Financial Results for Fiscal Year Ended March 31, 2018

Similar documents
Financial Results for the 2 nd Quarter of Fiscal Year Ending March 31, 2014

FY2017 Consolidated Business Results May 9, 2018 Toshiba Tec Corporation

FY2017 First Six Months Consolidated Business Results

Corporate Profile. Fujita Engineering Co., Ltd.

The Investor Meeting for a Results Briefing of the FY 2006

PERFORMANCE BY REGION. Japan. Minebea divides its operations into four regions based on the locations of its principal manufacturing facilities.

Financial Results for First Quarter of Fiscal 2013, ending March 31, August 3, 2012

EIKEN CHEMICAL CO., LTD.

Medical and Graphic Imaging

Consolidated Second Quarter of F.Y Presentation (Jan.1 to Jun.30, 2010) August 5th 2010 in Osaka August 6th 2010 in Tokyo

Supplemental Consolidated Financial Data for Fiscal 2011 Third Quarter and Nine Months ended December 31, 2010

Contents. Introduction. Introduction About This Report 1. Sustainability & Strategy. Social Respect for Human Rights and Diversity 15

1st Quarter Results & Financial Position, Ended March Shimadzu Corporation

Medium-Term Business Plan, and Business Plan for Fiscal 2019, ending March 31, 2019

Settlement of Accounts in the Second Quarter of the Fiscal Year Ending March 31, SAXA Holdings, Inc.

Results of Operations and Fiscal Year Forecast

NORTH AMERICA JAE Shanghai Co., Ltd. JAE Europe, Ltd. JAE Electronics, Inc. JAE Taiwan, Ltd. JAE Tijuana, S.A. de C.V. OCEANIA

the development and promotion of environmentally-friendly heat-energy appliances across the world.

Nippon Paint Stanley Chemical Conference. Tetsushi Tado, President & CEO 19 December, 2017

COSMO INSUTRUMENTS CO.,LTD. AIR LEAK TESTER

Financial Results for the 3rd Quarter Ended December 31, 2004 < U.S. GAAP-based >

Fiscal Year Q Results and Full Year Plan

Third Quarter 2016 Results Summary

STARHILL GLOBAL REIT REPORTS 11.4% INCREASE IN 2Q 2010 GROSS REVENUE

2011 Fourth Quarter Results

(English Translation) January 28, For immediate release:

Features of Shinko advanced package and Optical sensor developed with Fraunhofer ENAS. Yuichiro Shimizu SHINKO ELECTRIC INDUSTRIES CO., LTD.

INDEX. About Business Fields

HORNBACH Baumarkt AG Group Q3/9M 2017/2018

Presentation to Investors November 2010

The NASDAQ 35th Investor Program. November 30,

Current Status of the Mid-Term Management Plan

Financial Results for First Quarter of Fiscal 2017, ending March 31, 2017

Presentation to Investors. November FamilyMart, Where You Are Always One of the Family

Ms. Maki Mizuno Sharp Corporation Environmental Protection Group Green Product Planning Dept.

Presentation to Investors

Presentation of Financial Results for the Second Quarter of the Year Ending March 2017 PC DEPOT CORPORATION

RECEIPT OF NOTICE TO EXERCISE THE RIGHT OF CONVERSION AND WHITEWASH RESOLUTION DISCLOSURE NOTE

Corporate Fact Sheet

Initiatives for Priority Areas

Earnings Per Share Summary (Unaudited)

WE THINK LASER. 6M / Company Presentation. Page 1

S&T - Company Presentation. May 2015

Results Briefing: Consolidated Cumulative Q3RD (March to November 2014) Results of 2015 Ending February

This is azbil. A Company Shaping the Future with Automation

Steve Gilman Managing Director - B&Q Asia

Briefing time: 12:15 13:15

the Best Value ULVAC TECHNO, Ltd. for CORPORATE INFORMATION ULVAC TECHNO, Ltd.

