マルマエ（6264） – [Delayed] Presentation Material for Financial Results Q1 FY2022

Tokyo Stock Exchange (TSE): 6264Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.MARUMAE CO., LTD.Q1 FY2022 Financial Results SummaryDecember 28, 2021TECHNOLOGY FOR THE FUTUREManufacturer of vacuum components forsemiconductor and FPD production equipmentMarumae Co., Ltd. All Rights Reserved 1. Overview of Financial ResultsP/L AnalysisP/LFirst Quarter of the Fiscal Year Ended August 31, 2021First Quarter of the Fiscal Year Ending August 31, 2022PointAmount(million yen)Ratio(%)Amount(million yen)Ratio (%)YoY change ratio(%)1. Status of orders received*Semiconductor sector: 1,873 million yenNet sales*1,100100.01,938100.02. Net sales*Orders received*Balance of the orders received*1,110826ーー2,4962,411Cost of sales*Gross profitSelling andadministrative expensesOperating profitOrdinary profitExtraordinary loss (income)Profit767333133200200069.71,15030.312.118.218.20.0788193595592013712.542221.8EPS (yen)10.76ー32.98ーーー59.340.710.030.730.6124.8191.876.149.9136.344.9197.0196.0206.5206.5(107.4% YoY increase)FPD sector: 619 million yen(300.6% YoY increase)Other sectors: 3 million yen(93.0% YoY decrease)76.1% YoY increase*The details for each sector are listed on the next page.3. Cost of sales*Material cost*: 185 million yen increase(122.6% YoY increase)Outsourcing expenses: 192 million yen increase(145.7% YoY increase)Labor costs: 99 million yen increase(40.3% YoY increase)Depreciation: 11 million yen increase4. Selling and administrative expensesPersonnel expenses: 16 million yen increaseResearch and development expenses: 21 million yenincrease0.0(100.0)(8.1% YoY increase)*Orders received and orders backlogged for the first quarter of the fiscal year ending August 31, 2022, include materials supplied at cost. The percentage change from the same period of the previous fiscal year in net sales, cost of sales, and material costs for the said first quarter are calculated based on the actual results for the same quarter of the previous fiscal year before the application of the “Accounting Standard for Revenue Recognition,” which are calculated in the same manner on the following pages.Marumae Co., Ltd. All Rights Reserved -2-1. Overview of Financial ResultsTrends in Quarterly Business Results(Unit: million yen)2,000Sales/cutting (semiconductor)Other salesOrdinary profitSales/cutting (FPD)Gross profitProfitSales/cutting (other)Operating profit244871111771102 707 198 831 26364827676625188427790417164893581751,05076111977143861,299Fiscal YearEndingAugust 2022633701,4447885955924221,8001,6001,4001,2001,00080060040020001Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1QFY2019FY2020FY2021FY2022Point1. Record sales for semiconductors, and favorable sales for FPDOther sectors: 63 million yen (257.2% YoY increase)Semiconductor sector: 1,444 million yen (61.6% YoY increase)• Started sales of solar cell production equipment components• Favorable semiconductor market environment and a new record high in 2. Improved profits in line with increased salesthis quarter• Decrease in provision for loss on orders received and inventory write-FPD sector: 370 million yen (125.2% YoY increase)down• Sales recovery due to improved market and share expansion• Profit: 422 million yen (206.5% YoY increase)*This graph shows quarterly figures, but the numbers in the comments for each point are those for the fiscal year under review.Marumae Co., Ltd. All Rights Reserved -3-1. Overview of Financial ResultsB/S(Unit: million yen)Fiscal year ended Aug 2021End of Fiscal YearFiscal year endingAug 2022End of Q1B/S AnalysisCurrent assetsCash & depositsTrade receivables(Notes receivable – trade, accounts receivable – trade, and electronically recorded monetary claims – operating)InventoriesNon-current assetsBuildings & landMachinery & equipmentCurrent