2nd Quarter, Fiscal Year 2023
(April 1, 2023 through June 30, 2023)

1st Quarter, Fiscal Year 2023
(January 1, 2023 through March 31, 2023)

68^th Annual General Meeting of Shareholders

Overview

Date: Monday, March 27, 2023
Venue: Magnolia, 7th floor, Tokyo Kaikan, 3-2-1 Marunouchi, Chiyoda-ku, Tokyo
Start Time: 1:00 p.m. 
End Time: 1:41 p.m.

Reports

• Business Report, consolidated financial statements and reports on the audit results of consolidated financial statements by the independent auditors and the audit committee for the 68^th term (January 1 to December 31, 2022)
• Non-consolidated financial statements for the 68^th term (January 1 to December 31, 2022)

Resolution

Resolution: Election of seven (7) directors
Approved as proposed. Messrs. Shigeyuki Yawata, Atsushi Kato, Dr. Michael Mühlbayer, Dr. Masako Miyatake, Messrs. Tatsuo Umemoto, Yan Hok Fan and Ryo Hayakawa were re-elected.

Topics of inquiries from the Shareholders

• Company shares held by directors
• Manufacturing sites in China
• FY2023 target of the mid-term business plan

Annual General Meeting of Shareholders

• 2023-03-28 Notice on the Appointment of the Members of the Committees and Executive Officers
• 2023-03-28 Notice of Results of Voting at the 68th Annual General Meeting of Shareholders
• 2023-03-28 Notice of Resolution adopted at the 68th Annual General Meeting of Shareholders
• 2023-03-01 Change in Commencement Date of Measures for Providing Information in Electric Format
• 2023-03-01 Notice of the 68th Annual General Meeting of Shareholders

Financial Results
Summary of the FY2022 Financial Results

General Enquiries:
PR/IR Team
Tel: +81-3-6758-2470

4th Quarter, Fiscal Year 2022
(October 1, 2022 through December 31, 2022)

3rd Quarter, Fiscal Year 2022
(July 1, 2022 through September 30, 2022)

2nd Quarter, Fiscal Year 2022
(April 1, 2022 through June 30, 2022)

1st Quarter, Fiscal Year 2022
(January 1, 2022 through March 31, 2022)

67^th Annual General Meeting of Shareholders

Overview

Date: Friday, March 25, 2022
Venue: MOMOYAMA, 4^th floor, Hotel Mariners Court Tokyo, 4-7-28, Harumi, Chuo-ku, Tokyo
Start Time: 1:00 p.m.
End Time: 1:29 p.m.
Number of Attended Shareholders: 14

Reports

• Business Report, consolidated financial statements and reports on the audit results of consolidated financial statements by the independent auditors and the audit committee for the 67^th term (January 1 to December 31, 2021)
• Non-consolidated financial statements for the 67^th term (January 1 to December 31, 2021)

Resolutions

Resolution No.1: Partial amendments to the Articles of Incorporation
Approved as proposed.

Resolution No.2: Election of eight (9) directors
Approved as proposed. Messrs. Shigeyuki Yawata, Atsushi Kato, Dr. Michael Mühlbayer, Dr. Masako Miyatake, Messrs. Tatsuo Umemoto, Tomoharu Suseki and Gen Ikegami were re-elected. Messrs. Yan Hok Fan and Ryo Hayakawa were newly elected.

Inquiries from the Shareholders

• Absence of directors
• Possibility of organising virtual shareholder meetings
• Possibility of resuming exhibition of our products at shareholder meetings

If the Reference Materials for Annual General Meeting of Shareholders, Business Report, and Non-consolidated and Consolidated Financial Statements are subsequently revised, the revisions shall be posted on the Company’s website (https://www.sumida.com).

