20180 q3 ir（web）final(e) mm - sumida corporation · 11/12/2018 · qav qav 1q 2q 3q 4q 1q 2q...

SUMIDA CORPORATION

Performance Briefings

<for FY2018 Q3 ending September 30, 2018>

October 31, 2018

Today’s Speakers

2Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 2

Representative Executive Officer & PresidentTomoharu Suseki

Representative Executive Officer & CFOYoshiyuki Honda

Today’s Program

Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 3

1. FY2018 Q3 Consolidated Financial Results

ＣＦＯ Yoshiyuki Honda

2. FY2018 Q3 Performance Results & Management Policies

President Tomoharu Suseki

3. Q&A Session

FY2018 Q3 Consolidated Financial Results

Yoshiyuki HondaCFO


Copyright© 2018 SUMIDA CORPORATION. All rights reserved.

（Million yen）

Consolidated Income Statement

17.Q3 18.Q2 18.Q3 Change % Change %

（A）（B) （C）（C)/(A) （C)/(B)S a l e s 23,164 23,838 25,682 10.9％ 7.7％

G r o s s I n c o m e 4,021 3,939 4,365

GI % 17.4% 16.5% 17.0％

Operating Income 1,774 1,281 2,085 17.5％ 62.7％

OI % 7.7% 5.4% 8.1％

Income before Taxes 1,673 782 1,623 -3.0％ 107.6％

Income Attributableto Owners of Parent 1,136 416 1,055 -7.2％ 153.5％

E P S ( y e n ) 42.56 15.55 39.35

FOR

EX

USD/yen 110.91 107.92 110.74

euro/yen 129.12 130.06 129.18

renminbi/yen 16.47 17.00 16.45

5

Record-high quarterly sales and operating income


（Million yen）

Consolidated Income Statement

17. Q1-Q3 Total 18. Q1-Q3 Total Change %

（A）（B) （B)/(A)S a l e s 66,532 72,223 8.6％

G r o s s P r o f i t 11,710 11,218

GI % 17.6% 15.5％

O p e r a t i n g I n c o m e 5,120 3,823 -25.3％

OI % 7.7% 5.3％

I n c o m e b e f o r e Ta x e s 4,678 2,846 -39.1％

Income Attributable toO w n e r s o f P a r e n t 3,242 1,758 -45.8％

E P S ( y e n ) 129.00 65.72

FOR

EX

USD/yen 112.19 109.44

euro/yen 124.04 131.00

renminbi/yen 16.40 16.85

6

Solid increase in sales

Operating Income Analysis2017 Q3 vs. 2018 Q3

7

2017 Q3Operating Income1,774

（Million yen）

18年Q3営業利益2,085

Raw materialsup

△220

Wages/Social insurance

up△230

Others91


Productionefficiency

up110

Capacityutilization

up160

Capacity utilization and production efficiency improved.

Sales increase/Product mix

220

R&D exp.down

40Pontiac120

Expensesdown

20

Operating Income Analysis2018 Q2 vs. 2018 Q3

CapacityUtilization up

30

8

（Million yen）



Production efficiency

up50


Pontiac50

Others84

FOREXimpact

230

Wages/Social

insurance up△80

Sales up/Product mix

150Special Exp.only in Q2

200

Exp.down130

Solid sales, improvement of profit.

R&DExpenses

up△40

Consolidated Statement of Financial Position

2017Dec 31

2018Sep 30 Change

Current Assets 44,986 48,120 3,133

Cash & Cash equivalent 5,375 5,338 △37

Trade & other Receivables 19,469 19,807 338

Inventories 17,011 18,872 1,860

Others 3,129 4,101 972

Non-current Assets 39,379 48,556 9,177

Tangible Assets 30,388 33,680 3,292

Intangible Assets 2,228 5,981 3,752

Goodwill 2,006 4,523 2,516

Deferred Assets 3,309 2,870 △438

Others 1,447 1,501 53

TOTAL ASSETS 84,366 96,677 12,310

2017 Dec 2018 Sep

Current Ratio 1.28 1.13

Net DE ratio 1.07 1.39

ＣＣＣ（days） 100 108

2017Dec 31

2018Sep 30 Change

Current Liabilities 35,117 42,699 7,582

Trade & Other Liabilities 10,721 11,045 324

Interest-bearing loans 19,957 26,697 6,740

Others 4,438 4,956 517

Non-current Liabilities 19,126 23,053 3,926

Interest-bearing loans 15,879 19,177 3,298

Others 3,247 3,875 628

TOTAL LIABILITIES 54,243 65,753 11,509

TOTAL EQUITY 30,122 30,923 801Equity attributable to equity holders of the parent

28,570 29,265 694

Minority Interest 1,551 1,658 106

TOTAL LIABILITIES & EQUITY 84,366 96,677 12,310

USD/yen 112.66 113.40

euro/yen 134.71 131.75

renminbi/yen 17.23 16.43

（Million yen）


Consolidated Statement of Cash Flow

For 9 months through Sep 30,

2017

For 9 months through Sep 30,

2018Change

Cash Flow from Operating Activities 3,042 4,006 964Income before Taxes 4,678 2,846 △1,831Depreciation & Amortization 2,390 2,924 534Net Working Capital △2,727 △1,852 875Others △1,298 87 1,385

Cash Flow from Investing Activities △5,941 △12,902 △6,961Capital Investments △6,194 △7,096 △902Acquisition of shares of subsidiary － △5,991 △5,991Others 253 185 △67

Cash Flow from Financing Activities 5,124 9,026 3,902Net Interest-bearing debts 1,869 10,136 8,266Revenue from Issuance of New Shares 3,985 － △3,985Dividend Payment △670 △1,040 △370Others △61 △69 △8

現⾦及び現⾦同等物四半期末残⾼ 5,809 5,338 △471

（Million yen）


Still room for Improvement of Cash flow from operating activities and inventory.

