SUMIDA CORPORATION. Performance Briefings. <For the Second Quarter of FY2018 ending June 30, 2018> August 1, 2018

Transcription

1 SUMIDA CORPORATION Performance Briefings <For the Second Quarter of FY2018 ending June 30, 2018> August 1, 2018

2 Today s Speakers Representative Executive Officer & President Tomoharu Suseki Representative Executive Officer & CFO Yoshiyuki Honda 2

3 Today s Program 1. FY2018 Q2 Consolidated Financial Results CFO Yoshiyuki Honda 2. FY2018 Q2 Performance Results & Management Policies President Tomoharu Suseki 3. Q&A Session 3

4 FY2018 Q2 Consolidated Financial Results Yoshiyuki Honda CFO Copyright 2017 SUMIDA CORPORATION. All rights reserved. 6

5 Consolidated Income Statement (Million yen) 17.Q2 18.Q1 18.Q2 Change % Change % (A) (B) (C) (C)/(A) (C)/(B) S a l e s 21,768 22,701 23, % 5.0% G r o s s I n c o m e 3,989 2,913 3,939 GI % 18.3% 12.8% 16.5% O p e r a t i n g I n c o m e 1, , % 180.6% OI % 8.2% 2.0% 5.4% Income before Taxes 1, % 77.1% Income Attributable to O w n e r s o f P a r e n t 1, % 44.8% E P S ( y e n ) FOREX USD/yen Euro/yen renminbi/yen Sumida adopted IFRS starting FY2017 Q1. Figures in the previous year were restated with IFRS Steady increase in sales with profit heading for recovery Copyright 2017 SUMIDA CORPORATION. All rights reserved. 5

6 Consolidated Income Statement for 1 st half 6 months ending June months ending June 30, 2018 (Million yen) Change % (A) (B) (B)/(A) S a l e s 43,368 46, % G r o s s I n c o m e 7,688 6,853 GI % 17.7% 14.7% O p e r a t i n g I n c o m e 3,346 1, % OI % 7.7% 3.7% I n c o m e b e f o r e T a x e s 3,004 1, % Income Attributable to Owners of P a r e n t s 2, % E P S ( y e n ) FOREX USD/yen Euro/yen renminbi/yen Steady increase in sales with profit heading for recovery Copyright 2017 SUMIDA CORPORATION. All rights reserved. 6

7 Operating Income Analysis 2017 Q Q2 (Million yen) Production efficiency 190 Sales increase /Product mix 2017 Q2 240 Operating income 1,780 Capacity utilization 30 Wages /Social insurance 330 FOREX 240 Extra ordinary expenses 220 Raw material price 150 Expenses 120 Pontiac 69 Others Q2 Operating income 1,281 Operating income dropped due to increased wages and copper price 7

8 Operating Income Analysis 2018 Q Q2 (Million yen) Production efficiency 200 Capacity utilization 560 Sales increase /Product mix 320 Special EXP. 160 Wage /Social insurance 140 FOREX 60 Expenses 58 Pontiac 69 Others Q2 Operating Income 1, Q1 Operating Income 456 Recovering due to increased capacity utilization and production efficiency 8

9 Consolidated Statement of Financial Position (Million yen) 2017 Dec June 30 Change 2017 Dec June 30 Change Current Assets 44,986 45, Cash & Deposits 5,375 4, Trade & other Receivables 19,469 19, Inventories 17,011 17, Others 3,129 4,261 1,131 Non-current Assets 39,379 46,042 6,663 Tangible Assets 30,388 32,090 1,701 Intangible Assets 2,228 2, Goodwill 2,006 6,855 4,849 Deferred Assets 3,309 2, Others 1,447 1, TOTAL ASSETS 84,366 91,426 7,059 Current Liabilities 35,117 41,759 6,641 Trade & other Liabilities 10,721 11, Interest-bearing Loans 19,957 25,755 5,797 Others 4,438 4, Non-current Liabilities 19,126 20,137 1,010 Interest-bearing Loans 15,879 17,128 1,249 Others 3,247 3, TOTAL LIABILITIES 54,243 61,896 7,652 TOTAL NET EQUITY 30,122 29, EQUITY attributable to equity holders of the parent 28,570 27, Minority Interest 1,551 1, Dec 2018 June Current Ratio DE Ratio CCC(days) TOTAL LIABILITIES & EQUITY 84,366 91,426 7,059 USD/yen euro/yen renminbi/yen Copyright 2017 SUMIDA CORPORATION. All rights reserved. 9

