Slide 1: Performance Briefings FY2019 Q4 & Full-Year
SUMIDA CORPORATION Performance Briefings <For FY2019 Q4 & Full-Year ending Dec. 31, 2019> February 7, 2020
Slide 2: Today's Speakers
Today’s Speakers Representative Executive Officer and President Tomoharu Suseki Representative Executive Officer and CFO Yoshiyuki Honda Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 2
Slide 3: Today's Program
Today’s Program 1. FY2019 Q4 & Full-Year Performance Results President Tomoharu Suseki ＣＦＯ Yoshiyuki Honda 2. FY2020 Forecast President Tomoharu Suseki CFO Yoshiyuki Honda 3. Q & A Session Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 3
Slide 4: FY2019 Q4 & Full-Year Performance Results
FY2019 Q4 & Full-Year Performance Results Tomoharu Suseki President Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 4
Slide 5: FY2019 Q4 Performance Results
FY2019 Q4 Performance Results Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 5
Slide 6: Total Sales by Quarter
Total Sales by Quarter （100 million yen） （- 5.7%） Q4 sales declined from the same period of the previous year due to 253.1 240.4 238.7 the influence of foreign exchange 232.0 231.7 rates as well as to a slowdown in markets. But it nearly achieved the same level of sales as in Q3. Similarly to 2018,
Slide 7: Sales by Market 2019 Q4 vs. 2018 Q4
Sales by Market 2019 Q4 vs. 2018 Q4 （100 million yen） Automotive 153.03 - 9.4% Q4 automotive-related sales declined 138.64 from the same period of the previous year partly due to influence of foreign exchange rates. 2018 4Q 2019 4Q Q4 industrial-related sales declined from Industry the same period o
Slide 8: Sales by Region 2019 Q4 vs. 2018 Q4
Sales by Region 2019 Q4 vs. 2018 Q4 （100 million yen） Asia (excl. China/Taiwan) China/Taiwan Similarly to Q3, Q4 sales in Asia (Japan/Korea/Singapore) achieved - 4.9％ almost the same level of sales as in - 0.1% 64.28 the previous year. Q4 sales in China 61.11 50.28 50.21 continued to be lower than i
Slide 9: Operating Income
Operating Income （100 million yen） Vs Previous Year Q4 operating declined from the same （- 19.5%） period of the previous year, but the 15.6 margin of decrease became smaller. 12.5 Operating income in the 2nd half of 2019 significantly improved from the 1st half. Both amount and ratio of Q4 4Q 4Q 201
Slide 10: FY2019 Full-Year Performance Results
FY2019 Full-Year Performance Results Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 10
Slide 11: Total Sales
Total Sales （100 million yen） 975 943 1000 902 2019 sales declined from 2018. However, with 513 strong sales in the 2nd half, 500 we were able to achieve the 2nd highest sales in 0 2019. 2012 2013 2014 2015 2016 2017 2018 2019 Stage I Stage II Stage III (2012-2014) (2015-2017) (2018-2021) Master Pla
Slide 12: FY2019 Sales Breakdown
FY2019 Sales Breakdown （100 million yen） Automotive Share of Sales in 2019 2019 570 Consumer (- 7.6%) Electronics 2018 617 21.8% Automotive Industry Industry 60.4% 17.8% 2019 167 (- 4.9%) 2018 176 Shares of sales in automotive and Consumer Electronics industrial markets had been on an expanding tren
Slide 13: Operating Income
Operating Income （100 million yen） We achieved the second 62.2 highest sales in 2019. 53.8 However, 2019 operating income significantly declined 40 35.4 due to the following two reasons. 17.5 Unfavorable product (sales) mix 0 Fixed costs were not * 2018 2019 2012 2013 2014 2015 2016 2017 Stage I Sta
Slide 14: Analysis of FY2019 Operating Income
Analysis of FY2019 Operating Income Unfavorable product (sales) mix （100 million yen） Overall profitability was lowered because of a decrease of more profitable sales in Operating income 6% automotive market and an increased of ratio 5.3% less profitable sales in consumer 4.8% electronics market. 20
Slide 15: Situation in Automotive Market
Situation in Automotive Market Sales （100 million yen） Automotive-related sales that had been 617 steadily growing since the collapse of 581 600 540 570 Lehman Brothers suddenly dropped in 534 2019. Its cause was a decline of our 467 sales of existing automotive-related products. This was due to a g
Slide 16: Situation in Industrial Market
Situation in Industrial Market Sales （100 million yen） 350 Similarly to automotive-related sales, 300 industrial-related sales had been expanding through 2018, but dropped 250 in 2019. 200 176 167 The major cause was that FA-related 149 151 150 135 130 sales declined due to a slowdown in 115 CAPEX i
Slide 17: Situation in Consumer Electronics Market
Situation in Consumer Electronics Market Sales （100 million yen） 350 Expanding consumer electronics- related sales, one of the action plan 300 250 items of Mid-Term Business Plan, has 206 been progressing steadily. Its sales 200 183 159 174 179 169 in 2019 exceeded 20 billion yen. 149 140 150 We hav
Slide 18: New Products in Automotive Market
New Products in Automotive Market Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 18
