performance briefings presented by...2015/04/30 · (million yen) operating income change analysis...
TRANSCRIPT
SUMIDA CORPORATION
Performance Briefings
<For 1ST Quarter 2015>
• April 30, 2015
Today’s Speakers
Consolidated Financial Results Presented by
Representative Executive Officer &CFOYoshiyuki Honda
Performance Review & Management PoliciesPresented by
Representative Executive Officer &CEOShigeyuki Yawata
<For 1St Quarter 2015>
CEO
Shigeyuki Yawata
Copyright© 2014 SUMIDA CORPORATION. All rights reserved.
Performance Review
& Management Policies
Consolidated P/L
(Million yen) 2014-Q1 2015-Q1 Change
Sales 18,647 21,585 2,938 15.8%
Operating Income 524 1,003 479 91.4%
Ratio (%) 2.8% 4.6% 1.8%
Ordinary Income 344 911 567 164.8%
N e t I n c o m e 246 618 372 151.2%
Record quarterly sales with Automotive-related continued strong (Japan, U.S. & Europe) and smartphones in great demand in Asia
5Copyright© 2014 SUMIDA CORPORATION. All rights reserved.
Fortunately, we had a very good performance for the first quarter. Total sales of 21,585
million yen broke the quarterly sales record set in the third quarter last year by 1,280
million yen. Sales of automotive-related, our core business, were steady in Europe and
the U.S. as well as in Japan. In Asia, consumer electronics-related sales increased
thanks to continued growth of smartphones. From a profit perspective, in addition to
increased revenue, average 10% reduction of copper price from our estimate and
less-than-expected adverse effects on our operations by the Chinese New Year as well as
the delay of China wage increase from the first quarter to the second quarter, all
contributed to profit increase. As a result, operating income exceeded 1 billion yen.
Sales by Market Segment
• AutomotiveContinued strong in Japan, the U.S.
and Europe
• Consumer ElectronicsSmartphone continued growing
beyond expectation
• IndustrySolar power generators for household
use continued in strong demand
Sales in every market segment broke the quarterly sales record set in Q3 2014
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
-Q1 -Q2 -Q3 -Q4 -Q1 - 2 - 3 - 4 - 1
Automotive Consumer Electronics インダストリー
(Million yen)
Quarterly sales by market segment
6Copyright© 2014 SUMIDA CORPORATION. All rights reserved.
When looking at sales by market segment, automotive-related sales were strong in all
markets we are in. For consumer electronics, as explained in the previous slide, a strong
demand for smartphone has been continuing. For industry-related market, sales of
solar power generators for household use in Japan have been strong since near the end
of last year.
Sales by Region
• North America
New car sales steadily increasing
thanks to cheap gasoline
(Up 5.6% in Q1 from last year)
• Japan
Sales for household-use solar panels
continued strong in addition to
automotive-related
• China(Asia)
Smartphones continued growing
• Europe
Consumer spending picking up due to
increased real income generated by
improved employment and falling oil
price
0
1,000
2 ,000
3 ,000
4,000
5,000
6 ,000
7 ,000
8 ,000
9 ,000
13-Q4 14-Q1 14-Q2 14-Q3 14-Q4 15-Q1
Japan Asia Europe North America
Healthy sales increase in every region with automotive-related (Japan, U.S. & Europe) and smartphones in Asia serving as the driving forces
Quarterly sales by region
(Million yen)
7Copyright© 2014 SUMIDA CORPORATION. All rights reserved.
Next, I will go over sales by region. Basically, all regions fared quite well. In the United
States, a good economy combined with a cheep gasoline boosted automotive-related
business with new car sales for January-March up 5.6% from a year earlier. In Europe,
improvement of employment and falling oil price increased real income and bolstered
consumer spending, which significantly contributed to our sales increase in the first
quarter. We expect this trend to continue in the second quarter. However, in the third
quarter and beyond, we have a rather conservative forecast due to a weak euro and
wage increase in China.
Copyright© 2014 SUMIDA CORPORATION. All rights reserved. Strictly Confidential. 8
Performance-linked Stock Option
FY2014
Actual net income
1,346
Million yen
FY2017
Net income target
2,600 Million yenEPS more than100 yen
Net Income
93% increase
CAGR 24.5%
As already announced, performance-linked stock option plan was approved at the
annual general meeting of shareholders held in March. This stock option that was given
to five executive officers and 35 key members of Sumida group companies will be
exercisable only when net income target of 2.6 billion yen is achieved in 2017, the final
year of the second stage mid-term business plan (2015-2017). Given that last year’s net
income was 1.35 billion yen, achieving the target of almost the double that amount in
three years is not so easy. But I believe that the stock option plan will definitely enhance
their motivation to work hard to achieve the target. Once the option is exercised the
treasury stock at hand will be used for distribution.
