Slide 1: Presentation of the 3rd Quarter FY2007 - Summary of Structural Reforms
SUMIDA CORPORATION Presentation of the 3rd Quarter FY2007 - Summary of Structural Reforms - 1st November, 2007 Shigeyuki Yawata, CEO Saburo Matsuda, CFO Copyright © 2007 SUMIDA CORPORATION. All Rights Reserved.
Slide 2: Summary of the 3rd Quarter FY2007
Summary of the 3rd Quarter FY2007 Net Sales Growing steadily especially products for digital camera and entertainment equipment. Operating Income Increased by steady order and the result of structural reform. Operating income ratio improved to 8%. Ordinary Income Exchange Loss （364 million yen）emerg
Slide 3: Improvement of Operating Income from the 1st to the 3rd Quarter
Improvement of Operating Income from the 1st to the 3rd Quarter 1,600 （Unit：Million Yen） 26 1,400 140 Effect of gross profit improvement 1,200 Improvement of productivity in China 304 ¾ to improve productivity by partial automation etc. 1,000 Partial transfer of production of Inverter business f
Slide 4: Improvement of Operating Income Ratio
■ Improvement of Operating Income Ratio Aim at 10% of operating income ratio 10.0% 8.0% 8.0% 6.0% 6.8% 4.0% 4.2% 2.0% 0.0% 1Q 2Q 3Q 4Q～FY08 Copyright © 2007 SUMIDA CORPORATION. All Rights Reserved.
Slide 5: Exchange Profit/Loss
1. Exchange Profit/Loss 1Q 2Q 3Q Total Yen /USD 118.1 123.3 115.6 +4.4% △6.2% Yen /Euro 157.2 165.8 163.7 +5.5% △1.3% Yen /HKD 15.1 15.8 14.9 +4.6% △5.7% Exchange Profit / Loss 59 455 △364 150 (Unit: Million Yen) Copyright © 2007 SUMIDA CORPORATION. All Rights Reserved.
Slide 6: Consolidated Results 3Q, FY2007
2. Consolidated Results 3Q, FY2007 (Unit: Million Yen) 3Q/07 3Q/06 Projec YOY Actual Change Actual tions Net Sales 17,885 17,900 △15 △0.1% 16,587 7.8% Operating 1,439 1,260 179 14.2% 1,356 6.1% Income O.I.R 8.0% 7.0% 8.2% Ordinary 1,023 1,200 △177 △14.7% 1,574 △35.0% Income Net 872 850 22 2.6% 924 △
Slide 7: Sales Breakdown by Business
3. Sales Breakdown by Business 3Q/07 3Q/06 Change （¥million） (¥million） （¥million） (%) Magnetics 6,593 6,397 196 3.1 Inverter 1,763 1,971 △208 △10.6 Automotive 2,507 2,099 408 19.4 Panta 463 STELCO 501 551 △50 △9.1 VOGT 5,359 4,667 692 14.8 Components VOGT EMS 690 726 △36 △5.0 Others 9 176 △167 △94.
Slide 8: Sales Breakdown by Region (Destination)
4. Sales Breakdown by Region (Destination) 3Q/07 3Q/06 Change （¥million） (%) (¥million） (%) (%) Japan 2,277 12.7 2,438 14.7 △6.6 Hong Kong 3,373 18.9 2,939 17.7 14.8 /China ASEAN 922 5.1 891 5.4 3.5 Taiwan 1,391 7.8 1,589 9.6 △12.5 /Korea NAFTA 1,980 11.1 1,461 8.8 35.5 EU 7,913 44.2 7,269 43.8 8.9
Slide 9: Breakdown of Income
5. Breakdown of Income (1) Operating income (Unit: Million Yen) ・Sales 17,885 ・O.I.R 8.0% Total 1,439 (2) Ordinary income ・Exchange loss △364 ・Interest paid and others △52 Total 1,023 (3) Income before income taxes ・Gain on sales of fixed assets 2,024 ・Loss of △265 ・Structural reform cost △1,594 ・Ot
Slide 10: Breakdown of Operating Income by Business
6. Breakdown of Operating Income by Business (¥million, %) 3Q/07 3Q/06 Change Coil 1,816 1,641 175 O.I.R(%) 15.1 14.7 － VOGT Components 239 368 △129 O.I.R(%) 4.4 7.9 － VOGT EMS 62 103 △41 O.I.R(%) 9.0 14.2 － Elimination △678 △756 78 Total 1,439 1,356 83 O.I.R(%) 8.0 8.2 － Copyright © 2007 SUMIDA COR
Slide 11: Structural Reform
7. Structural Reform (¥million, %) 1st Half /07 3Q/07 Total Appraisal loss on shares △946 △264 △1,210 of Arima device etc. Loss on sales of securities △162 0 △162 of affiliated companies Structural reform △402 △1,595 △1,997 expenses Structural reform of △211 △211 Inverter business Gain on sales of 3
Slide 12: Balance Sheet