liabilitiesInterest-bearing liabilities(short-term)*Non-current liabilitiesLong-term borrowingsTotal liabilitiesTotal net assetsTotal assets1,6852,1264,8132,5055974,9292,3582,2731,4524271,9631,9233,4156,3279,7425,5422,6287525,2512,3562,5381,8394842,3842,3434,2246,57010,7941. Assets: 10,794 million yen (1,051 million yen increase from Pointthe end of the previous fiscal year)• Trade receivables: 440 million yen increase• Machinery and equipment: 265 million yen increase2. Liabilities: 4,224 million yen (808 million yen increase from the end of the previous fiscal year)• Long-term borrowings: 420 million yen increase• Advances received: 105 million yen increase3. Net assets: 6,570 million yen (242 million yen increase from (Unit: million yen)the end of the previous fiscal year)• Dividends paid: 179 million yen• Retained earnings: 243 million yen increase• Equity ratio: 64.9% → 60.9%(Unit: million yen)3,000Long-term borrowingsCurrent portion of long-term borrowings2,5003793793793793894294273893892,262 2,167 2,072 1,978 1,970 1,873 1,775 2,028 1,923 2,0001,5001,0005000Fiscal YearEndingAug 20224842,343 1QFY2022*Interest-bearing liabilities (short-term): Short-term borrowings + current portion of long-term borrowingsMarumae Co., Ltd. All Rights Reserved -4-Term-endFY20191Q2Q3Q4Q1Q2Q3Q4QFY2020FY20212,4002,2002,0001,8001,6001,4001,2001,00080040020002. Business EnvironmentTrends in the Monthly Balance of Orders Received(Unit: million yen)Semiconductor sectorFPD sectorOther sectorsFiscal Year Ending 8 Aug 2022776 43 620 67 533 67 527 8 27 26 34 499 478 27 512 531 7 5 8 273 283 600275 6 294 4 322 4 291 5 4 251 262 6 8 205 189 49 176 41 195 499 55 324 88 225 23 205 462 498 511 599 624 607 599 581 579 590 639 589 654 696 697 753 1,626 1,486 1,399 1,095 1,122 1,209 991 979 DecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovPointFY2020FY2021FY2022 Semiconductor sector: Due to favorable market conditions, increased orders from new and existing customers, resulting in continuous excess production capacity. Some orders placed ahead of schedule. FPD sector: Strong orders for G6 OLED (Organic LEDs), limited time recovery for G10.5 LCDs, share expansion contributing to orders. Other sectors: Restart of orders for solar cell production equipment.*The Company’s orders have varying lead times. When there are many orders with a long lead time, the order backlog tends to be high, and the reverse is true when there are many orders with a short lead time. *Effective from the fiscal year ending August 31, 2022, the Company has applied the “Accounting Standard for Revenue Recognition,” and the order backlog as of the end of the current month includes 8 million yen of materials supplied at cost.Marumae Co., Ltd. All Rights Reserved -5-2. Business EnvironmentFuture Environment and Policies by Sales Sector Continuing surge in orders especially for logic devicesamid overall favorable conditions Increase in orders for etch and CVD processes along withexpanded logic investment Responding to an expanding market with aggressive capital investment and recruiting Market environment is recovering, and G6 OLED market continues to grow Partial investment continues in G10.5 LCD, and G8 and G5 are trending Current production capacity is tight due to market recovery, so additional capital investment is under consideration Increasing orders for solar cell production equipment components Multiple orders expected, but with no production capacity, capital investment is under consideration rotcudnocimeSDPFsrehtOMarumae Co., Ltd. All Rights Reserved -6-3. Financial Results Forecast for FY2022Forecast for the Next Period (Profit/Loss, Capital Investment, and Fixed Cost)Financial forecast for FY2022Net sales(million yen)Operating profit(million yen)Ordinary profit(million yen)Profit(million yen)Earnings per