Presented by: Shigeyuki Yawata& Yoshiyuki Honda · 2012. 2. 20. · • Strong regional sales in Japan & US. ... • Domestic market had weak sales due to disasters. • Good performance

Monday, 20th

February 2012

Presented by:

Shigeyuki Yawata & Yoshiyuki HondaChief Executive Officer & Chief Financial Officer, Sumida Corporation

Agenda

2Copyright© 2012 SUMIDA CORPORATION. All rights reserved.

FINANCIAL PERFORMANCE IN 4Q & FY 2011

BUSINESS PERFORMANCE IN 4Q & FY 2011

BUSINESS OUTLOOK FOR 2012

BUSINESS PERFORMANCE IN 4Q & FY 2011

“A difficult year for all”

Presented by Shigeyuki YawataChief Executive Officer

Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 3

2011: A Difficult Year for All

• Some underlying resilience and adaptability to external disruptions & volatility visible in

performance:

– Reasonable performance despite two significant disruptions and Japanese Yen appreciation against Euro

– Global operation with triple “3 division”

operation gave positive effect

• OP dropped significantly due to Copper price, increasing labour

costs & FOREX rates.Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 4

Key Points on 2011 Performance

• Reasonable performance despite two significant disruptions to electronics

industry supply chain in Asia.• Significantly weak 4Q.

• Strong regional sales in Japan & US.• Reasonable sales in Europe & Rest of Asia.• Weak sales in ASEAN & G. China region due to

weak consumer market.


2011 in Review: Performance by Market

• Consumer Electronics: Remained weak due to weak market. Smartphone

and

Tablet PC related products were only products showing significant growth.

• Automotive: Boasted strong sales throughout the year

• Industrial: Increased businesses in renewable energy applications


2011 in Review: Consumer ElectronicsOBSERVATIONS:• Market growth is weak, especially for flat panel TVs.

Price competition is high.• Need to strengthen market position and profitability

by tapping into niche areas.

PRODUCT HIGHLIGHTS:• Extension to product line up for Portable Devices:

Multilayer Power Chip Inductors

High Current Power Inductors

Transformers for Power Supply


2011 in Review: AutomotiveOBSERVATIONS:• Domestic market had weak sales due to disasters.• Good performance in EU/US market. Further

business wins in EV/HEV power charging related products.

PRODUCT HIGHLIGHTS:• Further business wins in new generation models

with our main products such as Ignitor

and ABS.• Further design‐ins with OEM’s & TIER‐1 for HEV/EV

application, such as high power on board charger for EV.


2011 in Review: IndustrialOBSERVATIONS:• Built up the basis for growth in renewable energy

market with strategic partners• Further growth in medical applications

PRODUCT HIGHLIGHTS:• “High Reliability Application”

Products Development

• Further design wins in reactor and modules for Solar Inverters

• Products for energy saving LED drivers


2011 in Review: Product Category


Please note: Segmentation by product category are based on internal approximates

(in JPY, millions)2009 2010 2011Sales Sales Sales

Power Related 23,405 28,239 25,332Signal Related 4,468 5,480 5,414

Sensor & Actuators 7,371 9,006 10,342Modules 4,684 5,931 6,180

EMS 2,395 2,872 3,368Flexible Connections 1,329 1,919 2,122

BUSINESS OUTLOOK FOR 2012

“Challenging times with opportunities ahead”

Presented by Shigeyuki YawataChief Executive Officer


What We Expect in 2012+

• Key Assumption:– Global Economy is still in the process of “re‐balancing”.

– Slow growth is expected in all markets over the next 3 years.

– FOREX volatility is likely to continue making mid‐term forecasting difficult.

Market restructuring will likely happen in the Consumer Electronics Industry.

Automotive market will have stable growth and continue to have high growth in car electronics.

Industrial market will have high growth.Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 12

Revised Planning Approach

• Current mid‐term business plan for 2010‐2012 now not relevant because of changed external environment.

• Critical for success in volatile environment – flexible business planning process.

• A long‐term master plan to guide a series of mid‐ term business plans with the focus on key

initiatives rather than quantitative targets for a number of years.


Sumida’s Planning Framework

• Need for a flexible yet clear vision for the company.

• Serves as a roadmap for our corporate development.

