Fiscal Year 2006（Financial Results）

FY2006 4th Quarter Financial Results

Financial Results Presentations

Date

February 27，2007

Venue

Waseda University Nihonbashi Campus

Financial Results Overview

Sales of the Fourth Quarter of 2006 gained 66.3% to ¥17,162 million from the same term last year following the favorable growth in the Coil Business, attributable to the keen expansion in the Legacy Company that consists of Power Inductor, Power Solution and Signal, in addition to the increase of Automotive and Other Companies accompanied by the contribution of the VOGT Component Company and VOGT EMS Company despite the downturn in the sales of Inverter Company. Operating income dropped 34.3% year-on-year to ¥608 million owing partly to the increase of the R&D and general and headquarters expenses and partly to the one-time amortization for the Goodwill of VOGT. This is despite the significant increase of Legacy sales, improved profitability of Other Business like STELCO, JENSEN and PANTA. Ordinary income declined 50.7% to ¥492 million resulting from the rise of interest payables and investment loss from the equity method despite the increase of exchange gain. Net income recorded a loss of ¥55 million as compared with ¥1,153 at the same term last year in which a special gain from the sales of the securities of SAIA BURGESS was accounted.

（Unit:Millions of yen）

	FY2006		FY2005		Change
	4th quarter		4th quarter		Amount	%
Net sales	17,162	100.0%	10,317	100.0%	6,845	66.3
Operating income	608	3.5%	926	9.0%	△318	△34.3
Ordinary income	492	2.9%	997	9.7%	△505	△50.7
lncome before income tax	△94	△0.5%	1,964	19.0%	△2,508	△104.8
Net income	△55	△0.3%	1,153	11.2%	△1,208	△104.8
Capital expenditure	1,149		596		553
Depreciation	1,315		456		859
Foreign exchange rate (US$)	¥119		¥118

Financial Results Materials (Click on a report title to download (PDF format).)

• 2006-02-27Presentation slides for FY2006 Analyst meeting
• 2006-02-26Financial Results for the 4th Quarter ended 31 December, 2006

FY2006 3rd Quarter Financial Results

Financial Results Presentations

Date

November 7，2006

Venue

Waseda University Nihonbashi Campus

Financial Results Overview

CEATEC (Combined Exhibition of Advanced Technologies) was held in Makuhari Messe in October which its theme for this year is "Digital Convergence – Changing Society, Lifestyles, and Business". Ongoing proliferation of digital formats in communications and broadcasting is boosting convergence in the area of content, such as information and images, as well as in the realm of the media itself. Indeed, we are witnessing the dawn of the digital convergence era. Regarding digital convergence (we are living with digital and analogue), this word has also been revealed on the homepage of Sumida’s website since six years ago that it is seen as the most important theme on the business of the company. While Sumida has grown up in the analogue industry since its establishment, the age is being replaced from analogue to digital. However, no matter how the digital technology advances, it is the analogous human beings that listen to the music, see the images, and use the mobile phones. Therefore, the analogue technology which is typified by coils permanently plays an important role as an interface between human beings and digital technology. Regarding the business results in the 3rd quarter of 2006, as the core Magnetics which focuses on portable media players reached the highest record of sales turnover, sales in the 3rd quarter showed a year-on-year increase of 62.2% to 16.587 billion yen, while the operating profit and current income also increased by 60.5% to 1.356 billion yen and by 56.6% to 0.924 billion yen respectively. Our 1B7 goal was set in 2003 which was a target to increase the company’s sales to 100 billion yen from 30 billion yen in only five years. This targeted sale figures was high enough to raise many doubts, saying it was not possible for three successive years. However, coming into 2006, our scale of sales has risen more than twice compared with that at the start of 1B7, and our alliances and acquisition targets have diminished many of those doubts. Since we target strong companies for M&A, and have growing potential as an absolute condition, there is no doubt that many have come forward seeking partnership with us, creating questions as to whether we can achieve all M&A as scheduled. Moreover, I think the most important thing regarding our goal of 1B7 is that it is clear to all that our company has made the base to achieve a 100-billion-yen-company on the final day, 31st December 2007, rather than becoming a 100-billion-yen company on that day. We won’t say there are only 14 months remaining but there are still 14 months to go, as it’s in all our interests to work towards 1B7 with a positive attitude.

