Marubun : Notice Revision to Earnings Forecast and Dividends Forecast

To Whom It May Concern	Jul 31, 2020
Company	MARUBUN CORPORATION
Representative	Toru Iino
	CEO and Representative Director
	(Securities Code:7537 TSE, 1st section)
Contact	Toshihiro Shibuya
	Manager, Corporate Planning Dept.
	(Tel: [phone])

Notice Revision to Earnings Forecast and Dividends Forecast

Marubun Corporation(the "Company") announces that it regard to consolidated financial forecasts and dividend forecasts for the fiscal year ending March 31, 2021,which were not provided in the "Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2020" on May 14, 2020. Details are as follows.

1. Consolidated financial results forecast revision for the first half of the fiscal year ending March 31 2021 (April 1, 2020 - September 30, 2020)

		Operating	Ordinary	Profit
	Net Sales	attributable	Net Income
	Income	Income	to owners of	Per Share
				parent
	Millions of Yen	Millions of Yen	Millions of Yen	Millions of Yen	Yen
Previous Financial Forecast (A)	－	－	－	－	－
Revised Forecast (B)	136,500	70	115	35	1.34
Amount of Change (B-A)	－	－	－	－	－
Change (%)	－	－	－	－	－
Results for the year ended	138,703	(71)	323	(110)	(4.23)
March 31, 2020

1. Consolidated financial results forecast revision for the year ending March 31, 2021 (April 1, 2020- March 31, 2021)

				Profit
	Net Sales	Operating	Ordinary	attributable	Net Income
	Income	Income	to owners of	Per Share
				parent
	Millions of Yen	Millions of Yen	Millions of Yen	Millions of Yen	Yen
Previous Financial Forecast (A)	－	－	－	－	－
Revised Forecast (B)	260,000	2,300	2,000	1,235	47.25
Amount of Change (B-A)	－	－	－	－	－
Change (%)	－	－	－	－	－
Results for the year ended	287,500	2,369	2,006	(75)	(2.89)
March 31, 2020

Reason for revision

The Company withheld its consolidated financial forecasts for the fiscal year ending March 31, 2021, because it was difficult to rationally estimate the impact of COVID-19 on its operating performance. However, in light of the relaxation of activity limiting measures in many countries, the Group calculated the forecasts based on currently available information and projections.

In the fiscal year ending March 31, 2021, demand for information and communication equipment, industrial equipment, and medical and other equipment, is expected to increase in the Electronics Systems business, and growth is projected owing to the start of handling new products in the Electronics Devices business. However, sales are expected to decrease due to a drop in sales of semiconductors for communication equipment and the termination of distributorship agreement with Texas Instruments Inc., in September 2020. As a result, sales are predicted to be 260,000 million yen (down 9.6% from the previous year). On the profit front, operating profit is forecast to be 2,300 million yen (down 2.9% from the previous year), ordinary profit to be 2,000 million yen (down 0.3% from the previous year), and profit attributable to owners of parent to be 1,235 million yen (as opposed to loss attributable to owners of parent of 75 million yen in the previous fiscal year).

Actual operating results may differ from the forecast figures due to a variety of factors, such as market trends and exchange rate fluctuations. Currently, the domestic business remains relatively strong, while overseas demand is weak, mainly for automobiles. Going forward, operating results may change significantly due to the spread or convergence of COVID-19.

Regarding the financial forecasts for the fiscal year ending March 31, 2021, the Company will disclose information in a timely and appropriate manner if an event requiring disclosure occurs.

(3) Dividend forecast for the year ending March 31,2021

		Dividend Per Share
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Annual
	Yen	Yen	Yen	Yen	Yen
Previous Forecast (A)	－	－	－	－	－
Revised Forecast (B)	－	8.00	－	8.00	16.00
Results for the year ended	－	10.00	－	20.00	30.00
March 31, 2020

Reason for revision

With respect to the distribution of profits to shareholders, in order to continue distribution, the Company employs a performance-based dividend system to return profits proactively according to its operating results, to decide the dividend with a focus on the payout ratio. The Group plans to decide the dividend amount with a consolidated payout ratio of 30% or more as a benchmark.

Similar to the financial forecasts, the dividend forecasts for the fiscal year ending March 31, 2021 were undetermined, but the Marubun Group has now decided to pay an annual dividend of 16 yen per share (including an interim dividend of 8 yen) based on the Company's dividend policy.