SUMIDA CORPORATION. Performance Briefings. < for FY2018 Q1 ending March 31,2018> May 8, 2018

Transcription

1 SUMIDA CORPORATION Performance Briefings < for FY2018 Q1 ending March 31,2018> May 8, 2018

2 Today s Speakers Representative Executive Officer and President Tomoharu Suseki Representative Executive Officer and CFO Yoshiyuki Honda Copyright 2018 SUMIDA CORPORATION. All rights reserved. 2

3 Today s Program 1. FY2018 Q1 Consolidated Financial Results CFO Yoshiyuki Honda 2. FY2018 Q1 Performance Results & Management Policies President Tomoharu Suseki 3. Q & A Session Copyright 2018 SUMIDA CORPORATION. All rights reserved. 3

4 FY2018 Q1 Consolidated Financial Results CFO Yoshiyuki Honda Copyright 2018 SUMIDA CORPORATION. All rights reserved. 6

5 Consolidated Quarterly P/L (based on IFRS) (Million yen) 17.Q1 17.Q4 18.Q1 Change % Change % (A) (B) (C) (C)/(A) (C)/(B) S a l e s 21,599 23,621 22, % G r o s s I n c o m e 3,698 3,423 2,913 Gross margin 17.1% 14.5% 12.8% O p e r a t i n g I n c o m e 1,566 1, % Operating margin 7.3% 4.6% 2.0% Net Income before Taxes 1,398 1, % Net Income attributable t o S U M I D A C O R P O R A T I O N 939 1, % E P S ( y e n ) FOREX USD/yen euro/yen renminbi/yen Biggest-ever quarterly sales achieved in FY2018 Q1 Copyright 2018 SUMIDA CORPORATION. All rights reserved. 5

6 Analysis of Operating Income Change FY2017 Q1 FY2018 Q1 (in accordance with IFRS) FY2017 Q1 Operating Income 1,566 Productivity UP 125 (Million yen) Product Mix 185 Capacity Utilization DOWN 320 Raw Materials Price UP 200 China Wages UP 320 FOREX Effects 130 Expenses UP 140 Others 60 FY2018 Q1 Operating Income 456 Operating income significantly decreased due to multiple causes Copyright 2018 SUMIDA CORPORATION. All rights reserved. 6

7 Analysis of Operating Income Change FY2017 Q4 FY2018 Q1 (in accordance with IFRS) FY2017 Q4 Operating Income 1,097 (Million yen) Productivity DOWN 120 Product Mix 220 Capacity utilization DOWN 280 Effects of FOREX 80 Raw material price UP 20 China wages DOWN 80 Others 1 FY2018 Q1 Operating Income 456 Copyright 2018 SUMIDA CORPORATION. All rights reserved. 7

8 Consolidated Statement of Financial Position (based on IFRS) (Million yen) 2018 Mar Dec 31 Change 2018 Mar Dec 31 Change Current Assets 42,866 44,986 2,119 Current Liabilities 32,805 35,117 2,311 Cash & Deposits 5,329 5, Trade & Other Receivables 17,761 19,469 1,708 Inventories 15,804 17,011 1,207 Others 3,971 3, Non-current Assets 39,190 39, Tangible Assets 30,314 30, Intangible Assets 2,343 2, Goodwill 1,960 2, Deferred Tax Assets 2,991 3, Others 1,580 1, TOTAL ASSETS 82,057 84,366 2, March 2017 December Current Ratio Net DE Ratio CCC(days) Trade & Other Liabilities 10,014 10, Interest-bearing Loans 18,812 19,957 1,145 Others 3,978 4, Non-current Liabilities 20,291 19,126 1,165 Interest-bearing Loans 17,439 15,879 1,560 Others 2,852 3, TOTAL LIABILITIES 53,097 54,243 1,146 TOTAL NET EQUITY 28,960 30,122 1,162 EQUITY attributable to equity holders of the parent 27,430 28,570 1,140 Minority Interest 1,529 1, TOITAL LIABILITIES & EQUITY 82,057 84,366 2,308 USD/yen euro/yen renminbi/yen Copyright 2018 SUMIDA CORPORATION. All rights reserved. 10