share(yen)PointQ2(Cumulative)3,54090089062348.68Full year7,2001,8001,7801,24597.30 Both sales and profits expected to reach record highs Aggressive investment and hiring to expand market share (policy to increase hiring and raise labor share) Continuing to invest in equipment to expand production capacity to a monthly output exceeding 700 million yen (550 million yen for semiconductor sector and 150 Good progress toward profit forecast. Planning additional capital investment.million yen for FPD sector)(Unit: million yen)Sales/cutting (semiconductor)Sales/cutting (FPD)Sales/cutting (other)Other salesGross profitOperating profitOrdinary profitProfit771 947 2,150 575 398 1,172 1,205 628 485 728 8,0007,0006,0005,0004,0003,0002,0001,0000-1,000(Unit: million yen)2,500Capital investmentForecastDepreciation (manufacturing)Labor costs (manufacturing)1,070 5,908 2,0001,5001,000838 1,068 4,221 1,060 3,410 657 3,181 3,202 Forecast1,410 2,462 1,098 902 919 849 715 577 510 1,496 341 813 1,424 500335 362 628 510 454 683 334 448 109 58 101 85 110 185 0149 303 210 FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022*The amount of capital investment is based on cash flow.(Forecast)Marumae Co., Ltd. All Rights Reserved FY2022(Forecast)-7-Our goal as a company is for our technology to contribute to society through sustainable management.Marumae Co., Ltd. All Rights Reserved -8-NotesInformation that refers to future events, including information listed in this material and content that has been orally explained, are outlooks based on certain assumptions, which include variable elements such as evaluations by the Marumae management.This material was prepared for shareholders and investors for them to understand the current status and management policies of Marumae and does not provide readers with a basis to make any investment decision, such as the purchase or sale of Company shares. The Company bears no responsibility for any investment decision.Although the Company took care in preparing the listed information, including the numerical figures, this material contains many numerical figures that have not been audited. Therefore, the Company does not assure their accuracy. Moreover, the Company does not bear any responsibility for the information listed nor for any errors contained herein for any reason.For inquiries regarding this material, please contact the following:Person in charge of IR, General Affairs Section, Administration Headquarters, Marumae Co., Ltd.E-mail: inquiry_en@marumae.comMarumae Co., Ltd. All Rights Reserved -9-Marumae Co., Ltd. All Rights Reserved -10-Reference (Our History)We got our start in motorcycle racing.Marumae Co., Ltd. All Rights Reserved -11-Reference (Our History & Business Transition)FoundingPhaseTransitionPhase1965 Founded Marumae Kogyo, Ltd. as a private company.1988 Became a limited company.1997 Took over T’s M’s R&D.Manufactured motorcycle parts.2000 Entered the semiconductor market.2001Renamed the Company as Marumae Co., Ltd.and went public.Entered the FPD market.2003Relocated the HQ to the Takaono Factory.Installed large-sized machining equipment.T’s M’sR&D(Started manufacturing motorcycle parts)ExpansionPhase2004 Designated as a Green Sheet stock.2006 Listed shares on the TSE Mothers market.2007 Opened the Kumamoto Factory.2008 Opened the Kanto Factory.2011 Closed the Kumamoto Factory.RebuildingPhaseStarted implementing business revitalization ADR procedures.2015 Completed the business revitalization ADR procedures.2017 Acquired the Izumi Factory.2018 Listed shares on the Second Section of the TSE.RegrowthPhaseListed shares on the First Section of the TSE.2019 Relocated the HQ to the Izumi Factory.2021 Applied for transition to the Prime Market of the TSEMarumae Co., Ltd. All Rights Reserved -12-MARUMAE(Kept the company name)Motorcycle partstoindustrial