Slide 1: Consolidated Results of the FY2008
SUMIDA CORPORATION - Consolidated Results of the FY2008 - 25th February, 2009 Shigeyuki Yawata, CEO Saburo Matsuda, CFO Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 2: Forex Volatility in 2008
Forex Volatility in 2008 （Unit：Millions of yen） Average 08.1Q 08.2Q 08.3Q 08.4Q in year 2009 （Assumption） Assumption） 2008 JPY/USD 105.4 104.5 107.6 96.1 103.4 95.0 JPY/Euro 157.7 163.3 161.9 127.3 152.3 120.0 JPY/HKD 13.5 13.4 13.8 12.4 13.3 JPY/USD ( 2 0 0 7 ） 119.3 120.6 117.8 113.0 117.6 Copyrig
Slide 3: Consolidated Results 4th Quarter 2008
Consolidated Results 4th Quarter 2008 （Unit：Millions of yen） 4th Quarter 2008 4th Quarter 2007 Compare to Compare to Actual Plan Difference plan Actual Difference plan Net Sales 10,719 13,000 (2,281 ) 82.5% 17,035 ( 6,316 ) 62.9% Operating ( 745 ) 525 (1,270 ) － 1,316 ( 2,060 ) － Income Operating In
Slide 4: Consolidated Results of Fiscal Year 2008
Consolidated Results of Fiscal Year 2008 （Unit: Millions of yen） FY2008 FY2007 Compare to Compare to Actual Plan Difference plan Actual Difference plan Net Sales 55,734 58,000 ( 2,266 ) 96.1% 70,210 ( 14,476 ) 79.4% Operating 2,167 3,430 ( 1,263 ) － 4,712 ( 2,545 ) 46.0% Income Operating Income 3.9％
Slide 5: Consolidated Results of Fiscal Year 2008
Consolidated Results of Fiscal Year 2008 (Unit: Millions of yen） 2007 2008 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Sales 16,888 18,402 17,885 17,035 14,835 15,479 14,701 10,719 Operating 705 1,253 1,438 1,316 1,042 1,051 819 ( 745 ) I n c o m e Operating 4.2% 6.8% 8.0% 7.7% 7.0% 6.8% 5.6% ( 7.0% ) Income Ratio
Slide 6: Analysis of Sales ①
Analysis of Sales ① （Unit：Millions of yen） Difference in Inverter Forex Actual 【Coil】 2008 2007 Difference Business （Appreciation Total Difference in Yen） 1Q 9,413 10,700 (1,287) 1,100 890 1,990 +700 2Q 9,856 11,855 (1,999) 1,530 1,350 2,880 +880 3Q 9,679 11,836 (2,157) 1,518 1,150 2,668 +511 4Q 6,6
Slide 7: Analysis of Sales ②
Analysis of Sales ② （Unit：Millions of yen） Change of accounting Actual 【VOGT】 2008 2007 Difference Forex procedure for Difference EMS Business 1Q 5,422 6,188 (766) － 800 +34 2Q 5,623 6,547 (924) － 800 (124) 3Q 5,022 6,049 (1,027) － 800 (227) 4Q 2,937 5,422 (2,485) 1,240 200 (1,045) Full 19,004 24,20
Slide 8: Analysis of Sales ③
Analysis of Sales ③ （Unit：Millions of yen） Ordinary 4Q.08 level Coil 9,500 6,622 69.7% VOGT 5,500 2,937 53.4% 15,000 9,559 63.7% ※Sales in December was 50% down from ordinary single month Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 9: Content of Net Sales
Content of Net Sales FY2008 （Unit：Millions of yen） 1,160 (2%) FY2008 35,570 1,473 (3%) Net Sales 35,570 Operating Income 4,652 (64%) Coil business 4Q2008 55,734 Net Sales 6,622 Operating Income 523 FY2008 17,531 VOGT Net Sales 17,531 Operating Income 474 （31%) Component 4Q2008 Net Sales 2,767 Operat
Slide 10: Operating Income 4th Quarter 2008
Operating Income 4th Quarter 2008 4Q 2008 Coil 523 VOGT Component (386) VOGT EMS (20) Others 86 Total 203 R&D basic (320) HQ expenses (509) Goodwill (119) Whole group (948) Operating Income (745) ・High fixed cost ・Low effect from reduction of variable cost Copyright © 2009 SUMIDA CORPORATION. All Ri
Slide 11: Strategies in 4th Quarter 2008
Strategies in 4th Quarter 2008 Net Sales Ordinary Net Sales 15,000M YEN (36％) 2008.4Q 9,560M YEN Operating Reached below the break-even point Loss 745M YEN ①Review unprofitable LCM/Production in NAFTA/VOGT businesses North America & Sumida America Decisions made ②Labour cost Europe/Asia/Japan in 4Q
Slide 12: Forex/Tax
Forex/Tax （Unit： Millions of yen） 【Forex】 Forward-exchange contract cost 584 Liquidation cost – SAI & SCH 206 Revaluation loss of assets in 836 foreign currency Others 77 1,703 Established Financial Holding Company in the Netherlands 【Tax】 Deferred tax assets 540 Loss carried forward 550 VOGT 500 1,
Slide 13: Extraordinary Loss
Extraordinary Loss ・Restructuring cost （Unit： Millions of yen） Retrenchment of labor 1,475 Reshuffle management 121 1,596 Domination Agreement 103 Discontinuation of LCM 184 operation ・Devaluation of investment 403 in securities ・RMB 425 ・Loss on liquidation 281 (additional loss) 410 ・Impairment los
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet Current Assets Restructuring of 2,700M yen Compensating SUMIDA AMERICA balance INC. Factoring 1,000M yen Accounts receivable 3,300M yen Assets in foreign currency reduced due to decrease in sales and yen appreciation Current Increase in short- 3,500M yen Liabilities term l
Slide 15: Capital Expenditure/Depreciation/R&D expenses
Capital Expenditure/Depreciation/R&D expenses （Unit：Millions of yen） 2009 Plan 2008 Actual Capital Expenditure 3,006 2,000 （Included investment in intangible assets) Depreciation 3,600 3,362 R&D expenses 1,250 1,424 Copyright © 2009 SUMIDA CORPORATION. All Rights Reserved.
