Slide 1: Consolidated Results of the 2nd Quarter FY2010
SUMIDA CORPORATION Consolidated Results of the 2nd Quarter FY2010 2nd August, 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 2Q FY2010 Good Progress Towards Achieving Business Plan 2010 & Mid-Term Business Plan 2010-2012 Preparations during crisis paying off The outlook for the coming months Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 2
Slide 3: Business Performance in the 2nd Quarter FY2010
Business Performance in the 2nd Quarter FY2010 Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 3
Slide 4: Summary of Consolidated Results of 2Q-FY2010
Summary of Consolidated Results of 2Q-FY2010 （Millions of Yen） Operating Ordinary Sales Net Income Income Income 2Q-FY2010 (Actual) 14,107 1,037 448 254 2Q-FY2009 (Actual) 10,066 (377) (640) (994) Change % 40.1% － － － （Millions of Yen） Operating Ordinary Sales Net Income Income Income 1Q-FY2010 (Act
Slide 5: Analysis of Operating Income in the 1st Half FY2010
Analysis of Operating Income in the 1st Half FY2010 (Millions of Yen） Forecast of operating income at the beginning of year 1,360 Due to : Increased sales (up 2,600M from forecast) +610 : Closing of Austria factory, +160 Production transfer to Romania & China : Wage increase in China ±0 : Increase i
Slide 6: Sales/Operating Income by Business Segments
Sales/Operating Income by Business Segments (Millions of Yen) １Q-’09 2Ｑ-’09 ３Q-’09 4Q-’09 1Q-’10 2Q-’10 Sales 4,644 5,721 6,798 6,951 6,878 7,823 Asia Pacific Operating Business Income (174) 426 1,073 1,306 1.270 1.213 % － 7.4% 15.8% 18.8% 18.5% 15.5% Sales 3,247 3,433 3,996 4,416 4,654 4,876 EU Bus
Slide 7: Analysis of Operating Income
Analysis of Operating Income (Millions of Yen) Asia-Pacific Business Sales in 2Q 7,823 Operating income in 2Q (A) 1,213 Operating income in 2Q if operating income ratio same as in 1Q (18.5%) (B) 1,448 Change (A-B) -235 Due to : Appreciation of yen against euro -85 : Expenses related to new factories
Slide 8: Quarterly Sales by Regions
Quarterly Sales by Regions (Millions of Yen) 2009 2010 1Q 2Q 3Q 4Q 1Q 2Q Japan 1,423 1,593 2,446 2,579 2,634 2,814 HK/China 1,194 1,684 1,797 1,695 1,750 2,210 ASEAN 831 1,220 1,460 1,296 1,172 1,141 Taiwan 206 283 309 244 250 364 /Korea NAFTA 688 824 1,245 1,397 1,360 1,596 EU 4,188 4,414 5,006 5,4
Slide 9: Quarterly Non-Operating Gain/Loss
Quarterly Non-Operating Gain/Loss （Millions of Yen） 2009 2010 1Q 2Q 3Q 4Q 1Q 2Q Net interest (125) (170) (160) (153) (140) (151) expenses Derivatives 316 (136) (127) 137 119 (142) Foreign exchange 50 21 (205) (12) (218) (302) gain/loss Foreign exchange rates at end of period Yen/US Dollar 97.70 96.1
Slide 10: US$/Euro
US$/Euro 1.6 1.5 1.4 1.3 1.2 1.1 1 08/21/2009 10/02/2009 11/13/2009 12/25/2009 02/05/2010 03/19/2010 04/30/2010 06/11/2010 07/23/2010 Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 10
Slide 11: Interest payment in 1st Half of FY2010
Interest payment in 1st Half of FY2010 （Millions of Yen） Net interest payment Payment to Banks (212) Sales discount (48) Interest portion of pension & lease payment (31) TOTAL (291) Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 11
Slide 12: Foreign Currency Exchange Gain/Loss
Foreign Currency Exchange Gain/Loss (Millions of Yen) ① Inter Company loan in euro Japan ⇒ Europe €1=¥132.7(end last year) → ¥107.8 (end 2Q) (100) Others (30) (130) ② A/R in euro €1=¥128.4(end 1Q) → ¥107.8 (end 2Q) (285) ③ Others (105) TOTAL (520) 3 foreign currency used in the operation ￥-US$ Sales
Slide 13: Cash Flow
Cash Flow (Millions of Yen) Jan-Jun 2009 Jan-Jun 2010 Cash flow from operating activities 841 374 Cash flow from investing activities 559 (639) Cash flow from financing activities (3,864) (1,897) Cash and cash equivalents at end of 2Q 8,558 6,187 (Balance Sheet) Cash and Deposits At June 30, 2010 6,
Slide 14: Capital Expenditures, Depreciation and R&D Exp.
Capital Expenditures, Depreciation and R&D Exp. (Millions of Yen) Jan-Dec 2010 Jan-Jun 2009 Jan-Jun 2010 Change (Plan) Capital expenditures 393 937 544 2,000 Depreciation (Including goodwill 1,503 1,287 (216) 3,000 amortization) R&D expenses 602 557 (45) 1,200 Copyright © 2010 SUMIDA CORPORATION. Al
Slide 15: 2nd Quarter 2010 Business Performance
2nd Quarter 2010 Business Performance ～ Further Progress in Achieving Annual Business Plan 2010 and the MTBP 2010-12 ～ Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 15
Slide 16: Continuing good execution…
Continuing good execution… Consolidated Net Sales & Operating Income Ratio (in Million JPY) 20,000 10% 7.3% 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 Q2 07 08 09 10 Net sales (14,107M JPY) improved vs. 1Q FY10 (+ 9.4%) Operating Income Ratio (7.3%) aff
Slide 17: Operational Highlights
Operational Highlights Consumer Electronics Automotive-related Other Industry •Strong demand for •Strong demand •Excellent prospects and smart phones, hard especially in premium pipeline in solar-related disks, notebooks, etc. market despite general industry slow down in Europe •Requests from severa
Slide 18: Results continue to be affected by volatile external environment
Results continue to be affected by volatile external environment China operations Labor unrest Long-term appreciation of RMB Europe operation Weak Euro and high sovereign debt Increase in export sales owing to weak Euro ** Actual improvement in European sales are “reduced” when presented in
Slide 19: Impact on results mitigated by our current strategies
Impact on results mitigated by our current strategies Risk mitigation through a distributed manufacturing and logistics network Sumida Silk Road initiated a few years back Reduce impact from South China labor situation – lower vulnerability to wage increases Reduce political risk by having prod
Slide 20: Progress of satellite factory (Asia) Jiangxi
Progress of satellite factory (Asia) Jiangxi Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 20
Slide 21: Progress of satellite factory (Europe)
Progress of satellite factory (Europe) Copyright © 2010 SUMIDA CORPORATION. All Rights Reserved. 21
Slide 22: Outlook for the coming months
Outlook for the coming months Outlook 3Q ⇒ likely to be flat when compared to 2Q 4Q ⇒ likely to be similar to 4Q FY09 Risk factors Inventory adjustment (esp. consumer electronics sector in Asia) Slowing growth in Europe Unstable foreign exchange Priority Issue to minimize Forex risk Copyrig
Slide 23: Forecast of Consolidated Results
Forecast of Consolidated Results (Millions of Yen) 2010 2010 2010 2010 1st Half 2nd Half Revised Original Change % Actual Forecast Forecast Forecast Sales 27,001 25,600 52,600 50,000 +5.2% Operating 2,062 1,638 3,700 3,000 +23.3% income Ordinary 1,235 1,495 2,730 2,700 +1.1% income Net income 906 1,
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