Annual General Meeting of Shareholders

• 2022-03-28 Notice Regarding Change of CEO, Representative Executive Officer
• 2022-03-28 Notice of Results of Voting at the 67^th Annual General Meeting of Shareholders
• 2022-03-28 Notice on the Appointment of the Members of the Committees and Executive Officers
• 2022-03-28 Notice of Resolutions adopted at the 67^th Annual General Meeting of Shareholders
• 2022-03-23 Notice Regarding a Partial Correction of the Notice of the 67th AGM of Shareholders
• 2022-03-11 Notice Regarding a Partial Correction of the Notice of the 67th AGM of Shareholders
• 2022-03-07 Notice Regarding a Partial Correction of the Notice of the 67th AGM of Shareholders
• 2022-02-28 Notice of the 67th Annual General Meeting of Shareholders

Financial Results
Summary of the FY2021 Financial Results

General Enquiries:
PR/IR Team
Tel: +81-3-6758-2470

4th Quarter, Fiscal Year 2021
(October 1, 2021 through December 31, 2021)

2021 has been a year of recovery. Despite the impact of the coronavirus pandemic on the business economy worldwide, since the fourth quarter of 2020 Sumida has achieved year-on-year growth for 5 consecutive quarters. Growing demand in the automotive and consumer electronics market were the main drivers of our business expansion and as a result, the first year of our mid-term business plan 2021-2023 concluded better than we had anticipated.

In 4Q 2021, demand for smartphone related sales was strong. In addition, due to the tightening of environmental regulations worldwide, we saw stronger than expected demand for EV related products in the US and China. Overall, sales in this quarter grew 14.7% year-on-year to 27,452 million yen, which is our highest ever quarterly sales. Full-year sales for 2021 were up 24.3% from the previous year to 104,920 million yen, exceeding 100 billion-yen in annual sales for the first time in our company’s history. With the increase in our sales absorbing the continued rising costs of raw materials and other expenses, our operating profit rose 87.7% year-on-year to 5,326 million yen.

Throughout 2021, the support of local governments through COVID-19 related subsidies also played a part in helping us to maintain profitability. However, we hope that the efforts we have made within our operations to improve our efficiency and productivity despite the unpredictable operating environment we currently face, has and will put us in a strong position to be back on a self-sustaining recovery path in 2022 onwards. We strive to conquer new challenges, further expand our business and concentrate on supporting society for a better future through initiatives related to the reduction of carbon emissions.

3rd Quarter, Fiscal Year 2021
(July 1, 2021 through September 30, 2021)

In continuation of our efforts to improve our CSR, we have recently introduced “Global Compliance Guidelines” as one of our actions under ESG. These guidelines are an expansion of our existing code of conduct, developed to ensure that we continue to operate as an organization with high moral values, even as our business and the world economy becomes increasingly more complicated.

Our code of conduct covers the area of bribery, cartel, human rights, protection of personal information and insider trading. With the aim to ensure a clear understanding of the expectation’s management has of employee behavior, concrete real-life examples have been added to the new guidelines, and the materials will be distributed to all Sumida employees across 40 locations in 13 countries.

Sales in the third quarter of 2021 were up 19.4% year-on-year to 26,663 million yen due to the continued brisk demand from markets centered around the United States and China. This result is our biggest-ever quarterly sales amount. In terms of profit, operating income grew 11.8% to 1,488 million yen, negative factors such as raw material price increases were counteracted by continued efforts for cost reduction in addition to our increased sales for the quarter.

As 2021 is the crucial first year of our 2021-2023 mid-term business plan, with 2023 sales and operating income targets set at 108 billion yen and 7 billion yen respectively, we at Sumida remain absolutely committed to achieving these targets by increasing our sales and continuing to strive for cost efficiency.

2nd Quarter, Fiscal Year 2021
(April 1, 2021 through June 30, 2021)

As publicly disclosed through our mid-term business plan (2021 – 2023), we at Sumida have put CSR as one of our top priorities. Behind this is our basic stance ‘to provide solutions to support society in reducing carbon emissions in order to enhance our quality of life’ and our core value of social responsibility. In particular, we are taking a leadership role in climate action with our products and operations through our recent commitment to set science-based greenhouse gas emissions reduction targets.

The Science Based Targets initiative is an organization which helps companies to set emissions reduction targets in line with the Paris Agreement on climate change, and through our commitment we endeavor to have externally validated targets within a 24-month timeframe.

