Slide 1: Consolidated Results of the 2nd Quarter FY 2008
SUMIDA CORPORATION - Consolidated Results of the 2nd Quarter FY 2008 - 7th August, 2008 Shigeyuki Yawata, CEO Saburo Matsuda, CFO Copyright © 2008 SUMIDA CORPORATION. All Rights Reserved.
Slide 2: Summary of the 2nd Quarter and 1st Half Year of FY2008
Consolidated Financial Statement: Summary of the 2nd Quarter and 1st Half Year of FY2008 Summary of the 2. Quarter 2008 Net Sales vs. plan lower by about 800 M yen (5%) Operating Income vs. plan lower by about 200 M yen Reasons: 1．Impact of sales decrease 200 M yen 2．Cost increases ①Personnel costs
Slide 3: Reasons for Deviations from Plan and Countermeasures
Consolidated Financial Statement: Summary of the 2nd Quarter and 1st Half Year of FY2008 Reasons for the Short-term countermeasures Long-term Deviations from Plan countermeasures Sales Sales Compensate the stagnation of sales for consumer electronics General stagnation of the with products directed
Slide 4: Quarterly and Semiannual Trend
Consolidated Financial Statement: Summary of the 2nd Quarter and 1st Half Year of FY2008 Quarterly Quarterly Trend Trend Semiannual Semiannual Trend Trend In million In million 7.9 JPY Operating Income Rate % JPY 6.9 40,000 8.0 7.7 4,000 6.8 7.0 6.8 5.5 35,000 3,500 40,000 Operating Income Rate % 4,
Slide 5: 1. Forex
1. Forex 2007 2008 1Q 2Q 3Q 4Q 1Q April May June 2Q ￥/US$ 118.1 123.3 115.6 112.4 105.4 102.5 104.3 106.8 104.5 1st Half 120.70 1st Half 104.95 ￥/€ 157.2 165.8 163.7 165.6 157.7 161.6 162.4 166.0 163.3 1st Half 161.50 1st half 160.50 ￥/HK$ 15.1 15.8 14.9 14.4 13.5 13.2 13.4 13.7 13.4 Copyright © 200
Slide 6: 2. Consolidated Results 2nd Quarter 2008
2. Consolidated Results 2nd Quarter 2008 （Unit：Millions of yen） 2Q 2008 2Q 2007 Achievem Comparison Actual Plan Difference ent ratio Actual Difference with 2Q 2008 Net 15,479 16,300 (821) 95.0% 18,402 (2,923) 84.1% sales Operatin g 1,051 1,280 (229) 82.1% 1,253 (202) 83.9% income O.I.R. 6.8% 7.9% 6.
Slide 7: 3. Consolidated Result 1st Half 2008
3. Consolidated Result 1st Half 2008 （Unit Millions of yen） 1st half 1st half 2008 Comparison 2007 Achievement with 1st ratio Half Actual Plan Actual Net sale 30,314 31,100 35,290 97.5% 85.9% Operating 2,093 2,320 1,958 90.2% 106.9% income O.I.R 6.9% 7.5% 5.5% Ordinary 1,327 1,810 2,313 73.3% 57.4%
Slide 8: 3-1. Analysis of sales 1st half 2008
3-1. Analysis of sales 1st half 2008 （Unit : Millions of yen） 1st half 1st half Difference 2007 2008 Inverter unit business 2,480 － (2,480) VOGT Components 947 － (947) Sub-con. (no free) EMS－Letron 693 － (693) Other 31,170 30,314 (856) Total 35,290 30,314 (4,976) Copyright © 2008 SUMIDA CORPORATION.
Slide 9: 3-2. Analysis of Forex
3-2. Analysis of Forex （Unit : Millions of yen） 1st half 1st half Convert Exchange rate Sales 2007 2008 of 1st half 2007 Euro 13,139 13,093 13,175 +0.3% Yen 4,702 4,584 4,584 (2.5%) Non- 13,329 12,637 14,533 +9.0% yen Total 31,170 30,314 32,292 +3.6% Copyright © 2008 SUMIDA CORPORATION. All Rights R
Slide 10: 4. Forex
4. Forex Exchange loss 1st Half 2008 ① Revaluation of RMB (200M yen) ② Exchange contracts (200M yen) ③ VOGT（€ vs. US$） (100M yen) ④ Other（Unrealized） (127M yen) (627M yen) 1Q 114.48 2Q 117.57 3Q 111.61 4Q 109.14 Copyright © 2008 SUMIDA CORPORATION. All Rights Reserved.
Slide 11: 5. Operating income Analysis
5. Operating income Analysis （Unit : Millions of yen、％） 2Q 2008 2Q 2007 Difference Coil 1,583 1,651 (65) O.I.R（％） 15.8 13.7 － VOGT Components 268 220 48 O.I.R.（％） 5.1 3.7 － VOGT EMS 20 45 (25) O.I.R（％） 4.6 6.7 － Elimination (820) (663) (157) Total 1,051 1,253 (202) O.I.R（％） 6.8 6.8 － Copyright © 200
Slide 12: 6. Taxes
6. Taxes （Unit : Millions of yen） Tax suspense FY2001-FY2003 Tax Haven 628 payment FY2004-FY2006 Tax Haven （Tax effect） △228 Transfer pricing Total 400 Transfer pricing Profit Sprit Method Copyright © 2008 SUMIDA CORPORATION. All Rights Reserved.