• Staged planning approach:

Stage I ‐

Realignment & Foundation Building

Stage II ‐

Market Development & Growth

Stage III ‐

Growth & Diversification

• Focus on execution: Training, implementation & benchmarking.


BP 2012-2014

Triple EX (’08-’10)

Stage II Stage III

BP 2015-2017 BP 2018 ++foundation

Stage I

Master Plan 2012-2017 & Beyond

Stage I: Business Plan 2012 to 2014 KEY INITIATIVES1.

Profitability:

Focus on productivity, strict expense control

and inventory management to speed up reduction of debt.2.

Cash Management: Repayment of debts and improvements

to multi‐currency cash flow management to revive our balance sheet.

3.

Product Management: Introduction of new products to increase the number of markets we are present in & further

development of existing successful

product lines to increase market share.

4.

Build on our existing resilience and adaptability: Geographical, market & currency diversification for hedging

risks.


Stage I: Growth in a Slow Growing Environment

Given

the

low‐growth

market

environment

for

the

next

3 years,

we

must

actively

seek

out

high

growth

market

segments:

•Automotive: Mechatronics, Safety and Comfort Electronics

•Power Related: Power conditioner and Smaller power supply related

•Industrial Market: Medical, Renewable energy, Security related


‐

Annual Business Plan 2012 ‐


2012 in Detail: Annual Business Plan

• Critical Assumption: 1 USD = 77 JPY and 1 EUR = 100 JPY

• Conservative approach on turnover, focus on profitability.

• Manufacturing Cost Control: Strict manufacturing overhead control

• Manufacturing Risk Diversification

e.g. against natural disasters


Dividend Policy


1Q 2Q 3Q 4Q Total

FY2011 (Actual) 7 JPY 7 JPY 6 JPY ‐

JPY 20

JPY

FY2012 (Plan) 5 JPY 5 JPY 5 JPY 5 JPY + α 20 JPY + α

1. Sumida dividend policyConsolidated Net Income (Forecast) × Dividend payout ratio

(25‐30%)

⇒

Target annual dividend = 20 JPY

/share

2. Year end adjustmentTarget annual dividend for 2012 + Year end adjustment (“α” )

BalanceBalance

Dividend according

to business performance Stable dividend

FINANCIAL RESULTS 4Q & FY 2011

Presented by Yoshiyuki Honda(Chief Financial Officer)


th


4Q 2011 Performance

2011.4Q2011.4Q 2010.4Q2010.4Q YoYYoY

(%)(%) 2011.3Q2011.3Q QoQQoQ

(%)(%)

(A)(A) (B)(B) (A)/(B)(A)/(B) (C)(C) (A)/(C)(A)/(C)

Sales 11,913 12,615 94.4 13,705 86.9

Operating

Profit 300 404 74.2 530 56.7

Ordinary Profit 2 45 6.0 82 3.3

Net Income △196 415 － 1 －

Excha

nge

Rate(JPY)

USD 76.99 82.90 92.9 79.04 97.4

EURO 105.45 112.20 94.0 113.28 93.3

unit: JPY millions


4Q 2011: Operating Profit ‐ 11.4Q vs.11.3Q

11.3Q

Operating Profit

530

11.4Q

Operating Profit

300

(unit: JPY millions)


4Q 2011: Operating Profit – 11.4Q vs 10.4Q

10.4Q

Operating

Profit

405

11.4Q

Operating

Profit

300




FY 2011 Financial Performance(unit: in JPY millions)

2011 2010 Change

Revenue 52,759 53,445 △1.3%

Operating Profit 2,110 3,569 △40.9%

Operating Profit Ratio 4.0% 6.7% △2.7%

Ordinary Profit 1,294 2,241 △42.3%

Net Income 496 2,210 △77.5%

Exchange rate – FY average

（JPY）

USD 80.25 88.32 △9.1%

EURO 111.71 118.27 △5.5%


FY 2011 Operating Profit Analysis

2010

Operating

Profit

3,5692011

Operating

Profit

2,110



FY 2011 Extraordinary Gain/Loss Analysis

2011

Extraordinary Gains

Fixed assets 42

Reversal of impairment loss 74

Others 2

Total 119

Extraordinary Loss

Loss on sales and retirement of noncurrent

assets 19

Restructuring Expense 268

Loss on change in equity 53

Loss on disaster 136

Others 58

Total 539

Extraordinary Gain /△Loss △418


FY 2011 Consolidated Balance Sheet

As of Dec 31

2011As of Dec 31

2010

Change

Difference (%)