Security Trade Control by a Japanese company. 20 July, 2017 Shozo HIRATA NEC Corporation

OPTEX.CO., LTD. Consolidated Annual F.Y.2014 Presentation

May 24, 2018 Frankfurt/Main. DVFA Analyst Meeting May 2018 HORNBACH Group 2018

2016 First Quarter Results

Kyoritsu Electric Group About our Business. (C)2015 Kyoritsu Electric Corporation., All Rights Reserved. 1

CanaccordGenuity Growth Conference. August 9,

Preliminary Results 2006/07 20 June 2007

Parco CO., LTD. Investor presentation FY2005 results. (March 1, February 28, 2006) Agenda. 1. Results for FY2005, ended February 28, 2006

Ben Gordon Chief Executive

Needham Growth Conference January 10,

2017 Tax Contribution Report

COMPLETION OF ACQUISITIONS OF STARHILL GALLERY AND LOT 10 AND USE OF PROCEEDS OF UNDERWRITTEN RENOUNCEABLE RIGHTS ISSUE

Design Studio posts S$19.6 million net profit in

Corporate Presentation. November 2018

Electrical Products Group Conference. 21 / May / George Oliver, Chief Executive Officer

Mayekawa Mfg. Co., Ltd. Kuniaki Kawamura

LOWE S SECURITY ANALYSIS TERRY ASANTE

Investor Briefing. ADT Caps Acquisition. SK Telecom

Preliminary Results 20 May Mothercare Preliminary Results

Ben Gordon Chief Executive

D a i s u k e M i y a u c h i President & CEO MIURA CO.,LTD.

Siemens in China. Ingenuity for life. Siemens Ltd., China Siemens Ltd., China. Unrestricted

REVIEW OF OPERATIONS SERVICES 13 MERCHANDISE, SOFTWARE, MEDICAL AND REAL ESTATE DEVELOPMENT 14 NON-LIFE INSURANCE 16 OVERSEAS OPERATIONS 16

GENERAL INFORMATION HELLA GmbH & Co. KGaA

SGREIT reports DPU of 1.17 cents for 2Q FY17/18

The NASDAQ 37th Investor Program. December 5,

Making the world a safer place to travel QUIXOTE CORPORATION

METRO GROUP continues operational improvement trend in 2014/15

Introducing. The SAES Getters Group. Lainate, June we support your innovation

Arun Nayar Senior Vice President, Finance and Treasurer

into Corning Frequency Control

Acquisition Butler Manufacturing Company

BOC Edwards. Company Profile. BOC Edwards Japan Limited

METRO GROUP achieves sales target and confirms EBIT guidance

Pre-seen case study for Strategic level examinations Papers E3, P3 and F3. For examinations in May 2014 and September 2014

AEON Co., Ltd. Agrees to Spin Off Grocery Supermarket Businesses in the Kyoto-Osaka-Kobe Region to KOHYO Co., Ltd.

IPG Photonics Corporation. Fourth Quarter 2017 Conference Call Prepared Remarks

Global and China Injection Molding Machine Industry Report, Jul. 2012

DFVA Analyst Meeting 2017

INVESTOR NEWS /16

P R E S S R E L E A S E

ICOS Vision Systems Corporation N.V.

ScS Group Plc Interim Results For The 26 Weeks Ended 24 January 2015 March 2015

A Global Leader in Engineered Materials & Opto electronic Components. Investor Presentation NASDAQ Global Select: IIVI

Almacenes Éxito S.A. Consolidated Financial Results

Steinhoff International, MARKUS JOOSTE HISTORY AND DEVELOPMENT OF STEINHOFF

ams Q results Alexander Everke, CEO Michael Wachsler-Markowitsch, CFO Moritz M. Gmeiner, Head of IR October 2017

Appendix. November 4, 2016 Mitsubishi Corporation

All Electric Servo Drive Injection Molding Machine

1Q15 Results. Paseo de la Reforma 725 Col. Lomas de Chapultepec, Miguel Hidalgo, CP , Distrito Federal, México.

