Slide 1: Back on the Growth Path
BACK ON THE GROWTH PATH Consolidated Results of the 4th Quarter FY2010 / Full-Year 2010 & Mid-Term Business Plan FY2010 – 2012 Update 21st February 2011 Presented by CEO – Shigeyuki Yawata & CFO – Saburo Matsuda Copyright© 2011 Sumida Corporation. All rights reserved.
Slide 2: Key Points of Briefing
KEY POINTS OF BRIEFING Financial Performance in FY2010 – 4Q 2010 Performance shows improvements in Net Income from 4Q 2009. – FY 2010 shows return to positive figures on Income Statement. Back on the growth path – Improvements in all market segments – Consumer, Automotive & Industrial. – Silk Ro
Slide 3: FY2010 Consolidated Financial Results
1. FY2010 CONSOLIDATED FINANCIAL RESULTS (in JPY, millions) FY2010 Change FY2009 from 1Q 2Q 3Q 4Q Total Forecast Forecast Sales 43,653 12,894 14,107 13,839 12,615 53,445 52,600 845 Operating △233 1,027 1,037 1,113 404 3,569 3,700 △131 Income % △0.5 8.0 7.4 9.0 3.2 6.7 7.3 Ordinary △774 789 444 963 4
Slide 4: Summary of 4th Quarter Results
2. SUMMARY OF 4TH QUARTER RESULTS (in JPY, millions) 3Q-FY2010 4Q-FY2010 Change Change in Operating Income Sales 13,839 12,615 △1,224 Due to: Sales decrease △410 Copper price increase △50 Operating SGA. increase △249 1,113 404 △709 Income （performance bonus & others） △709 % 9.0 3.2% Ordinary 963 45
Slide 5: Non-Operating Expenses, Extraordinary Expenses & Taxes
3. NON‐OPERATING EXPENSES, EXTRAORDINARY EXPENSES & TAXES (in JPY, millions) FY2010 FY2009 Non-operating exp. Interest exp. （Net) 569 609 Foreign exchange loss 507 146 Loss from derivatives 227 △189 Extraordinary exp. Impairment loss 94 － Restructuring exp. 40 1,185 Loss from sale of fixed assets 32
Slide 6: Segments Information by Businesses
4. SEGMENTS INFORMATION BY BUSINESSES （in JPY, millions） FY2010 FY2009 Change % Asia-Pacific Sales 29,536 24,113 122.4% Business Operating Income 4,648 2,630 176.7% Sales 18,688 15,092 123.8% ＥＵ Business Operating Income 1,368 △727 － Environment Sales 5,220 4,446 117.4% /Energy Business Operating In
Slide 7: Segment Information by Regions
5. SEGMENT INFORMATION BY REGIONS (in JPY, millions) FY2010 FY2009 Change % Japan 11,302 8,013 3,289 141.0% HK/China 14,155 13,062 1,093 108.4% Taiwan/Korea 1,100 644 456 170.8% ASEAN 4,275 4,760 △485 89.8% North America 3,922 3,239 683 121.1% Europe 18,688 13,933 4,755 134.1% TOTAL 53,445 43,652 9,
Slide 8: Consolidated Balance Sheet
6. CONSOLIDATED BALANCE SHEET (in JPY, millions) As of Dec 31 As of Dec 31 Change 2010 2009 Current Assets 27,168 28,619 △1,451 Fixed Assets 22,145 25,790 △3,645 Deferred Assets 96 94 2 TOTAL ASSETS 49,410 54,504 △5,094 Current Liabilities 31,318 30,149 1,169 Fixed Liabilities 9,243 13,287 △4,044 To
Slide 9: Consolidated Cash Flow Statements
7. CONSOLIDATED CASH FLOW STATEMENTS FY2010 FY2009 FY2010 FY2009 Profit before Income Tax 2,056 △2,365 Cash Flow from Depreciation 2,515 3,035 Operating Activities 3,095 1,888 Increase of A/R △835 △1,283 Increase of Inventory △2,193 1,690 Increase of A/P 698 767 Acquisition of tangible △2,177 △1,100
Slide 10: Business Plan for FY2011
8. BUSINESS PLAN FOR FY2011 (in JPY, millions） FY2011 FY2010 Change Sales 55,000 53,445 102.9% 【Assumptions】 Foreign Exchange Operating Income 4,000 3,569 112.0% US$1.00＝¥82.00 Operating Euro1.00＝¥112.00 7.3% 6.7% Income ratio 【Reference】 Ordinary FY2010 Average Income 3,330 2,241 148.6% US$1.00＝¥88
Slide 11: Capex, Depreciation and R&D Expenditure
9. CAPEX, DEPRECIATION AND R&D EXPENDITURE (in JPY, millions) FY2009 FY2010 FY2011（Plan） CAPEX 1,199 2,177 2,420 Depreciation 3,035 2,515 2,670 R & D Exp. 1,110 1,069 1,330 Copyright© 2011 Sumida Corporation. All rights reserved.
