Slide 1: 2nd Quarter of FY2012 Financial Results & Financial Analysis
2nd Quarter of FY2012 Financial Results & Financial Analysis Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 2: 2012.2Q Performance
１． 2012.2Q Performance （ JPY millions ） 2012.2Q 2011.2Q YOY (%) 2012.1Q QOQ (%) (A) (B) (A)/(B) (C) (A)/(C) Sales 13,346 13,880 -3.8 12,375 7.8 Operating Income 552 661 -16.4 197 179.2 Ordinary Income 208 542 -61.5 164 27.1 Net Income 35 272 -86.8 90 -60.3 USD 81.18 82.10 -1.1 77.69 4.5 Exchange Rat
Slide 3: Operating income 2012.2Q vs. 2011.2Q
２．Operating income 2012.2Q vs. 2011.2Q （JPY millions） Cost reduction SGA Others Wage expense up 180 21 in China up 30 -60 Sales down Euro rate impact impact -120 -160 2011.2Ｑ 2012.2Ｑ Operating Operating income income 661 552
Slide 4: Operating income 2012.2Q vs. 2012.1Q
３. Operating income 2012.2Q vs. 2012.1Q （JPY millions） Others 44 Production volume efficiency Cost 140 Sales up impact reduction SGA 270 -50 expense up -50 2012.1Ｑ 2012.2Ｑ Operating Operating income income 197 552
Slide 5: Consolidated Cash Flow Statements
４． CONSOLIDATED CASH FLOW STATEMENTS （JPY millions） 2012.2Ｑ 2011.2Ｑ YOY 2012.1Q QOQ （A) （B) （A)-(B) （C) （A)-(C) Cash Flow from 1,204 109 1,095 41 1,162 Operating Activities Cash Flow from (634) -524 -109 -573 -60 Investing Activities Cash Flow from -2,104 -142 -1,961 -374 -1,729 Financing Activities
Slide 6: FY 2012 Earnings Forecast
５． FY 2012 Earnings Forecast （JPY millions） FY2012 FY2011 2nd Half FY2012 1st Half （Actual） Actual） 1Q 2Q （Forecast （Forecast （Actual） Actual） ） ） Sales 12,375 13,346 25,721 26,379 52,100 52,759 Gross profit 2,167 2,609 4,776 5,324 10,100 10,102 Gross profit ratio 17.5% 19.6% 18.6％ 20.2% 19.4％ 19.1%
Slide 7: Mid-term Business Plan 2012-2014
Mid‐term Business Plan 2012‐2014 （Elaboration） Thursday, 2 August 2012 Presented by: Shigeyuki Yawata Chief Executive Officer
Slide 8: World Dynamics
World Dynamics • As a result of the debt crisis, developed economies such as Europe, USA and Japan are facing some growth challenges. • Although emerging economies such as the BRICs have high growth potential in the coming years, we are observing slow downs in the rate of growth. • Low cost manufact
Slide 9: Our Planning Approach
Our Planning Approach MASTER PLAN 2012‐2017 & BEYOND BP 2012‐2014 BP 2015‐2017 BP 2018 ++ Stage I Stage II Stage III Sales: 60B JPY Sales: 80‐100B JPY Sales: ≥100B JPY 2012 ‐ 2014 Stage I: Realignment & Foundation Building Sales Target: 60 Billion JPY Operating Profit Target: 5 Billion JPY 2015 ‐ 20
Slide 10: Key Targets for Business Plan 2012-2014
Key Targets for Business Plan 2012‐2014 Key Targets to achieve by end of 2014 PROFITABILITY IMPROVEMENTS Sales JPY 60 Billion OP JPY 5 Billion EBITDA JPY 8 Billion BALANCE SHEET IMPROVEMENTS D/E Ratio 1.4 Cash Conversion Cycle (CCC) 50 days Exchange Rate: 77JPY/1USD 105JPY/1EUR Copyrig
Slide 11: Business Expansion into New Fields
Business Expansion into New Fields FY2011 Results FY2014 Targets Consumer Automotive 25% Consumer 31% 52% JPY52.7 JPY60.0 Billion Billion Industrial Industrial 20% 17% Automotive 55% (JPY Billion) 2011 (actual) 2014 (targets) CAGR (‘12‐’14) Automotive 27.5 (52%) 33.0 (55%) 6.2% Industrial 9.0 (17%)
Slide 12: Automotive Related
Automotive Related Leveraging Our Expertise to Develop Products for New Applications Further Further expansion expansion of of products products with with which which we we have have high high market market share share ABS/ESC Coils Smart Entry Systems HID Module Business Business Expansion
Slide 13: Consumer Electronics Related
Consumer Electronics Related Specialise in Growth Segments with Emphasis on Profitability Further Further expansion expansion of of products products which which we we have have high high market market share share New Power Inductors Power Transformers Chip Inductors Business Business expans