Defence Solutions Land, Sea Air, Space

Company Name:- Dominant Opto Technologies Sdn. Bhd. Company Interest:- Contract Manufacturing and Sales of LED Product

Transcription:

Financial Results for Fiscal Year Ended March 31, 2018 May 2018

FY3/18 Summary of Consolidated Financial Results

FY3/18 Summary of Consolidated Financial Results (YoY Change) Net sales : 347.5 billion (+ 76.8 billion YoY) Electronic Devices Business Increase in semiconductors for communication modules Electronic Systems Business Increase in Laser equipment Operating income Gross profit SG&A expenses Ordinary income Non-operating expenses Net income Extraordinary loss : 3.7 billion (+ 0.8 billion YoY) Increase of sales Decrease of Retirement benefit costs : 4.2 billion (+ 1.5 billion YoY) Increase of Foreign exchange gains : 2.0 billion (+ 0.4 billion YoY) Loss on valuation of investment securities 2

FY3/18 Summary of Financial Results (Millions of Yen) Actual FY3/17 FY3/18 YoY Changes Composition Composition Actual Amount % Ratio Ratio Net sales 270,698 100.0% 347,508 100.0% 76,810 28.4% Electronic Devices 220,184 81.3% 296,524 85.3% 76,340 34.7% Electronic Systems 50,513 18.7% 50,983 14.7% 470 0.9% Gross profit 20,612 7.6% 21,161 6.1% 549 2.7% SG&A expenses 17,729 6.5% 17,390 5.0% (339) -1.9% Personnel expenses 10,909 4.0% 10,490 3.0% (419) -3.8% Other 6,819 2.5% 6,899 2.0% 80 1.2% Operating income 2,883 1.1% 3,771 1.1% 888 30.8% Non-operating income 705 0.3% 1,773 0.5% 1,068 151.5% Non-operating expenses 937 0.3% 1,327 0.4% 390 41.6% Ordinary income 2,651 1.0% 4,218 1.2% 1,567 59.1% Extraordinary income 1 0.0% 6 0.0% 5 328.6% Extraordinary loss 65 0.0% 311 0.1% 246 378.5% Profit attributable to owners of parent No. of employees (year-end) 1,650 0.6% 2,077 0.6% 427 25.9% 1,397 1,381 (16) -1.1% 3

FY3/18 Electronic Devices Business Net Sales Breakdown by Product (Millions of Yen) 296,524 17,053 10,943 Electronic Components+1,285 Custom IC (96) Increase in connector and electronic paper 220,184 15,768 11,040 167,998 Special-Use IC +73,612 Increase for communication equipment 94,386 4,093 21,123 22,229 51,060 3,273 14,142 19,914 62,728 Micro-Processor (6,981) Memory IC (2,314) Standard Logic IC (820) Analog IC +11,668 Decrease from terminated contract with NXP Decrease for TV and PC Increase for industrial equipment, automobile and game consoles FY3/17 FY3/18 4

FY3/18 Electronic Devices Business Market Trend by Application Application Industrial & Other Automobile Computer & Office Communication Consumer Increase for factory automation Decrease from terminated contract with NXP Increasae for connected car Decrease for PC Market Trend Increase for communication equipment Increase for game consoles Consumer 13% Communication 38% Consumer 11% Automobile 16% Industrial & Other 16% FY3/17 220,184 million Computer & Office 17% Computer & Office 11% Automobile 12% Industrial & Other 15% FY3/18 296,524 million Communication 51% 5

FY3/18 Electronic Systems Business Net Sales Breakdown by Product (Millions of Yen) 50,513 50,983 19,407 19,116 Medical (291) 804 5,453 6,699 1,112 Laser +1,246 Scientific +308 Increase in LD for industrial equipment and laser micro processing equipment 19,849 18,648 Measurement & Inspection (1,201) Decrease in electronic components assembly and inspection equipment 5,000 5,409 Space & Defense Electronics +409 Increase in solar panels for artificial satellites FY3/17 FY3/18 6

FY3/18 Factors Affecting Ordinary Income (Millions of Yen) Improvement of Foreign exchange gains / losses Other Non-operating Income & Losses Decrease in SG&A Expenses Increase in Gross Profit Gross Profit SG&A Expenses Non-operating Income/Loss Increase in gross margin due to increased sales FY3/17 : 20.6 billion (7.6%) => FY3/18: 21.1 billion (6.1%) Decrease of retirement benefit expenses FY3/17: 17.7 billion => FY3/18: 17.4 billion Improvement of foreign exchange gains / losses FY3/17: loss of 0.4 billion => FY3/18: gains of 1.1 billion 7

