Shigeyuki Yawata Representative Executive Officer & … 2,349 2,406 58 Non - current Assets 32,286...

SUMIDA CORPORATION

Performance Briefings

< for FY2017 Q1 ending March 31, 2017 >

May 11, 2017

Today’s Speakers

2Copyright© 2016 SUMIDA CORPORATION. All rights reserved.

Representative Executive Officer & CEOShigeyuki Yawata

Representative Executive Officer & PresidentTomoharu Suseki

Representative Executive Officer & CFOYoshiyuki Honda

Today’s Program

Copyright© 2015 SUMIDA CORPORATION. All rights reserved. 3

１．Summary

CEO Shigeyuki Yawata

２．FY2017 Q1 Consolidated Financial Results

ＣＦＯ Yoshiyuki Honda

3. FY2017 Q1 Performance and Capital Increase

President Tomoharu Suseki

4. Q & A Session

Summary

CEOShigeyuki Yawata

Copyright© 2017 SUMIDA CORPORATION. All rights reserved.

Issuance of New Shares

5

Previous timeTiming：April, 2013

*Number of shares issued：4,000,000Issuance price：４８６ yen/shareFunds raised：Approx. 1.8５ billion yen

This timeTiming：April, 2017

*Number of shares issued：3,500,000Issuance price：1,196 yen/shareFunds raised：Approx. 4 billion yen

＊Number of shares includes shares sold through overallotment.


I am going to briefly touch on the performance of the first quarter of 2017, the details of

which will be explained by CFO Honda and President Suseki after my presentation.

Total sales increased 20% from the previous year. In addition to the existing three main

products, ABS, smart entry and HID lamp, products for LED lamp and EV have been

beginning to grow in Japan, expanding gradually the range of the automotive business.

In terms of profit, operating income and net income increased 20% and 58% respectively

compared to a year earlier due to improvement of production efficiency in addition to

increased revenue. As a result, 2017, the final year of the Mid-Term Business Plan

Stage II got off to an awfully good start.

Sumida executed capital increase by way of a public offering and raised approximately 4

billion yen, which is more than double the size of funds raised by capital increase four

years ago

‘12-’14 Mid-term Plan

Stage II Stage III

‘15-’17 Mid-term Plan

‘18～’21Mid-term Plan

Stage ISales: ¥100 billion Sales: ¥100 billion↑Sales : ¥60.0 billion

Stage I: Groundwork & Operational Restructurings

Actual Sales : ¥77.5 billion

Operating income: ¥3.3 billion

‘12 – ‘14

Stage II: Market Development & Growth

Plan Sales : ¥100 billion

Operating income : ¥5 billion

‘15 – ‘17

Stage Ⅲ: Growth & Diversification

Plan Sales: ¥100 billion ↑Operating income : ¥10 billion ↑

’18～’21

Master Plan for 2012-2021

Stage III is to aim for at least ¥10 billion operating income Copyright© 2015 SUMIDA CORPORATION. All rights reserved. Strictly Confidential.

32

Master Plan

With the largest-ever capital investment in the history of Sumida in 2017 backed by the

funds raised through capital increase, we aim to achieve growth outweighing a dilution

of equity brought by the newly-issued shares. Currently, all employees within Sumida

organization are putting their efforts into developing a detailed plan for the Stage III

aiming for at least 10 billion yen operating income, which will be made public at an

appropriate time.

FY2017 Q1 Consolidated Financial Results

CFOYoshiyuki Honda



（Million yen）

Consolidated Income Statement（based on *IFRS）

16.Ｑ1 16.Q4 17.Q1 Change % Change %

（A）（B) （C）（C)/(A) （C）/(B)

S a l e s 20,603 19,651 21,599 +4.8% +9.9%

G r o s s I n c o m e 3,354 3,391 3,698

GI % 16.3％ 17.3％ 17.1％

O p e r a t i n g I n c o m e 1,223 1,233 1,566 +28.0% +37.6%

OI % 5.9％ 6.3% 7.2％

Income before Tax 983 1,062 1,398 +41.9%

Income Attributable toO w n e r s o f P a r e n t

596 1,111 939 +18.5%

E P S （ y e n ） 25.69 47.90 40.48

FO

REX

US $/yen 117.22 106.07 114.61

euro/yen 128.25 115.63 121.27

renminbi/yen 17.94 15.61 16.60

Sales & Profits have increased compared with past quarters

※Sumida adopted IFRS starting FY2017 Q1. Figures in the past quarters were restated with IFRS.