partsＲ＆Ｄ(our currentbusiness)Business growth with large-sized productsAccumulating expertise in vacuum components2008 Financial CrisisFocus on semiconductorand engineering skillsReturn to the starting pointEvolutionReference (Our History & Business Transition)Business Growth & Growth DriversSales(Unit: hundred million yen)Regrowth of semiconductor sector2008 Financial CrisisCompleted the business revitalization planStarted businessrevitalizationADR proceduresSemiconductorFPDSolar CellsAssemblyOthersPayroll NumberListed on the TSE Mothers Market80706050403020100(FiscalYear)’04’05’06’07’08’09’10’11’12’13’14’15’16’17’18’19’20’21’22ExpansionRestructuringRegrowthDevelop engineeringskills• Large-sizedequipment• Expansion ofproduction capacity • AssemblybusinessFPDSolar Cell• Organizing large-sized• Redistributing productionequipmentcapacity• Strengthening vacuum componentsMarumae Co., Ltd. All Rights Reserved -13-Strengthen semiconductor sectorRe-expansion of capital investmentPayroll Number300250200150100500(Forecast)Reference (Business Overview)Our products provide core support to semiconductorand LCD production equipment worldwide.Main purposes our customersuse our products for:EtchingCVDCoater/developerSputteringSingle wafer cleaningAshingWafer bondingIon implantationAnnealingOur main products:Vacuum chambersShower headsExhaust platesElectrostatic chucksHeatersUpper electrodesTargetsParts for transfer systemsVarious vacuum components* This photo is a sample imageMarumae Co., Ltd. All Rights Reserved -14-Reference (Company Overview)Company nameMarumae Co., Ltd.EstablishedOctober 1988Capital1,241,150,000 yen (as of November 30, 2021)Executives• Toshikazu Maeda, President and Representative Director• Kota Kaizaki, Director• Hiroto Ando, Director• Akiko Kadota, Outside Director• Keiji Hokanishi, Director(Audit and Supervisory Committee Member)• Satoshi Momokino, Outside Director(Audit and Supervisory Committee Member)• Takaaki Yamamoto, Outside Director(Audit and Supervisory Committee Member)• Hirotsugu Miyakawa, Outside Director(Audit and Supervisory Committee Member)Number of employees277 (including 120 temporary workers) and 44 dispatched workers (as of November 30, 2021)•Izumi Factory (Headquarters):2141 Onohara, Izumi, Kagoshima 899-0216, Japan• Takaono Factory:Locations3816-41 Okubo, Takaono, Izumi, Kagoshima 899-0401,Japan• Kanto Factory:2-17-15 Hizaori, Asaka, Saitama 351-0014, JapanTotal number of issued sharesShare unit numberTotal number of shareholdersMajor shareholders(Common shares)Business descriptioncomponents• Design, manufacture, and sale of industrial and medical equipment• Development and sale of software• Plate working• Plumbing• Transportation• Real estate leasingMarumae Co., Ltd. All Rights Reserved -15-13,053,000 shares100 shares9,684• Toshikazu Maeda4,819,000 shares• Misako Maeda504,000 shares• The Master Trust Bank of Japan, Ltd. (trust account)417,700 shares• Tadao Kawamoto219,500 shares• STATE STREET BANK AND TRUST COMPANY 505019209,400 shares• SMBC Nikko Securities Inc.185,100 shares• Yoshiko Maeda• Custody Bank of Japan, Ltd. (trust account)• Koei Igarashi180,000 shares172,300 shares168,000 shares• Marumae Kyoeikai136,400 shares(Note) There are 250,196 treasury shares(as of August 31, 2021).on technologyWe focus on parts machining, which is the foundation of the monozukuri (manufacturing) that supports our economy. To become a company that can support comprehensive manufacturers in various areas, we aim to be a leading parts machining company with advanced technology and supply capabilities.• Design, manufacture, and machining of precision machinery and equipment• Design and manufacture of precision machine Management philosophy• Seek technological perfection• Respect competition and cooperation• Contribute to society as a company that focuses