The outlook of the world’s major economies has been improving due to further roll-out of COVID-19 vaccination schemes, we saw healthy demand from the automotive market in Europe, the US and China. Sumida’s sales in 2Q 2021 was 25,756 million yen, up 46.4% YoY and resulting in 1HF 2021 sales of 50,805 million yen – a historical high. Operating profit for 2Q 2021 was 1,827 million yen and 1HF 2021 operating profit of 3,188 million yen, this was achieved due to increasing sales demand as well as cost reduction initiatives which helped to counter rising materials and logistics costs.

Moving forward, we will continue to put all effort into concluding our Master Plan (2012 – 2023) with maximum results in sales and operating profit. The current numerical targets for sales and operating profit are 108 billion yen and 7 billion yen respectively to be achieved by 2023. At the same time, we will continue to aggressively improve our CSR efforts in order to position ourselves well for a sustainable future.

1st Quarter, Fiscal Year 2021
(January 1, 2021 through March 31, 2021)

The 66^th annual general meeting of shareholders of Sumida Corporation was held on March 25, 2021 in Tokyo. Taking this opportunity, we thank those fourteen shareholders who attended the meeting amid ongoing coronavirus crisis. At the meeting, election of nine directors and issuance of performance-linked stock options with challenging goals were approved. To exercise the stock options, operating profit of at least 6,400 million yen which is more than twice as high as the operating profit earned in 2020 must be achieved in any fiscal year during a three-year period from 2021 to 2023. We, all of us at Sumida, are determined to use all of our strength to achieve this goal.

New car sales, which have a significant impact on our business, have been strong primarily in North America and China due to progress of COVID-19 vaccination around the globe and improvement of confidence in economic recovery. Under these circumstances, sales in the first quarter of 2021 increased 21.8% year on year to 25,049 million yen, reaching a record-high first quarter sales. In terms of profit, operating profit drastically improved to 1,361 million yen thanks to the sales increase compared to the deficit in the same quarter last year.

As described above, the new mid-term business plan (2021-2023) got off to a smooth start. Business environment for Sumida seems to continue improving this year due to a further progress of COVID-19 vaccination and a global transition to a carbon-free society. On the other hand, as a shortage of semiconductors and plastic products and a steep rise of copper price are expected to be continuing for the time being, we need to closely watch the markets. Finally, let me inform you that 2020 Sumida CSR report introducing our CSR activities has been posted on our website and I would appreciate it if you could take a look at it.

66^th Annual General Meeting of Shareholders

Overview

Date: Thursday, March 25, 2021
Venue: Hotel Mariners Court Tokyo 4th floor “MOMOYAMA”, 4-7-28, Harumi, Chuo-ku, Tokyo
Start Time: 1:00 p.m.
End Time: 1:25p.m.
Number of Attended Shareholders: 14

Reports

• Business Report, consolidated financial statements and reports on the audit results of consolidated financial statements by the independent auditors and the audit committee for the 66^th term (January 1 to December 31, 2020)
• Non-consolidated financial statements for the 66^th term (January 1 to December 31, 2020)

Resolutions

Resolution No.1: Election of eight (9) directors
Approved as proposed. Messrs. Shigeyuki Yawata, Pak Hong Auyang, Yukihiro Moroe, Atsushi Kato, Dr. Michael Mühlbayer, Dr. Masako Miyatake, Mr. Tatsuo Umemoto and Mr. Tomoharu Suseki were re-elected, and Mr. Gen Ikegami was newly elected.

Resolution No.2: Issuance of performance-linked share acquisition rights
Approved as proposed.

Inquiries from the Shareholders

• There were no questions or comments from the shareholders.

Annual General Meeting of Shareholders

• 2021-03-26 Notice of Results of Voting at the 66^th Annual General Meeting of Shareholders
• 2021-03-26 Notice on the Appointment of the Members of the Committees and Executive Officers
• 2021-03-26 Notice of Resolutions adopted at the 66th Annual General Meeting of Shareholders
• 2021-02-26 Notice of the 66th Annual General Meeting of Shareholders

Links to related information

Financial Results
Fiscal Year 2020 (Financial Results)

General Enquiries:
PR/IR Team
Tel: +81-3-6758-2470

4th Quarter, Fiscal Year 2020
(October 1, 2020 through December 31, 2020)

Environments for our automotive related business that accounts for more than 60% of our total sales have generally been favorable due to a strong new car sales in the United States and China as well as significantly growing demands for EV in the global market.

