Slide 1: Performance Briefings FY2018 4Q and Full Year
SUMIDA CORPORATION Performance Briefings <for FY2018 4Q and Full Year> ending December 31,2018 February 13, 2019
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 4Q and Full Year Consolidated Financial Results ＣＦＯ Yoshiyuki Honda ２．FY２０１８ 4Q and Full Year Results and FY2019 Forecast President Tomoharu Suseki ３．Q & A Session Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 3
Slide 4: FY2018 4Q and Full Year Consolidated Financial Results
FY2018 4Q and Full Year Consolidated Financial Results CFO Yoshiyuki Honda Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 6
Slide 5: Quarterly Consolidated Income Statement
Quarterly Consolidated Income Statement （million yen） 2017 4Ｑ 2018 3Q 2018 4Q Change % Change % （A） （B) （C） （C)/(A) （C）/(B) S a l e s 23,621 25,682 25,314 7.2% △1.4％ G r o s s I n c o m e 3,423 4,365 4,089 GI % 14.5% 17.0％ 16.2% Operating Income 1,097 2,085 1,559 42.1% △25.2％ OI % 4.6% 8.1％ 6.2% Inc
Slide 6: Operating Income Analysis 2017 4Q → 2018 4Q
Operating Income Analysis 2017 4Q → 2018 4Q （Million yen） Sales increase /Product mix Pontiac 80 R&D exp 120 FOREX 120 impact 2018 4Q 200 Capacity Operating Material costs utilization Income 210 △160 Wages in 1,559 Europe Productivity Others 2017 4Q △150 Wages/ 220 Social welfare △88 Operating in Ch
Slide 7: Full Year Consolidated Income Statement
Full Year Consolidated Income Statement （Million yen） 2017 2018 Change % S a l e s 90,153 97,538 8.2％ G r o s s I n c o m e 15,134 15,308 GI % 16.8％ 15.7％ O p e r a t i n g I n c o m e 6,217 5,383 △13.4％ OI % 6.9％ 5.5％ I n c o m e b e f o r e T a x e s 5,697 4,061 △28.7％ Income Attributable to Owner
Slide 8: Operating Income Analysis 2017 Full Year → 2018 Full Year
Operating Income Analysis 2017 Full Year → 2018 Full Year （Million yen） Pontiac Sales increase 125 R&D Exp. /Product mix 110 Productivity 355 2017 750 Operating Income Wages 6,217 /Social welfare 2018 in China Wages in Exp. Operating △770 Europe&etc. △320 Income △400 Production 5,383 FOREX capacity
Slide 9: Operating Income Analysis Forecast → Actual
Operating Income Analysis 2018 Full Year Forecast → 2018 Full Year Actual （Million yen） 2018 Full Year Operating income Forecast 6,200 2018 Full Year Operating Income Q1Production Pontiac Actual Exp. Others capacity 125 5,383 Q1 sales R&D Exp. 278 14 △320 /Product mix 406 △275 Forex Material impact
Slide 10: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position （Million yen） 2017 2018 2017 2018 Change Change Dec 31 Dec 31 Dec 31 Dec 31 Current Assets 44,986 46,292 1,306 Current liabilities 35,117 30,155 △4,961 Cash & Trade & Other 5,375 4,098 △1,277 10,721 10,392 △329 Cash Equivalent Liabilities Trade & Other In
Slide 11: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow （Million yen） 2017 Jan-Dec 2018 Jan-Dec Change Cash Flow from Operating Activities 3,658 ¥4,672 1,013 Income before Taxes 5,697 4,061 △1,635 Depreciation & Amortization 3,277 4,045 767 Net Working Capital △3,711 △3,289 422 Others △1,605 △145 1,459 Cash Flow from I
Slide 12: FY2019 Forecast of Consolidated Income Statement
FY2019 Forecast of Consolidated Income Statement (Million yen） 2018 Actual 2019 Forecast Change（％） S a l e s 97,538 101,400 4.0％ Operating Income 5,383 6,200 15.2％ OI % 5.5％ 6.1％ I n c o m e b e f o r e Ta x e s 4,061 5,070 24.8% Income Attributable to Owners of Parent 2,420 3,540 46.3％ E P S ( y e