9 Impact by Fluctuations of Foreign Exchange Rates for FY2018 Q1 (Million yen) Currencies FY2018 Plan Exchange Rate Fluctuations of yen Impact on Sales Impact on Operating Income USD With yen s depreciation by each 1 yen euro With yen s depreciation by each 1 yen renminbi With yen s depreciation by each 1 yen Copyright 2018 SUMIDA CORPORATION. All rights reserved. 9

10 FY2018 Q1 Performance Results & Management Policies President Tomoharu Suseki Copyright 2016 SUMIDA CORPORATION. All rights reserved.

11 Trends in Sales (100 million yen) The highest past quarterly sales achieved in Q Q sales increased year on year due to strong euro against yen 90 1Q 2Q 3Q 4Q 1Q Affected by seasonal factors, lowest 1Q sales as usual USD Euro Copyright 2017 SUMIDA CORPORATION. All rights reserved. 11

12 Sales by Market compared with the same period of the previous year Automotive 0% (100 Million yen) Q Q Industry Q Q Consumer Electronics % % Overall sales were strong. There was a decline in HID sales, which could be covered by sales of other products. Significant increases seen in RFIDrelated and FA-related sales. In smartphone-related sales, total sales increased due to start-ups of new projects despite of declines of existing core products Q Q Copyright 2017 SUMIDA CORPORATION. All rights reserved. 12

13 Sales by Region compared with the same period of the previous year (100 Million yen) Asia(except China & Taiwan) + 9.4% Q Q North America/Others % China/Taiwan % Q Q Europe + 3.3% Sales in Asia increased North America sales decreased due to decline of automotiverelated Steady sales continued in Europe partly because of yen s depreciation against euro Q Q Q Q Copyright 2017 SUMIDA CORPORATION. All rights reserved. 13

14 Operating Income compared with the same period of the previous year (100 Million yen) Operating Income(IFRS) % Operating Income decreased significantly Despite growing sales, operating income decreased significantly 4.56 Due to occurrence of several production-related problems Q Q Copyright SUMIDA CORPORATION. All rights reserved. 14

15 Analysis of the Operating Income: Reasons for the Decline Production side Others Bigger-than-usual production troubles at Asian factories associated with Chinese New Year Significantly low capacity utilization due to relocation of Shanghai factory Cost increase resulting from adjustments in production due to fluctuation of demands Cost increase being affected by troubles related to start-ups of new projects Significant increase of copper price Costs increase associated with appreciation of renminbi Increase of professional fees Copyright 2017 SUMIDA CORPORATION. All rights reserved. 15

16 Future Prospects? Production side Bigger-than-usual production troubles at Asian factories associated with Chinese New Year Significantly low capacity utilization due to relocation of Shanghai factory Cost increase resulting from adjustments in production due to fluctuation of demands Cost increase being affected by troubles related to start-ups of new projects Significant increase of copper price Others? Costs increase associated with appreciation of renminbi Increase of professional fees Copyright 2017 SUMIDA CORPORATION. All rights reserved. 16

17 Integration of Pontiac Coil Inc. into Sumida Group Implementation of M&A activities based on the new mid-term business plan Company Profile Sales : USD 46.4M (FY2017) Headquartered in Michigan U.S.A. Products/Customers Pontiac s precision mould components similar to Sumida s actuator products group sold to automotive related makers both in the U.S. and Japan Headquarters/Factory (Michigan) Factory (Arkansas) Expected Synergy Effects Cross-selling : to sell Sumida s products to Pontiac s customers Cross-production : to mutually utilize production sites of Sumida and Pontiac Production automation : to utilize advanced automated production technology owned by Pontiac All procedures concerning the acquisition of Pontiac will be completed by the end of the first half of

18 New Business Site in India As a business strategy, conforming to the new mid-term business plan, establishment of a business site in India Open a sales office, the first ever office in India, in Bangalore in the Delhi second half of 2018 Carry out sales and technical Mumbai Pune Sumida India Office support activities as immediate priorities Bangalore Chennai 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