FY3/18 Summary of Balance Sheets (Millions of Yen) FY3/17 FY3/18 Changes Actual Actual Amount Main Reason for Change Total assets 125,984 135,796 9,812 Cash and deposits 1,405 Current assets 113,711 123,322 9,611 Notes and accounts receivable-trade (4,623) Noncurrent assets 12,273 12,474 201 Merchandise and finished goods 15,602 Total liabilities 78,434 86,619 8,185 Notes and accounts payable-trade (740) Current liabilities 67,272 75,765 8,493 Short-term loans payable 9,610 Noncurrent liabilities 11,161 10,854 (307) Shareholders' equity 1,453 Total net assets 47,550 49,177 1,627 Accumulated other comprehensive income (124) Non-controlling interests 297 2016 2017 MARUBUN CORPORATION 8

FY3/19 Summary of Consolidated Financial Forecasts

FY3/19 Summary of Consolidated Financial Forecasts Net sales : 315 billion (- 32.5 billion YoY) Electronic Devices Business Decrease in semiconductors for communication equipment. Decrease by transfer of Samsung business. Electronic Systems Business Increase in Space & Defense Electronics and Laser Operating income : 4.7 billion (+ 0.9 billion YoY) Gross profit Improvement of GP margin SG&A expenses Increase in personal expenses Ordinary income : 4.3 billion (Same level as last FY) Net income : 2.5 billion (+ 0.4 billion YoY) 10

FY3/19 Financial Forecasts (Millions of Yen) FY3/18 FY3/19 YoY Changes Actual Composition Ratio Forecasts Composition Ratio Amount % Net sales 347,508 100.0% 315,000 100.0% (32,508) -9.4% Electronic Devices 296,524 85.3% 262,500 83.3% (34,024) -11.5% Electronic Systems 50,983 14.7% 52,500 16.7% 1,517 3.0% Gross profit 21,161 6.1% 22,500 7.1% 1,339 6.3% SG&A expenses 17,390 5.0% 17,800 5.7% 410 2.4% Operating income 3,771 1.1% 4,700 1.5% 929 24.6% Non-operating income 1,773 0.5% 550 0.2% (1,223) -69.0% Non-operating expenses 1,327 0.4% 950 0.3% (377) -28.4% Ordinary income 4,218 1.2% 4,300 1.4% 82 1.9% Extraordinary income 6 0.0% - - (6) - Extraordinary loss 311 0.1% - - (311) - Profit attributable to owners of parent 2,077 0.6% 2,500 0.8% 423 20.4% 11

FY3/19 Electronic Devices Business Net Sales Forecasts by Product 296,524 (Millions of Yen) 17,053 10,943 262,500 19,987 9,026 Electronic Components Custom IC (1,917) + 2,935 Increase of connector and solar panels 167,998 146,660 Special-Use IC (21,338) Decrease for communication equipment 14,142 19,914 14,404 3,273 9,638 1,709 62,728 60,608 Micro-Processor + 262 Memory IC (10,276) Standard Logic IC (1,564) Analog IC (2,119) Decrease by transfer of Samsung business Decrease for amusement equipment FY3/18 Actual FY3/19 Forecasts 12

FY3/19 Electronic Systems Business Net Sales Forecasts by Product (Millions of Yen) 50,983 52,500 Change of product segment in Electronic Systems Business 19,116 19,140 Medical +24 We integrated Measurement & Inspection and Scientific to Industrial. And we separated Information & Communication from Laser. 1,514 1,735 5,186 7,038 Informaiton & Communication Laser +1,853 +222 Increase in LD for industrial equipment and laser micro processing equipment 19,763 18,583 Industrial (1,180) Decrease from terminated contract with Aixtron 5,409 6,003 Space and Defense Electronics +594 Increase in parts for artificial satellites FY3/18 Actual FY3/19 Forecasts 13

FY3/19 Factors Affecting Ordinary Income (last FY vs forecasts) (Millions of Yen) 1,339 (410) (846) Other Non-operating Income & Losses Increase in SG&A Expenses 4,218 Increase in Gross 4,300 Profit Gross Profit FY3/18 Actual SG&A Expenses Non-operating Income & Losses Increase due to improvement in gross profit margin FY3/18: 21.1billion(6.1%) FY3/19: 22.5billion(7.1%) Increase of personal expenses and other FY3/18: 17.4billion FY3/19: 17.8billion Decrease of foreign exchange gains FY3/18: 1.1billion FY3/19: 0 FY3/19 Forecasts 14