Slide 14: Industrial Related
Industrial Related Business expansion in the following 6 fields will play an important role in the coming years Industrial Machinery Factory automation related machinery and tools, construction & Tools machinery, etc… Energy Power conditioning (inverter) oriented reactors and transformers. Medical
Slide 15: Focus on Further Expansion in US & China
Focus on Further Expansion in US & China FY2011 FY2011 Results Results ① ① Expanding Expanding USUS Sales: Sales: In In addition addition to to our our existing existing Automotive Automotive business, business, we we will will focus focus on on high high technology technology applications applicati
Slide 16: Manufacturing Cost Reduction
Manufacturing Cost Reduction 1. Further Implementation of Automated Production Lines: Further production optimisation through accelerated automation of processes, particularly for automotive related products with long product life cycles and lower volume fluctuations. 2. Strengthening our purchasing
Slide 17: New Product Development to Suit Market Needs
New Product Development to Suit Market Needs R&D: US, Germany & Japan R&D: China R&D R&D bases bases in in developed developed countries countries focus focus on on the the As As the the base base for for application application engineering, engineering, fast fast development development of of new n
Slide 18: Financial Structure Improvements
Financial Structure Improvements • Increased profitability through focused actions for productivity improvements. • Cash creation through emphasis on management goals: 1. Global Cash Management Putting emphasis on global cash flow management in relation to debt repayment, better utilise cash on hand
Slide 19: Income Statement & Balance Sheet
Income Statement & Balance Sheet FY2011 FY2014 (Million JPY) Income Income Statement Statement Sales 52,759 60,000 Gross Profit 10,103 14,100 GPR 19.1% 23.5% SGA Expenses 7,993 9,100 SGA/Sales Ratio 15.2% *15.2% *Note: SGA/Sales Ratio Operating Income 2,110 5,000 remains flat due to planned OIR 4.0%
Slide 20: Financial Analysis
Financial Analysis Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 21: 2012.2Q Performance
１． 2012.2Q Performance （ JPY millions ） 2012.2Q 2011.2Q YOY (%) 2012.1Q QOQ (%) (A) (B) (A)/(B) (C) (A)/(C) Sales 13,346 13,880 △3.8 12,375 7.8 Operating Income 552 661 △16.4 197 179.2 Ordinary Income 208 542 △61.5 164 27.1 Net Income 35 272 △86.8 90 △60.3 USD 81.18 82.10 △1.1 77.69 4.5 Exchange Rat
Slide 22: FY2012 1st Half performance
FY2012 1st Half performance （JPY millions） FY 2012 FY2011 YOY(%) 1st Half 1st Half (A) (B) (A)/(B) Sales 25,721 27,140 -5.2 Operating Income 750 1,279 -41.4 Ordinary Income 373 1,208 -69.1 Net Income 126 691 -81.8 USD 79.43 82.49 82.49 -3.7 3.7 Exchange Rate (JPY) EURO 103.91 114.06 114.06 -8.9 Copy
Slide 23: Operating income 2012.2Q vs. 2011.2Q
２．Operating income 2012.2Q vs. 2011.2Q （JPY millions） Cost Wage SGA Others reduction in China up expense up 21 180 -60 30 Sales Euro rate down impact impact -160 -120 2011.2Ｑ 2012.2Ｑ Operating Operating income income 661 552
Slide 24: Operating income 2012.2Q vs. 2012.1Q
３．Operating income 2012.2Q vs. 2012.1Q （JPY millions） Others 44 Production volume efficiency Cost 140 Sales up reduction impact SGA -50 270 expense up -50 2012.1Ｑ 2012.2Ｑ Operating Operating income income 197 552
Slide 25: Non-operating income/expense
Non‐operating income/expense （JPY millions） FY2012 2012.2Ｑ 2012.2Ｑ 2012.1Ｑ 2012.1Ｑ 1st Half Dividend Received & Interest Paid △169 △176 △345 (Net) Finance Factoring △76 △29 △105 Subsidiary Exchange gain/loss in Netherlands Netting △39 47 7 Derivatives inherited from △40 103 63 acquisitions Others △8
Slide 26: Extraordinary gain/loss analysis