10


FY2018 Q3 Performance Results

& Management Policies

Tomoharu SusekiPresident

Sales by Quarter

12

Renewed highest-ever quarterly sales record, exceeding 25 billion yen/qtr. for the first time

231.6 236.2 227.0

238.4 256.8

120

3Q 4Q 1Q 2Q 3Q

USD 110.91 112.54 109.67 107.92 110.74

Euro 129.12 132.73 133.77 130.06 129.18

（100 million yen)

2017 2018


� Sales from existing business without Pontiac Coil also achieved record quarterly sales

（+10.9%）

Sales by Market 2017 3Q � 2018 3Q

13

Overall sales continued strong with a substantial growth

39.59 47.13

2017 3Q 2018 3Q

144.64 162.96

2017 3Q 2018 3Q

Automotive+ 12.7%

IndustryIndustry+ 19.0%

47.41 46.74

2017 3Q 2018 3Q

Consumer ElectronicsConsumer Electronics△ 1.4%

（100 million yen）


RFID- and FA-related business continued expanding

Total Consumer Electronics sales increased from 2Q. Growth of smartphone-related sales was lower than our expectations

Sales by Region 2017 3Q � 2018 3Q

14

� Sales expanded in all regions excluding China/Taiwan

� Sales in North America significantly increased with three months’ Pontiac Coil’s sales included (one month sales added in 2Q)


46.13 50.77

2017 3Q 2018 3Q

Asia excl. China/TaiwanAsia excl. China/Taiwan

+ 10.1% 60.90 60.23

2017 3Q 2018 3Q

China/TaiwanChina/Taiwan△ 1.1％

18.3933.93

2017 3Q 2018 3Q

North America/OthersNorth America/Others

+ 84.5%

EuropeEurope+ 5.3%

106.22 111.90

2017 3Q 2018 3Q


Operating Income by Quarter

15Copyright© 2018 SUMIDA CORPORATION. All rights reserved.

Renewed biggest-ever quarterly operating income record, exceeding 2 billion yen/qtr. for the first time

� Operating income excluding Pontiac Coil’s also achieved quarterly record, substantially exceeding 2017 3Q

� Production-related troubles occurred in the first half year have been almost solved

15.66

17.80 17.74

10.98

4.57

12.82

20.85

0

10

20

1Q 2Q 3Q 4Q


2017 2018 2017 2018 2017 2018 2017 2018

（+17.5%）

Sales in Automotive Market by Quarter


� Significant sales increase year-on-year in automotive-related business

� Pontiac Coil’s sales were added to the group’s total. EV-related sales are increasing, as well

144.6

152.9

163.0

110

135

160

QAV QAV 1Q 2Q 3Q 4Q 1Q 2Q 3Q2015 2016 2017 2018


Strategies for Automotive Business


� Sales trend of 3 key productsABS HID Keyless Entry System

� We will focus on the following two growth areas, so as to keep total Automotive business growing more and more

Total sales of these three products are expected to slow down in Stage III compared to the previous stages

Slightly UP Down Up

EV/HEV Actuator

Information on this page is extracted from previously announced “MTBP”

Explained last time

Will be explained today

What is Actuator?


� Actuator is one of the applications of coil products, which is used for many applications in automotive-related markets. ABS-related coils fall into this group

� Almost 100% of products of Pontiac Coil, Inc. that joined Sumida group this June, are actuator-related, and are produced and sold for the Automotive- and Industry-related markets

InductorInductor AntennaAntenna

TransformerTransformer ActuatorActuator

ModuleModule

Coil

Application Examplesー Existing Businesses


ABS-related coils

Air suspension coils

Fuel supply control coils

Air conditioner control coils

Pontiac Coil, Inc.


Headquarters/Plant (Michigan,

USA)

Plant (Arkansas, USA)

Vibration control-related coils

Fuel supply control coils

Hydraulic control valve coils

Progresses of new MTBP


� Issuing ESG/CSR Report in December, 2018� Seek further synergy with Pontiac Coil through PMI activities

Overall

� Review new projects strategies and product-lineups to put resources more into businesses that are growing. Selling a part of technologies and assets is one of the options

� Demands for Automotive, Consumer Electric and Industry markets vary depending on regions and applications

Existing businesses

M&A

� New M&A candidates are under study to achieve the goals of MTBP � Cooperation with universities and research institutes started in the

areas of new products and new technologies

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 specific future events

and financial performance. Such statements are based on currently available information, and

by their nature are subject to various risks and uncertainties that could cause actual results to

differ materially from those projected or implied in “forward-looking statements” and from

historical trends.

These risks include but are not limited to domestic and global economic business conditions,

successful execution of our strategy and our ability to realise the resulting benefits, our ability

to develop and market new products, changes in legislation, legal claims, changes in exchange

and interest rates, changes in tax rates, actuarial assumptions, raw materials and employee

costs, our ability to restructure our operations, the rate of technological changes, political,

economic and other developments in countries where Sumida operates, industry consolidation

and competition. As a result, Sumida’s actual future results may differ materially from the plans,

goals and expectations set forth in such forward-looking statements. Sumida is under no

obligation to, and expressly disclaims any obligations to, update or alter its forward-looking

statements, whether as a result of new information, subsequent or otherwise.

Sumida is under no liability of any person in respect of any loss and damage which may be

suffered or incurred or which may arise directly or indirectly in respect of information contained.

All rights, including, but not limited to the copyright, reserved. No part of this document may be

reproduced in any means without the prior written permission of Sumida.

20180 q3 ir（web）final(e) mm - sumida corporation · 11/12/2018 · qav qav 1q 2q 3q 4q 1q 2q...

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