Slide 1: Consolidated Results of the 1st Quarter FY2010
SUMIDA CORPORATION Consolidated Results of the 1st Quarter FY2010 27th April, 2010 CEO Shigeyuki Yawata CFO Saburo Matsuda Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 1
Slide 2: Highlights of Today
Highlights of Today Business Performance in 1Q FY2010 Consolidated Results of the 1st Quarter FY2010 A Good Start to Achieving Business Plan 2010 and Mid-Term Business Plan 2010-2012 z Preparations during crisis paying off z The coming months Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved.
Slide 3: Business Performance in the 1st Quarter FY2010
Business Performance in the 1st Quarter FY2010 Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 3
Slide 4: Consolidated Results of 1Q-FY2010 ①
Consolidated Results of 1Q-FY2010 ① ( Millions of JPY) 1Q-2010 1Q-2009 Change Net Sales 12,894 8,579 +4,315 +50.3% Operating Income 1,025 (1,345) +2,370 － Operating Income 8.0% (15.7%) － － Ratio Ordinary Income 787 (1,057) +1,844 － Net Income 652 (1,071) +1,723 － Copyright © 2010 SUMIDA CORPORATION.
Slide 5: Consolidated Results of 1Q-FY2010 ②
Consolidated Results of 1Q-FY2010 ② ( Millions of JPY) 1Q-2010 4Q-2009 Change Net Sales 12,894 12,684 +210 +1.7% Operating 1,025 869 +156 +18.0% Income Operating 8.0% 6.9% +1.1% － Income Ratio Ordinary Income 787 787 0 － Net Income 652 165 +487 +295.2% Copyright © 2010 SUMIDA CORPORATION. All Rights
Slide 6: Consolidated Results of 1Q (2006-2010)
Consolidated Results of 1Q (2006-2010) (Millions of JPY) 2006 2007 2008 2009 2010 1Q 1Q 1Q 1Q 1Q Net Sales 14,806 16,888 14,835 8,579 12,894 Operating 1,082 705 1,042 (1,345) 1,025 Income Operating 7.3% 4.2% 7.0% (15.7%) 8.0% Income Ratio Ordinary 1,206 563 810 (1,057) 787 Income Net Income 727 355
Slide 7: Major Factors in Improvement of Operating Income
Major Factors in Improvement of Operating Income (Millions of JPY) Operating income for 4Q 2009 869 Impact of sales increase +84 Elimination of restructuring charges +72 incurred in Europe in 4Q 2009 Operating income for 1Q 2010 1,025 （operating income ratio：7.95%） Copyright © 2010 SUMIDA CORPORATIO
Slide 8: Sales/Operating Income by Business Segment
Sales/Operating Income by Business Segment (Millions of JPY) 2009 2009 2009 2009 2010 1Q 2Q 3Q 4Q 1Q Net Sales 4,644 5,721 6,798 6,951 6,878 Asia-Pacific Business Operating (174) 426 1,073 1,306 1,270 Income Net Sales 3,247 3,433 3,996 4,416 4,654 EU Business Operating Income (481) (319) 29 43 282 E
Slide 9: Net Sales by Region
Net Sales by Region （Millions of JPY） 2009 2010 10.1Q/09.4Q 1Q 2Q 3Q 4Q 1Q Japan 1,423 1,593 2,446 2,579 2,634 +2.1% Hong Kong 1,194 1,684 1,797 1,695 1,750 +3.2% /China ASEAN 831 1,220 1,460 1,296 1,172 (9.6%) Taiwan 206 283 309 244 250 +2.5% /Korea NAFTA 688 824 1,245 1,397 1,360 (2.4%) EU 4,188 4
Slide 10: Non-Operating Gain / Loss
Non – Operating Gain / Loss （Millions of JPY） 2009 2010 1Q 2Q 3Q 4Q 1Q Net interest (125) (170) (160) (153) (140) expenses Derivatives 316 (136) (127) 137 119 Foreign 50 21 (205) (12) (218) exchange Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 10
Slide 11: Cash Flow
Cash Flow （Millions of JPY） 2009 2010 2009 1Q 1Q Full Year Cash flow from operating 559 550 1,888 activities Cash flow from investing (190) (398) (129) activities Cash flow from financing (2,023) (713) (3,530) activities Cash and cash equivalents 9,222 8,335 9,063 at end of year Copyright © 2010 SUM
Slide 12: Capital Expenditures, Depreciation and R&D Exp.