Slide 13: FY2019 Forecast of Operating Income
FY2019 Forecast of Operating Income （Million yen） （Million yen） Factors for increase Productivity UP 1,430 Sales revenue UP 1,010 Cost of sales DOWN 920 2019 Forecast Copper price DOWN 360 6,200 FOREX impact 290 2018 Actual TOTAL 4,010 5,383 Factors for decrease Product mix △860 R&D expenses UP △500
Slide 14: FY2018 Q4 & Full Year Results & FY2019 Forecast
FY2018 Q4 & Full Year Results & FY2019 Forecast Tomoharu Suseki President Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 14
Slide 15: FY2018 Q4 Results
FY2018 Q4 Results Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 15
Slide 16: Sales by Quarter
Sales by Quarter （100 million yen） （+7.2%） 256.8 253.1 236.2 227.0 238.4 2018 Q4 sales grew by 7.2% from 2017 Q4 120 Achieved biggest- Q4 Q1 Q2 Q3 Q4 ever 4Q sales in 2018 2017 2018 Exchange Rate （Yen） USD 112.54 109.67 107.92 110.74 112.93 Euro 132.73 133.77 130.06 129.18 129.67 Copyright© 2019 SUM
Slide 17: Sales by Market 2017 Q4 → 2018 Q4
Sales by Market 2017 Q4 → 2018 Q4 （100 million yen） Automotive Market slowed down in + ３.9% 153.03 147.30 China & Europe, while sales in other regions went strong 2017 Q4 2018 Q4 Industry + 12.9% U.S. business expanded 39.35 44.42 2017 Q4 2018 Q4 Consumer Electronics Total sales increased, ＋ 12.4% 5
Slide 18: Sales by Region 2017 Q4 → 2018 Q4
Sales by Region 2017 Q4 → 2018 Q4 （100 million yen） Asia excl. China/Taiwan China/Taiwan Sales expanded in Japan and North △ 4.4％ + 5.3% 67.26 64.28 47.77 50.28 America regions 2017 Q4 2018 Q4 Like Q3, sales in North America 2017 Q4 2018 Q4 North America/Others Europe expanded largely △ 1.0% 102.30
Slide 19: Operating Income by Quarter
Operating Income by Quarter （100 million yen） 20.85 （+42.1%） 2018 Q4 operating 20 17.80 17.74 income significantly 15.66 15.59 exceeded that of 12.82 2017 Q4 10.97 10 Achieved biggest- 4.57 ever 4Q operating income in 2018 0 2017 2018 2017 2018 2017 2018 2017 2018 Q1 Q2 Q3 Q4 Copyright© 2019 SUMIDA
Slide 20: FY2018 Full Year Results & FY2019 Forecast
FY2018 Full Year Results & FY2019 Forecast Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 20
Slide 21: Sales by Year
Sales by Year （100 million yen） Growth rate（+8.2%) 975 1000 902 2018 sales broke the record 500 513 Amounted to almost 100 billion yen 0 2012 2013 2014 2015 2016 2017 2018 Stage I Stage II Stage III (2012-2014) (2015-2017) (2018-2021) Master Plan Copyright© 2019 SUMIDA CORPORATION. All rights reserv
Slide 22: Breakdown of FY2018 Sales
Breakdown of FY2018 Sales （100 million yen） Automotive Sales % 2018 617 (+6.1%) Consumer Electronics 18.7% 2017 581 Industry Automotive Industry 18.1% 63.2% 2018 176 (+16.5%) 2017 151 Consumer Electronics Total pie increased with no big change in 2018 183 (+8.1%) composition ratio 2017 169 Copyright
Slide 23: Operating Income by Year
Operating Income by Year （100 million yen） 62.2 53.8 2018 operating income did not mark 40 a record high, although sales expanded 17.5 2018 operating 0 income fell below the 2012 2013 2014 2015 2016* 2017 2018 plan Stage I Stage II Stage III (2012-2014) (2015-2017) (2018-2021) Master Plan * Based on
Slide 24: Breakdown of Operating Income
Breakdown of Operating Income （100 million yen） 1st Half 2018 Operating income ratio 2018 operating income 7.7% fell below the plan, being 3.7% affected by the 80 40 33.5 17.4 production-related problems occurred in the 1st half of 2018 0 -0.03 2017 2018 (especially in 1Q) 2nd Half 2018 7.1% Operati
