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SUMIDA CORPORATION

Performance Briefings

<for FY2019 Q1 ending March 31, 2019>

May 8, 2019

Today’s Speakers

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

Representative Executive Officer & President

Tomoharu Suseki

Representative Executive Officer & CFO

Yoshiyuki Honda

Today’s Program

Copyright© 2018 SUMIDA CORPORATION. All rights reserved. 3

1. FY2019 Q1 Consolidated Financial Results

ＣＦＯ Yoshiyuki Honda

2. FY2019 Q1 Performance Results & Management Policies

President Tomoharu Suseki

3. Q&A Session

FY2019 Q1 Consolidated Financial Results

Yoshiyuki Honda

CFO


Copyright© 2019 SUMIDA CORPORATION. All rights reserved.

（Million yen）

Consolidated Quarterly Income StatementComparison vs. Previous Year, Quarter

2018 Q1 2018 Q4 2019 Q1 Change % Change %

（A）（B) （C）（C)/(A) （C）/(B)

S a l e s 22,701 25,314 23,198 2.2％ △8.4％

G r o s s I n c o m e 2,913 4,089 3,089

GI % 12.8% 16.2% 13.3％

Operating Income 456 1,559 600 31.4％ △61.5％

OI % 2.0% 6.2% 2.6％

F inanc ia l Income

/ E x p e n s e s （ N e t )△15 △344 △334

Income before Taxes 441 1,215 265 △39.8％ △78.1％

I n c o m e T a x e s △127 △542 △147

Income Attributableto Owners of Parent

287 661 114 △60.2％ △82.7％

E P S （ y e n ） 10.76 24.51 4.22

5

Highest-ever Q1 sales with operating income growing from Q1 last year

Operating Income Analysis2018 Q1 → 2019 Q1

6

2018 Q1OperatingIncome

456

（Million yen）

2019 Q1Operating Income

600

FOREXimpact+184

Costsreduction

+140

China wagesup

-180Others+102


Expensesreduction

+46

CapacityUtilization

down-168

Operating income increased due to the weak renminbi, improvement of production efficiency and reduction of raw material prices etc.

Product mix-136

Production efficiency

up+156

Operating Income Analysis2018 Q4 → 2019 Q1

CapacityUtilization

down-157

7

2018 Q4OperatingIncome1,559

Productionefficiency

down-60

（Million yen）

2019 Q1Operating Income

600

Costs reduction

+69

Others-42


FOREXimpact

-86

China wagesup-90

Sales/Product mix

-344

Operating income decreased due to decrease of sales/unfavorable product mix, increase of R&D expenses and lower capacity utilization etc.

R＆D Exp.up

-249

Consolidated Statement of Financial Position

2018Dec 31

2019Mar 31

Change

Current Asset 46,292 46,496 203

Cash & Cash Equivalent 4,098 5,551 1,453

Trade & Other Receivables 19,102 18,501 △600

Inventories 18,983 18,200 △782

Others 4,109 4,242 133

Non-current asset 47,984 51,801 3,817

Tangible Asset 33,754 33,427 △327

Right-of-use asset － 4,355 4,355

Intangible Asset 6,183 6,040 △143

Goodwill 4,266 4,255 △11

Deferred Asset 2,225 2,193 △32

Others 1,553 1,529 △24

TOTAL ASSETS 94,277 98,298 4,021

2018 Dec 2019 Mar

Current Ratio 1.54 1.57

Net DE Ratio 1.05 1.08

ＣＣＣ（days） 110 112

2018Dec 31

2019Mar 31

Change

Current Liabilities 30,155 29,696 △459

Trade & Other Liabilities 10,392 8,896 △1,495

Interest-bearing Loans 15,541 16,181 640

Others 4,222 4,618 396

Non-current Liabilities 28,682 33,782 5,099

Interest-bearing Loans 24,666 29,693 5,026

Others 4,016 4,089 73

TOTAL LIABILITIES 58,838 63,479 4,640

TOTAL NET EQUITY 35,438 34,818 △619

Equity attributable to equity holders of parent

33,829 33,211 △617

Minority Interest 1,609 1,607 △2

TOTAL LIABILITIES & EQUITY

94,277 98,298 4,021

USD/yen 110.21 110.77

euro/yen 126.15 124.35

renminbi/yen 16.01 16.42

(Million yen）


Non-current assets & liabilities increased as operating lease assets & liabilities were newly recorded (IFRS No. 16).

