SUMIDA CORPORATION. Performance Briefings. <for FY2016 ending December 31, 2016> February 7, 2017

Transcription

1 SUMIDA CORPORATION Performance Briefings <for FY2016 ending December 31, 2016> February 7, 2017

2 Today s Speakers Representative Executive Officer & CEO Shigeyuki Yawata Representative Executive Officer & President Tomoharu Suseki Representative Executive Officer & CFO Yoshiyuki Honda Copyright 2016 SUMIDA CORPORATION. All rights reserved. 2

3 Today s Program 1.Consolidated Financial Results for FY2016 CFO Yoshiyuki Honda 2.FY2016 Performance & FY2017 Outlook President Tomoharu Suseki 3. General Overview CEO Shigeyuki Yawata 4. Q & A Session Copyright 2015 SUMIDA CORPORATION. All rights reserved. 3

4 FY2016 Consolidated Financial Results (Q4 & Full Year) CFO Yoshiyuki Honda Copyright 2017 SUMIDA CORPORATION. All rights reserved. 4

5 Consolidated P/L for FY2016 Q4 Million yen S a l 16.Q3 16.Q4 Change % Change % A B C C /(A) (C)/(B) s 20,537 19,876 19, I n c o m e 3,193 4,235 3, % 524 1,706 1, % Income 283 1, Income Attributable to Owners of Parent US$/yen euro/yen G r o s s e 15.Ｑ4 GI ratio Operating Income OI ratio Ordinary E P S y e n FOREX renminbi/yen Significant profit increase in spite of decreased sales due to yen s appreciation Copyright 2017 SUMIDA CORPORATION. All rights reserved. 5

6 Operating Income Analysis 2015 Q Q4 (Million yen) Change of depreciation methods 230 Effect of foreign exchange 30 Sales increase /Product mix 300 Productivity UP 140 Raw materials prices DOWN 150 Expenses UP 90 China wages UP 150 R&D Costs Up 60 Others Q4 Operating Income 1, Q4 Operating Income 524 Copyright 2017 SUMIDA CORPORATION. All rights reserved. 6

7 Operating Income Analysis 2016 Q Q4 (Million yen) 2016 Q3 Operating Income 1,706 Sales DOWN /Product mix 180 Expenses UP 60 R&D Costs UP 30 Raw materials Prices UP Productivity 30 DOWN China wages 60 UP 90 Effect of foreign exchange 20 Others Q4 Operating Income 1,145 Copyright 2017 SUMIDA CORPORATION. All rights reserved. 7

8 Consolidated P/L for FY2016 Full Year Million yen 2015 Full Year 2016 Full Year Change % A B B / A s 86,236 81,052 I n c o m e 14,941 16, % 4,237 5, % Income 3,309 4, Income Attributable to Owners of Parent 2,032 3, E US$/yen euro/yen S a l G r o s s e GI ratio Operating income OI ratio Ordinary P S y e n FOREX renminbi/yen Record-breaking profit in spite of decreased sales due to yen s appreciation Copyright 2017 SUMIDA CORPORATION. All rights reserved. 8

9 Operating Income Analysis 2015 Full Year 2016 Full Year (Million yen) 2015 Full Year Operating income 4,237 Raw materials prices DOWN 950 Sales UP /Product mix 500 Productivity UP Change of depreciation methods 610 Effect of foreign exchange 70 Expenses UP R&D Costs UP 270 China wages UP 570 Others Full Year Operating Income 5,696 Copyright 2017 SUMIDA CORPORATION. All rights reserved. 9

10 Consolidated B/S 2015 Dec Dec 31 Change Current assets 37,978 37, Cash & Deposits 3,569 3,577 7 Notes & A/R 16,998 17, Inventory 14,262 13, Others 3,146 2, Fixed Assets 29,877 29,877 0 Tangible Assets 22,676 23, Intangible Assets 2,912 2, Others 4,289 3, Deferred Assets TOTAL ASSETS 67,876 67, Dec 2016 Dec Current Ratio DE Ratio CCC(days) Dec Dec 31 Change Current Liabilities 25,614 26, Notes & A/P 7,042 8,221 1,178 Loans 12,970 12, Others 5,601 5, Fixed Liabilities 23,593 20,602 2,990 Loans 20,200 17,256 2,943 Others 3,392 3, Total Liabilities 49,207 47,131 2,076 Total Net Equity 21,862 24,276 2,414 T/A 4,525 5,936 1,411 Stock Acquisition Right Minority Interests 1,258 1, Total Net Assets 18,669 19,903 1,233 TOTAL 67,876 67, US$/yen euro/yen renminbi/yen (Million yen) CCC improved Copyright 2017 SUMIDA CORPORATION. All rights reserved. 10

11 Consolidated Cash Flow Million yen 2015 Jan - Dec 2016 Jan-Dec Change 5,515 7,774 2,259 Income before Taxes 2,932 4,805 1,872 Depreciation 3,830 2,700 1,130 2, , ,260 4,366 4, ,448 4, ,054 3,016 1,961 Net Interest-Bearing Debts 495 2,262 1,766 Dividend Payment ,538 3,546 7 Cash Flow from Operating Activities Net Working Capital Others Cash Flow from Investing Activities Capital Investments Others Cash Flow from Financing Activities Others Cash and cash equivalent at end of period Cash flow from operating activities substantially increased Copyright 2017 SUMIDA CORPORATION. All rights reserved. 11

12 FY2017 Forecast of Consolidated Operations FY2017 (IFRS basis) FY2017 (Mid-term Plan) (Million yen) S a l e s 86, ,000 O p e r a t i n g I n c o m e 5,900 5,000 OI ratio 6.8% 5.0% Income Before Taxes 5,100 4,100 Income Attributable to O w n e r s of P a r e n t 3,300 2,600 E P S ( y e n ) Exchange rates US$ /yen euro/yen Copyright 2017 SUMIDA CORPORATION. All rights reserved. 12