Slide 13: 7. Consolidated Balance Sheet
7. Consolidated Balance Sheet （Unit : Millions of yen） End of FY2007 End of 2Q 2008 Short-term Loan 16,196 14,982 Bond（Alpine） 8,000 7,830 Long-term 3,563 4,313 Loan+Bond Total 27,759 27,125 Cash 9,181 8,066 Cash equivalent 2,500 Net Loan 18,579 16,659 Copyright © 2008 SUMIDA CORPORATION. All Rights
Slide 14: 8. Global Tax Strategy
8. Global Tax Strategy Global Tax Strategy Maximization of cash flow Tax Haven in consolidated base Transfer Pricing SUMIDA SUMIDA COROPRATION COROPRATION (Pure (Pure holding holding company) company) Reduction of effective tax rate in consolidated base Dividend from subsidiaries Dividend (for coil
Slide 15: 9. Estimation for 3rd Quarter 2008
9. Estimation for 3rd Quarter 2008 3Q 2008 3Q 2007 Difference Estimate Actual ％ (¥Million） (¥Million） （¥Million） Net sales 16,000 17,885 (1,855) 89.5 Operating 1,100 1,439 (339) 76.4 income O.I.R. 6.9% 8.0% Ordinary income 870 1,023 (153) 85.0 Net income 530 872 (342) 60.1 Copyright © 2008 SUMIDA CO
Slide 16: 10. Revision of Forecast for FY2008
10. Revision of Forecast for FY2008 （Unit : Millions of yen） Operating Ordinary Net sales Net income income income Previous Forecast （Released on 7th May, ‘08） 65,300 5,230 4,830 3,380 （A） Revised Forecast （Released on 6th Aug.’08） 62,000 4,200 3,000 2,200 （B） Variance (3,300) (1,030) (1,830) (1,180
Slide 17: SECL: Quarterly Sales & EBIT Performance since 1st Quarter 2007
SECL: Quarterly Sales & EBIT Performance since 1st Quarter 2007 Steady improvement of profitability Operating Income Ratio 11.7% 11.6% 11.1% 11.6% 11.0% Automotive business and sales for (mil. yen) Europe were favorable 7.5% 14,000 Net Sales Appreciation of RMB 12,000 11,005 11,060 10,861 Soar
Slide 18: SVG: Quarterly Sales & EBIT Performance since 1st Quarter 2007
SVG: Quarterly Sales & EBIT Performance since 1st Quarter 2007 Profitability affected by fluctuation of Operating Euro and USD Income Ratio 6.8% 5.5% 5.2% 5.7% Weaker consumer electronics (mil. yen) 3.9% 4.2% sales were partially compensated 14,000 by stable performance in automotive and industry
Slide 19: Achievements in the 1st Half of FY2008 and Future Prospects
Achievements in the 1st Half of FY2008 and Future Prospects Achievements and Challenges in Approach and Prospects from 3rd the first half of FY2008 quarter and onward 1. Sales performance for the automotive 1. Firm sales in the automotive sector also sector was strong, in particular in in the 2nd ha
Slide 20: Achievements in the 1st Half of FY2008 and Future Prospects
Achievements in the 1st Half of FY2008 and Future Prospects Achievements and Challenges in Approach and Prospects from 3rd the first half of FY2008 quarter and onward 5．Steady improvement of the European 5． Further improvement of the effectiveness of operations European operations Although sales dec
Slide 21: New mid-term Business Plan Triple Ex - Progress of the main themes
New mid-term Business Plan Triple Ex - Progress of the 5 main themes Activities carried out in the 1st Half-Year Main Themes Target Planned activities for the 2nd Half-Year • First satellite factory in Nanning (Guangxi) set-up “Sumida Production z Strengthen/extend low-cost mass • Start operation of
Slide 22: New mid-term Business Plan Triple Ex - Progress of the main themes
New mid-term Business Plan Triple Ex - Progress of the 5 main themes Activities carried out in the 1st Half-Year Main Themes Contents Planned activities for the 2nd Half-Year ◎Shift production (passive products of ◎Seek opportunities to horizontally coil) from VOGT in Germany to China and vertically
Slide 23: Progress of "Sumida Silk Road"
Progress of “Sumida Silk Road” <Guangxi, China> Location: /between to Guangdong province and Vietnam First satellite /provide hub function for trading in Vietnam factory - Population: 500 million Nanning Nanning City: /the biggest city in Guangxi /population about 6.5 million /owns international air
Slide 24: Progress of "Sumida Silk Road"
Progress of “Sumida Silk Road” Key Data of Nanning Factory Name ： Sumida Electric (Guangxi) Co., Ltd. Capital ： 20 mil. HKD Address ： China-ASEAN Advanced Business Park in Nanning City (Other Japanese electronics enterprises are also in the area) Operation starts： End of August No. of workers： 1,500
Slide 25: For positive growth through proactive technology investment
For positive growth through proactive technology investment Expected Expected growth growth in in coil coil market market and and Sumida Sumida Sumida’s steady growth together with expansion in electric/electronics-related industry -Long term growth owing to the promotion of digitalization, ubiquito
Slide 26: R&D Contribution for further growth
R&D Contribution for further growth (Unit: billion yen) Net Sales Operating Profit 8.5% 100 M&A to accelerate technology strategy 6.8% M&A Target profit excluding strategic investments Industry devices, new 70.2 Synergy energy, automotive markets 10.0 Internal will create main synergy Growth 1.5 64.
Slide 27: 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