Under the circumstances described above, sales in the fourth quarter of 2020 grew 0.2 % from the same quarter of the previous year to 23,930 million yen. This has been the first-ever year-on-year sales growth recorded since the first quarter of 2019. In the full-year of 2020, total sales was 84,417 million yen and year-on-year rate of decline has contacted to 10.5%. In terms of profit, effects of sales growth and expense reductions contributed to the increased profit. In addition, a part of the impairment loss recognized in the second quarter of 2020 on the production lines that had become idle due to policy change by a customer have been reversed as we were able to restart production by utilizing the said facilities based on new orders from the customer. As a result, operating profit in the fourth quarter of 2020 grew 117.0% year-on-year to 2,721 million yen, making a full-year operating profit 2,838 million yen, a significant improvement despite its year-on-year decline of 19.9%.

With vaccinations against COVID-19 having started in an increasing number of countries in the world, a further spread of the coronavirus infections is expected to be contained in 2021. If that happens, Sumida’s business environments will be greatly improved. However, what concerns us most at this moment is the price of copper, a main raw material of our products. It was US$4,371 per ton on March 9, 2020 amid the first wave of the COVID-19 infections. Lately, it has risen to US$8,000 per ton. To better manage our business, we will closely watch not only the future trend of the copper price, but also fluctuations of Chinese renminbi as well as the tight supply situation of semiconductors in the auto industry.

Please click here to view the New Mid-term Business Plan 2021 - 2023.

3rd Quarter, Fiscal Year 2020
(July 1, 2020 through September 30, 2020)

The auto industry that has a great impact on Sumida’s business is beginning to show some signs of improvement. Sales of new cars in China have registered double-digit growth in recent months while a gradual recovery is seen in European and the U.S. markets. On the other hand, in the mobile phone market, which is also important for our business, 5G compatible smartphones are rapidly gaining in popularity in many countries around the world. To take full advantage of business opportunities, Sumida will pay close attention to the future trends of these two markets.

According to the results of our performance in Q3 2020, sales declined 7.1% from the same quarter of 2019 to 22,325 million yen. However, it was an increase of 26.9% if compared to the previous quarter, making a significant improvement. In terms of profit, operating profit grew 14.4% year on year to 1,331 million yen in Q3, which has returned to profitability for the first time since Q4 of 2019 thanks to the contraction of the rate of sales decrease.

Various flexible work arrangements have long been implemented in Sumida Group companies. However, most of our offices in Japan have been on a teleworking arrangement since April this year as a preventive measure against the COVID-19 infections. Putting employees’ health and safety first, we have decided to continue this working method in the future too. As teleworking does not require as much office space as before, the Sumida’s headquarters in Tokyo will be merged with an office of a subsidiary in Tokyo from the perspectives of efficient use of office space and costs reduction. Other offices in Japan, too, will be either relocated or downsized for the same reasons. To cope flexibly with the COIVD-19 pandemic, we will continue to review how we work and improve our working environment.

2nd Quarter, Fiscal Year 2020
(April 1, 2020 through June 30, 2020)

The COVID-19 pandemic has continued to be spreading all over the world. At this moment, we cannot see any signs that the situation is being brought under control. In the meantime, we would like to express our heartfelt sympathy to those who have contracted the disease and to people who are forced to live an inconvenient life. In Japan, where the number of people infected with the COVID-19 is relatively small compared with other countries in the world, 90.4% of the listed companies were required to disclose how their business has been affected by the COVID-19 and how they have been coping with it.

In Sumida, manufacturing areas have recovered from the impacts of the COVID-19 pandemic relatively quickly. However, automotive-related sales, our core business, have continued to fall due to the sluggish new car sales in the global market. Under these circumstances, total sales for FY2020 Q2 were down 24.1% year on year to 17,588 million yen. In terms of profit, operating profit was 956 million yen in the red due not only to the decreased sales but also to recognition of impairment loss of the production lines which had become idle because of the policy change by the customer.

Recognizing once again a mission that Sumida must accomplish and a role that the society expects Sumida to play, the management team and all employees at Sumida have committed ourselves to forming a robust corporate structure to withstand the COVID-19. At the same time, we will steadily prepare for the next stages of the company’s growth.

