Slide 1: Q4 2011 Analyst Meeting, 20 February 2012
Monday, 20th February 2012 Presented by: Shigeyuki Yawata & Yoshiyuki Honda Chief Executive Officer & Chief Financial Officer, Sumida Corporation
Slide 2: Agenda
Agenda BUSINESS PERFORMANCE IN 4Q & FY 2011 BUSINESS OUTLOOK FOR 2012 FINANCIAL PERFORMANCE IN 4Q & FY 2011 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 2
Slide 3: Business Performance in 4Q & FY 2011
BUSINESS PERFORMANCE IN 4Q & FY 2011 “A difficult year for all” Presented by Shigeyuki Yawata Chief Executive Officer Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 3
Slide 4: 2011: A Difficult Year for All
2011: A Difficult Year for All • Some underlying resilience and adaptability to external disruptions & volatility visible in performance: – Reasonable performance despite two significant disruptions and Japanese Yen appreciation against Euro – Global operation with triple “3 division” operation gave
Slide 5: Key Points on 2011 Performance
Key Points on 2011 Performance • Reasonable performance despite two • Strong regional sales in Japan & US. significant disruptions to electronics • Reasonable sales in Europe & Rest of Asia. industry supply chain in Asia. • Weak sales in ASEAN & G. China region due to • Significantly weak 4Q. weak c
Slide 6: 2011 in Review: Performance by Market
2011 in Review: Performance by Market • Consumer Electronics: Remained weak due to weak market. Smartphone and Tablet PC related products were only products showing significant growth. • Automotive: Boasted strong sales throughout the year • Industrial: Increased businesses in renewable energy appli
Slide 7: 2011 in Review: Consumer Electronics
2011 in Review: Consumer Electronics OBSERVATIONS: • Market growth is weak, especially for flat panel TVs. Price competition is high. • Need to strengthen market position and profitability by tapping into niche areas. PRODUCT HIGHLIGHTS: • Extension to product line up for Portable Devices: Multila
Slide 8: 2011 in Review: Automotive
2011 in Review: Automotive OBSERVATIONS: • Domestic market had weak sales due to disasters. • Good performance in EU/US market. Further business wins in EV/HEV power charging related products. PRODUCT HIGHLIGHTS: • Further business wins in new generation models with our main products such as Ignitor
Slide 9: 2011 in Review: Industrial
2011 in Review: Industrial OBSERVATIONS: • Built up the basis for growth in renewable energy market with strategic partners • Further growth in medical applications PRODUCT HIGHLIGHTS: • “High Reliability Application” Products Development • Further design wins in reactor and modules for Solar Invert
Slide 10: 2011 in Review: Product Category
2011 in Review: Product Category Please note: Segmentation by product category are based on internal approximates 2009 2010 2011 (in JPY, millions) Sales Sales Sales Power Related 23,405 28,239 25,332 Signal Related 4,468 5,480 5,414 Sensor & Actuators 7,371 9,006 10,342 Modules 4,684 5,931 6,180 EM
Slide 11: Business Outlook for 2012
BUSINESS OUTLOOK FOR 2012 “Challenging times with opportunities ahead” Presented by Shigeyuki Yawata Chief Executive Officer Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 11
Slide 12: What We Expect in 2012+
What We Expect in 2012+ • Key Assumption: – Global Economy is still in the process of “re‐balancing”. – Slow growth is expected in all markets over the next 3 years. – FOREX volatility is likely to continue making mid‐term forecasting difficult. Market restructuring will likely happen in the Consume
Slide 13: Revised Planning Approach
