management Vision

    New Management Vision Realizing sustainable growth and transforming into a robust company Achieve differentiation unique to Marubun Group Expand the base Enhance efforts in Strengthen global business growing markets operations Enhance the DC Function telecommunication, car Collaborate with electroni

  26. Slide 26: Appendix

    Appendix Copyright © 2002-2013 MARUBUN CORPORATION All Rights Reserved.

  27. Slide 27: Corporate Outline

    Corporate Outline Net Sales  Establishment July 1947 Electronic Devices 85.0% Electronic Systems 15.0%  Capital ¥6,214 million  Activities Distribution of Cutting-edge Electronics Products FY3/13 Share of Sales  Headquarters Chuo-ku, Tokyo by Segment  Consolidated 220,200 million yen(FY2012) Ne

  28. Slide 28: History of Company Operations

    History of Company Operations Japan Over Seas 2006 2013 Established subsidiary in Malaysia. Business acquisition Hokushin Rika. 2002 Established subsidiary in Shanghai 2007 and Philippines. Business acquisition of Foresight Techno Co.,Ltd. 2001 2005 Established subsidiary in Thailand. Established Ma

  29. Slide 29: Trend of 10 years

    Trend of 10 years （¥ million） Net Sales Foreign Sales Ratio 300,000 50.0% 250,000 40.0% 200,000 30.0% 150,000 20.0% 100,000 10.0% 50,000 0 0.0% FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 Copyright © 2002-2013 MARUBUN CORPORATION All Rights Reserved.

  30. Slide 30: Domestic Offices

    Domestic Offices Operations IKEDA IRYOUDENNKI CO., LTD Branch (Head Office:Niigata) Sales Office MARUBUN TSUSHO CO., LTD.(Head Office:Kanazawa) Kanazawa Nanao Logistics Center Toyama Tama Affiliated Company Fukui Hakusan Center Matsumoto Tokyo HOKUSHIN RIKA Nagano Kofu (Head Office:Nagano) Omiya Mat

  31. Slide 31: World-wide Sales Network

    World-wide Sales Network MARUBUN/ARROW USA, LLC MARUBUN/ARROW(SHANGHAI) CO., LTD (Head Office：Santa Clara) （Shanghai） Chicago Nanjing,China Dalian,China Denver Detroit Shenzhen,China MARUBUN CORPORATION MARUBUN/ARROW ASIA, LTD. MARUBUN/ARROW(HK) LTD Marubun Semicon(Shanghai) Co., Ltd. (Hong Kong) (S

  32. Slide 32: Characteristic and Strength - Electronic Devices

    Characteristic and Strength -Electronic Devices- Electronic Devices  Wide Range of Products made by Leading Semiconductor Manufacturers  Global Sales Network in alliance with Arrow Electronics, Inc.  Broad Customer base. Broad Product Lineup Design Activity Marketing Order Order Customer Supplier

  33. Slide 33: Affiliations - Electronic Devices

    Affiliations -Electronic Devices- Electronic Devices Company Headquarters Establishment Shares Principal Business Marubun Semicon Corporation Minato-ku, Tokyo Mar. 2005 100.0% Marubun Semicon (Shanghai) Co., Ltd. Shanghai, China Mar. 2005 100.0% Devices Business Marubun Semicon (H.K.) Ltd. Hong Kong

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

    Main Products (by Application) -Electronic Devices- Application Electronic Devices Computer & OA Communication Automobile Equipment Equipment Equipment Consumer Industrial Industrial Semiconductor Equipment Analog ● ● ● ● ● Analog IC & Other Discrete ● ● ● ● 9.2% Standard Logic IC ● ● ● ● ● Automobi

  35. Slide 35: Main Products (by Supplier) - Electronic Devices

    Main Products(by Supplier) -Electronic Devices- Electronic Devices Supplier International Microdevices Instruments Seiko Epson Asahi Kasei Broadcom Freescale Samsung Emerson Rectifier Triquint Maxim Texas ISSI Semiconductor Analog ● ● ● ● ● Analog IC Discrete ● ● ● Standard Logic IC ● DRAM ● ● Memor