Return to Shareholders

Return to Shareholders Dividend Policy Dividend Payout Ratio 30% or more (consolidated) Dividends Forecast (Yen) FY3/18 FY3/19 (Forecast) Annual Dividend Per Share 30.00 30.00 Interim Dividend 10.00 10.00 Year-End Dividend 20.00 including memorial devidend 5.00 20.00 16

Medium-Term Vision Business Strategies and Key Initiatives

Management Environment Semiconductor manufacturers Electronics Market Large M&As still attracts big attention Overseas Expansion of M&As Japan Sell of Toshiba Memory New market is expanding by technology innovation Evolution of integrated technology (ex. IoT) Development of automatic driving technology Spread of the use of robots and wearable devices 18

Medium-Term Vision Medium-Term Vision (FY3/19) Catching up with industry reorganization Creating new businesses through active investment Improving capital efficiency 19

Four initiatives for Electronic Devices Electronic Devices Expansion of the mainstay business Development of businesses in growth markets Rapid commercialization of new products Enhancement of global operations 20

Expansion of the Mainstay Business 1 Expanding share in customers Enhancement of solution proposals in power supply, sensors, and automotive fields. Expansion of sales system for key devices such as analog and wireless (billion) 40 35 30 25 20 15 10 5 0 Business for automobile market Decrease from terminated contract with NXP, but continue slight increase 2013 2014 2015 2016 2017 200 150 100 50 0 Number of new projects acquired (FY2013=100) Continue high level number as last FY 2013 2014 2015 2016 2017 21

Expansion of the Mainstay Business 2 Strengthening sales structure towards mass market Establishment of specialized organization and develop new customers Effective promote by digital marketing Business integration of Marubun and KTL Marubun integrate KTL at 2018.10.1 Concentrate resources to industrial and automobile market Efficiency management 22

Development of Businesses in Growth Markets 1 IoT Solution We provide Eco-systems, from end devices to cloud services by LoRa/LoRaWan Crop growth management Water quality monitoring in water purification plant Smart Lock Care Service Monitoring of heavy industry machinery operations Advertisement Signage Gas Water meters Drive recorder 23

Development of Businesses in Growth Markets 2 IoT IoT Cypress Increase for automobile Telit Wireless communication IC Adopted for smart meter Expansion to infrastructure Afero IoT Platform Adapted for smart lock Medical MC10 Bio sensor Knee prosthesis for rehabilitation Promote joint research with university institutions 24

Rapid Commercialization of New Products Aiming at the most advanced technologies FINsix New business start FINsix and Toyota Industries Corporation sign a development agreement Reduction in size, weight and improve efficiency of automotive power electronics module Ultra small adapter for PC Dart Development of USB model (Type C) B2C Business expansion Development of wide range power electronics module 25

Enhancement of Global Operations Europe New offices in Europe Expanding new customers Asia / North America Expand of net sales by open Japanese factories in Mexico Early expansion of business scale Railway related customer development Marubun Arrow Europe Kft. 26

Electronic Systems Market-in Customer First Customer-in Enhancing engineering services Strengthening system integration capability 27

Initiatives for Electronic Systems 1 Space & Defense Concentrate for rocket, airplane and electronic power equipment Expansion of proofreading service of radar equipment and sensor Laser Expansion of Marking laser for industrial equipment Expansion of Light source parts for medical equipment nlight Laser Diode 28

Initiatives for Electronic Systems 2 Information and Communication Expansion of investment in 5G communication and automatic driving technologies Scanning receiver (PCTEL) Network adapter (Napatech) Expansion of sales for network carrier and date center Optical transceiver(finsar) PCTEL Scanning receiver Medical Expansion of product lineup of each suppliers Strengthening engineering services including maintenance 29