Revised Planning Approach • Current mid‐term business plan for 2010‐2012 now not relevant because of changed external environment. • Critical for success in volatile environment – flexible business planning process. • A long‐term master plan to guide a series of mid‐ term business plans with the foc
Slide 14: Sumida's Planning Framework
Sumida’s Planning Framework Triple EX (’08-’10) Master Plan 2012-2017 & Beyond foundation BP 2012-2014 BP 2015-2017 BP 2018 ++ Stage I Stage II Stage III • Need for a flexible yet clear vision for the company. • Serves as a roadmap for our corporate development. • Staged planning approach: Stage I
Slide 15: Stage I: Business Plan 2012 to 2014
Stage I: Business Plan 2012 to 2014 KEY INITIATIVES 1. Profitability: Focus on productivity, strict expense control and inventory management to speed up reduction of debt. 2. Cash Management: Repayment of debts and improvements to multi‐currency cash flow management to revive our balance sheet. 3. P
Slide 16: Stage I: Growth in a Slow Growing Environment
Stage I: Growth in a Slow Growing Environment Given the low‐growth market environment for the next 3 years, we must actively seek out high growth market segments: •Automotive: Mechatronics, Safety and Comfort Electronics •Power Related: Power conditioner and Smaller power supply related •Industrial
Slide 17: Annual Business Plan 2012
‐ Annual Business Plan 2012 ‐ Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 17
Slide 18: 2012 in Detail: Annual Business Plan
2012 in Detail: Annual Business Plan • Critical Assumption: 1 USD = 77 JPY and 1 EUR = 100 JPY • Conservative approach on turnover, focus on profitability. • Manufacturing Cost Control: Strict manufacturing overhead control • Manufacturing Risk Diversification e.g. against natural disasters Copyrigh
Slide 19: 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 = 20 JPY /share 2. Year end adjustment Target annual dividend for 2012 + Year end adjustment (“α”
Slide 20: Financial Results 4Q & FY 2011
FINANCIAL RESULTS 4Q & FY 2011 Presented by Yoshiyuki Honda (Chief Financial Officer) Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 20
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th Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 21
Slide 22: 4Q 2011 Performance
4Q 2011 Performance unit: JPY millions 2011.4Q 2010.4Q YoY (%) 2011.3Q QoQ (%) (A) (B) (A)/(B) (C) (A)/(C) Sales 11,913 12,615 94.4 13,705 86.9 Operating 300 404 74.2 530 56.7 Profit Ordinary Profit 2 45 6.0 82 3.3 Net Income △196 415 － 1 － Excha USD 76.99 82.90 92.9 79.04 97.4 nge Rate (JPY) EURO 1
Slide 23: 4Q 2011: Operating Profit - 11.4Q vs 11.3Q
4Q 2011: Operating Profit ‐ 11.4Q vs.11.3Q (unit: JPY millions) 11.3Q Operating Profit 530 11.4Q Operating Profit 300 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 23
Slide 24: 4Q 2011: Operating Profit - 11.4Q vs 10.4Q
4Q 2011: Operating Profit – 11.4Q vs 10.4Q (unit: JPY millions) 10.4Q Operating Profit 405 11.4Q Operating Profit 300 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 24
Slide 25: Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 25
Slide 26: FY 2011 Financial Performance
FY 2011 Financial Performance (unit: in JPY millions) 2011 2010 Change Revenue 52,759 53,445 △1.3% Operating Profit 2,110 3,569 △40.9% Operating Profit Ratio 4.0% 6.7% △2.7% Ordinary Profit 1,294 2,241 △42.3% Net Income 496 2,210 △77.5% Exchange USD 80.25 88.32 △9.1% rate – FY average EURO 111.71 11
Slide 27: FY 2011 Operating Profit Analysis
FY 2011 Operating Profit Analysis (unit: JPY millions) 2010 Operating Profit 3,569 2011 Operating Profit 2,110 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 27
Slide 28: FY 2011 Extraordinary Gain/Loss Analysis