Current Assets 26,481 27,168 △686 △2.5

Fixed Assets 20,952 22,145 △1,193 △5.4

Current Liabilities 30,613 31,318 △705 △2.3

Fixed Liabilities 9,697 9,243 454 4.9

Shareholder’s Equity 19,593 19,673 △79 △0.4

Translation Adjustment △12,914 △11,384 △1,530 13.4

Net Assets 7,186 8,848 △1,662 △8.1

Total Assets 47,497 49,410 △1,912 △3.9

Exchange

Rate(JPY)

USD 80.25 81.50

EURO 111.71 108.42

(unit: in JPY millions)



FY 2012 Earnings Forecast

2012

Forecast 2011

Actual Change

Sales 52,100 52,759 △1.2%




Net Income 665 496 33.9%

EPS（JPY） 34.61 25.85

Exchange

Rate（JPY）

Assumption

USD 77.00 80.25 △4.0%

EURO 100.00 111.71 △10.5%



FY 2012 Operating Profit Forecast

2011

Operating

Profit

2,110 2012

Operating

Profit

1,900



APPENDIX


th


4Q 2011 Performance

2011.4Q2011.4Q 2010.4Q2010.4Q YoYYoY

(%)(%) 2011.3Q2011.3Q QoQQoQ

(%)(%)

(A)(A) (B)(B) (A)/(B)(A)/(B) (C)(C) (A)/(C)(A)/(C)

Sales 11,913 12,615 94.4 13,705 86.9

Operating

Profit 300 404 74.2 530 56.7

Ordinary Profit 2 45 6.0 82 3.3

Net Income △196 415 － 1 －

Excha

nge

Rate(JPY)

USD 76.99 82.90 92.9 79.04 97.4

EURO 105.45 112.20 94.0 113.28 93.3

unit: JPY millions



11.3Q

Operating Profit

530

11.4Q

Operating Profit

300




10.4Q

Operating

Profit

405

11.4Q

Operating

Profit

300



4Q FINANCIAL PERFORMANCE BY SEGMENT

2011.4Q2011.4Q 2011.3Q2011.3Q 2010.4Q2010.4QChangeChange

QoQ YoY

Asia PacificOperations 7,921 8,871 8,066 89.3% 98.2%

EU Operations 3,991 4,833 4,552 81.7% 87.7%

Total 11,913 13,705 12,618 86.9% 94.4%

unit: JPY millions

Note: 4Q 2010 results have been rearranged to match our current segmentation format.


4Q NON‐

OPERATING INCOME／EXPENSEunit: JPY millions

11.4Q11.4Q

Dividend & Interest Received △148

Holland Financing SubsidiaryNetting △4

JPY interestpayment △45

Derivatives from acquisitions 22

Others △121

Non‐operating Income △296


FY2011 QUARTERLY PERFORMANCE

1Q1Q（（ActualActual））


3Q3Q(Actual(Actual））


Sales 13,259 13,880 13,705 11,913

Operating Income 618 661 530 300

Exchange Rate

(JPY)

USD 82.87 82.10 79.04 76.99

EURO 110.08 117.05 113.28 105.45

unit: JPY millions


PERFORMANCE BY QUARTER

02.1Q02.1Q 02.2Q02.2Q 02.3Q02.3Q 02.4Q02.4Q 03.1Q03.1Q 03.2Q03.2Q 03.3Q03.3Q 03.4Q03.4Q

Sales 8,955 9,349 8,474 8,018 7,202 7,162 8,033 8,140

Operating Income 504 592 641 433 301 571 709 813


Sales 8,187 9,179 9,519 9,361 9,424 9,700 10,225 10,317

Operating Income 764 979 1,036 832 708 704 845 926


Sales 14,806 14,953 16,587 17,162 16,888 18,402 17,885 17,035

Operating Income 1,082 1,125 1,356 608 705 1,253 1,438 1,316


Sales 14,835 15,479 14,701 10,719 8,579 10,065 12,323 12,683

Operating Income 1,042 1,051 819 △745 △1,344 △377 619 868


Sales 12,894 14,107 13,828 12,615 13,259 13,880 13,705 11,913

Operating Income 1,025 1,036 1,102 404 618 661 530 300

unit: JPY millions


PERFORMANCE BY QUARTER



FY 2011 Financial Performance(unit: in JPY millions)

