Slide 1: Performance Briefings FY2014
SUMIDA CORPORATION Performance Briefings < FY2014 ending December 31, 2014> February 12, 2015 Copyright© 2015 SUMIDA CORPORATION. All rights reserved. Strictly Confidential. 1 Todayʼs Speakers Representative Officer &ＣＥＯ Shigeyuki Yawata Representative Officer & President Tomoharu Suseki Representat
Slide 2: Consolidated P/L for FY2014 vs. FY2013
SUMIDA CORPORATION Consolidated Financial Results for FY2014 & Forecast for FY2015 Yoshiyuki Honda Executive Officer & CFO Copyright© 2015 SUMIDA CORPORATION. All rights reserved. Strictly Confidential. 3 Consolidated P/L for FY2014 vs. FY2013 （Million yen） FY2013（A) FY2014（B) Change % (B)/(A) S a l
Slide 3: Operating Income Change Analysis; Forecast P/L for FY2015
Operating Income Change Analysis < FY2013 → FY2014 > （Million yen） Copper Price DOWN +330 Productivity UP +785 FOREX Impact FY2014 Revenue UP -55 Operating +1,970 Income China Wage/ 3,345 Welfare Exp. UP Others -1,055 -328 FY2013 Operating Income 1.698 Revenue UP & productivity UP, more than offsett
Slide 4: 2014→2015 Operating Income Change Analysis; Impact of Foreign Exchange
2014→2015 Operating Income Change analysis （Million yen） Positive Factors 4,000 Revenue up 700 Productivity up 1,620 Costs reduction 710 △645 Others 42 3,000 2014 TOTAL 3,075 Actual… Negative Factors 2015 Products mix △1,100 2,000 Forecast… Wages up △1,440 Forex. impact △580 China welfare exp. Up △2
Slide 5: Summary Review of Mid-Term Business Plan Stage I
Summary Review Mid-Term Business Plan Stage I (2012-2014) Shigeyuki Yawata Executive Officer & CEO Copyright© 2015 SUMIDA CORPORATION. All rights reserved. Strictly Confidential. 9 Summary Review of Mid-Term Business Plan Stage I（２０１２－２０１４） Original Targets in 2011 FY2014 Actual Sales 60 billion yen
Slide 6: Stage I Sales by Market and Business Development
Summary Review of Mid-Term Business Plan Stage I（２０１２－２０１４） （Millions yen） Sales 100,000 StageⅠ 80,000 60,000 46,176 36,518 40,000 25,564 27,549 28,634 8,850 12,338 20,000 8,957 7,815 11,486 19,030 16,247 14,852 15,885 19,047 0 2010年 2011年 2012年 2013年 2014年 Consumer 家電製品関連 Electronics インダストリー分野 Indu
Slide 7: Master Plan 2012-2017 & beyond
Master Plan Master Plan 2012‐2017 & beyond ʻ12-ʼ14 Mid-term Plan ʻ15-ʼ17 Mid-term Plan ʻ18〜Mid-term Plan Stage I Stage II Stage III Sales : ¥77.5 billion Sales: ¥100 billion Sales: ¥100 billion 〜 ʻ12 – ʻ14 Stage I: Building a base & Operational restructuring Sales : ¥77.5 billion *Figures in Stage Ⅰ
Slide 8: Challenges in Stage II; Achieving Targets for FY2017
Challenges to tackle in Stage II Achievement o f numerical targets Increase sales above 100 billion yen level and achieve operating income of 5%. Business strategies in the focused markets Expand automotive/industry-related businesses. Put particular emphasis on profit in consumer electronics-
Slide 9: Stage II: Growth Strategies by Market
Stage II: Growth Strategies by Market Copyright© 2015 SUMIDA CORPORATION. All rights reserved. Strictly Confidential. 17 Sales by Market Stage I Stage II 2011 Actual 2014 Actual 2017 Plan Billion yen Consumer 80% Electronics 75% ¥52.8 ¥77.5 ¥100 69% Industry Automotive Increase sales of Automotive a
Slide 10: Directions for Automotive Business
Directions for Automotive Business ① HID Smart Entry ABS Main three products Vs New products New products Main three products Further increase sales of main three products and add sales of new products by fully utilizing Sumida’s core technologies and customer base. Copyright© 2015 SUMIDA CORPORATIO