FY 2011 Extraordinary Gain/Loss Analysis 2011 Fixed assets 42 Extraordinary Reversal of impairment loss 74 Gains Others 2 Total 119 Loss on sales and retirement of 19 noncurrent assets Restructuring Expense 268 Extraordinary Loss on change in equity 53 Loss Loss on disaster 136 Others 58 Total 539 E
Slide 29: FY 2011 Consolidated Balance Sheet
FY 2011 Consolidated Balance Sheet (unit: in JPY millions) As of Dec 31 As of Dec 31 Change 2011 2010 Difference (%) Current Assets 26,481 27,168 △686 △2.5 Fixed Assets 20,952 22,145 △1,193 △5.4 Current Liabilities 30,613 31,318 △705 △2.3 Fixed Liabilities 9,697 9,243 454 4.9 Shareholder’s Equity 19
Slide 30: Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 30
Slide 31: FY 2012 Earnings Forecast
FY 2012 Earnings Forecast (unit: in JPY millions) 2012 Forecast 2011 Actual Change Sales 52,100 52,759 △1.2% Operating Profit 1,900 2,110 △10.0% Operating Profit Ratio 3.6% 4.0% △0.4% Ordinary Profit 1,224 1,294 △5.4% Net Income 665 496 33.9% EPS（JPY） 34.61 25.85 Exchange USD 77.00 80.25 △4.0% Rate
Slide 32: FY 2012 Operating Profit Forecast
FY 2012 Operating Profit Forecast (unit: JPY millions) 2011 Operating Profit 2,110 2012 Operating Profit 1,900 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 32
Slide 33: Appendix
APPENDIX Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 33
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th Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 34
Slide 35: 4Q 2011 Performance
4Q 2011 Performance unit: JPY millions 2011.4Q 2010.4Q YoY (%) 2011.3Q QoQ (%) (A) (B) (A)/(B) (C) (A)/(C) Sales 11,913 12,615 94.4 13,705 86.9 Operating 300 404 74.2 530 56.7 Profit Ordinary Profit 2 45 6.0 82 3.3 Net Income △196 415 － 1 － Excha USD 76.99 82.90 92.9 79.04 97.4 nge Rate (JPY) EURO 1
Slide 36: 4Q 2011: Operating Profit - 11.4Q vs 11.3Q
4Q 2011: Operating Profit ‐ 11.4Q vs.11.3Q (unit: JPY millions) 11.3Q Operating Profit 530 11.4Q Operating Profit 300 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 36
Slide 37: 4Q 2011: Operating Profit - 11.4Q vs 10.4Q
4Q 2011: Operating Profit ‐ 11.4Q vs.10.4Q (unit: JPY millions) 10.4Q Operating Profit 405 11.4Q Operating Profit 300 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 37
Slide 38: 4Q Financial Performance by Segment
4Q FINANCIAL PERFORMANCE BY SEGMENT unit: JPY millions Change 2011.4Q 2011.3Q 2010.4Q QoQ YoY Asia Pacific 7,921 8,871 8,066 89.3% 98.2% Operations EU Operations 3,991 4,833 4,552 81.7% 87.7% Total 11,913 13,705 12,618 86.9% 94.4% Note: 4Q 2010 results have been rearranged to match our current segme
Slide 39: 4Q Non-Operating Income/Expense
4Q NON‐OPERATING INCOME／EXPENSE unit: JPY millions 11.4Q Dividend & Interest Received △148 Netting △4 Holland Financing Subsidiary JPY interest △45 payment Derivatives from acquisitions 22 Others △121 Non‐operating Income △296 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 39
Slide 40: FY2011 Quarterly Performance
FY2011 QUARTERLY PERFORMANCE unit: JPY millions 1Q 2Q 3Q 4Q （Actual） （Actual） (Actual） （Actual） Sales 13,259 13,880 13,705 11,913 Operating Income 618 661 530 300 USD 82.87 82.10 79.04 76.99 Exchange Rate (JPY) EURO 110.08 117.05 113.28 105.45 Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 41: Performance by Quarter
PERFORMANCE BY QUARTER unit: JPY millions 02.1Q 02.2Q 02.3Q 02.4Q 03.1Q 03.2Q 03.3Q 03.4Q Sales 8,955 9,349 8,474 8,018 7,202 7,162 8,033 8,140 Operating Income 504 592 641 433 301 571 709 813 04.1Q 04.2Q 04.3Q 04.4Q 05.1Q 05.2Q 05.3Q 05.4Q Sales 8,187 9,179 9,519 9,361 9,424 9,700 10,225 10,317 Ope
Slide 42: Performance by Quarter