1st Quarter, Fiscal Year 2020
(January 1, 2020 through March 31, 2020)

The 65^th annual general meeting of shareholders of Sumida Corporation was held on March 25, 2020 in Tokyo with attendance of the shareholders who ventured to come to the meeting amid mounting fear over the coronavirus pandemic. During the meeting, one of the shareholders asked about the impacts of the new coronavirus infections on our business. To that question, we answered that production capacity of our factories in China and elsewhere had reverted to almost the same level as at the end of last year and that we would be carefully watching its effects on our sales. Taking this opportunity, I thank those shareholders for their attendance.

As soon as the concerns about the U.S.-China trade conflicts in 2019 have finally subsided, the novel coronavirus first detected early this year in China has been spreading out all over the world, killing many people and trying to give the world’s economy more damage than the collapse of Lehman Brothers. Under these circumstances, our performance in the first quarter of 2020 can be summarized as follows. Sales were down 11.3% to 20,572 million yen compared to the same quarter of the previous year. Operating income suffered from a loss of 260 million yen due to the sales decreased from the initial budget and temporary suspension of production in February this year.

At this moment, there is no end in sight to the coronavirus pandemic. But I think now is the time to put employees’ health and safety first. As soon as this emergency caused by the coronavirus comes to an end, we will devote more effort than ever to improve our performance.

65^th Annual General Meeting of Shareholders

Overview

Date: Wednesday, March 25, 2020
Venue: Hotel Mariners Court Tokyo 4th floor “HAKUHO”, 4-7-28, Harumi, Chuo-ku, Tokyo
Start Time: 1:00 p.m.
End Time: 1:30 p.m.
Number of Attended Shareholders: 16

Reports

• Business Report, consolidated financial statements and reports on the audit results of consolidated financial statements by the independent auditors and the audit committee for the 65^th term (January 1 to December 31, 2019)
• Non-consolidated financial statements for the 65th term (January 1 to December 31, 2019)

Resolutions

Resolution No.1: Election of eight (9) directors
Approved as proposed. Messrs. Shigeyuki Yawata, Johji Sato, Pak Hong Auyang, Yukihiro Moroe, Atsushi Kato, Dr. Michael Mühlbayer, Dr. Masako Miyatake and Mr. Tatsuo Umemoto were re-elected, and Mr. Tomoharu Suseki was newly elected.

Resolution No.2: Issuance of performance-linked share acquisition rights
Approved as proposed.

Inquiries from the Shareholders

• Impact of the novel coronavirus outbreak and the US-China trade war on the company

Related Documents 

Annual General Meeting of Shareholders

• 2020-03-27 Notice of the Results of Voting at the 65^th Annual General Meeting of Shareholders

• 2020-03-26 Notice on the Determination of the Members of the Committees and Executive Officers
• 2020-03-26 Notice of the Resolutions adopted at the 65^th Annual General Meeting of Shareholders
• 2020-03-19 Notice Regarding Partial Corrections of the Notice of the 65th Annual General Meeting of Shareholders
• 2020-03-13 Notice Regarding Partial Corrections of the Notice of the 65th Annual General Meeting of Shareholders
• 2020-02-27 Notice of the 65th Annual General Meeting of Shareholders

Links to related information

Financial Results
Fiscal Year 2019 (Financial Results)

Annual General Meeting of Shareholders
Notice of the 65th Annual General Meeting of Shareholders

General Enquiries:
PR/IR Team
Tel: +81-3-6758-2473

4th Quarter, Fiscal Year 2019
(October 1, 2019 through December 31, 2019)

Many events have occurred in 2019 with the U.S.-China trade conflicts at the top of the list. Among other things, the global new-car sales, a highly influential factor for the success of Sumida business, declined approximately 4% from the previous year. It has been the first two-year downturn since the Lehman shock following 0.5% decline in 2018. Under these circumstances, our flagship automotive business slowed down mainly in Europe and in China. With smartphone-related business in the consumer electronics market fared relatively well, total sales for the fiscal 2019 resulted in year-on-year decline of 3.3% to 94,283 million yen. In terms of profit, operating profit fell 34.2% to 3,543 million yen from the previous year due to unfavorable product mix in addition to the poor sales. However, operating profit in the second half of 2019 significantly increased by 114.9% compared to that of the first half due not only to revenue increase but also to improvement of production efficiency and cost reduction.

