Slide 1: Consolidated Results of the 2nd Quarter FY2009
SUMIDA CORPORATION - Consolidated Results of the 2nd Quarter FY2009 - 3rd August, 2009 Shigeyuki Yawata, CEO Saburo Matsuda, CFO Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 2: Forex Volatility
1. Forex Volatility End of FY2008 End of March 09 End of June 09 (4Q2008) （1Q2009) (2Q2009) Average 96.07 91.44 97.71 JPY/USD End of term 90.35 97.70 96.15 Average 126.28 120.62 129.87 JPY/Euro End of term 127.65 128.91 135.67 Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 3: Forecast of Consolidated Results FY2009
2. Forecast of Consolidated Results FY2009 1st quarter 2009 2nd quarter 2009 Forecast of 2nd half Forecast of FY2009 Actual Actual year Net sales 8,579 10,066 24,455 43,100 (23,555) (42,200) Cost of sales 7,715 8,276 19,666 35,657 Gross profit 864 1,790 4,789 7,443 Gross profit ratio 10.1% 17.8% 19.
Slide 4: Consolidated Results of 2nd quarter FY2009
3. Consolidated Results of 2nd quarter FY2009 (Unit: Millions of yen) 2Q2009 2Q2008 2Q2009 2Q2008 Accounting Accounting Difference Difference Accumulated Accumulated period period Net Sales 10,066 15,479 65.0% 18,645 30,314 61.5% Operating (377) 1,051 - (1,722) 2,093 - Income Ordinary (640) 517 - (1
Slide 5: Analysis of Sales
4. Analysis of Sales （Unit: Millions of yen） FY2008 FY2009 Differe nce in １Ｑ ２Ｑ ３Ｑ ４Ｑ １Ｑ ２Ｑ 2Q Asia-Pacific 8,401 8,826 8,773 6,136 4,644 5,721 65% Business Magnetics 5,771 6,015 6,119 4,226 2,976 3,727 62% Automotive 2,630 2,811 2,654 1,910 1,668 1,994 71% EU Business 6,434 6,653 5,928 3,423 3,247
Slide 6: Information by segments
5. Information by segments （Unit: Millions of yen） 2Q2009 1Q2009 Difference Net Sales 5,721 4,644 1,077 Asia-Pacific Business Operating Income 426 (174) 600 Net Sales 3,433 3,247 186 EU Business Operating Income (319) (481) 162 Net Sales 912 688 224 Environment- Energy Business Operating Income 149
Slide 7: Analysis of Operating Income: Break-even Sales
6. Analysis of Operating Income Break-even Break-even Sales Sales （Quarterly） （Quarterly） Asia-Pacific Business 5,000M yen EU Business 4,150M yen Environment- 900M yen Energy Business Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 8: Non-operating and Extraordinary Gain/Loss
7. Non-operating and Extraordinary Gain/Loss 1. Derivative (EIWA) ~ year 2017 Loss (136M yen) (Mitigating measure is under discussion) 2. Restructuring Expenses Total Expenses 330M yen Early Retirement in Japan Provision in FY2008 150M yen Expenses in FY2009 180M yen Shift outsourcing production to
Slide 9: Goodwill
8. Goodwill ・ According to Japan GAAP, amortization has started from FY2009 ・ Equivalent amount of past years’ amortization expenses deducted from the retained earnings at the beginning of year Goodwill Panta 15 years Stelco 4 years VOGT 15 years Goodwill End of December End of June 2008 2009 5,275M
Slide 10: Debt
9. Debt (Unit：Millions of yen) Decrease in short-term debt (1,650) Decrease in long-term debt (1,193) (2,843) Repayment for convertible (8,000) bond of Alpine Long-term debt 3,900 Company bond issued 3,500 (600) Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 11: Cash Flow
10．Cash Flow (Unit： Millions of yen) Major reasons for increase of free cash flow: 1. Decrease of goods and merchandises Inventory assets （Automotive） 800 Short lead-time 600 Others 200 Goods and merchandises 1,600 2. Decrease of acquisition of tangible fixed 393 assets （Budget： 2,000） Copyright © 2
Slide 12: Forecast for Fiscal Year 2009
11. Forecast for Fiscal Year 2009 (Unit：Millions of yen) Operating Ordinary Net Net Sales Income Income Income Forecast at the beginning of 47,600 1,490 890 700 FY2009 (24th Feb, 2009) Revised Forecast 43,100 (1,250) (1,600) (2,000) (31st July, 2009) Difference (4,500) (2,740) (2,490) (2,700) （Assum
