Slide 1: Performance Briefings for FY2017 Q2
SUMIDA CORPORATION Performance Briefings < for FY2017 Q2 ending June 30, 2017 > July 31, 2017
Slide 2: Today's Speakers
Today’s Speakers Representative Executive Officer & CEO Shigeyuki Yawata Representative Executive Officer & President Tomoharu Suseki Representative Executive Officer & CFO Yoshiyuki Honda Copyright© 2016 SUMIDA CORPORATION. All rights reserved. 2
Slide 3: Today's Program
Today’s Program １．Summary CEO Shigeyuki Yawata ２．FY2017 Q2 Consolidated Financial Results ＣＦＯ Yoshiyuki Honda 3. FY2017 Q2 Environments and Policies President Tomoharu Suseki 4. Q & A Session Copyright© 2015 SUMIDA CORPORATION. All rights reserved. 3
Slide 4: Summary
Summary Shigeyuki Yawata CEO Copyright© 2017 SUMIDA CORPORATION. All rights reserved. 4
Slide 5: Master Plan
Master Plan Master Plan for 2012-2021 ‘12-’14 Mid-term Plan ‘15-’17 Mid-term Plan ‘18〜’21Mid-term Plan Stage I Stage II Stage III Sales : ¥60.0 billion Sales: ¥100 billion Sales: ¥100 billion↑ ‘12 – ‘14 Stage I: Groundwork & Operational Restructurings Actual Sales : ¥77.5 billion Operating income: ¥
Slide 6: FY2017 Q2 Consolidated Financial Results
FY2017 Q2 Consolidated Financial Results Yoshiyuki Honda CFO Copyright© 2017 SUMIDA CORPORATION. All rights reserved. 6
Slide 7: Consolidated Income Statement
Consolidated Income Statement （based on *IFRS） （Million yen） 16.Ｑ2 17.Q1 17.Q2 Change % Change % （A） （B) （C） （C)/(A) （C）/(B) S a l e s 20,921 21,599 21,768 4.0% 0.8％ G r o s s I n c o m e 4,107 3,698 3,989 GI % 19.6% 17.1％ 18.3% Operating Income 1,936 1,566 1,780 △8.1％ 13.7％ OI % 9.3% 7.3％ 8.2% Inco
Slide 8: Operating Income Analysis 2016 Q2 → 2017 Q2
Operating Income Analysis 2016 Q2 → 2017 Q2 Productivity UP 60 （Million yen） Sales UP 160 2016 Q2 Operating Copper price UP Income △170 1,936 2017 Q2 Operating Income China wages UP 1,780 △150 Others △56 Despite sales up, operating income down from 2016.Q2 due to costs increase Copyright© 2017 SUMID
Slide 9: Operating Income Analysis 2017 Q1 → 2017 Q2
Operating Income Analysis 2017 Q1 → 2017 Q2 （Million yen） Production volume UP 70 Cost cuttings 80 2017 Q2 Operating Copper price Others Income Productivity UP 14 1,780 UP 90 △80 China wages UP Effect of Sales UP △70 FOREX /Product mix 20 90 2017 Q1 Operating Income 1,566 Copyright© 2017 SUMIDA CORP
Slide 10: Consolidated Income Statement for 1st half
Consolidated Income Statement for 1st half （based on IFRS） （Million yen） 6 months 6 months ending June 30 ending June 30, Change % 2016 2017 （A） （C） （C)/(A) S a l e s 41,525 43,368 4.4％ G r o s s I n c o m e 7,462 7,688 GI % 18.0% 17.7％ O p e r a t i n g I n c o m e 3,159 3,346 5.9％ OI % 7.6% 7.7％ I
Slide 11: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (based on IFRS) （Million yen） 2016 2017 2016 2017 Change Change Dec 31 June 30 Dec 31 June 30 Current Assets 36,720 40,912 4,192 Current Liabilities 26,735 33,421 6,685 Cash & Deposits 3,546 5,554 2,008 Trade & other Liabilities 9,543 10,315 772 Trade & o
Slide 12: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow (based on IFRS) （Million yen） 6 months thru 6 months thru June 30, 2016 June 30, 2017 Change Cash Flow from Operating Activities 3,654 3,138 △515 Income before Taxes 2,688 3,004 315 Depreciation & Amortization 1,451 1,562 110 Net Working Capital 442 △713 △1,156 Ot