  36. Slide 36: Characteristic and Strength - Electronic Systems

    Characteristic and Strength -Electronic Systems- Electronic Systems  Providing Unrivaled Products in High-end Markets  Value-added Technical Support (System Integration, Installation and Maintenance Services) Our Function  Marketing  Consultation Order Order  Technical support Customer Supplier

  37. Slide 37: Affiliations - Electronic Systems

    Affiliations -Electronic Systems- Electronic Systems Company Headquarters Establishment Shares Principal Business Marubun Tsusho Co.,Ltd. Kanazawa, Ishikawa Mar. 1961 100.0% Systems Business Hokushinrika Nagano, Nagano Nov. 1951 100.0% Systems Business Ikeda iryoudenki Co.,Ltd. * Niigata, Niigata Au

  38. Slide 38: Main Products - Electronic Systems

    Main Products -Electronic Systems- Electronic Systems Segment Main Products Major Supplier High-reliability Components, Tele Communication Systems、 Space and Sensors Plascore,Lavision Defense Avionics Test System, Electronics AAI,CPI,L3 Communications Microwave Equipment Measurement Measurement & In

  39. Slide 39: Trend in Net Sales/Gross Profit/SG&A expenses

    Trend in Net Sales/Gross Profit/SG&A expenses Net Sales Gross Profit margin SG&A expenses SGA ratio 63,576 （¥ million） （¥ million） 62,285 3,768 20.0% 3,768 3,718 3,718 3,713 3,713 3,570 3,635 54,877 55,796 3,570 3,635 3,638 53,350 49,687 9.2% 10.0% 7.9% 7.6% 7.4% 7.0% 7.1% 7.6% 6.0% 6.5% 5.7% 7.0% 6

  40. Slide 40: Trend in Orders/Sales

    Trend in Orders/Sales Orders Sales Electronic Devices Electronic Systems Electronic Devices Electronic Systems 66,371 （¥ million） 65,246 （¥ million） 63,576 62,285 60,593 10,673 10,355 55,796 55,210 54,877 9,177 53,107 8,181 53,350 51,581 12,343 49,687 5,246 8,881 6,654 7,886 8,804 8,167 5,151 55,697

  41. Slide 41: Trend in Sales of Electronic Devices by Products

    Trend in Sales of Electronic Devices by Products （¥ million） 54,399 49,941 50,550 48,223 8,482 6,966 Electronic Components 44,536 44,546 7,877 6,501 3,431 2,163 7,931 6,893 3,151 3,040 Custom IC 2,568 3,749 Special-Use IC 17,865 22,453 22,750 20,616 Micro-Processor 18,051 16,473 3,328 Memory IC 2,68

  42. Slide 42: Trend in Sales of Electronic Devices by Applications

    Trend in Sales of Electronic Devices by Applications 7.0% 7.5% 6.7% 7.1% 12.0% 10.4% 9.7% 9.1% 9.0% 9.2% 9.5% 10.4% Industrial Equipment 13.8% 14.3% 13.6% 15.5% 12.1% 16.0% Automobile 24.4% 27.4% 25.7% 27.6% Computer & OA 31.6% 22.4% Consumer Equipment Communication Equipment 43.3% 46.3% 42.0% 40.9%

  43. Slide 43: Trend in Sales of Electronic Systems

    Trend in Sales of Electronic Systems （¥ million） 12,343 Medical Equipment 4,538 9,177 8,804 Laser Equipment 3,470 6,654 1,085 3,881 Scientific Equipment 1,266 5,246 5,151 2,330 719 984 640 73 Measurement & 2,299 656 2,082 3,543 Inspection Equipment 602 2,673 681 3,192 537 43 112 2,087 Space and Defe

  44. Slide 44: Cautionary Statement

    Cautionary Statement Within the presentation, information on the future performance such as results forecasts is based on the data available at the time this presentation was prepared that the Company assumes reasonable. Actual performance depends on various important factors and may differ signific

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