Extraordinary gain/loss analysis （単位：百万円） YOY 2012.2Q (A) 2011.2Q (B) (A)- (A)-(B) Gain on sales of fixed assets 139 5 134 Extraordinary Income Others 5 － 5 Total extraordinary income 145 5 140 Loss on disaster 44 － 44 Restructuring expense 24 70 △45 Extraordinary Expense Loss on sales and retiremen
Slide 27: Quarterly performance
Quarterly performance （JPY millions） 2011.2Q 2011.3Q 2011.4Q 2012.1Q 2012.2Q Sales 13,880 13,705 11,913 12,375 13,346 Operating 661 530 300 197 552 income USD 82.10 79.04 76.99 77.69 81.18 Exchange rate EURO 117.05 113.28 105.45 101.76 106.07 Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet （JPY millions） Change As of June 30, As of Dec 31 2012 2011 Amount (%) Current Assets 24,443 26,481 858 3.2 Fixed Assets 21,413 20,952 1,396 6.7 Current Liabilities 26,058 30,613 -2,310 △--7.5 Fixed Liabilities 12,350 9,697 3,334 34.4 Shareholderʼs Equity 19,623 19,593 90
Slide 29: Consolidated Cash Flow statements
Consolidated Cash Flow statements （JPY millions） 2012.2Q 2011.2Q YOY 2012.1Q QOQ （A) （B) （A)-(B) （C) （A)-(C) Cash Flow from 1,204 109 1,095 41 1,162 Operating Activities Cash Flow from △634 △524 △109 △573 △60 Investing Activities Cash Flow from △2,104 △142 △1,961 △374 △1,729 Financing Activities Cas
Slide 30: Consolidated Cash Flow statements
Consolidated Cash Flow statements （JPY millions） FY2012 FY2011 YOY 1st Half 1st Half (A)-(B) (A) (B) Cash Flow from Operating 1,245 108 1,137 Activities Cash Flow from Investing △1,208 △1,160 △47 Activities Cash Flow from Financing △2,479 314 △2,794 Activities Cash and Cash Equivalents 4,477 6,725 △
Slide 31: Financial performance by segment
Financial performance by segment （JPY millions） YOY QOQ 2012.2Q 2011.2Q 2012.1Q （％） (%) Asia Pacific 8,831 8,601 2.7 8,017 10.2 EU 4,514 5,278 △14.5 4,358 3.6 Total 13,346 13,880 △3.8 12,375 7.8 Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 32: Sales by market segment
Sales by market segment （JPY millions） 8,000 6,000 4,000 2,000 0 10.1Q 10.2Q 10.3Q 10.4Q 11.1Q 11.2Q 11.3Q 11.4Q 12.1Q 12.2Q Automotive Industrial Consumer Copyright© 2012 SUMIDA CORPORATION. All rights reserved.
Slide 33: FY 2012 Earnings forecast
５． FY 2012 Earnings forecast （JPY millions） FY2012 FY2011 2nd half FY2012 1st half 1 half （Actual） Actual） 1Q 2Q （Forecast （Forecast （Actual） Actual） ） ） Sales 12,375 13,346 25,721 26,379 52,100 52,759 Gross profit 2,167 2,609 4,776 5,324 10,100 10,102 Gross profit ratio 17.5% 19.6% 18.6％ 20.2% 19.4
Slide 34: Performance by quarter
Performance by quarter 03.1Q 03.2Q 03.3Q 03.4Q 04.1Q 04.2Q （JPY millions） 04.3Q 04.4Q 04.4Q Sales 7,202 7,162 8,033 8,140 8,187 9,179 9,519 9,361 Operating 301 571 709 813 764 979 1,036 832 Income 05.1Q 05.2Q 05.3Q 05.4Q 06.1Q 06.2Q 06.3Q 06.4Q Sales 9,424 9,700 10,225 10,317 14,806 14,953 16,587 17
Slide 35: Performance by quarter
Performance by quarter (Operating income: (Sales : JPY millions） JPY millions） 21,000 2,000 18,000 1,500 15,000 1,000 12,000 500 9,000 0 6,000 △ 500 3,000 △ 1,000 0 △ 1,500 02.1Q 03.1Q 04.1Q 05.1Q 06.1Q 07.1Q 08.1Q 09.1Q 10.1Q 11.1Q 12.1Q Sales Operating income Copyright© 2012 SUMIDA CORPORATION. Al
Slide 36: Disclaimer Regarding Forward Looking Statements
Disclaimer Regarding Forward Looking Statements Sumida Corporation (referred to as "Sumida") makes this document available for informational purposes only. This document contains certain “forward-looking statements” which reflect management’s current views and the assumptions made with respect to sp
Slide 37: APPENDIX
APPENDIX Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 37
Slide 38: Appendix 1: Working Capital Management
Appendix 1: Working Capital Management Inventory Days Receivable Days Payable Days Cash Conversion Cycle = DIO + DSO ‐ DPO Number of Days Procurement Production Sales Collection DPO DIO DSO DIO = Days Inventory Outstanding DSO = Days Sales Outstanding DPO = Days Payable Outstanding Copyright© 2012 S