Consolidated Statement of Cash Flow

2018 Jan-Mar 2019 Jan-Mar Change

Cash Flow from Operating Activities 1,480 2,217 736

Income before Taxes 441 265 △175

Depreciation & Amortization 913 1,283 370

Net Working Capital 991 254 △737

Others △865 413 1,279

Cash Flow from Investing Activities △2,198 △1,804 393

Capital Investments △2,056 △1,657 398

Others △142 △146 △4

Cash Flow from Financing Activities 861 1,050 188

Net Interest-bearing Debts 1,607 1,528 △78

Dividend Payment △721 △243 477

Payment of distributions to owners of

other capital instruments－ △51 △51

Others △24 △183 159

Cash & Cash Equivalent at end of period 5,329 5,551 221

（Million yen）


Capital investments continued

9


Tomoharu Suseki

President

FY2019 Q1 Performance Results

& Management Policies


Sales by Quarter

USD 109.67 107.92 110.74 112.93 110.23

Euro 133.77 130.06 129.18 129.67 125.74

◼ 2019 Q1 Sales grew by

2.2% from 2018 Q1, but

largely dropped from Q4

last year

◼ Achieved biggest-ever

Q1 sales in 2019

227.0 238.4

256.8 253.1

232.0

120

Q1

2018

Q2 Q3 Q4 Q1

2019（yen）

（+2.2%）

（100 million yen ）


Sales by Market 2018 Q1→2019 Q1

41.71 43.78

2018 Q1 2019 Q1

147.78 150.01

2018 Q1 2019 Q1

Growth rate was extremely low on the whole. Sales of many existing products did not grow, but those of EV-, actuator-related expanded.

Automotive+ 1.5%

Industry

+ 5.0%

37.52 38.20

2018 Q1 2019 Q1

Consumer Electronics

+ 1.8%


Industry sales increased due to expansion of actuator-related sales in the U.S.

Sales of smartphone-related existing key products grew.

108.38 101.09

2018 Q1 2019 Q1


Sales by Region 2018 Q1→2019 Q1

48.11 48.55

2018 Q1 2019 Q1

◼ In China, overall sales did not grow. Market-wise, automotive dropped sharply while Consumer electronics grew.

◼ In North America, sales largely increased as Pontiac’s sales were added in 2019.

◼ In Europe, overall sales did not grow as automotive-related dropped sharply.

Asia excl. China/Taiwan

+ 0.9% 53.1348.22

2018 Q1 2019 Q1

China/Taiwan

- 9.2%

17.39

37.12

2018 Q1 2019 Q1

North America/Others

+113.5%

Europe

- 6.7%

（100 million yen）


Operating Income 2018 Q1→2019 Q1

4.56

6.00

2018 Q1 2019 Q1

◼ Operating income rose compared to last year as sales expanded.

◼ A growth in operating income was small as a whole. This is because of the product mix. Lower profit margin products were sold more, while higher profit margin products were not.

◼ As inventory adjustments were made, the production volume decreased. Therefore, the capacity utilization ratio was lowered. And accordingly, production costs increased.

+ 31.6%



Outlook for Q2

◼ Comparison with Q1

✓ Overall demand is improving gradually, not strongly though.

✓ Flagship automotive business started recovering, while a

difficult situation continues in Europe.

✓ Sales in both industry and consumer electronics markets are

improving.

◼ Factors that may significantly affect our profit and loss conditions for Q2 onwards

✓ Effectiveness in Q2 of the China’s new policies for economic

growth that were announced in Q1

✓ Status of new car sales in Europe and the U.S.

✓ Impacts of Brexit on European economies

✓ Status of production of smartphones and launching of new

products

✓ Impacts on capacity utilization ratio by inventory adjustments

based on sales forecast for Q3 onwards


New sales Office in India

(as announced on April 16, 2019)

Company name Sumida Electric (India) Private Limited

Location Bengaluru, Karnataka, India:Room # 2236, Regus World Trade Centre,Brigade Gateway Campus,Rajajinagar Extn, Malleshwaram (W),Bengaluru 560055

Representatives Prasad Bakre, Fumiaki Sawada, Toh Meng Lee

Established January, 2019

Line of business Selling of electronic components

Fiscal-year end December 31

Capital 26 million India Rupee（owned 100% by Sumida group)

Start of operation April 15, 2019

Profile of the OfficeProfile of the Office

New sales office was established in India as part of our mid-term business plan, based on which we intend to further promote our sales activities focusing on automotive and industrial markets

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.


Thank you!

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