（Unit:Millions of yen）

	FY2006		FY2005		Change
	3nd quarterr		3nd quarterr		Amount	%
Net sales	16,587	100.0%	10,225	100.0%	6,362	62.2
Operating income	1,356	8.2%	845	8.3%	511	60.5
Ordinary income	1,574	9.5%	733	7.2%	841	114.7
lncome before income tax	1,493	9.0%	814	8.0%	679	83.4
Net income	924	5.6%	590	5.8%	334	56.6
Capital expenditure	1,198		710		488
Depreciation	650		401		249
Foreign exchange rate (US$)	¥118		¥113

Financial Results Materials (Click on a report title to download (PDF format).)

• 2006-11-06Report for the Third Quarter ended 30 September 2006

FY2006 2nd Quarter Financial Results

Financial Results Presentations

Date

August 22，2006

Venue

Tokyo Stock Exchange

Financial Results Overview

Net sales of the Second Quarter of 2006 were up 54.2% from the same term last year to ¥14,953 million on the back of the robust expansion in the Legacy Company that consists of Power Inductor, Power Solution and Signal. This was in addition to the moderate growth of Automotive Company accompanied by the contribution of the Component Company and the EMS Company of VOGT despite the drastic downturn in the sales of Inverter and other companies. Operating income was up 59.8% year-on-year to ¥1,125 million was bolstered by the stably growing profit of the coil business as a result of the substantial sales of Legacy as the main pillar, improved yield from Inverter and other companies, in addition to the input of the Component and the EMS Companies of VOGT regardless of the eroded margin of the Automotive Company due to the rise of copper price. Ordinary income achieved 2.4 times that of a year ago to ¥1,234 million thanks to exchange gain and declined investment loss stemmed from the equity method despite the rise of interest payables. Net income gained 84.3% year-on-year to ¥586 million due to profits from equity ratio change.

（Unit:Millions of yen）

	FY2006		FY2005		Change
	2nd quarterr		2nd quarterr		Amount	%
Net sales	14,953	100.0%	9,700	100.0%	5,253	54.2
Operating income	1,125	7.5%	704	7.3%	421	59.8
Ordinary income	1,234	8.2%	513	5.3%	721	140.6
lncome before income tax	1,520	10.2%	610	6.3%	910	149.2
Net income	586	3.9%	318	3.3%	268	84.3
Capital expenditure	1,060		1,193		(133)
Depreciation	711		386		325
Foreign exchange rate (US$)	¥114		¥111

Financial Results Materials (Click on a report title to download (PDF format).)

• 2006-08-21Financial Results for the 2nd Quarter ended 30 June 2006

FY2006 1st Quarter Financial Results

Financial Results Presentations

Date

May 17，2006

Venue

Tokyo Stock Exchange

Financial Results Overview

Net sales of the First Quarter of 2006 were up 57.1% from the same term last year to ¥14,806 million, attributable to the soaring revenue from existing business of Power Inductor, Power Solution and Signal as well as from the participation of Component Section of VOGT for Legacy. The upward achievement of STELCO and the incorporation of EMS Section of VOGT for Other Business in addition to the moderate growth of Automotive contributed to growth despite the drastic downturn in the sales of Inverter. Operating income was up 52.7% year-on-year to ¥1,082 million, rooted in the considerable sales of not only Legacy from existing business, and new Component Section of VOGT but also other business from STELCO and the new EMS Section of VOGT. The collectively increased margin was sufficient to write-off the rising expenditure on R&D and general overhead in keeping up with the business capacity, the negative impact from weak Euro due to sales to European customers of Automotive and the sales decline of Inverter. Ordinary income was up 97.6% to ¥1,206 million was explained by exchange gain and decreasing investment loss derived from the equity method. Net income increased 94.3% to \727 million from the same term last year.

（Unit:Millions of yen）

	FY2006		FY2005		Change
	1st quarterr		1st quarterr		Amount	%
Net sales	14,806	100.0%	9,424	100.0%	5,382	57.1
Operating income	1,082	7.3%	708	7.5%	374	52.7
Ordinary income	1,206	8.1%	610	6.5%	596	97.6
lncome before income tax	1,206	8.1%	541	5.7%	665	123.0
Net income	727	4.9%	374	4.0%	353	94.3
Capital expenditure	568		481		87
Depreciation	639		364		275
Foreign exchange rate (US$)	¥118		¥107

Financial Results Materials (Click on a report title to download (PDF format).)

• 2006-05-16Financial Results for the 1st Quarter ended 31 March 2006