2011 2010 Change

Revenue 52,759 53,445 △1.3%




Net Income 496 2,210 △77.5%

Exchange rate –

FY

average

（JPY）

USD 80.25 88.32 △9.1%

EURO 111.71 118.27 △5.5%


FY2011 FINANCIAL PERFORMANCE BY SEGMENT

FY2011FY2011 FY2010FY2010 ChangeChange

Asia PacificOperations 33,865 34,757 97.4%

EU Operations 18,894 18,688 101.1%

Total 52,759 53,445 97.7%

unit: JPY millions

Note: FY2010 results have been rearranged to match our current segmentation format.


PERFORMANCE BY YEAR

US$ 109.29 116.28 117.65 103.42 93.68 88.32 80.25

Euro 137.17 145.77 161.29 152.33 129.58 118.27 111.71


FY 2011 Operating Profit Analysis

2010

Operating

Profit

3,5692011

Operating

Profit

2,110



NON‐

OPERATING INCOME／EXPENSEunit: JPY millions

FY2011FY2011

Dividend & Interest Received △471

Holland Financing SubsidiaryNetting 49

JPY interestpayment △195

Derivatives from acquisitions △70

Others △128

Non‐operating Income △816


FY 2011 Extraordinary Gain/Loss Analysis

2011

Extraordinary Gains

Fixed assets 42

Reversal of impairment loss 74

Others 2

Total 119

Extraordinary Loss

Loss on sales and retirement of noncurrent

assets 19

Restructuring Expense 268

Loss on change in equity 53

Loss on disaster 136

Others 58

Total 539

Extraordinary Gain /△Loss △418


FY 2011 Consolidated Balance Sheet

As of Dec 31 2011

As of Dec 31 2010

Change

Difference (%)

Current Assets 26,481 27,168 △686 △2.5

Fixed Assets 20,952 22,145 △1,193 △5.4

Current Liabilities 30,613 31,318 △705 △2.3

Fixed Liabilities 9,697 9,243 454 4.9

Shareholder’s Equity 19,593 19,673 △79 △0.4

Translation Adjustment △12,914 △11,384 △1,530 13.4

Net Assets 7,186 8,848 △1,662 △8.1

Total Assets 47,497 49,410 △1,912 △3.9

Exchange

Rate(JPY)

USD 80.25 81.50

EURO 111.71 108.42



CONSOLIDATED CASH FLOW STATEMENTS

FY2011 FY2010

Cash Flow from Operating Activities 1.536 3,095

Cash Flow from Investment Activities △2,493 △1,794

Cash Flow from Financing Activities 1,160 △2,191

Cash and Cash Equivalents 6,851 7,275

unit: JPY millions）



FY 2012 Earnings Forecast

2012

Forecast 2011

Actual Change

Sales 52,100 52,759 △1.2%




Net Income 665 496 33.9%

EPS（JPY） 34.61 25.85

Exchange

Rate（JPY）

Assumption

USD 77.00 80.25 △4.0%

EURO 100.00 111.71 △10.5%



FY 2012 Operating Profit Forecast

2011

Operating

Profit

2,110 2012

Operating

Profit

1,900



DEPRECIATION, CAPEX, R&D EXPENSES

FY2011FY2011 (Actual)(Actual)

FY2010FY2010 (Actual)(Actual)

FY2012FY2012(Plan)(Plan)

Depreciation 2,201 2,515 2,600

CAPEX 2,618 2,303 2,610

R&D Expense＊ 2,380 2,202 2,500

unit: JPY millions

＊ Note: R&D Expense which is included in general administrative expense and manufacturing cost.


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

results

arising

from

your

investments.

The

Company

shall

make

no

guarantees

nor assurances for the integrity and/or accuracy of the assessment figures

and

statement

of

forecasts

set

forth

in

the

present

slides

which

are

based upon

the actual and estimated figures as of the day of disclosure.


Presented by: Shigeyuki Yawata& Yoshiyuki Honda · 2012. 2. 20. · • Strong regional sales in Japan & US. ... • Domestic market had weak sales due to disasters. • Good performance

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