Slide 1: Performance Briefings for the Second Quarter of FY2018
SUMIDA CORPORATION Performance Briefings <For the Second Quarter of FY2018 ending June 30, 2018> August 1, 2018
Slide 2: Today's Speakers
Today’s Speakers Representative Executive Officer & President Tomoharu Suseki Representative Executive Officer & CFO Yoshiyuki Honda Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 2
Slide 3: Today's Program
Today’s Program 1. FY2018 Q2 Consolidated Financial Results ＣＦＯ Yoshiyuki Honda 2. FY2018 Q2 Performance Results & Management Policies President Tomoharu Suseki 3. Q&A Session Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 3
Slide 4: FY2018 Q2 Consolidated Financial Results
FY2018 Q2 Consolidated Financial Results Yoshiyuki Honda CFO Copyright© 2017 SUMIDA CORPORATION. All rights reserved. 6
Slide 5: Consolidated Income Statement
Consolidated Income Statement （Million yen） 17.Ｑ2 18.Q1 18.Q2 Change % Change % （A） （B) （C） （C)/(A) （C）/(B) S a l e s 21,768 22,701 23,838 9.5% 5.0％ G r o s s I n c o m e 3,989 2,913 3,939 GI % 18.3% 12.8％ 16.5% Operating Income 1,780 456 1,281 △28.0％ 180.6％ OI % 8.2% 2.0％ 5.4% Income before Taxes 1
Slide 6: Consolidated Income Statement for 1st half
Consolidated Income Statement for 1st half （Million yen） 6 months 6 months ending June 30 ending June 30, Change % 2017 2018 （A） （B） （B)/(A) S a l e s 43,368 46,540 7.3％ G r o s s I n c o m e 7,688 6,853 GI % 17.7% 14.7％ O p e r a t i n g I n c o m e 3,346 1,738 48.0％ OI % 7.7% 3.7％ Incom e before T
Slide 7: Operating Income Analysis 2017 Q2 → 2018 Q2
Operating Income Analysis 2017 Q2 → 2018 Q2 （Million yen） Production Capacity efficiency utilization 190 30 Sales increase /Product mix 2017 Q2 240 Operating income 1,780 Wages /Social insurance △330 2018 Q2 FOREX △240 Operating Pontiac Others income Extra ordinary 32 1,281 69 expenses △220 Raw mate
Slide 8: Operating Income Analysis 2018 Q1 → 2018 Q2
Operating Income Analysis 2018 Q1 → 2018 Q2 Production efficiency （Million yen） 200 Sales increase 2018 Q2 /Product mix Operating 320 Income Others 1,281 Special EXP. 94 Pontiac △160 69 Capacity Wage utilization /Social FOREX 560 insurance △60 Expenses △140 △58 2018 Q1 Operating Income 456 Recoverin
Slide 9: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position （Million yen） 2017 2018 2017 2018 Change Change Dec 31 June 30 Dec 31 June 30 Current Assets 44,986 45,383 396 Current Liabilities 35,117 41,759 6,641 Cash & Deposits 5,375 4,511 △864 Trade & other Liabilities 10,721 11,425 703 Trade & other Receivables 1
Slide 10: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow （Million yen） 6 months thru 6 months thru June 30, 2017 June 30, 2018 Change Cash Flow from Operating Activities 3,138 2,527 △610 Income before Taxes 3,004 1,223 △1,781 Depreciation & Amortization 1,562 1,853 291 Net Working Capital △713 △186 526 Others △715 △362
Slide 11: Pontiac Coil, Inc.
Pontiac Coil, Inc. (100 Million yen) : US$1=110 yen) （Forecast） 7 months for Jun –Dec 12 months for Jan-Dec 2018 2019 Sales 30〜33 60〜65 OP 2.5〜3.0 4.5〜5.0 【Synergy Effects】 １． Expansion of customer base We can expect to enhance customer services and expand distribution channels through cross-selling
Slide 12: FY2018 Q2 Performance Results and Management Policies
FY2018 Q2 Performance Results and Management Policies Tomoharu Suseki President Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 12
Slide 13: Sales by Quarter
Sales by Quarter （100 Million yen） 2017 2018 Achieved highest-ever quarterly sales in 2018 Q2 238.4 231.6 236.2 227.0 217.7 Pontiac Coil’s one-month sales of June were added to Q2 sales as the acquisition of Pontiac Coil, Inc. was closed on June 1, 2018 120 Sales from existing 2Q 3Q 4Q 1Q 2Q busines
Slide 14: Sales by Market 2017 Q2 → 2018 Q2
Sales by Market 2017 Q2 → 2018 Q2 （100 Million yen） Automotive HID-related sales recovered 141.74 + 7.9% 152.94 from Q1. Sales of other products in this market grew as well 2017 2Q 2018 2Q Industry Industry businesses continued + 15.9% to expand mainly in RFID- and 42.75 36.89 FA-related areas 2017
Slide 15: Sales by Region 2017 Q2 → 2018 Q2
Sales by Region 2017 Q2 → 2018 Q2 (100 Million（億円 yen) Asia excl. China/Taiwan China/Taiwan + 6.2% + 16.5% Sales grew in all 60.01 44.64 47.39 51.5 regions North America sales 2017 2Q 2018 2Q 2017 2Q 2018 2Q significantly North America/Others Europe increased partly due to inclusion of 103.48 + 4.5%
Slide 16: Operating Income by Quarter
Operating Income by Quarter （100 Million yen） Operating income made a significant recovery in Q2 from Q1, but still below Q2 last year 20 17.80 17.74 Major factors for negative 15.66 growth from last year 12.82 Production-related trouble caused 10.98 mainly by start-ups of new 10 products, etc. that
Slide 17: Sales in Automotive Market by Quarter
Sales in Automotive Market by Quarter （100 Million yen） Sales steadily grew with 160 ups and downs by quarter 152.9 in the past 141.7 Aiming to achieve the new Mid-Term Business Plan (new MTBP), we are 135 tackling various kinds of automotive projects including many EV/HEV- related 110 QAVR Q AVR 1Q
Slide 18: Strategies for Automotive Business
Strategies for Automotive Business New MTBP Sales trend of 3 key products ABS HID Keyless Entry System Slightly UP Down Up Total sales of these 3 products in Stage III will slow down compared with the previous stages. We will focus on the following 2 areas, so as to keep Automotive business growing
Slide 19: Major Challenges in Automotive Business in new MTBP
Major Challenges in Automotive Business in new MTBP EV/HEV EV (Electric vehicles) - Car Body Battery Management System Motor PCU Battery On-board Charger Charger Actuator With the expansion of existing businesses and the additional resources of newly joined Pontiac, we expect to accelerate the growt
Slide 20: Progress of new MTBP
Progress of new MTBP Overall progress Changed organization structure in April 2018 Started working on the issuance of CSR report (Sustainability report) Existing businesses Aggressively tackling new challenges for future growth in all three business areas, Automotive, Industry and Consumer Electroni