Sumida Corporation. Consolidated Financial Results. - Third Quarter, Representative Executive Officer CFO. Yoshiyuki Honda.

Transcription

1 Sumida Corporation Consolidated Financial Results - Third Quarter, Representative Executive Officer CFO Yoshiyuki Honda October 30, 2013

2 Quarterly P/L (Million Million yen) 3Q Q Q-2013 Change % Change % (A) (B) (C) (C)/(A) (C)/(B) S a l e s 13,220 16,021 17, % 6.5% Gross Income ,758 3, % 13.2% % 19.8% 17.2% 18.3% - - Operating Income % 49.4% % 4.5% 2.8% 3.9% - - Ordinary Income % 40.6% Income before taxes % - N e t I n c o m e 488 2, % - Ex. Rates US$/Yen % 0.1% Euro/Yen % 2.1% Euro/US$ % 1.5% Copyright 2013 SUMIDA CORPORATION. All rights reserved. 2

3 P/L for first nine months (Jan-Sep) Jan-Sep 2012 (A) Jan-Sep 2013 % (Million Million yen) (B) (B)/(A) S a l e s 38,942 47, % G r o s s I n c o m e 7,388 8, % % 19.0% 17.3% - Operating Income 1,368 1, % % 3.5% 2.9% - Ordinary Income % Income before taxes % N e t I n c o m e 631 1,674 - Ex. Rates US$/Yen % Euro/Yen % Euro/US$ % Copyright 2013 SUMIDA CORPORATION. All rights reserved. 3

4 Operating Income Analysis 3Q Q-2013 Operating Income 594 Revenue UP 190 Ex. Rates 180 Productivity UP 100 Copper price DOWN 70 China wages UP 110 China welfare ex. UP 30 Others 36 (Million yen) Operating Income 670 3Q Q-2013 Copyright 2013 SUMIDA CORPORATION. All rights reserved. 4

5 Operating Income Analysis 2Q Q-2013 Revenue UP 200 Ex. Rates 10 Copper price DOWN 80 China wages UP 35 Others 34 (Million yen) Operating Income 670 Operating Income 449 2Q Q-2013 Copyright 2013 SUMIDA CORPORATION. All rights reserved. 5

6 Extraordinary Income/Loss Analysis Jan-Sep 2013 (Million yen) Jan-Sep 2013 Extraordinary I n c o m e Insurance 1,356 Sale of fixed assets 9 TOTAL 1,366 Loss from floods in Germany 1,458 Extraordinary L o s s Tokyo office relocation exp. 38 Sale of fixed assets 9 TOTAL 1,506 Net TOTAL 140 Copyright 2013 SUMIDA CORPORATION. All rights reserved.

7 Full-year 2013 P/L Forecast vs P/L Actual (Million yen) Full-year 2013 Forecast (announced on July 31) Full-year 2012 (Actual) S a l e s 63,700 51,300 Operating Income 1,300 1,706 % 2.0% 3.3% Ordinary Income 800 1,100 Extraordinary Income/Loss I n c o m e T a x e s 2,500 5 N e t I n c o m e 2, Net Income/share Exchange rates (Assumptions for 2 nd Half) US$/Yen Euro/Yen Copyright 2013 SUMIDA CORPORATION. All rights reserved.

8 Cash Flow for nine months (Jan-Sep) (Million Yen) 2012 Jan-Sep 2013 Jan-Sep Cash flows from operating activities 1,800 3,563 Income before taxes Depreciation 1,730 2,159 Net working capital Cash flows from investing activities 1,953 2,390 Capital investments 2,289 2,445 Cash flows from financing activities 3, Net interest-bearing debts 3,116 2,072 Dividend payment Cash and cash equivalent at end of period ,411 3,605 Copyright 2013 SUMIDA CORPORATION. All rights reserved.

9 Improvement of currency mix To promote natural hedge, some of raw material procurements were switched from US dollar-denominated to yen-denominated. Weak yen contributes to sales amount, but has a negative impact on operating income. Negative impact on operating income by every one yen depreciated against US dollar and euro has shrunk as follows. -As announced at IR meeting held on February 18, 2013 Minus 155 million yen(against dollar)plus 86 million yen(against euro) -As announced at IR meeting held on August 1, 2013 Minus 65 million yen (against dollar) Plus 20 million yen (against euro) -As announced at IR meeting held on October 30, 2013 Minus 40 million yen (against dollar) Plus 20 million yen (against euro) Sumida gets relatively low impacts on profit by exchange fluctuations compared to other companies in electronic components industry. Copyright 2013 SUMIDA CORPORATION. All rights reserved.

10 Improvement of CCC (Cash Conversion Cycle) Improvement of CCC is one of the important targets for mid-term business plan. As yen s depreciation against US dollar accelerated from mid-april this year, the following measures considered having a higher priority than CCC were implemented to reduce impacts of weak yen on operating income. -Negotiations to change selling prices of products with dollar-denominated costs from euro-denominated to dollar-denominated -Negotiations to change procurement of raw materials from dollar-denominated to yen-denominated -Negotiations to change billings from yen to dollar. However, the above negotiations had negative impacts on improvement of CCC CCC is still an important KPI. Copyright 2013 SUMIDA CORPORATION. All rights reserved.