PERFORMANCE BY QUARTER Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 42
Slide 43: Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 43
Slide 44: FY 2011 Financial Performance
FY 2011 Financial Performance (unit: in JPY millions) 2011 2010 Change Revenue 52,759 53,445 △1.3% Operating Profit 2,110 3,569 △40.9% Operating Profit Ratio 4.0% 6.7% △2.7% Ordinary Profit 1,294 2,241 △42.3% Net Income 496 2,210 △77.5% Exchange USD 80.25 88.32 △9.1% rate – FY average EURO 111.71 11
Slide 45: FY2011 Financial Performance by Segment
FY2011 FINANCIAL PERFORMANCE BY SEGMENT unit: JPY millions FY2011 FY2010 Change Asia Pacific 33,865 34,757 97.4% Operations EU Operations 18,894 18,688 101.1% Total 52,759 53,445 97.7% Note: FY2010 results have been rearranged to match our current segmentation format. Copyright© 2012 SUMIDA CORPORAT
Slide 46: Performance by Year
PERFORMANCE BY YEAR US$ 109.29 116.28 117.65 103.42 93.68 88.32 80.25 Euro 137.17 145.77 161.29 152.33 129.58 118.27 111.71 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 46
Slide 47: FY 2011 Operating Profit Analysis
FY 2011 Operating Profit Analysis (unit: JPY millions) 2010 Operating Profit 3,569 2011 Operating Profit 2,110 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 47
Slide 48: Non-Operating Income/Expense
NON‐OPERATING INCOME／EXPENSE unit: JPY millions FY2011 Dividend & Interest Received △471 Netting 49 Holland Financing Subsidiary JPY interest △195 payment Derivatives from acquisitions △70 Others △128 Non‐operating Income △816 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 48
Slide 49: FY 2011 Extraordinary Gain/Loss Analysis
FY 2011 Extraordinary Gain/Loss Analysis 2011 Fixed assets 42 Extraordinary Reversal of impairment loss 74 Gains Others 2 Total 119 Loss on sales and retirement of 19 noncurrent assets Restructuring Expense 268 Extraordinary Loss on change in equity 53 Loss Loss on disaster 136 Others 58 Total 539 E
Slide 50: FY 2011 Consolidated Balance Sheet
FY 2011 Consolidated Balance Sheet (unit: in JPY millions) As of Dec 31 As of Dec 31 Change 2011 2010 Difference (%) Current Assets 26,481 27,168 △686 △2.5 Fixed Assets 20,952 22,145 △1,193 △5.4 Current Liabilities 30,613 31,318 △705 △2.3 Fixed Liabilities 9,697 9,243 454 4.9 Shareholder’s Equity 19
Slide 51: Consolidated Cash Flow Statements
CONSOLIDATED CASH FLOW STATEMENTS unit: JPY millions） FY2011 FY2010 Cash Flow from Operating Activities 1.536 3,095 Cash Flow from Investment Activities △2,493 △1,794 Cash Flow from Financing Activities 1,160 △2,191 Cash and Cash Equivalents 6,851 7,275 Copyright© 2012 SUMIDA CORPORATION. All rights
Slide 52: Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 52
Slide 53: FY 2012 Earnings Forecast
FY 2012 Earnings Forecast (unit: in JPY millions) 2012 Forecast 2011 Actual Change Sales 52,100 52,759 △1.2% Operating Profit 1,900 2,110 △10.0% Operating Profit Ratio 3.6% 4.0% △0.4% Ordinary Profit 1,224 1,294 △5.4% Net Income 665 496 33.9% EPS（JPY） 34.61 25.85 Exchange USD 77.00 80.25 △4.0% Rate
Slide 54: FY 2012 Operating Profit Forecast
FY 2012 Operating Profit Forecast (unit: JPY millions) 2011 Operating Profit 2,110 2012 Operating Profit 1,900 Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 54
Slide 55: Depreciation, CAPEX, R&D Expenses
DEPRECIATION, CAPEX, R&D EXPENSES unit: JPY millions FY2011 FY2010 FY2012 (Actual) (Actual) (Plan) Depreciation 2,201 2,515 2,600 CAPEX 2,618 2,303 2,610 R&D Expense＊ 2,380 2,202 2,500 ＊ Note: R&D Expense which is included in general administrative expense and manufacturing cost. Copyright© 2012 SUM
Slide 56: Disclaimer
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 results arising fr