About Marubun

Company Profile Profile Founded 1844 Incorporated July 1947 Head Office Capital Fiscal Year CEO Revenue Employees Listed 8-1, Niihonbashi Odenmacho, Chuo-ku, Tokyo 6,214M Apr.1-Mar.31 Shoji Mizuno Consolidated: Non-consolidated: $3,475M (FY3/18) $2,278M (FY3/18) Consolidated: 1,381(end of Mar.2018) Non-consolidated: 670(end of Mar.2018) The 1 st Section of the Tokyo Stock Exchange (7537) Business Domains Electronic Devices Business Semiconductors Electronic Components (Millions of Yen) 260,424 40,098 273,683 279,571 270,698 39,254 45,570 Electronic Systems Business Space & Defense Electronics Industrial Laser Information & Communication Medical Revenue Trend (Consolidated) 50,513 347,508 50,983 Electronic Systems 220,325 234,428 234,001 220,184 296,524 Electronic Devices FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 31

History of Company Operations Japan 2017 Ikeda Iryou Denki merged with Marubun Tsusho 2016 Business acquisition of KTL Corporation 2015 Business acquisition of Ikeda Iryou Denki 2013 Business acquisition of Hokushinrika 2007 Business acquisition of Foresight Techno Co., Ltd. 2005 Acquired Marubun Semicon Corporation and established Marubun West Corporation 2001 Listed on the 1 st Section of the Tokyo Stock Exchange 1997 Listed on the 2 nd Section of the 1985 Tokyo Stock Exchange Established Logistics Center 1965 Imported and sold ICs manufactured by Texas Instruments for the 1 st time in Japan 1961 Established Marubun Tsusho Co., Ltd. 1952 Contracted with Rocke International, Inc., to serve as its representative office, and began import and sales of US machinery. 1947 Established Marubun Corp. to sell machinery, instruments and daily-use sundries 1897 The dry goods wholesale business discontinued; Horikoshi Office established to manage property. 1844 Dry goods wholesaller Horikoshi started at the site of the present company headquarters, going by the name, Marubun 2017 Established subsidiary in Hungary 2014 Established subsidiary in Indonesia and Mexico 2013 Established subsidiary in Shenzhen, China 2006 Established subsidiary in Malaysia 2002 Established subsidiaries in Shanghai and Phillipines 2001 Established subsidiary in Thailand Overseas 1998 Established Marubun/Arrow Asia Limited 1994 Established subsidiary in Hong Kong 1989 Established subsidiary in Taiwan 1988 Established subsidiary in Singapore 1968 Established representative office in USA 1999 Established Marubun/Arrow USA, LLC. 32

Sales Trend for the Past 10 Years (Billions of Yen) 400 60% 350 Net sales Overseas sales ratio 50% 300 250 40% 200 30% 150 20% 100 50 10% 0 FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 FY3/18 0% 33

Domestic Offices HQ Operations Branch Hokuriku (Hakusan City) Sales Office Logistics Center Affiliated Company West Japan Operations (Osaka City) Marubun West Corporation (HQ: Kobe City) Himeji Shikoku Hiroshima Satellite Office (Hiroshima City) Kyushu Satellite Office (Fukuoka City) Marubun Tsusho Co.,Ltd. (HQ: Kanazawa City) Kanazawa Toyama Fukui Matsumoto Niigata Hakusan Center Nagano Nanao Tokyo Kofu Nagano Hokushinrika Co., Ltd. (HQ: Nagano City) Matsumoto Kofu Utsunomiya Car Electronics Office Tachikawa Omiya Tokyo Head Office Minamisuna Logistics Center Minamisuna Technical Center Foresight Techno Co.,Ltd. (HQ: Koto-ku, Tokyo) # of Marubun Offices:11 # of Logistics Center : 3 # of Affiliates : 6 Central Japan Operations (Nagoya City) Mishima Satellite Office KTL Corporation (HQ: Koto-ku, Tokyo) Osaka Nagoya Utsunomiya Kyoto Saitama Hiroshima Matsumoto Fukuoka East Japan Logistics Center (Narita City) Marubun Semicon Corporation (HQ: Minato-ku, Tokyo) Osaka (as of May 2018) 34