13 Analysis of Operating Income Growth () (Million yen) Increase Factors 6,000 5,000 FY2016 Actual 5,696 FY2017 Forecast 5,900 Sales increase 940 Productivity improvement 1,020 Costs reductions 770 Discontinuation of goodwill 350 depreciation 4,000 Up 204 Capitalization of R&D exp. 250 Others 173 TOTAL 3,503 3,000 Decrease Factors Product mix change 1,210 Wages increase 700 2,000 Welfare in China increase 620 Increase of copper price 410 Increase of R&D exp ,000 Others 159 TOTAL 3,299 0 Net +204 Copyright 2017 SUMIDA CORPORATION. All rights reserved. 13

14 Cash Conversion Cycle (CCC) (average days) 年 2015 年 2016 年 2017 年 ( 計画 ) Through utilization of low-interest rate, CCC target is set at 100 days as an operational guideline Copyright 2017 SUMIDA CORPORATION. All rights reserved. 14

15 ROE 2014 (Actual) 2015 (Actual) 2016 (Actual) 2017 年 (Forecast) 2017 (Mid term Plan) Profit margin on sales 1.7% 2.4% 2.8% 3.8% 2.6% Sales /Net Assets Total Assets /Net Equity (Net D/E レシオ ) (1.9) (1.8) (1.5) (1.3) (1.7) Single yearroe 9% 12% 17% 16% 12% 3 year average ROE % 15.1% 14.8% More than average 12% ROE will be achieved Copyright 2017 SUMIDA CORPORATION. All rights reserved. 15

16 FY2016 Performance & FY2017 Outlook President Tomoharu Suseki Copyright 2016 SUMIDA CORPORATION. All rights reserved. 16

17 Business Growth Copyright 2016 SUMIDA CORPORATION. All rights reserved. 17

18 Sales Growth 1000 ( 00 million yen) * Steady business expansion in the last 5 years *Due to effect of foreign exchange rates, 2016 sales were down on a yen basis from But if recalculated with the previous year s rates, the 2016 sales would have been up from Copyright 2016 SUMIDA CORPORATION. All rights reserved. 18

19 Operating Income Growth ( 00 million yen) Operating Income ratio 4.9% 4.3% 2.7% % 57.0 Operating Income also steadily grew in the last 5 years Biggest ever operating income in 2016 Operating income ratio improved as well Copyright 2016 SUMIDA CORPORATION. All rights reserved. 19

20 Major Achievements in 2016 Copyright 2016 SUMIDA CORPORATION. All rights reserved. 20

21 Sales / R&D 2016 Sales by market segment 83% Industry Consumer Electronics Automotive Sales of Automotive & Industry combined account for 83% of the total, exceeding 80% target set in mid-term business plan. Top 3 items in Automotive sales (ABS, HID, Keyless) dropped below 50% with sales of other items growing Automotive sales Inductor Trans EV Actuator and etc. Top 3 items Industry sales by application saw significant changes. Solar energy-related RFID for livestock Medical/Healthcare Down Up Up Copyright 2016 SUMIDA CORPORATION. All rights reserved. 21

22 Production / Admin. Production Established production system to reduce impact on profit by fluctuations of foreign exchange rates through further promotion of local production for local consumption Further improved productivity at China factories with automated production Started operations at Vietnam No.2 factory (outskirts of Da-Nang) Admin. Completed IFRS implementation to start disclosures on IFRS basis from FY2017 Hired more R&D-related personnel (14% increase) Promoted centralization of finance-related information system Copyright 2016 SUMIDA CORPORATION. All rights reserved. 22

23 FY2017 Business Plan & Challenges Copyright 2016 SUMIDA CORPORATION. All rights reserved. 23

24 Sales & Operating Income Plan in 2017 ( 00 million yen) Sales Sales 150 To aim for record-breaking sales on a yen basis OP Plan 50 0 Operating Income 100 To aim for highest ever operating income with Sales growth & Productivity improvement in spite of rising raw materials prices Copyright 2016 SUMIDA CORPORATION. All rights reserved. 24

25 Challenges to enhance profitability in 2017 To expand factories to prepare for Master Plan Stage III(2018~2021) Ji an in China Phase 2 Vietnam Phase 2 Romania Phase 2 To continue making capital investments in factory expansions and automated production ( 00 million yen) Current Biggest ever capital investments in 2017 New To expand R&D facilities in North America To reduce procurement costs through further promotion of global purchasing & development of new suppliers in emerging countries Copyright 2016 SUMIDA CORPORATION. All rights reserved. 25

26 Summing-Up CEO Shigeyuki Yawata Copyright 2016 SUMIDA CORPORATION. All rights reserved. 26

27 Celebrating the 60 th anniversary of our foundation Copyright 2015 SUMIDA CORPORATION. All rights reserved. 27

28 Master Plan Master Plan for Mid-term Plan Mid-term Plan 18~ 21Mid-term Plan Stage I Sales : 60.0 billion Stage II Sales: 100 billion Stage III Sales: 100 billion Stage I: Groundwork & Operational Restructurings Sales : 77.5 billion (actual) Operating income: 3.3 billion (actual) Stage II: Market Development & Growth Sales : 100 billion Operating income : 5 billion ~ 21 Stage Ⅲ: Growth & Diversification Sales: 100 billion Operating income : 10 billion Aiming for 100 billion sales & 5 billion operating income in Stage II Copyright 2015 SUMIDA CORPORATION. All rights reserved. Strictly Confidential. 28

29 Copyright 2012 SUMIDA CORPORATION. All rights reserved. 29 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.