Slide 1: Progress of Mid-term Business Plan (2012-2014)
Progress of Mid-term Business Plan (2012-2014) March 20, 2013 Tomoharu Suseki President & Representative Executive Officer Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 1
Slide 2: Mid-term Business Plan (2012-2014): 4 main challenges
Mid-term Business Plan (2012-2014) positioned as Stage 1 of Master plan (2012-2017 & beyond) Building foundation with operational restructuring 4 main challenges ① Strengthen cost competitiveness ② Improve balance sheet ③ Review product portfolio ④ Step up risk management Copyright© 2013 SUMIDA CORP
Slide 3: Operational Targets in Mid-term Business Plan
Operational Targets in Mid-term Business Plan Sales Well-balanced operations Production Development Strengthen operating foundations with total-power up Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 3
Slide 4: Strengthen operating foundations: Sales
Strengthen operating foundations Sales Upgrade sales force Production Reduce costs significantly R &D Develop new products Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 4
Slide 5: Upgrade sales force: 2012 actual sales by region and segment
Upgrade sales force Actual Actual in in 2012 2012 Sales by region Sales by market segment Japan Industry 22.8% Europe Automotive China Consumer 55.8% Electronics North America Asia -Automotive sales exceeds half of total sales. -Sales outside Japan are more than three quarters. Copyright© 2013 SUMID
Slide 6: Upgrade sales force
Upgrade sales force Regional sales Global sales Sales force close to Sales force flexibly dealing local customers with global customers （Global Account Manager system) Regional support Global support New R & D Center in North America in addition to existing Centers in Japan, China & Europe Chicago R
Slide 7: Upgrade sales force - North America
Upgrade sales force ----- North America Expanding distributors net work （before） （current） More states are covered by distributors. Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 7
Slide 8: Upgrade sales force - Asia
Upgrade sales force ----- Asia （before） （current） Sales structure based on Sales structure based on regions market segments Asia Japan China Taiwan Consumer Hong Korea Electronics Kong sales team Asia Automotive, Singapore Industry sales team Introducing sales structure based on market segments impr
Slide 9: Strengthen operating foundations: Production
Strengthen operating foundations Sales Upgrade sales force Production Reduce costs significantly R &D Develop new products Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 9
Slide 10: Reduce costs significantly - global production sites
Reduce costs significantly --- global production sites Global Procurement Germany China Center Japan Romania Mexico Slovenia Vietnam Thailand Global production sites meet customers’ needs and diversify risks, and global procurement reduces costs. Copyright© 2013 SUMIDA CORPORATION. All rights reserv
Slide 11: Reduce costs significantly - expansion of satellite plants in Asia
Reduce costs significantly --- expansion of satellite plants in Asia Total workers at satellite plants 6,000人 湖南Plant 江西Plant Myanmar 南寧Plant 番禺(Panyu)工場 Thailand 太平(Taiping)工場 Hub plants in China Vietnam Total workers at Hub plants - 10,000 Wages for satellite workers are 20-30% cheaper than Hub wo
Slide 12: Reduce costs significantly - satellite plants in North America and Europe
Reduce costs significantly---expansion of satellite plants in North America and Europe Hub plant In Germany Moldova Mexico Romania -Wages for satellite workers in Europe also are cheaper. -Mexico plant serves customers in NAFTA area. Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 12
Slide 13: Reduce costs significantly - production lines automation at Hub plants
Reduce costs significantly -- production lines automation at Hub plants Example of automation on Automotive lines （before） （current） 12 workers 3 workers Introducing automated model lines to satellite plants Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 13
Slide 14: Strengthen operating foundations: R&D
Strengthen operating foundations Sales Upgrade sales force Production Reduce costs significantly R &D Develop new products Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 14
Slide 15: Develop new products - Automotive products
Develop new products --- Automotive products Industry Consumer Automotive Electronics High quality & High reliability Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 15
Slide 16: Automotive products: main mass-produced products
Develop new products --- Automotive products Main mass-produced products ABS HID Smart entry Anti-lock braking Xenon lamp Advanced type of system keyless entry Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 16
Slide 17: Automotive products expected to grow rapidly
Develop new products --- Automotive products Products expected to grow rapidly Control transformer Quick charger for HEV for EV Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 17
Slide 18: New products for Automotive market
New products for Automotive market Will be posted after public announcement Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 18
Slide 19: Develop new products - Consumer Electronics products
Develop new products --- Consumer Electronics products Industry Automotive Consumer Electronics Flexibility & low costs Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 19
Slide 20: Consumer Electronics products: main mass-produced products
Develop new products --- Consumer Electronics products Main mass-produced products Transformer Transformer Power inductor for LAN for chargers Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 20
Slide 21: Consumer Electronics products expected to grow rapidly
Develop new products --- Consumer Electronics products Products expected to grow rapidly Coils for wireless charging system Products compatible with Qi (international standard specified by Wireless Power Consortium) Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 21
Slide 22: New products for Consumer Electronics market
New products for Consumer Electronics market Will be posted after public announcement Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 22
Slide 23: Develop new products - Industry products
Develop new products --- Industry products Products for industrial, energy-related, and medical-related equipments Industry Automotive Consumer Electronics High quality and high added value Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 23
Slide 24: Industry products: main mass-produced products
Develop new products --- Industry products Main mass-produced products RFID Transformer for industrial Toner sensor for animals equipments Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 24
Slide 25: Industry products expected to grow rapidly
Develop new products --- Industry products Products expected to grow rapidly Reactors for solar power generators Medical equipments Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 25
Slide 26: New products for Industry market
New products for Industry market Will be posted after public announcement Copyright© 2013 SUMIDA CORPORATION. All rights reserved. 26
Slide 27: Stepping up risk management
Stepping up risk management Changes of Strengthening business environments operating foundations ■Lehman crisis Regionally-oriented structures for sales, production and R & D ■Global recession ■Persistent yenʼs appreciation ■The Tohoku earthquake Products supply for various markets in a balanced way
Slide 28: Mid-term Business Plan: Pursue global management
Mid-term Business Plan Master Plan Mid-term Business Plan Growth in three market segments ConsumerElectronics Consumer Electronics Automotive Automotive Industry Industry Well-balanced operating foundations Sales Production R&D Pursue global management Copyright© 2013 SUMIDA CORPORATION. All rights