Slide 1: Sumida Corporation Performance Briefings FY2016
SUMIDA CORPORATION Performance Briefings <for FY2016 ending December 31, 2016> February 7, 2017
Slide 2: Today's Speakers
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
Slide 3: Today's Program
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
Slide 4: FY2016 Consolidated Financial Results (Q4 & Full Year)
FY2016 Consolidated Financial Results (Q4 & Full Year) CFO Yoshiyuki Honda Copyright© 2017 SUMIDA CORPORATION. All rights reserved. 4
Slide 5: Consolidated P/L for FY2016 Q4
Consolidated P/L for FY2016 Q4 （Million yen） 15.Ｑ4 16.Q3 16.Q4 Change % Change % （A） （B） （C） （C）/(A) (C)/(B) S a l e s 20,537 19,876 19,651 △4.3％ △1.1％ G r o s s I n c o m e 3,193 4,235 3,824 GI ratio 15.5％ 21.3％ 19.5% Operating Income 524 1,706 1,145 118.3％ △32.9％ OI ratio 2.6％ 8.6％ 5.8% Ordinary I
Slide 6: Operating Income Analysis 2015 Q4 → 2016 Q4
Operating Income Analysis 2015 Q4 → 2016 Q4 （Million yen） Effect of Change of foreign depreciation exchange methods 30 230 2016 Q4 Expenses UP Others Operating Productivity UP △90 Income 71 140 China wages 1,145 Raw materials UP prices DOWN △150 Ｒ＆Ｄ 150 Costs Up Sales increase △60 /Product mix 300 2
Slide 7: Operating Income Analysis 2016 Q3 → 2016 Q4
Operating Income Analysis 2016 Q3 → 2016 Q4 (Million yen） 2016 Q3 Operating Income 1,706 Sales DOWN Expenses /Product mix Ｒ＆Ｄ Raw materials UP 2016 Q4 △180 △60 Costs UP Prices UP Operating △30 Productivity Income △30 DOWN China wages 1,145 △60 Effect of UP foreign Others △90 exchange △91 △20 Copyrig
Slide 8: Consolidated P/L for FY2016 Full Year
Consolidated P/L for FY2016 Full Year （Million yen） 2015 Full Year 2016 Full Year Change % （A） （B） （B）/（A） S a l e s 86,236 81,052 △6.0％ G r o s s I n c o m e 14,941 16,118 GI ratio 17.3％ 19.9% Operating income 4,237 5,696 34.4％ OI ratio 4.9％ 7.0% Ordinary Income 3,309 4,805 45.2％ Income Attributabl
Slide 9: Operating Income Analysis 2015 Full Year → 2016 Full Year
Operating Income Analysis 2015 Full Year → 2016 Full Year Change of Effect of （Million yen） depreciation foreign methods exchange 610 70 Productivity Expenses UP 2016 Full Year Raw materials UP △190 Operating prices DOWN 420 Ｒ＆Ｄ Income 950 Costs UP 5,696 Sales UP △270 China wages Others /Product mix
Slide 10: Consolidated B/S
Consolidated B/S （Million yen） 2015 2016 2015 2016 Change Change Dec 31 Dec 31 Dec 31 Dec 31 Current assets 37,978 37,148 △829 Current Liabilities 25,614 26,529 914 Cash & Deposits 3,569 3,577 7 Notes & A/P 7,042 8,221 1,178 Loans 12,970 12,759 △211 Notes & A/R 16,998 17,026 27 Others 5,601 5,548 △5
Slide 11: Consolidated Cash Flow
Consolidated Cash Flow （Million yen） 2015 2016 Change Jan - Dec Jan-Dec Cash Flow from Operating Activities 5,515 7,774 2,259 Income before Taxes 2,932 4,805 1,872 Depreciation 3,830 2,700 △1,130 Net Working Capital △2,050 727 2,778 Others 802 △457 △1,260 Cash Flow from Investing Activities △4,366 △
Slide 12: FY2017 Forecast of Consolidated Operations
FY2017 Forecast of Consolidated Operations （Million yen） FY2017 FY2017 （IFRS basis） (Mid-term Plan) S a l e s 86,700 100,000 Operating Income 5,900 5,000 OI ratio 6.8％ 5.0％ Income Before Taxes 5,100 4,100 Income Attributable to 3,300 2,600 Owners of Parent E P S ( y e n ) 142.18 112.01 Exchange rate
Slide 13: Analysis of Operating Income Growth
Analysis of Operating Income Growth （） (Million yen) Increase Factors Sales increase 940 6,000 Productivity improvement 1,020 FY2017 FY2016 Costs reductions 770 Forecast Actual Discontinuation of goodwill 350 5,000 5,900 5,696 depreciation Up 204 Capitalization of R&D exp. 250 4,000 Others 173 TOTAL