Operating Income Analysis2016 Q1 → 2017 Q1

2016 Q1Operating Income1,223

（Million yen）


Effect ofFOREX△50

Raw MaterialsPrice Up

△150 China Wages Up

△120

Others23


ProductivityUp

120

Ｒ＆ＤCosts UP

△70

Sales Increase

390

Operating income increased due to increase of sales and production

Production Increase

200

Operating Income Analysis2016 Q4 → 2017 Q1

Costs Reduction

180


Sales Increase/Product Mix

210

（Million yen）


Raw MaterialsPrice Up

△80

Others63


Productivity Up10

Ｒ＆ＤCosts

Increase△50

Consolidated Statement of Financial Position

(based on *IFRS)

2016 Dec 31

2017Mar 31

Change

Current Assets 36,720 36,058 △661

Cash & Deposits 3,546 3,750 204

Trade & Other Receivables 17,208 16,094 △1,114

Inventories 13,617 13,807 189

Others 2,349 2,406 58

Non-current Assets 32,286 31,481 △805

Tangible Assets 23,549 22,977 △571

Intangible Assets 2,297 2,270 △26

Deferred Assets 3,235 3,060 △175

Others 3,205 3,173 △31

TOTAL ASSETS 69,007 67,540 △1,466

2016 Dec 2017 Mar 2016 Mar

Current Ratio 1.36 1.17 1.34

DE Ratio 1.38 1.39 1.78

ＣＣＣ（days） 100 99 105

2016Dec 31

2017Mar 31

Change

Current Liabilities 26,735 31,044 4,308

Trade & Other Payables

9,543 9,261 △281

Interest-bearing Loans 3,748 4,647 899

Others 13,444 17,134 3,690

Non-current Liabilities 20,249 14,947 △5,302

Interest-bearing Loans 17,780 12,490 △5,289

Others 2,469 2,456 △12

Total Liabilities 46,984 45,991 △993

Total Net Equity 22,022 21,549 △1,865

Equity attributable to equity holders of the parent

20,629 20,167 △1,854

Minority Interest 1,392 1,381 △11

TOTAL 69,007 67,540 △1,466

US $/yen 117.05 111.80

euro/yen 123.03 119.56

renminbi/yen 16.82 16.22

（Million yen)


*Sumida adopted IFRS starting FY2017 Q1. Comparative figures were restated with IFRS.

Consolidated Statement of Cash Flows

2016 Ｑ1 2017 Ｑ1 Change

Cash Flow from Operating Activities 1,724 2,253 529

Income before Tax 983 1,398 415

Depreciation 724 778 54

Net Working Capital 574 136 △437

Others △558 △59 498

Cash Flow from Investing Activities △1,172 △1,228 △56

Capital Investments △1,190 △1,224 △33

Others 18 △4 △23

Cash Flow from Financing Activities 748 △687 △1,435

Net Interest-bearing Debts 1,024 △294 △1,318

Dividend Payment △255 △371 △116

Others △21 △20 △0

Cash and cash equivalent at end of period 4,590 3,750 △839

（Million yen）


Consolidated Statement of Cash Flows

Operating cash flow increased due to increase of income before tax

Effect of Foreign Exchange Rates


Impact of fluctuations of foreign exchange rates on FY2017 full year forecast

Currencies

2017Forecast

exchange ratesFluctuations

Impact on FY2017 Forecast

SalesOperatingIncome

US $/yen 114.00every 1 yen

appreciation-244 +24

euro/yen 121.00every 1 yenappreciation

-304 -52

renminbi/yen 16.40every 0.1 yen appreciation

-44 +4

（Million yen）

FY2017 Measures & Policies

including Capital Increase

- To cope with Business Environment Surrounding Sumida -

President

Tomoharu Suseki


Markets in Europe and China continue strong while global markets have been expanding.

