Slide 1: Sumida Corporation Performance Briefings FY2019 Q2
SUMIDA CORPORATION Performance Briefings <for FY2019 Q2 ending June 30, 2019> August 1, 2019
Slide 2: Today's Speakers
Today’s Speakers Representative Executive Officer & President Tomoharu Suseki Representative Executive Officer & CFO Yoshiyuki Honda Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 2
Slide 3: Today's Program
Today’s Program 1. FY2019 Q2 Performance Results & Management Policies President Tomoharu Suseki 2. FY2019 Q2 Consolidated Financial Results ＣＦＯ Yoshiyuki Honda 3. Q&A Session Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 3
Slide 4: FY2019 Q2 Performance Results & Management Policies
FY2019 Q2 Performance Results & Management Policies Tomoharu Suseki President Copyright© 2019 SUMIDA CORPORATION. All rights reserved. 4
Slide 5: Sales by Quarter
Sales by Quarter （100 million yen） （- 2.8%） Q2 sales continued sluggish 256.8 253.1 238.4 following Q1, being lower than 232.0 231.7 last year by 2.8%. A year-on-year negative growth in quarterly sales was marked due mainly to market 120 conditions, for the first time Q2 Q3 Q4 Q1 Q2 since 2016, when
Slide 6: Sales by Market
Sales by Market （100 million yen） Automotive Automotive sales which 152.94 - 7.5% 141.44 accounts for 61％ of total sales significantly dropped. Accordingly, total sales also dropped. 2018 Q2 2019 Q2 Industry Steady actuator related sales in the U.S. covered all other minus 42.75 - 0.7% 42.45 factors
Slide 7: Sales by Region
Sales by Region （100 million yen） Sales growth in China Asia (excl. China/Taiwan) China/Taiwan was largely negative due to a drop in automotive 47.39 + 8.3% 51.34 60.01 - 17.5% 49.53 related business. Sales in North America 2018 Q2 2019 Q2 grew, as PCI’s sales were 2018 Q2 2019 Q2 added. North Ameri
Slide 8: Operating Income
Operating Income （100 million yen） Operating income substantially declined from last year due to a decrease in overall sales. 12.81 In addition, an unfavorable - 59.1% sales mix dragged down operating income. This is because sales of products with high margin dropped while that 5.24 with low margin
Slide 9: Sales in Automotive Market
Sales in Automotive Market As a result of negative sales for three （100 million yen） consecutive quarters, Q2 sales dropped by more than 2 billion yen compared to peak sales in recent quarters. 180 163.0 Since last June, PCI has performed well 152.9 in its sales and profits. 141.4 Automotive related
Slide 10: Sales in Industrial Market
Sales in Industrial Market FA RFID Medical 5G / IoT Market growth was RFID related The size of business New inquires are largely negative due business is small now, but is increasing to smaller capital remained strong. clearly expanding. significantly. investments in China. US market, however, staye
Slide 11: Business Development in India
Business Development in India Markets in India for us Automotive: Promotion of car electrification is led by Indian government. Consumer Electronics: Markets for smartphone related business and air- conditioning are expanding. Industry：Demands for smart meters with promotion of smart city is increas
Slide 12: Future Outlook
Future Outlook Deteriorated preconditions We had set in the previous IR meetings the following three preconditions to recover our business in Q2 and beyond. Improvements on issues related to US-China trade frictions Recovery of car sales based on economic stimulus measures such as tax reductions in
Slide 13: FY2019 Q2 Consolidated Financial Results
FY2019 Q2 Consolidated Financial Results Yoshiyuki Honda CFO Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 13
Slide 14: Consolidated Quarterly Financial Statement
Consolidated Quarterly Financial Statement （Million yen） 2018 Q2 2019 Q1 2019 Q2 Change % Change % （A） （B) （C） （C)/(A) （C）/(B) S a l e s 23,838 23,198 23,172 △2.8％ △0.1％ Gross Income 3,939 3,089 2,838 GI % 16.5％ 13.3％ 12.3% Operating Income 1,281 600 524 △59.1％ △12.6％ OI % 5.4％ 2.6％ 2.3% Financial I
Slide 15: Operating Income Analysis 2018 Q2 vs 2019 Q2
Operating Income Analysis － 2018 2Q vs 2019 Q2 － （Million yen） Forex Copper price Pontiac Impact reduction Expense +18 +107 +42 reduction 435 2018 Q2 Operating Income 1,281 Productivity down △515 Sales mix △461 2019 Q2 Operating China wages Income increase 524 △163 R＆D Expenses Others reduction △93
Slide 16: Operating Income Analysis 2019 Q1 vs 2019 Q2
Operating Income Analysis － 2019 Q1 vs. 2019 Q2 － （Million yen） Wages in Europe reduction Productivity +67 up +130 Expense reduction +248 Capacity 2019 Q1 utilization Operating down Income △199 2019 Q2 600 Sales mix Operating △185 Copper price Income increase 524 China △53 wages R＆D Exp Forex Others
Slide 17: Consolidated 1st Half Income Statement
Consolidated 1st Half Income Statement （Million yen） 2018 1st Half 2019 1st Half Change （A） （B) （B)/(A) S a l e s 46,371 △0.4％ G r o s s I n c o m e 6,853 5,928 GI % 14.7％ 12.8％ Operating Income 1,738 1,124 △35.3％ OI % 3.7％ 2.4％ Financial Income / △515 △678 E x p e n s e s （ N e t ) I n c o m e b e
Slide 18: FY2019 Full Year Forecast
FY2019 Full Year Forecast （Million yen） S a l e s O p e r a t i n g Income before I n c o m e T a x e s Income Attributable to Owners of Parent E P S ( y e n ） Previous Forecast 101,400 6,200 5,070 3,540 130.81 （Ａ） Revised Forecast 92,000 2,200 900 500 18.43 （Ｂ） Change △9,400 △4,000 △4,170 △3,040 （Ｂ
Slide 19: 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