Slide 11: Directions for Industry Business
Directions for Industry Business ① For industrial equipments Product groups grew big in Stage I For Communication infrastructure Inductor Transformer Inductor RFID products Energy-related products 12mm 23mm Reactors for power- 32mm conditioner New businesses grew up in the industry market during Sta
Slide 12: Directions for Consumer Electronics Business
Directions for Consumer Electronics Business Market Situation Past Present Power Module New Inductor Inductor ----- ----- TV・ＡＶ Game Digital camera Trans HDD Expand business with PC peripheral devices Smartphone Trans Wireless charger & Tablet PC Mobile Phone Emphasis on profit & value-added, not on
Slide 13: Measures to Improve Profitability
Measures to Improve Profitability Operating Income ratio (%) New products release 8 9 Expand high value-added products 9 Reorganization of R&D departments 5% 6 Reduction of direct labor & law materials 4 3.5% 9 Promote new production strategies 2 Cutting down production Stage 2012 I overhead &
Slide 14: Global R&D Organization for Sustainable Growth
Global R&D Organization for Sustainable Growth K-Lab (Canada） A-Lab (U.S.A.) Power module E-Lab (Germany) E-Lab（独） New products New products & technology C-Lab (China) M-Lab（⽇本） New products & New products new technology Manufacturing technology Stage I --- ・Established new Lab in Canada in cooper
Slide 15: Reduction of Production Costs
Reduction of Production Costs (Direct Labor) ② Promote automated production lines in high-costs areas Old production lines High-costs areas (old) New production lines Install automated production lines for automotive products Capital investment 60 （ʼ00 million yen） Capital investments for producti
Slide 16: Improvement of Total Efficiency
Improvement of Total Efficiency Improve total efficiency by further promoting “Global One” concept Restructuring of global management system 9 Establish market data gathering system 9 Review sales management system 9 Review capital investment management system ヨーロッパ 9 Introduce IFRS across the gro
Slide 17: P/L Target for FY2015 vs. FY2014
P/L Target for FY2015 vs. FY2014 （Million yen) FY2014 Actual FY2015 Forecast FY2017 Plan S a l e s 77,562 83,630 100,000 Operating Income 3,345 2,700 5,000 % 4.3％ 3.2％ 5.0％ Ordinary Income 2,799 2,000 4,100 N e t I n c o m e 1,346 1,000 2,600 Forex. rate U.S.dollar/Yen 104.99 118.00 118.00 Euro/Yen
Slide 18: From D/E to ROE
From D/E to ROE In Mid-Term Business Plan StageⅠ announced in August 2012 ・Cash Conversion Cycle（CCC） &・D/E ratio were positioned as tools to improve Balance Sheet because there were concerns at that time that easy financing due to credit relaxation and low interest rate may not last long in the fut
Slide 19: Change of Financial Target
Change of Financial Target Easy financing with ultra-low interest rate continues due to global credit relaxation. →D/E ratio considers to be one of the factors consisting of ROE. CCC considers to be one of the fair guidelines for operations due to change of products mix and business structure. At 20
Slide 20: Adoption of IFRS; Dividend Policy
Adoption of IFRS • Adopt unified accounting standards (IFRS) across Sumida group. ` Sumidaʼs current consolidated accounting data include Japan Standards, IFRS and U.S. standards. However, more than 80% sales and 97% production are from overseas. • Good-will cannot be amortized under IFRS. Thus, 380
Slide 21: 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