Slide 16: Forecast for Fiscal Year 2009
Forecast for Fiscal Year 2009 （Unit：Millions of yen） FY2009 Plan FY2008 Actual Difference Net Sales 47,600 55,734 (8,134) Operating 1,490 2,167 (677) Income Operating 3.1% 3.9% Income Ratio Ordinary 890 (146) 1,036 Income Net Income 700 (5,743) 6,443 (Loss) （Assumption: Exchange rates are 1USD=95JPY
Slide 17: Summary of measures carried out in Fiscal Year 2008
Summary of measures carried out in Fiscal Year 2008 Drastic Change of External Environment World World recession recession deepening: deepening: Decrease Decrease in in demand demand for for all all business business sectors sectors (Consumer, (Consumer, Automotive, Power Electronics) since the 4th
Slide 18: Summary of Business Result Fiscal Year 2008
Summary of Business Result Fiscal Year 2008 Summary 1. Sales dropped drastically in all business segments since 4th quarter (Consumer, Automotive and Power Electronics) Net Sales <= drastic decrease in demand, JPY appreciation 2. Sales decreased by 50% in Dec. compared to a regular month 1. Although
Slide 19: Prospects and Measures to be taken in Fiscal Year 2009
Prospects and Measures to be taken in Fiscal Year 2009 Response to business environment Prospects of Market Environment /Consumer Business: expected to recover from 2nd Quarter but still uncertain /Automotive Business: inventory adjustments is expected to be slowing down from 2nd Quarter. Sales is
Slide 20: Consolidated Results of Fiscal Year 2008
Consolidated Results of Fiscal Year 2008 Need to consider how we recover the rest of sales by new products (Millions of Yen) Net Sales 売上高 and market 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Copyright © 2009 SUMID
Slide 21: Sales Trend Prospect in Fiscal Year 2009
Sales Trend Prospect in Fiscal Year 2009 (Millions of Yen) Sales Prospect of SECL and SVG Avg. 5,000 mil. yen/Month 5,000 ● Sales volume to 100 ● ● be recovered to a half of the drop after Break-even sales inventory adjustment Monthly ● Oct. Sales ● ● ● Decreased by Nov. 50% ● Dec. 2,500 ● ● 50 Plan
Slide 22: Sales Trend Prospect in Fiscal Year 2009
Sales Trend Prospect in Fiscal Year 2009 (Millions of Yen) Quarterly Sales Prospect of SPE EIWA and MOSTEC Sales joined in Sumida 2,000 Group ● ● 1,500 ● ● 1,000 ● Steady growth to be expected FY2008 FY2009 4Q 1Q 2Q 3Q 4Q Consolidated Sales Forecast (SECL+SVG+SPE) (Millions of Yen) FY2009 Full Year
Slide 23: Significance of Triple Ex in challenging environment
Significance of Triple Ex in challenging environment Outline Outline of of “Triple “Triple Ex” Ex” Mid-term Mid-term Business Business Plan Plan of of SUMIDA SUMIDA SUMIDA Production “Silk Road Concept”： Expansion of global systems in R&D, production and sales aspects: Strengthen and expand the low-
Slide 24: Summary of FY2009 prospect and strategic directions
Summary of FY2009 prospect and strategic directions Awareness Awareness of of external external environment environment Basic Basic strategy strategy «Consumer electronics– quick recovery less likely» «Steady implementation of Triple Ex» Contraction of demand • Need to prepare for the risk of furthe
Slide 25: Progress of main themes in New Mid-Term Business Plan Triple Ex
Progress of 5 main themes in New Mid-Term Business Plan “Triple Ex” Content Main themes Activities carried out in FY2008 Planned Approaches from FY2009 ¾ To further enhance and expand our low-cost production capabilities in Asia ◎Review the production system ◎Nanning factory (1st satellite factory)
Slide 26: Progress of main themes in New Mid-Term Business Plan Triple Ex
Progress of 5 main themes in New Mid-Term Business Plan “Triple Ex” Content Main themes Activities carried out in FY2008 Planned Approaches from FY2009 ¾ Pursue R&D in close proximity to the markets and our customers in Japan and Germany, focus on applied development and commercialization at C-Lab I
Slide 27: Progress of main themes in New Mid-Term Business Plan Triple Ex
Progress of 5 main themes in New Mid-Term Business Plan “Triple Ex” Content Main themes Activities carried out in FY2008 Planned Approaches from FY2009 ¾ Further improve and strengthen our Global Management System and strive to make the most of our synergies that derive from the diverse cultures and
Slide 28: 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