Slide 1: Sumida Corporation Performance Briefings FY2018 Q1
SUMIDA CORPORATION Performance Briefings < for FY2018 Q1 ending March 31,2018> May 8, 2018
Slide 2: Today's Speakers
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
Slide 3: Today's Program
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
Slide 4: FY2018 Q1 Consolidated Financial Results
FY2018 Q1 Consolidated Financial Results CFO Yoshiyuki Honda Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 6
Slide 5: Consolidated Quarterly P/L (based on IFRS)
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 22,701 5.1% 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% Operating Income 1,566 1,097 456 △70.8% Operating margin 7.3％ 4.6% 2.0%
Slide 6: Analysis of Operating Income Change FY2017 Q1 → FY2018 Q1
Analysis of Operating Income Change FY2017 Q1 → FY2018 Q1 (in accordance with IFRS) （Million yen） Productivity FY2017 Q1 UP Operating 125 Income 1,566 Product Mix △185 Capacity Utilization DOWN △320 Raw Materials Price UP △200 FY2018 Q1 Operating China Wages Others Income UP 60 456 △320 FOREX Effect
Slide 7: Analysis of Operating Income Change FY2017 Q4 → FY2018 Q1
Analysis of Operating Income Change FY2017 Q4 → FY2018 Q1 (in accordance with IFRS) FY2017 Q4 （Million yen） Operating Income 1,097 Productivity DOWN △120 Product Mix △220 FY2018 Q1 China wages Operating DOWN Income 80 456 Capacity utilization Others DOWN △1 △280 Effects of Raw material FOREX price U
Slide 8: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (based on IFRS) （Million yen） 2018 2017 2018 2017 Change Change Mar 31 Dec 31 Mar 31 Dec 31 Current Assets 42,866 44,986 △2,119 Current Liabilities 32,805 35,117 △2,311 Cash & Deposits 5,329 5,375 △46 Trade & Other Liabilities 10,014 10,721 △706 Trade & O
Slide 9: Impact by Fluctuations of Foreign Exchange Rates
Impact by Fluctuations of Foreign Exchange Rates for FY2018 Q1 （Million yen） Impact on FY2018 Plan Fluctuations Impact on Currencies Operating Exchange Rate of yen Sales Income With yen’s USD 110.00 depreciation +61 +20 by each 1 yen With yen’s euro 136.00 depreciation +72 +8 by each 1 yen With yen’
Slide 10: FY2018 Q1 Performance Results & Management Policies
FY2018 Q1 Performance Results & Management Policies President Tomoharu Suseki Copyright© 2016 SUMIDA CORPORATION. All rights reserved.
Slide 11: Trends in Sales
Trends in Sales （100 million yen） 2017 2018 The highest past quarterly 231.6 236.0 227.0 sales achieved in 2018 1Q 216.0 217.7 240 2018 1Q sales increased year on year due to strong euro against yen Affected by seasonal factors, 90 1Q 2Q 3Q 4Q 1Q lowest 1Q sales as usual USD 114.61 111.06 110.91 112
Slide 12: Sales by Market
Sales by Market compared with the same period of the previous year Automotive （100 Million yen） 0% 147.80 147.78 Overall sales were strong. There was a decline in HID sales, which could be covered by sales of other products. 2017 1Q 2018 1Q Significant increases seen in RFID- Industry related and FA
Slide 13: Sales by Region
Sales by Region compared with the same period of the previous year （100 Million yen） Asia（except China & Taiwan） ） China/Taiwan Sales in Asia increased + 9.４% + 11.8% 43.99 48.11 47.54 53.13 North America sales decreased due to 2017 1Q 2018 1Q 2017 1Q 2018 1Q decline of automotive- related North Ame
Slide 14: Operating Income
Operating Income compared with the same period of the previous year （100 Million yen） Operating Income（IFRS） 15.66 Operating Income decreased - 70.8% significantly Despite growing sales, operating income decreased significantly 4.56 Due to occurrence of several production-related problems 2017 1Q 20
Slide 15: Analysis of the Operating Income: Reasons for the Decline
Analysis of the Operating Income: Reasons for the Decline 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
Slide 16: Future Prospects
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 b
Slide 17: Integration of Pontiac Coil Inc. into Sumida Group
Integration of Pontiac Coil Inc. into Sumida Group Implementation of M&A activities based on the new mid-term business plan Company Profile Products/Customers Sales : USD 46.4M （FY2017） Pontiac’s precision mould components similar to Sumida’s actuator products group sold to Headquartered in Michigan
Slide 18: New Business Site in India
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 support activities as imm
Slide 19: 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