In terms of the Mid-Term Business Plan Stage III (2018-2021), steady results have been achieved in the key policy measures set as a goal such as getting consumer electronics-related business back on the growth path while expanding automotive and industry businesses at the same time as well as having the company’s top management rejuvenated. Following the successful acquisition of Pontiac Inc. in the United States in 2018, a team of experts has been making every effort aiming for another good-quality M&A by the end of Stage III. With respect to automotive business, we have a lot of new EV-related projects in the pipeline. Although a host of problems negatively impacting our business including the U.S.-China trade war remain in the global environment surrounding Sumida, the entire Sumida Group will continue to make a concerted effort to realize our goals.

3rd Quarter, Fiscal Year 2019
(July 1, 2019 through September 30, 2019)

The world has seen a lot of unstable events unfolding in 2019. They include continued US-China trade disputes and long-delayed Britain’s exit from the EU as well as a new threat to Chinese economy posed by severe and prolonged pro-democracy demonstrations in Hong Kong. It is a fact that Sumida’s businesses have been affected by these events. Unfortunately, this situation is expected to continue for some time to come. Under these circumstances, total sales in the third quarter of 2019 fell 6.4% compared to the previous year to 24,041 million yen due mainly to below-target flagship automotive sales in Europe. In terms of profits, operating income, negatively impacted by the decreased sales, plunged 44.2% year on year to 1,164 million yen.

Speaking of Sumida’s Master Plan (2012-2021) that we have been following in the past almost eight years, it was created after intensive discussions held within Sumida organizations on how to revive Sumida’s businesses which had been badly damaged by Lehman Shock, aiming for a company with sales and operating income on the scale of 100-billion-yen and 10-billion-yen respectively. There have been so many changes in our business environments since this Master Plan started. As Sumida’s businesses have become more diversified, focus of our electronics business has shifted dramatically to smartphone. It is expected to make further changes from there to the world of 4G and 5G. Also, leading automobiles for our flagship automotive business has just began to shift from pollution-causing gasoline/diesel cars to clean EV. To cope with whatever changes that may occur in the future, Sumida will construct a strategic framework based on our business motto, “Global, Speed and Focus”.

2nd Quarter, Fiscal Year 2019
(April 1, 2019 through June 30, 2019)

The current business environment surrounding Sumida could hardly be called optimistic with new car sales in the world’s major markets having declined approximately 7% year on year for the first five months of this year. However, announcement of the results of US-China summit held on June 29 on the sidelines of G20 Osaka Summit to postpone imposing additional tariffs on Chinese imports to the United States for the time being and to resume trade talks between the two countries gave the world’s business communities some degree of reassurance about the future trend of the global economy. In the meantime, new models of electric cars exhibited by many auto makers were featured at the Geneva Motor Show held in March this year. Mass production of electric cars is expected to be accelerating in 2020. As one of Sumida’s strengths lies in electric cars in which Sumida have intensively invested significant management resources, Sumida’s business prospects look promising from medium-and long-term perspectives.

Sales in the second quarter of 2019 declined 2.8% year on year to 23,172 million yen due to weak automotive business in Chinese and European markets suffered from the effects of the US-China trade conflicts. In terms of profit, operating income plunged 59.1% to 524 million yen compared to the same period of last year due to not only below-target sales but also unfavorable product mix.

Given the present circumstances described above, the tide is not running in favor of Sumida. Nonetheless, many projects starting with the ones related to electric cars are being driven in Sumida. With two and a half years left for the current mid-term business plan stage III, we must all strive as one to accomplish an ambitious goal of 10 billion-yen operating income by 2021 by eliminating as much waste as possible without reducing proactive investments. At the same time, we will execute the measures to make a smooth transition of Sumida operations to the next generation, focusing on the next mid-term business plan that will start in 2022.