Slide 12: 2010 in Review – Back on the Growth Path
2010 IN REVIEW – “BACK ON THE GROWTH PATH” Copyright© 2011 Sumida Corporation. All rights reserved.
Slide 13: 2010 - A Year of Recovery
2010 ‐ A YEAR OF RECOVERY Copyright© 2011 Sumida Corporation. All rights reserved.
Slide 14: 2010 in Review - Annual Sales
2010 IN REVIEW ‐ ANNUAL SALES Percentage change in Sales by quarter – 2009 vs. 2010 Percentage change in Sales by Geographic Area – 2009 vs. 2010 Copyright© 2011 Sumida Corporation. All rights reserved.
Slide 15: 2010 in Review – Market Segments
2010 IN REVIEW – MARKET SEGMENTS Market Segment Definitions: Automotive – All Automotive related products including HVs & EVs. Consumer – AV, Computer, Communication, Amusement, Lighting, OA, White goods. Industrial ‐Potential High Growth Markets (Security, Medical, RFID, Renewable energy). Co
Slide 16: Consumer Electronics
CONSUMER ELECTRONICS Consumer Electronics segment ‐ percentage increase in sales (‘09‐’10): 7% Demand has returned. Growth in Smart phones and tablet computers are driving the rebound and creating new opportunities. Prices pressures are ever increasing, but this is still our high margin prod
Slide 17: Automotive
AUTOMOTIVE Automotive segment ‐ percentage increase in sales (‘09‐’10): 24.9% ABS, keyless entry systems, Xenon igniters continue to be main contributors to our performance in 2010. Product Highlights: New design wins for next generation Xenon igniters. New design wins directly with OEMs.
Slide 18: Industrial (High-Growth Markets)
INDUSTRIAL (HIGH‐GROWTH MARKETS) Industrial segment ‐ percentage increase in sales (‘09 – ‘10): 63.9% Product Highlights: Progress made in establishing business with modules for solar inverter companies in Japan and Germany. – Design wins resulting in contracts for renewable energy. – Especially
Slide 19: Silk Road Strategy – Ahead of the Game
SILK ROAD STRATEGY – AHEAD OF THE GAME Continuing trends of Shifting inland away from the increased labour wages in eastern coastal area coastal areas of China. We have been shifting our manufacturing lines to less costly areas having anticipated these increases in minimum labour wages. Copyri
Slide 20: Looking Forward
LOOKING FORWARD Copyright© 2011 Sumida Corporation. All rights reserved.
Slide 21: What We Expect in 2011
WHAT WE EXPECT IN 2011 CE Year‐on‐Year Growth 2008 2009 2010 2011 7% ‐9% 13% 10% Growth will continue, but at a slower pace. Risks in the external environment still Source: Digital World – 2011 Global CE Sales & Forecast plentiful. Consumer electronics now driven by tablet computers and smart
Slide 22: Our Annual Business Plan 2011
OUR ANNUAL BUSINESS PLAN 2011 Sales target of 55 billion JPY Sales growth greater at about 7‐8% in – Increase of 2.9% over 2010 terms of local currency – Impact of high JPY valuation Operating income of 4 billion JPY – Increase of 12.1% over 2010 Profitability increases – Improved cost struc
Slide 23: Key Action Items
KEY ACTION ITEMS Continued focus and optimisation of sales efforts. Focus on selected areas in Consumer segment. Aggressive foundation making in Industrial segment. Rebalancing of product portfolio towards higher revenues, higher margin products. Pursuing development efforts in key areas r
Slide 24: Mid-Term Business Plan
MID‐TERM BUSINESS PLAN Back to Peak Performance of 2007 Status Three key targets In terms of profitability we have 3) Net income 1) Sales Over 70.2B JPY Over 3B JPY made good progress and with continued commitment can be 2) Operating Income achieved. Over 4.7B JPY (Operating Income ratio 6.7%) S
Slide 25: Dividend Policy
DIVIDEND POLICY Dividend according to Stable dividend business performance Balance 1. Sumida dividend policy Consolidated Net Income (Forecast) × Dividend payout ratio (25～30%) ⇒ Target annual dividend = 28JPY /share (minimum 20JPY ) 2. Year end adjustment Target annual dividend for 2011＋ Year end a
Slide 26: Conclusion
CONCLUSION In 2010 a leaner and more cost‐efficient Sumida emerged from the Lehman crisis, much better prepared for the future. 2011 External environment is promising but still fraught with risks. 2011 can and will be a year of opportunity and with markets primed for growth. Copyright© 2011 Su
Slide 27: End of the Report
End of the Report End of the Report End of the Report Disclaimer The present slides are provided only to serve the purpose of disclosing information in your evaluation of the Company. Final decision on investments or similar decision is left to your absolute discretion. The Company disclaims respons