Copyright© 2014 SUMIDA CORPORATION. All rights reserved. Strictly Confidential. 9
Appointment of New Outside Directors
Mr. Michael Mühlbayer
Mr. Atsushi Kato (CPA)
As a partner with Coopers and Lybrand, he has many years’ experiences in advice services for various global companies with regard to finance, audit and internal control including IFRS.
His career includes a long-serving executive for Daimler AG in Germany
Business expansion with
Automotive-related as the
driving force
Voluntary adoption of IFRS
At the shareholders’ meeting in March, five directors were reelected and two directors
were newly appointed. One of the new directors is Mr. Michael Mühlbayer who used to
be a long serving executive for Daimler AG in Germany and is thoroughly versed in the
auto industry and the other is Mr. Atsushi Kato, an expert of IFRS as a partner with
Coopers and Lybrand. Sumida expects the automotive-related business to lead the way
in achieving the numerical targets set in the stage II mid-term business plan
(2015-2017). At the same time, we plan to adopt IFRS starting from 2017 to manage
business effectively and efficiently through evaluation of each group company’s
performance with the same set of rules. Appointment of these two new directors is
expected to strengthen monitoring functions of Sumida group.
<For 1St Quarter 2015>
CFO
Yoshiyuki Honda
Copyright© 2014 SUMIDA CORPORATION. All rights reserved.
Consolidated Financial Results
Copyright© 2015 SUMIDA CORPORATION. All rights reserved.
(Million yen)
Consolidated Quarterly P/L
2014-Q1 2014-Q4 2015-Q1 Change % Change %
(A) (B) (C) (C)/(A) (C)/(B)
Sales 18,647 19,624 21,585 15.8% 10.0%
Gross Income 3,057 3,430 3,603 17.9% 5.0%
Ratio % 16.4% 17.5% 16.7%
Operating Income 524 576 1,003 91.4% 74.0%
Ratio % 2.8% 2.9% 4.6%
Ordinary Income 344 435 911 164.8% 109.6%
Income before Taxes 406 780 728 79.2% △6.6%
Net Income 246 8 618 150.7% -
EPS (yen) 10.63 0.39 26.65
Fore
x
US$/Yen 103.31 111.94 119.03
Euro/Yen 141.69 141.15 138.06
Euro/US$ 1.37 1.26 1.16
2
Sales up 15.8% --- Record-breaking quarterly sales, Operating Income up 91.4%
Operating Income Change Analysis2014 Q1 → 2015 Q1
3
Operating Income
524
Revenue UP440
(2015-Q1)
Operating Income1,003
Forex RateEffects△161
Raw Materials Reduction
130
China Wages/Social Welfare UP
△122
Others△8
Operating income up 91% due mainly to revenue up and production costs down
Production Efficiency UP
200
Copyright© 2015 SUMIDA CORPORATION. All rights reserved.
(2014-Q1)
(Million yen)
Operating Income Change Analysis2014 Q4 → 2015 Q1
Production Adjustment
△100
4
Operating Income
576
(Million yen)
(2015-Q1)
Operating Income1,003
Forex RatesEffects△83
Expense Reduction
240
Raw MaterialsReduction
70
China Wage /Social Welfare UP
△40
Operating income up74% due mainly to revenue up and costs down
Copyright© 2015 SUMIDA CORPORATION. All rights reserved.
(2014-Q4)
Revenue UP340
Consolidated Cash Flow
2014-Q1 2015-Q1 Change
Cash Flow from operating activities △212 △573 △360
Income before taxes 406 728 321
Depreciation 768 960 192
Net working capital △1,158 △2,260 △1,101
Others △228 △2 226
Cash Flow from investing activities △1,296 △1,021 275
Capital investments △1,282 △1,109 173
Others △14 88 102
Cash Flow from financing activities 899 1,550 650
Net interest-bearing debts 1,027 1,697 670
Dividend payment △116 △115 0
Others △12 △31 △20
Cash & cash equivalent at end of period 2,862 3,491 629
(Million yen)
Copyright© 2015 SUMIDA CORPORATION. All rights reserved. 6
Account Receivables increased as revenue increased.
Disclaimer Regarding Forward Looking Statements
Copyright© 2012 SUMIDA CORPORATION. All rights reserved. 10
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.