Slide 13: Impact by fluctuations of Foreign Exchange Rates
Impact by fluctuations of Foreign Exchange Rates （Million yen） FY2017 Impact on FY2017 Plan Fluctuations （Forecast） Currency Exchange of yen Operating Rate Sales Income Appreciation by USD 114.00 yen every１yen △260 16 Appreciation by euro 121.00 yen every１yen △298 △44 Appreciation by renminbi 16.40
Slide 14: Seasonality of Sales
Seasonality of Sales --- % of quarterly sales to annual sales 27% 26.5% 2009〜2013 Average 25.4% 25.5% 25.0% 25% 24.8% 25.3% 2014〜2016 Average 24.4% 23.1% 23% Q1 Q2 Q3 Q4 With automotive sales increasing, fluctuation of quarterly sales is diminishing Copyright© 2017 SUMIDA CORPORATION. All rights res
Slide 15: FY2017 Q2 Environments and Policies
FY2017 Q2 Environments and Policies Tomoharu Suseki President Copyright© 2016 SUMIDA CORPORATION. All rights reserved. 15
Slide 16: Business Environments by Segment
Business Environments by Segment Automotive Market Despite slowing down in the U.S., forecast in the 2nd half of 2017 is expected to be no worse than the previous year. However, electric mechanization/HV/EV-related businesses, which Sumida engages in, is expected to grow. Industry Market Demand for
Slide 17: Sales 2016 → 2017
Sales 2016 → 2017 （’00 million yen） 2016 2017 215.99 217.68 209.21 Sales Further Expanded 206.04 198.76 196.51 Biggest-ever quarterly sales in Q2 of 2017 after adjustment of foreign exchange rates. Total sales in Q2 of 2017 were up from Q1 despite a slightly stronger yen 1Q 2Q 3Q 4Q 1Q 2Q against US
Slide 18: Sales by Segment -- 2016 → 2017
Sales by Segment -- 2016 → 2017 （’00 million yen） Automotive + 0.9% 140.51 141.74 Sales expanded in all segments, especially a big increase in Consumer Electronics (smartphone-related) 2016 2Q 2017 2Q Industry Automotive • Keyless and others + 7.４% 34.37 36.89 Industry 2016 2Q 2017 2Q • FA-related i
Slide 19: Sales by Region -- 2016 → 2017
Sales by Region -- 2016 → 2017 （’00 million yen） Japan/Korea/S’ pore Greater China Asia --- UP with sales of Consumer + 10.9% + 17.9% 51.50 40.25 44.64 43.67 Electronics increasing Europe --- FLAT 2016 2Q 2017 2Q 2016 2Q 2017 2Q North America/Others Europe North America – DOWN 104.95 - 1.4% Due main
Slide 20: Operating Income -- 2016 → 2017
Operating Income -- 2016 → 2017 （’00 million yen） OI（based on IFRS） 19.36 Operating Income 17.80 declining Due mainly to: Increase of copper price Product mix change 2016 2Q 2017 2Q Copyright© 2017 SUMIDA CORPORATION. All rights reserved. 20
Slide 21: Future Prospects
Future Prospects Uppers Expansion of EV/HEV-related sales Keyless-related continue strong Expansion of FA-related in China and RFID-related sales Smartphone-related sales hitting a seasonal peak in Q3 Downers Automotive-related slowing down in the U.S. Production slow-down expected due to a supply s
Slide 22: Capital Investments for Stage III: Sumida Electric (JI'AN)
Capital Investments for Stage III （Appropriation of funds raised through public offering） Sumida Electric (JI‘AN) CO., Ltd.（Jiangxi, China） Copyright© 2017 SUMIDA CORPORATION. All rights reserved. 22
Slide 23: Capital Investments for Stage III: SUMIDA AG (Germany)
Capital Investments for Stage III （Appropriation of funds raised through public offering） SUMIDA AG（Germany） Floods-prevention wall R&D Center (Project House) Copyright© 2017 SUMIDA CORPORATION. All rights reserved. 23