Automotive Market


Business Environment by Segment

FA related sales for China recovered and still keep growing.

Industry Market

Smartphone related sales which usually slow down in Q1 remain steady this year without significantly dropping.

Consumer Electronics Market

2016 1Q 2017 1Q

Sales by Segment -- 2016 Q1 vs. 2017 Q1

Sales increased in all markets

Automotive

Keyless & others

Industry

RFID & others

Consumer Electronics

Smartphone & home electronics for Chinese market

Automotive +3.1%

2016 1Q 2017 1Q

Industry

+7.2%

2016 1Q 2017 Q1


+10.7%


2016 1Q 2017 1Q

Sales by Region – 2016 Q1 vs. 2017 Q1

17

Sales increased in all regions

Especially, significant increase in China

Smartphone

Home Electronics

Automotive

Asia（except

China & Taiwan)

+9.2%

2016 1Q 2017 1Q

China/Taiwan

+14.1%

2016 1Q 2017 1Q

North America/Others

+1.4%

2016 1Q 2017 1Q

Europe

+0.1%


12.23

15.66

2016 1Q 2017 1Q

Operating Income (based on IFRS)

18

Operating income substantially increased

due to;

Sales growth

Chinese New Year having been overcome without any problem


+28.0%

Many new projects related to EV/HEV will be launched in a few years with keyless-related products continuing strong.

RFID is expected to grow, which will expand the total industry business along with FA-related products for Chinese makers.

Smartphone body-related products will be launched in Q2, bringing additional sales.


Expectations in Each Market

19

Automotive

Industry


To cope with new/additional

automotive production

Expansion of factory buildings

Capital investments in new

production lines

Strengthen R&D facilities


Use of Funds Raised by Capital Increase

20

R&D facilities/

others

New production

lines

Expansion of

production sites

Investments preparing for Master Plan Stage III

Total funds: approx. 4 billion yen

New Factory Buildings – China

21

Sumida Electric (JI‘AN) CO., Ltd.（JI’an, Jiangxi, China）


As two buildings built in 2015

as Phase I will be fully utilized

by end of this year, additional

three buildings need to be build

in 2017 as Phase II.

All three buildings will be used

for production of new

automotive products.Phase IIPhase II

Factory Expansion - No. 2 Factory in Vietnam

22

SUMIDA ELECTRONIC QUANG NGAI CO., LTD.（Quang Ngai, Vietnam）


Opened in June, 2016, 1st

floors of the existing buildings

have almost been full with 800

workers.

A new building will be built to

accommodate production of

consumer electronics-related

products which is scheduled to

be transferred from China.

Factory Expansion - Romania

23

SUMIDA ROMANIA S.R.L.


Main production site in

Europe

Factory building needs to be

expanded for launching of

new automotive-related

products to be supplied

mainly to customers in

Europe

Copyright© 2016 SUMIDA CORPORATION. All rights reserved. Strictly Confidential.

Factory Expansion - Slovenia

24

SUMIDA Slovenija,d.o.o.

New

Major production site in

Europe next to Romania

Factory building needs to be

expanded for launching of

new automotive products to

be supplied to customers in

Europe and North America

Automated production lines

for automotive products - China

25Copyright© 2017 SUMIDA CORPORATION. All rights reserved.

Manual lines

To promote further

production automation

for automotive products

Especially, to aim at

producing newly-launched

automotive products on

automated lines from the

beginning.

Automated lines：Power inductor/ABS

Strengthen R&D Facilities in Germany

26

SUMIDA AG（Germany）


Erlau Project House

A new laboratory building

is being constructed in

Erlau, Germany (two hours

from Munich by car), a

main development site in

Europe to accelerate

development of automotive

and industry-related

products for European

customers.

Disclaimer Regarding Forward Looking Statements

Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 33

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.

Shigeyuki Yawata Representative Executive Officer & … 2,349 2,406 58 Non - current Assets 32,286...

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