10 Consolidated Statement of Cash Flow 6 months thru June 30, months thru June 30, 2018 (Million yen) Change Cash Flow from Operating Activities 3,138 2, Income before Taxes 3,004 1,223 1,781 Depreciation & Amortization 1,562 1, Net Working Capital Others Cash Flow from Investing Activities 3,412 10,243 6,830 Capital Investments 3,509 4, Acquisition of subsidiary shares - 5,991 5,991 Others Cash Flow from Financing Activities 2,335 7,055 4,720 Net Interest-bearing Debts 1, ,076 Revenue from Issuance of New Shares 3,985-3,985 Dividend Payment Others Cash & Cash Equivalent at end of period 5,554 4,511 1,043 Big investing activities due to capital investments and M&A Copyright 2017 SUMIDA CORPORATION. All rights reserved. 12

11 Pontiac Coil, Inc. (Forecast) 7 months for Jun Dec 2018 (100 Million yen) : US$1=110 yen) 12 months for Jan-Dec 2019 Sales OP Synergy Effects 1. Expansion of customer base We can expect to enhance customer services and expand distribution channels through cross-selling of Sumida & Pontiac products by utilizing shared customer base. 2. Responding to existing customers needs Facilitate global projects Pontiac s customers are interested in (to produce and sell in China and Europe) through a full utilization of Sumida Group s production capabilities and anticipate new projects. 3. Expansion of R&D, production facilities and strengthen know-how of automation of production lines By utilizing Pontiac s head office and factories we anticipate R&D and expansion of production of Sumida s products for the North American market. 11

12 FY2018 Q2 Performance Results and Management Policies Tomoharu Suseki President 12

13 Sales by Quarter (100 Million yen) Achieved highest-ever quarterly sales in 2018 Q2 Pontiac Coil s one-month sales of June were added to Q2 sales as the acquisition of Pontiac Coil, Inc. was closed on June 1, Q 3Q 4Q 1Q 2Q USD Euro Sales from existing businesses increased widely compared to previous quarter and previous year 13

14 Sales by Market 2017 Q Q2 Automotive (100 Million yen) + 7.9% HID-related sales recovered from Q1. Sales of other products in this market grew as well Q Q Industry % Industry businesses continued to expand mainly in RFID- and FA-related areas Q Q Consumer Electronics + 9.4% Q Q Like in Q1, consumer electronics sales continued to be strong due to start-ups of new projects in addition to the existing products 14

15 Sales by Region 2017 Q Q2 (100 Million ( yen) 億円 Asia excl. China/Taiwan + 6.2% China/Taiwan % Sales grew in all regions Q Q North America/Others Q Q Europe + 4.5% North America sales significantly increased partly due to inclusion of Pontiac s one-month sales % Q Q Q Q 15

16 Operating Income by Quarter (100 Million yen) Operating income made a significant recovery in Q2 from Q1, but still below Q2 last year Major factors for negative growth from last year Production-related trouble caused mainly by start-ups of new products, etc. that arose in Q1 and still continued in Q Q 2Q 3Q 4Q Increase of costs resulting from professional fees related to M&A etc. Compared with last year Appreciation of renminbi Increase of copper price 16

17 Sales in Automotive Market by Quarter (100 Million yen) QAVR Q AVR 1Q 2Q 3Q 4Q 1Q 2Q Sales steadily grew with ups and downs by quarter in the past Aiming to achieve the new Mid-Term Business Plan (new MTBP), we are tackling various kinds of automotive projects including many EV/HEVrelated 17

18 Strategies for Automotive Business New MTBP Sales trend of 3 key products ABS HID Keyless Entry System Slightly UP Down Up Total sales of these 3 products in Stage III will slow down compared with the previous stages. We will focus on the following 2 areas, so as to keep Automotive business growing more and more. EV/HEV Actuator 18

19 Major Challenges in Automotive Business in new MTBP EV/HEV Motor EV (Electric vehicles) - Car Body PCU Battery Management System Battery On-board Charger Actuator Charger With the expansion of existing businesses and the additional resources of newly joined Pontiac, we expect to accelerate the growth of this business. 19

20 Progress of new MTBP Overall progress Changed organization structure in April 2018 Started working on the issuance of CSR report (Sustainability report) Existing businesses Aggressively tackling new challenges for future growth in all three business areas, Automotive, Industry and Consumer Electronics Reviewing new projects and product lineup to focus business resources on growing fields M&A Searching for a new candidate to acquire whose size is similar to Pontiac s to achieve the numerical targets of new MTBP Started working together with universities and research institutions for developing new products and technologies in addition to M&A activities 20