Capital Expenditures, Depreciation and R&D Exp. （Millions of JPY） 2009 2010 2010 1Q Change 1Q Full Year (Plan) Capital 269 386 117 2,000 expenditures Depreciation including good-will 821 717 (118) 3,000 amortization R&D Expenses 302 274 (27) 1,200 Copyright © 2010 SUMIDA CORPORATION. All Rights Rese
Slide 13: 1Q 2010 Business Performance
1Q 2010 Business Performance -A Good Start to Achieving Business Plan 2010 and Mid-Term Business Plan 2010-12 Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 13
Slide 14: Continued improvement especially in profitability
Continued improvement especially in profitability….. Consolidated Net Sales & Operating Income Ratio (in Million JPY) 8.0% 7.9% 20,000 10% 5% 15,000 0% 10,000 -5% -10% 5,000 -15% 0 -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 07 08 09 10 Net sales (12,894M JPY) slightly improved vs. 4Q FY09 level (
Slide 15: Continued improvement especially in profitability
Continued improvement especially in profitability….. Consolidated Net Sales & Operating Income Ratio (in Million JPY) 8.0% 7.9% 20,000 10% 5% 15,000 0% 10,000 -5% -10% 5,000 -15% 0 -20% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 07 08 09 10 Net sales (12,894M JPY) slightly improved vs. 4Q FY09 level (
Slide 16: Reasons for improved performance
Reasons for improved performance ¾ General recovery in global economy and business sentiment & confidence ¾ Our preparations during the crisis for the recovery o Improving our cost structure o Developing and deepening our relationship with key customers o Reshaping our manufacturing management and i
Slide 17: Sumida in Germany
Sumida in Germany Effectively restructured and close to customers Î Strategic acquisition to achieve global footprint and access to key global customers in Europe Î Effective, streamlined structure Î Closer integration with Asia after domination agreement Î Rebranding of German subsidiaries to carry
Slide 18: Example of German Contribution
Example of German Contribution RPS (Rotor-Position Sensor): Î Technology developed in Germany Î Commercialized over two years by joint German-Japanese team Î Entry to exciting HV/EV markets in Europe Î Good prospects in China and other Asian markets Restructured and now profitable German operations
Slide 19: Sumida in China
Sumida in China Î Long involvement in China Î – since 1971, a pioneer Î China will remain a mainstay of Î Sumida's global strategy Î Large and capable pool of labor Î Fast growing large market Î Innovating to stay ahead of the competitors and meet new challenges Î Government policy to favor interior
Slide 20: Implementation of Sumida Silk Road in China
Implementation of Sumida Silk Road in China Later phases Hunan (Launched: 2010) Pan-Yu Nanning (Launched: 2008) Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 20
Slide 21: Effect on cost management by utilizing satellite factory in China
Effect on cost management by utilizing satellite factory in China Direct Directlabor laborcost cost △19% △21% Utility Utilitycost cost 100 81 79 Logistics Logisticscost cost Pan-Yu Nanning Hunan Enables Enables total total cost cost reduction reduction Source: Analysis by Sumida… total cost of Pan-Y
Slide 22: Sumida's key China competency
Sumida’s key China competency 250,000 Labor force 20,000 200,000 Order volume 15,000 150,000 10,000 100,000 5,000 50,000 Labor shortage 0 0 FY07 2Q 3Q 4Q FY08 2Q 3Q 4Q FY09 2Q 3Q 4Q FY10 1Q 1Q 1Q 1Q Extensive and effective manufacturing facilities provides Sumida with Huge competitive advantage Copy
Slide 23: The coming months
The coming months ¾ Prospects of FY2010 Sales: Î 2Q… good chance of being as good as 1Q Î 3Q-4Q… risks in external environment but cautiously optimistic Risks: ① Increasing labor cost in China ⇒ Not a major risk since this is controlled risk ② Increasing copper price ⇒ Negotiate with customers to he
Slide 24: 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