Slide 1: Sumida Corporation 2Q FY2013 IR Meeting
Sumida Corporation 2Q FY2013 IR Meeting August 1, 2013
Slide 2: Review of 2Q-2013 Performance
Sumida Corporation Review of 2Q-2013 Performance Chief Executive Officer Shigeyuki Yawata August 1, 2013 Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 3: Consolidated P/L for 2Q-2013
Consolidated P/L for 2Q-2013 Sales 20% up, but operating income 20% down due to costs up. With extraordinary loss for the floods damages in Germany and reversal of deferred tax assets, negative net income for the quarter. Millions of yen 2Q-2012 2Q-2013 Change Sales 13,346 16,021 2,675 20.0% Operati
Slide 4: Sales by Market Segment
Sales by Market Segment Firm sales in the automotive and consumer electronics improving overseas • Automotive Quarterly sales by market segment – Steady growth maintained in global market （Million yen） – Share % in total sales rising to 56.7 % Au to mo tive Co n su me r Ele c tro n ic s I n du str y
Slide 5: Sales by Region
Sales by Region Automotive sales making up for loss of consumer electronics sales in Japan. 4% up in local currency basis in Europe. • North America Quarterly sales by region – Strong demand for automotive as economy improving – R&D centers and distributor network Japan Asia Eu r o pe No r t h Ame r
Slide 6: Flooding in Germany
Flooding in Germany ☛Water levels of the Danube river rose 8 meters higher than normal in early June due to heavy rains that had continued since mid May. ☛One of the 4 factories located in Europe was under 2 meters of flooded water. (See pictures at Passau!) ☛Damage situations Recovered almost to no
Slide 7: What is to be done in the 2nd HF of 2013 with the funds raised by equity finance
What is to be done in the 2nd HF of 2013 with the funds raised by equity finance Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 8: Applications of funds raised by equity finance
Applications of funds raised by equity finance Five projects are steadily progressing to maximize usage of the funds Project：Improve B/S Amount：300 million yen Project：New satellite plant in Corporate bonds will be Project：Increase capacity at Ji’an in China for manufacturing repaid with this money.
Slide 9: Strategies to be implemented by end of 2013
Strategies to be implemented by end of 2013 Three main strategies to achieve targets for mid-term plan (2012-2014) Growth Strategy Currency Balance Mid-term business plan Streamlining ① Growth Strategy Strengthen US & China markets, Focus on Automotive（Keyless entry & HID) Increase capacity for RFID
Slide 10: 2Q FY2013 Business result
2Q FY2013 Business result Yoshiyuki Honda CFO Copyright© 2013 SUMIDA CORPORATION. All rights reserved.
Slide 11: Flooding in Germany
Flooding in Germany １．Damages • The historic flooding hit parts of central Europe in early June as heavy rains had continued since late May caused the Danube and the Elbe rivers to overflow their banks. • In Passau, near German boarder with Austria, water level of the Danube river rose eight meters
Slide 12: 2Q 2013 Summary data
2013 2Q Summary data （Unit :Million of yen) Year/Year Sequential 12.2Q 13.１Q 13.2Q Change Change (A) (B) （C) （C)/(A) （C)/(A) Net sales 13,346 14,228 16,021 20.0％ 12.6% Gross profit 2,609 2,324 2,758 5.7％ 18.7% Gross profit ratio 19.5％ 16.3％ 17.2% Operating income 564 240 449 (20.4％) 86.7% Operating
Slide 13: 1st half 2013 summary data
2013 1st half summery data （Unit : Millions of yen） 1st half FY2012 1st half FY2013 Year/Year Change (A) （B) （B)/(A) Net sales 25,721 30,250 17.6％ Gross profit 4,776 5,083 6.4％ Gross profit ratio 18.6％ 16.8% Operating income 774 689 (10.9％) Operating income ratio 3.0％ 2.3% Ordinary income 397 493 24
Slide 14: Operating income analysis 13.2Q vs. 12.2Q
Operating income analysis 13.2Ｑvs.12.2Q （Unit : Millions of yen） Sales increase effect 120 Copper price decline Production 60 control 50 Operating Other income 10 Exchange rate impact China/increase 564 -215 in wages China/increase 12.2Ｑ -110 in welfare expense -30 Operating income 449 13.2Ｑ Copyrig
Slide 15: Operating income analysis 13.2Q vs. 13.1Q
Operating income analysis 13.2Ｑvs.13.1Q （Unit : Millions of yen） Copper price Increase in decline productivity 20 Sales 160 Other increase 18 effect 170 China/increase in wages -70 Exchange rate impact -110 Operating Operating income income 449 240 13.1Ｑ 13.2Ｑ Copyright© 2013 SUMIDA CORPORATION. All
Slide 16: Extraordinary income/loss analysis
Extraordinary income/loss analysis （Unit : Millions of yen） 13.2Q Insurance income 131 Extraordinary income Gain on sales of noncurrent assets 3 Total extraordinary income 135 Loss on disaster 569 Extraordinary Loss on sales and retirement of loss 8 noncurrent assets Total extraordinary losses 578 T
Slide 17: FY2013 Revised Business Forecast
FY2013 Revise Business Forecast （Unit : Millions of yen, Yen） Revise Revise Modified rate FY2012 Original （July 31） amount （％） （Actual） Net sales 62,300 63,700 1,400 2.2％ 51,300 Operating income 2,300 1,300 -1,000 -43.5％ 1,706 Operating income ratio 3.7% 2.0％ 3.3% Ordinary income 1,770 800 -970 -54.
Slide 18: Forecast operating income analysis
Forecast operating income analysis （unit : Millions of yen） Sales shortage (Local Exchange rate impact Other currency base; include -490 90 Original impact of operating Germany’s income flood） forecast △600 2,300 Revise operating income forecast 1,300 Original Revise forecast forecast Copyright© 201
Slide 19: Extraordinary income/loss; cost reduction effect
Extraordinary income/loss; cost reduction effect （Unit : Millions of yen） FY2013 Cost reduction impact from 1st half 2nd half Full year FY2014 Germany flood （setoff insurance △438 558 120 － income） Office consolidation - △ 150 △ 150 250 Business structure improvement expenses - △ 280 △ 280 400 Other
Slide 20: Corporate tax expenses
Corporate tax expenses • As it is imperative to achieve targets of mid-term business plan in 2014, the final year for the plan, we have decided to eliminate or consolidate offices and factories and to significantly scale down production administration areas by the end of this year. • On the other ha
Slide 21: Improvement in currencies mixes
Improvement in currencies mixes • Weaker yen/Strong dollar have a favorable effect on our sales amount in yen, but an unfavorable effect on our operating income. If the yen depreciates against the dollar by 1-yen, sales will be boosted by 203 million yen, but, on the other hand, operating income wil
Slide 22: Currencies mixes
Currencies mixes yen Dollar euro others Total Sales 19％ 42％ 36％ 3％ 100％ Costs & SGA Expenses 11％ 54％ 33％ 2％ 100% Weaker yen boosts sales. But, in terms operating income, the dollar and euro have contrary effects. • Weaker yen/Strong dollar have favorable effects on sales, but unfavorable effects on