Slide 25: Products Development: EV/HEV-related Products Lineup Expanded
Products development： EV/HEV-related Products Lineup Expanded Motor Inverter Battery/Charger Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 25
Slide 26: Products Development: Medical
Products Development: Medical Medical Isolation Transformer Medical Antenna Coil Developed as a standard Developed for external outer power unit for control units for implant endoscope system medical devices Insulation & No Leakage Utilized highly reliable High reliability & high automotive antenna
Slide 27: R&D Center: New Research Center Constructed in Germany
R&D Center: New Research Center Constructed in Germany SUMIDA AG（Germany） Expanded R&D center focusing on development of automotive related products in Europe Completed flood protection walls Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 27
Slide 28: Manufacturing Site: Ji'An Plant Phase II Completed in China
Manufacturing Site: Ji’An Plant Phase II Construction Completed in China Sumida Electric (JI‘AN) Co., Ltd. Started Ji’An plant operation on Nov. 8, 2015, and completed its phase II construction Will be in full operation with 3,000 workers in 4 years after its establishment Became the biggest product
Slide 29: Manufacturing Site: Plants Expanded in Europe and Mexico
Manufacturing Site: Plants Expanded in Europe and Mexico SUMIDA ROMANIA S.R.L.（Romania） SUMIDA Components de Mexico S.A. de C.V.（Mexico） SUMIDA Slovenija,d.o.o.（Slovenia） Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 29
Slide 30: Sales Office: New Sales Office Opened in India
Sales Office: New Sales Office Opened in India Registration of Sumida Electric (India) New Delhi Private Limited completed in January, 2019 Mumbai Chennai Sales activities fully started in 2019, Bengaluru (Bangalore) aiming to expand automotive- and industry-related business electronica India 2018 (
Slide 31: M&A: Pontiac Coil, Inc. in the U.S.
M&A: Pontiac Coil, Inc. in the U.S. Pontiac Coil, Inc. headquartered in Detroit HQ・Plant（Michigan） joined Sumida Group in Plant（Arkansas） June 2018 They contributed to 2nd half of 2018 sales and profit a lot more than we originally planned Synergy effects for products development and procurement are
Slide 32: FY2019 Forecast
FY2019 Forecast Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 32
Slide 33: FY2019 Forecast
FY2019 Forecast Since the 2nd half of 2018 Q4, orders from customers have been dropping due to slowdown of China economy and inventory adjustments at customers’ side. Especially, a sharp drop of automotive-related orders in China has become evident. In consideration of the above-mentioned circumstan
Slide 34: FY2019 Sales and Profit Plan
FY2019 Sales and Profit Plan （100 million yen） When we developed Sales original 2019 plan, sales 2019 1,014.0 and operating income (Plan） were set at a higher level 2019 1,065.0 based on the new Mid- (Original Plan) Term Business Plan. 2018 975.4 0 500 1000 However, 2019 plan was Operating Income re
Slide 35: FY2019 CAPEX
FY2019 CAPEX （100 million yen） 98.0 Others 100 84.4 11.3% 80 Production Efficiency New & products 60 Update 42.0% 23.2% 40 30.6 Increase of Production 20 23.5% 0 2012 2013 2014 2015 2016 2017 2018 2019 As many new products are Plan planned to be introduced in Stage I Stage II Stage III 2019, CAPEX w
Slide 36: 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