Slide 13: Summary of Business Result – 2nd Quarter FY2009
Summary of Business Result – 2nd Quarter FY2009 (Mil Yen) Summary Recovered 20 points from the worst term during Jan-Mar 09 (sales decreased by 50% from its peak) Increased by 17.3% (compared with Q1), decreased by 35.0% (y-o-y) 【Positive Aspects】 1. Asian market is in its recovery trend owing to ec
Slide 14: FY2009 Previous Plan (Operating Income/Loss)
FY2009 Previous Plan (Operating Income/Loss) (million yen) 1Q 2Q 3Q 4Q Full Year 2,000 1,500 1,000 500 0 ±0 -500 -1,000 -1,500 Due to uncertain market situation, the forecast of recovering timing was inaccurate. Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 15: FY2009 Revised Plan (Operating Income/Loss)
FY2009 Revised Plan (Operating Income/Loss) (million yen) 1Q 2Q 3Q 4Q Full Year 2,000 1,500 1,000 500 -1,345 -377 0 -500 -1,000 -1,500 Moderate profit due to slow recovery of Loss recorded environment of although profitability European market and improved compared automotive related with Q1 market C
Slide 16: Details of Revised Business Forecast FY2009
Details of Revised Business Forecast FY2009 Previous Forecast Revised Forecast 1st & 2nd Cost Sales forecast 4.5B Cost structure reduction yen lower than of FY08 previous forecast measures Planned Decrease of Depends on Operating operating market recovery Income income due Fixed cost to low sales re
Slide 17: Business Forecast in 2010
Business Forecast in 2010 Plan in 2010 3rd cost Fixed cost reduction reduction measure to be implemented Variable Variable cost cost Full year ratio ratio operating improvement improvement etc. etc. profit in 2010 ±０ Operating Expected income operating loss increase in Fy09 from sales -1.25B yen inc
Slide 18: Measures to be implemented from 3rd Quarter: Sales Increase
Measures to be implemented from 3rd Quarter Prospects and measures to be taken from 3rd rd quarter 1. 1. Measures Measures for for sales sales increase increase Under Under “Global “Global One One Company” Company” concept concept ⇒⇒ Further Further promote promote cross cross sales sales ⇒⇒ Expand
Slide 19: Measures to be implemented from 3rd Quarter: Cost Reduction
Measures to be implemented from 3rd Quarter Prospects and measures to be taken from 3rd rd quarter 2. 2. Measures Measures for for cost cost reduction reduction a. a. Fixed Fixed cost cost ⇒ Maintain ⇒ Maintain adequate adequate numbers numbers of of staffs staffs (timely (timely review review and a
Slide 20: Mid-Term Business Plan “Triple Ex”
Mid-Term Business Plan “Triple Ex” Triple Ex --- 5 key areas: 1. Sumida “Silk Road Concept” 2. Making the most of our ability to respond to customer needs 3. Investing in pioneering technology and progressive R&D 4. Expanding global system for manufacturing, production and sales 5. Developing and st
Slide 21: Outline of Concord Electronics Industries
Outline of Concord Electronics Industries Company Concord Electronics Industries Name Major Development, manufacturing and sales of high Business current transformers and reactors Major Headquarter: Saku City, Nagano Operation Japan: Nagano (R&D, Manufacturing, Sales) Sites Outside Japan: Vietnam (M
Slide 22: Advantages of acquiring Concord
Advantages of acquiring Concord 1. 1. Acceleration Acceleration of of new new product product development development speed speed Sales Breakdown of Concord Concord has similar product lineups with EIWA for Consumer and Industry Medical 30% Consumer /Industry Enables to accelerate manufacturing 70%
Slide 23: Trend of Consolidate Sales and Break Even Point
Trend of Consolidate Sales and Break Even Point Aim to recover 80% of the peak sales 100% 15,000 80% 10,000 5,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2008 2009 Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 24: 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