Worldwide Sales Network Marubun/Arrow (Shenzhen) Electronic Product Consulting Co., Ltd. (Shenzhen, China) KTL Corporation Europe Branch Marubun Arrow Europe Kft. Marubun/Arrow (HK) Ltd. (Hong Kong, China) Marubun/Arrow (Shanghai) Co., Ltd. (Shanghai) China/Dalian Marubun USA Corporation Reno Orange County Denver Chicago Detroit Marubun/Arrow (Thailand) Co., Ltd. (Bangkok, Thailand) Marubun/Arrow (M) SDN BHD. (Penang, Malaysia) Kuala Lunpur, Malaysia Marubun/Arrow (S) Pte Ltd. (Singapore) Marubun Corporation Marubun/Arrow Asia, Ltd. Marubun Taiwan, Inc. (Taipei) Marubun/Arrow (Phils) Inc. (Laguna, Philippines) Marubun Semicon (H.K.) Ltd. (Hong Kong) PT. Marubun/Arrow Indonesia (Indonesia) Atlanta Dallas Marubun/Arrow Mexico, S. de R.L. de C.V. (HQ: Mexico City) Guadalajara San Diego Marubun/Arrow USA, LLC. (HQ: Santa Clara) Marubun Corporation Marubun/Arrow Asia, Ltd. Marubun/Arrow USA, LLC. Marubun Arrow Europe Kft. Other # of Asian Offices:13 # of NA Office : 12 # of Europe Office : 2 (as of May. 2018) 35

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 Marketing Design Activity Order Order Supplier Purchase Our Function Sales Customer Just-in-Time Logistics Technical Support Global Support 36

Affiliations -Electronic Devices- Comnany Head Quarter Establish Share Business Marubun Semicon Corporation Minatoku, Tokyo March 2005 100.0% Marubun Semicon (H.K.) Ltd. Hong Kong, China January 2010 100.0% Marubun Semicon (S) Pte. Ltd. Alexandra Road, Singapore November 2013 100.0% Marubun USA Corporation California, U.S.A. October 1983 100.0% Marubun Taiwan, Inc. Taipei, Taiwan November 1989 100.0% Marubun/Arrow Asia, Ltd. British Virgin Islands October 1998 50.0% Sales of Samsung semiconductors and electronic components Holding company of Marubun/Arrow USA,LLC Supply of semiconductors and electronic components made in Taiwan Holding company of Marubun/Arrow (S) Pte Ltd. and Marubun/Arrow (HK) Ltd. Marubun/Arrow (S) Pte Ltd. Anson Road, Singapore March 1988 50.0% Marubun/Arrow (HK) Ltd. Hong Kong, China August 1994 50.0% Marubun Arrow (Thailand) Co., Ltd. Bangkok, Thailand October 2000 50.0% Marubun/Arrow (Phils), Inc. Laguna, Philippines October 2001 50.0% Marubun Arrow (M) SDN BHD Penang, Malaysia June 2006 50.0% Marubun/Arrow (Shanghai) Co., Ltd. Shanghai, China September 2002 50.0% Marubun/Arrow (Shenzhen) Electronic Product Consulting Co.,Ltd. Shenzhen, China June 2013 50.0% Sales of semiconductors and electronic components to Japanese companies in overseas PT. Marubun Arrow Indonesia Jakarta, Indonesia April 2014 50.0% Marubun/Arrow USA, LLC* Delaware, U.S.A. November 1998 50.0% Marubun-Arrow Mexico, S. de R.L. de C.V.* MexicoCity, MEXICO September 2014 50.0% KTL Corporation Kotoku, Tokyo November 1966 100.0% Sales of semiconductors and electronic components * Marubun/Arrow USA and Marubun-Arrow Mexico are equity method affiliates. 37

Supplier Texes Instruments Seiko Instrulments Seiko Epson Sandisk Samsung Qurvo Molex Maxim Littlefuse IDT FINsix Eink Cypress Broadcom Asahikasei Electronics Analog IC Standard Logic IC DRAM Semiconductors Memory IC Microprocesser Main Products(by Supplier) -Electronic Devices- Special- Use IC Flash Memory Other Memory MPU MCU DSP ASSP Display Driver DMD LED Custom IC Electronic Components Display Devices Crystal Devices Connector,Swich,PCB Module 38

Applications Semcionductor Communication Consumer Computer OA Analog IC Standard Logic IC Memory IC Microprocesser DRAM Flash Memory Automobile Industry MPU MCU DSP Computer & Office 11% Consumer 11% FY3/18 Electronic Devices Net Sales Communication 51% Main Products (by Application) -Electronic Devices- Special- Use IC ASSP Display Driver DMD LED Custam IC Electronic Components Display Devices Crystal Devices Automobile 12% Industrial & Other 15% 296,524 million Connector,Swich,PCB Module 39