11 Sumida Corporation Performance Review - Third Quarter, Representative Executive Officer President Tomoharu Suseki October 30, 2013 Copyright 2012 SUMIDA CORPORATION. All rights reserved.

12 Consolidated P/L for 3Q-2013 Total sales were up 29.1% due to steady increase in sales of automotive products and new models of smart phones. Millions of yen 3Q Q-2013 Change Sales 13,220 17,067 3, % Operating Income % % 4.5% 3.9% - - Ordinary Income % Net Income % Copyright 2012 SUMIDA CORPORATION. All rights reserved. 12

13 Sales by Market Segment Automotive sales continue growing and consumer electronics sales increase due to new models of smart phones (Million yen) 18,000 Quarterly sales by market segment Automotive Consumer Electronics Industry Automotive Steady sales of HID lamps in Europe Keyless entries grow thanks to new demands in U.S. 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Q Q Q Q Q Q Q Q-2013 Consumer Electronics Sales pick up in Asia with mass production of 4K TV expected from next year Smart phones sales get a boost from new models Industry Medical-related sales grow in Japan and U.S. Solar energy-related sales in Europe stagnant due to cutback of government subsidy Copyright 2012 SUMIDA CORPORATION. All rights reserved. 13

14 Sales by Region ( 百万円 ) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Quarterly sales by region Japan Asia Europe North America 4Q Q Q Q-2013 North America Automotive-related sales boosted by new demands for keyless entries Strong business inquiries by medical industry Up 75.5% yr/yr increase in 3Q Japan Asia Growing renewable energy-related sales cover loss of consumer electronics sales Up 3.0% yr/yr in 3Q Smart phone sales pick up with new models Sales pick up with mass production of 4K TV expected from next year Up 38.6% yr/yr in 3Q Europe Earlier-than-expected recovery from flooding in central Europe Steady sales of HID lamps cover loss of solar energy-related sales Up 36.9% yr/yr in 3Q Copyright 2012 SUMIDA CORPORATION. All rights reserved. 14

15 Action Plans aiming at achieving Mid-term Business Plan( ) Copyright 2012 SUMIDA CORPORATION. All rights reserved.

16 Action Plans for Mid-term Business Plan ( ) Progress of 4 major action plans 1. Strengthening cost-competitiveness Optimization of production sites - Production shift from hub-plants to satellite plants in China (Share of production volume at satellite plants 41.1%) - Production increase at Vietnam plant Satellite Plants - Expansion of Mexico plant 50 slated for completion in April 2014 (%) 2. Global cash management Improvement of balance sheet - DE (Debt Equity) Ratio 4.74(Dec. 2011) 2.86(Dec. 2012) 2.11(Sep. 2013) Hub Plant in China Q Q Q-2013 Copyright 2012 SUMIDA CORPORATION. All rights reserved. 16

17 Action Plans for Mid-term Business Plan ( ) 3. Products management Stepping up Sumida s presence by increasing market share of highly profitable products - New demands for keyless-entries in U.S. - Production increase of RFID(ear tags for livestock) at Thai plant New production line completed in Oct. with capacity increase from 1 million pc/mo to 1.8 million pc/mo. 4. Strengthening countermeasures against risks Improvement of response capabilities to outside environments and unexpected risks by reviewing where to locate production sites, which markets to enter and which foreign currencies to use. - Production shift from hub plants to satellite plants in China - Plant expansions in Vietnam and Mexico - Adoption of prices linked to raw material prices - Local production for local orders Copyright 2012 SUMIDA CORPORATION. All rights reserved. 17

18 Cost-saving measures to secure profit target in billion yen expense cut in 2014 in addition to the four action plans Target for Cost Savings TOTAL 1 billion yen Japan:400 million yen Enhancement of R&D efficiency through Integration of R&D centers Relocation of Tokyo office by the primary function China:400 million yen Space optimization among hub and satellite plants, through production lines transfer & integration of R&D centers Hong Kong: 50 million yen Other regions: 150 million yen Cutting expenses associated with relocation of HK office and others Copyright 2012 SUMIDA CORPORATION. All rights reserved. 18

19 Disclaimer Regarding Forward Looking Statements Sumida Corporation (referred to as "Sumida") makes this document available for informational purposes only. This document contains certain forward-looking statements which reflect management s current views and the assumptions made with respect to specific future events and financial performance. Such statements are based on currently available information, and by their nature are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in forward-looking statements and from historical trends. These risks include but are not limited to domestic and global economic business conditions, successful execution of our strategy and our ability to realise the resulting benefits, our ability to develop and market new products, changes in legislation, legal claims, changes in exchange and interest rates, changes in tax rates, actuarial assumptions, raw materials and employee costs, our ability to restructure our operations, the rate of technological changes, political, economic and other developments in countries where Sumida operates, industry consolidation and competition. As a result, Sumida s actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. Sumida is under no obligation to, and expressly disclaims any obligations to, update or alter its forward-looking statements, whether as a result of new information, subsequent or otherwise. Sumida is under no liability of any person in respect of any loss and damage which may be suffered or incurred or which may arise directly or indirectly in respect of information contained. All rights, including, but not limited to the copyright, reserved. No part of this document may be reproduced in any means without the prior written permission of Sumida. Copyright 2012 SUMIDA CORPORATION. All rights reserved. 19