8. Balance Sheet 3Q/2006 3Q/2007 (¥million) Short-term loans 9,751 14,444 Long-term loans (pay back within 2,475 1,525 1year) Bond (Alpine bond) 8,000 8,000 Long-term loans 4,279 3,942 ＋bond Total debt 24,505 27,911 Cash and cash 7,464 8,538 equivalent Net debt 17,041 19,373 ⇒ Promotion Bond 8,000 8
Slide 13: Consolidated Results (1Q – 3Q FY2007)
9. Consolidated Results (1Q – 3Q FY2007) 1Q – 3Q 1Q – 3Q Change /07 /06 Actual Actual (¥million) (%) (¥million) (¥million) Net Sales 53,175 46,346 6,829 14.7% Operating 3,396 3,563 △167 △4.7% Income O.I.R 6.4% 7.7% Ordinary 3,336 4,013 △677 △16.9% Income Net Income 1,906 2,237 △331 △14.8% Copyright
Slide 14: Consolidated Cash Flows
10. Consolidated Cash Flows (Unit: Million Yen) 1Q – 3Q/07 1Q – 3Q/06 Operating activities Depreciation 2,765 2,000 Investing activities Acquisition of △3,193 △2,826 tangible fixed assets Copyright © 2007 SUMIDA CORPORATION. All Rights Reserved.
Slide 15: Projections for FY2007 Consolidated
11. Projections for FY2007 Consolidated (¥million, %) FY2007 Full year 1Q 2Q 3Q 4Q Projections Actual Actual Actual Projections Net Sales 16,888 18,402 17,885 17,000 70,200 Operating 705 1,253 1,439 1,400 4,800 Income O.I.R 4.2% 6.8% 8.0% 8.2% 6.8% Ordinary 563 1,750 1,023 1,335 4,700 Income Net 355
Slide 16: Main measures taken from the 2nd Quarter to 2nd Half
Main measures taken from the 2nd Quarter to 2nd Half 1. Focus on Core Business 2. Review of Non-core Assets 3. Improvement of Efficiency in Sales, R&D and Manufacturing 4. Improvement of VOGT’s EBIT Copyright © 2007 SUMIDA CORPORATION. All Rights Reserved.
Slide 17: Focus on Core Business
1. Focus on Core Business Measure Present Situation Sales of Jensen Completed within 2Q Withdrawal from Completed within 2Q management of Arima Review of In the final stage of review Inverter Unit Business Shintex business To make the 100% subsidiary of operation in China Sumida, and start marketing
Slide 18: Review of Non-core Assets
2. Review of Non-core Assets Measure Present Situation Sale of assets Completed in Taiwan (About 1 billion yen of capital gain) Sale of Headquarter Sales contract was concluded building in Ningyocho (About 2 billion yen of capital gain) Sale of shares of Completed procurement company Copyright © 200
Slide 19: Improvement of Efficiency in Sales, R&D and Manufacturing
3. Improvement of Efficiency in Sales, R&D and Manufacturing Measure Present Situation Improvement in ・Collaboration with VOGT (Automotive Sales Business) Improvement in ・Starting of Operation in C-Lab (to strengthen R&D applied R&D) ・Slimming down of Taiping factory through reviewing production ite
Slide 20: Improvement of VOGT's EBIT
4. Improvement of VOGT’s EBIT Measure Present Situation Promotion of Factories in Mexico and Eastern manufacturing in Asia Europe are partially shifting to China Reviewing subsidiary Promotion of review of group of VOGT companies and structuring reforms Copyright © 2007 SUMIDA CORPORATION. All Right
Slide 21: Impact of Structuring Reform
Impact of Structuring Reform - Impact on P/L and Cash Flow Outlook for Present Situation - （Unit: Yen） Reform Extraordinary cost Profit △4.1 billion 3.6 billion Cash In Cash Out 7.55 billion 1.25 billion Copyright © 2007 SUMIDA CORPORATION. All Rights Reserved.
Slide 22: Measures towards the 4th Quarter
Measures towards the 4th Quarter Improvement of productivity, seeking low cost manufacturing base, strengthening manufacturing 1. Strengthening capability. Realize competitiveness Development of product field against competitors, constitution and increasing expansion of orders of 10% of market s
Slide 23: 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 responsibility or liability for any or all