Slide 19: New Products in Industrial and Consumer Electronics Markets
New Products in Industrial and Consumer Electronics Markets Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 19
Slide 20: FY2019 Q4 & Full-Year Consolidated Financial Results
FY2019 Q4 & Full-Year Consolidated Financial Results Yoshiyuki Honda CFO Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 20
Slide 21: Consolidated Quarterly Income Statement
Consolidated Quarterly Income Statement （Million Yen） FY2018.Q4 FY2019.Q3 FY2019.Q4 Change % Change % （単位：百万円） （A） （B) （C） （C)/(A) （C）/(B) S a l e s 25,314 24,040 23,871 △5.7％ △0.7％ G r o s s I n c o m e 4,089 3,521 3,491 GI % 16.2％ 14.6% 14.3％ Operating Income 1,559 1,163 1,254 △19.5％ 7.8％ OI % 6.2
Slide 22: Operating Income Analysis
Operating Income Analysis FY2018 Q4 → FY2019 Q4 （Million yen） Costs in Europe Exp. Reduction Reduction Raw Materials +50 +108 Reduction +213 Production Efficiency Up +301 FY2018 Q4 Operating Capacity Income Utilization 1,559 Down -436 2019 Q4 Operating Others +36 Income Sales Down /Product Mix 1,254
Slide 23: Full-year Consolidated Income Statement FY2019 vs. FY2018
Full-year Consolidated Income Statement FY2019 vs. FY2018 (Million yen) FY2018 FY2019 Change % （A） （B) （単位：百万円） （B)/(A) s a l e s 97,538 94,283 △3.3％ G r o s s I n c o m e 15,308 12,868 GI % 15.7％ 13.6％ Operating Income 5,383 3,543 △34.2％ OI % 5.5％ 3.8％ Financial Income △1,321 △1,358 /Expenses （Net)
Slide 24: Operating Income Analysis
Operating Income Analysis FY2018 Full Year → FY2019 Full Year Costs in (Million yen） Europe Pontiac FOREX Reduction Coil Impact Exp. +108 Production Reduction +261 +154 Efficiency +426 Raw Up FY2018 Full Year Materials +561 Operating Reduction +592 Income Revenue 5,383 Down /Product Mix -1,624 FY201
Slide 25: Operating Income Analysis: FY2019 Plan vs Actual
Operating Income Analysis FY2019 Full Year Plan → FY2019 Full Year Actual R&D Exp. （Million yen） China Wages Reduction Reduction +472 FY2019 Exp. +614 Plan Reduction Operating +741 Income 6,200 FY2019 Revenue Down Actual /Product Mix Operating -2,831 Income 3,543 Capacity Others Utilization △35 Down
Slide 26: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position （Million yen） Dec 31 Dec 31 Dec 31 Dec 31 Change Change 2018 2019 2018 2019 Current Assets 46,292 43,032 △3,260 Current Liabilities 30,155 30,630 474 Cash & Cash equivalent 4,098 3,286 △811 Trade & Other liabilities 10,392 10,184 △208 Trade & Other receiv
Slide 27: Statement of Consolidated Cash Flow
Statement of Consolidated Cash Flow （Million yen) 2018 2019 Change Jan. 1 – Dec. 31 Jan. 1 – Dec. 31 Cash Flow from Operating Activities 4,672 8,732 4,060 Income before Taxes 4,061 2,184 △1,877 Depreciation & Amortization 4,045 5,309 1,264 Net Working Capital △3,289 1,772 5,061 Others △145 △534 △388
Slide 28: FY2020 Forecast
FY2020 Forecast Tomoharu Suseki President Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 28
Slide 29: Outlook for FY2020
Outlook for FY2020 In automotive market, demands for existing products are recovering slowly. However, demands for EV/HEV-related products are expected to significantly expand as environmental issues would become more and more highlighted. In consumer electronics and industrial markets, 5G/IoT-relat
Slide 30: Forecast Sales and Profit in FY2020
Forecast Sales and Profit in FY2020 （100 million yen） 975.4 Sales Operating Income 942.8 960.0 100 Both sales and operating income 900 are expected to grow from the 80 previous year. Operating income is expected to 60 53.8 exceed 4.5 billion yen. However, 500 the amount has been changed to 4 40.0 40
Slide 31: Forecast Capital Investments in FY2020
Forecast Capital Investments in FY2020 （100 million yen） 100 89.0 Others 84.4 7.3% 80 73.5 New products Production 60 41.3% efficiency 40 30.6 39.8% 20 Increase of production 11.6% 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 As many new products are Plan planned to be introduced in Stage I Stage
Slide 32: FY2020 Forecast
FY2020 Forecast Yoshiyuki Honda CFO Copyright© 2020 SUMIDA CORPORATION. All rights reserved. 32
Slide 33: Forecast Consolidated P/L in FY2020
Forecast Consolidated P/L in FY2020 （million yen） FY2019 FY2020 Change（％） S a l e s 94,283 96,000 1.8％ Operating Income 3,543 4,000 12.9％ OI % 3.8％ 4.2％ Income before Taxes 2,184 2,800 28.1％ Net Income Attributable to Owners of Parent 1,582 2,000 26.4％ E P S ( y e n ) 58.36 73.67 Foreign Exchange Ra
Slide 34: Operating Income Analysis FY2020 vs. FY2019
Operating Income Analysis FY2020 vs. FY2019 （Million yen） （Million yen） Plus Factors Costs reduction 1,248 FY2020 Production efficiency 986 Forecast 457 Increased revenue & products mix 584 4,000 FY2019 Foreign exchange 238 3,543 Personnel cuts 128 TOTAL PLUS FACTORS 3,184 Minus Factors Wage & socia
Slide 35: 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