Slide 14: Cash Conversion Cycle (CCC)
Cash Conversion Cycle (CCC) (average days) 120 115 110 106 100 100 100 90 2014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
Slide 15: ROE
ROE 2017 2014 2015 2016 2017年 (Mid –term （Actual) （Actual） (Actual） （Forecast） Plan) Profit margin on sales 1.7% 2.4% 2.8％ 3.8％ 2.6% Sales /Net Assets 1.2 1.3 1.2 1.3 1.2 Total Assets /Net Equity 4.2 3.9 3.7 3.2 3.7 （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
Slide 16: FY2016 Performance & FY2017 Outlook
FY2016 Performance & FY2017 Outlook President Tomoharu Suseki Copyright© 2016 SUMIDA CORPORATION. All rights reserved. 16
Slide 17: Business Growth
Business Growth Copyright© 2016 SUMIDA CORPORATION. All rights reserved. 17
Slide 18: Steady business expansion in the last 5 years
Sales Growth （’00 million yen） 1000 ＊ 862 Steady business 776 810 expansion in the 639 last 5 years 513 500 ＊Due to effect of foreign exchange rates, 2016 sales were down on a yen basis from 2015. 0 But if recalculated with the previous year’s rates, the 2016 2012 2013 2014 2015 2016 sales would h
Slide 19: Operating Income Growth
Operating Income Growth （’00 million yen） 80 Operating Income ratio Operating Income also 7.0% steadily grew in the 4.9% 57.0 last 5 years 4.3% 2.7% 40 42.4 Biggest ever operating 33.5 income in 2016 17.5 17.0 Operating income ratio improved as well 0 -0.09 2012 2013 2014 2015 2016 Copyright©
Slide 20: Major Achievements in 2016
Major Achievements in 2016 Copyright© 2016 SUMIDA CORPORATION. All rights reserved. 20
Slide 21: Sales / R&D
Sales / R&D 2016 Sales by market segment Sales of Automotive & Industry combined Consumer 83% Electronics account for 83% of the total, exceeding 80% target set in mid-term business plan. Industry Automotive Top 3 items in Automotive sales (ABS, HID, Keyless) dropped below 50% with sales of othe
Slide 22: Production / Admin.
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
Slide 23: FY2017 Business Plan & Challenges
FY2017 Business Plan & Challenges Copyright© 2016 SUMIDA CORPORATION. All rights reserved. 23
Slide 24: Sales & Operating Income Plan in 2017
Sales & Operating Income Plan in 2017 （’00 million yen） 00 Sales 200 Sales 867 810 To aim for record-breaking 150 sales on a yen basis Operating Income 00 OP 100 To aim for highest ever operating income with 57 59 • Sales growth & 50 • Productivity improvement in spite of rising raw materials pr
Slide 25: Challenges to enhance profitability in 2017
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 Current New To continue making capital investments in factory expansions and automated production Biggest ever capital 90 71.6 （’
Slide 26: Summing-Up
Summing-Up CEO Shigeyuki Yawata Copyright© 2016 SUMIDA CORPORATION. All rights reserved. 26
Slide 27: Celebrating the 60th anniversary of our foundation
Celebrating the 60th anniversary of our foundation Copyright© 2015 SUMIDA CORPORATION. All rights reserved. 27
Slide 28: Master Plan
Master Plan Master Plan for 2012-2021 ‘12-’14 Mid-term Plan ‘15-’17 Mid-term Plan ‘18～’21Mid-term Plan Stage I Stage II Stage III Sales : ¥60.0 billion Sales: ¥100 billion Sales: ¥100 billion↑ ‘12 – ‘14 Stage I: Groundwork & Operational Restructurings Sales : ¥77.5 billion (actual) Operating income:
Slide 29: Disclaimer Regarding Forward Looking Statements
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 sp