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 Order Consultation Order Supplier Purchase Technical Support 操作トレーニング Operation Training システムメンテナンス Maintenance リペア Repair Sale Customer リペア Calibration Development Cooperation 40

Affiliations -Electronic Systems- Comnany Head Quarter Establish Share Business Marubun Tsusho Co.,Ltd. Kanazawa City March 1961 100.0% Marubun West Corporation Kobe City May 2005 100.0% Hokushinrika Co., Ltd. Nagano City November 1951 100.0% Foresight Techno Co.,Ltd. Koto-ku Tokyo March 1999 51.0% Sales of medical equipment and measurement & inspection equipment Sales of measurement & inspection equipment Sales of measurement & inspection equipment High-Leve Technical Support (system integration, installation to maintenance services) 41

Main Products -Electronic Systems- 1 Industrial Medical Laser Space & Defense Electronics Products Electronic Components Inspection Embedded computer system Diagnostic Imaging Hemo Dialysis Laser Diode,Laser Processor Network Solutions,Optical Components High-reliability Components, Measurement and Sensor Avionics Test System & Simulator,Microwave Informaiton & Communication RF Optical communication Eqipment Supplier Akim,Unihite System, Seiko Epson,FEI,Shimadzu ARTESYN,Aitech,ADLINK, LayTec, Riber Siemens,Shimazu, Konica Minolta NIKKISO,Asahi Kasei Medical, Kaneka Medix nlight,laserline Excelitas Technologies,Luminus Drvices,First Sensor Tele Communication Systems, GE Sensing,Meggit,Plascore TEXTRON, L3 Technologies,CPI,Bird PCTEL,Finisar,EXFO, Microsemi,Calnex,Spirent Space & Defense Electronics 11% Laser Medical 37% 10% Information & Communication 3% FY3/18 Electronic Systems Net Sales 50,983 million Industrial 39% 42

Quarterly Trend in Orders/Sales by Business Orders Sales (Millions of Yen) Electronic Devices Electronic Systems 120,180 15,702 96,546 99,410 99,847 11,167 11,622 75,391 12,197 65,018 12,434 71,970 12,120 65,754 11,761 82,720 11,915 104,477 13,189 66,412 12,498 56,755 8,764 70,985 13,441 66,612 10,384 76,344 70,464 17,924 8,345 88,243 88,225 77,785 19,848 63,194 52,583 59,849 53,992 70,805 83,356 53,913 47,991 57,544 56,228 58,420 62,118 57,937 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/17 FY3/18 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/17 FY3/18 43

Quarterly Trend in Sales of Electronic Devices by Product (Millions of Yen) 88,243 88,225 3,715 4,954 2,965 2,911 Electronic Components 47,991 3,391 2,723 17,570 57,544 3,421 2,473 26,429 56,228 4,637 2,969 25,431 62,118 58,420 3,896 4,318 2,843 2,875 24,956 30,076 55,097 54,816 57,937 4,488 2,224 28,009 Custom IC ASSP Micro-Processor Memory IC 5,534 5,203 4,642 5,473 6,327 5,093 1,044 1,144 1,097 12,083 12,504 11,875 5,744 3,436 3,250 4,149 3,307 5,335 5,437 6,494 4,193 808 859 808 805 3,790 801 14,598 15,449 15,599 16,227 15,453 Stadard Logic IC Analog IC 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/17 FY3/18 44

Trend in Sales of Electronic Systems 19,848 (Millions of Yen) 17,924 8,437 Medical 13,441 8,363 Laser 79 8,764 2,580 1,022 4,282 5,211 1,211 80 5,971 10,384 3,254 1,325 394 3,909 1,895 250 5,686 8,345 2,631 1,158 47 3,613 11,167 11,622 3,715 4,333 1,762 1,696 366 201 4,257 4,191 2,083 6,591 498 Scientific Measurement & Inspection Space & Defense Electronics 800 968 1,501 1,730 897 1,068 1,200 2,244 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY3/17 FY3/18 45

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 PLANNING Dept. PHONE +81-3-3639-3010 E-mail ir@marubun.co.jp