1st Quarter, Fiscal Year 2019
(January 1, 2019 through March 31, 2019)

At the 64th Annual General Meeting of Shareholders held on March 24 this year, two outside directors were newly elected. One of them, a first female director for Sumida, has been active on the world stage as an international lawyer and the other has gained his international experiences over the years as a management consultant and a business entrepreneur. Consequently, Sumida’s eight-member Board of Directors now includes seven outside directors, which make up 87.5% of the total, the highest proportion among the listed companies in Japan. With two newly-elected directors on board, expertise of Sumida’s board members has become more diverse and their functions of management supervision are expected to be further strengthened.

In the first quarter of FY2019, orders have sharply dropped as expected due to slow-down of the Chinese economy and on-going inventory adjustments. However, year-on-year sales were up 2.2% to 23,199 million yen because sales by Pontiac Inc. acquired in the U.S. in June 2018 had not been reflected on the consolidation in the first quarter of FY2018. In terms of profit, operating income grew 31.4% on a year-on-year basis to 600 million yen despite the below-plan sales and unfavorable changes in product mix, significantly improving from the previous year when profits were adversely affected by several production-related problems.

2019 is the second year of the Mid-Term Business Plan Stage Ⅲ (2018-2021). In order to achieve 10 billion-yen operating income targeted for 2021 which is the final year of Stage Ⅲ, this year’s operating income target of 6.2 billion yen must be achieved by all means. The adverse factors such as a decreasing trend of the number of orders received in the first half of 2019 due to deteriorating Chinese economy had already been included in the plan. In the meantime, aggressive investments we have continued making in the past several years centering on production facilities are expected to take a remarkable effect starting this year. With significant improvement of production efficiency, further implementation of global purchasing system and deep cuts in production costs, we have transformed ourselves into a profit-generating company. As new business opportunities are expected to be arising with the advent of a full-fledged age of electric vehicle as well as dissemination of 5G mobile communication system connecting household appliances and many other things to the Internet at once, we will make every effort trying to not miss this opportunity to achieve goals set in the Mid-Term Business Plan.

64^th Annual General Meeting of Shareholders

Overview

Date:  Sunday, March 24, 2019
Venue: Hotel Mariners Court Tokyo 4th floor “HAKUHO”, 4-7-28, Harumi, Chuo-ku, Tokyo
Start Time:  1:00 p.m.
End Time:  1:48 p.m.
Number of Attended Shareholders:  36

Reports

• Business Report, consolidated financial statements and reports on the audit results of consolidated financial statements by the independent auditors and the audit committee for the 64th term (January 1 to December 31, 2018)
• Non-consolidated financial statements for the 64th term (January 1 to December 31, 2018)

Resolutions

Resolution: Election of eight (8) directors
Approved as proposed. Messrs. Shigeyuki Yawata, Johji Sato, Pak Hong Auyang, Yukihiro Moroe, Atsushi Kato and Michael Mühlbayer were re-elected, and Ms. Masako Miyatake and Mr. Tatsuo Umemoto were newly elected.

Inquiries from the Shareholders

• Is Sumida’s corporate governance system all right?

Related Documents

• 2019-03-27 Notice of the Results of Voting at the 64th Annual General Meeting of Shareholders
• 2019-03-25 Notice on the Determination of the Members of the Committees and Executive Officers
• 2019-03-25 Notice of the Resolutions adopted at the 64th Annual General Meeting of Shareholders
• 2019-03-12 Notice Regarding a Partial Correction of the Notice of the 64th Annual General Meeting of Shareholders
• 2019-02-28 Notice of the 64th Annual General Meeting of Shareholders

Links to related information

Financial Results
Fiscal Year 2018 (Financial Results)

Annual General Meeting of Shareholders
64th Annual General Meeting of Shareholders
Notice of the 64th Annual General Meeting of Shareholders

General Enquiries:
PR/IR Team
Tel: +81-3-6758-2473

4th Quarter, Fiscal Year 2018
(October 1, 2018 through December 31, 2018)

Driven by continued strong sales in the automotive sector, total sales in 2018, the first year of Mid-term Business Plan Stage III, reached a record-high of 97,538 million yen, nearly 100 billion yen. On the other hand, operating income ended up with 86.6% year-on-year to 5,383 million yen as loss of profits caused by production inefficiencies occurred in the first half was not fully recovered. However, operating income of the second half grew 2.1 times as much as that of the first half with operating income ratio significantly improved from 3.7% to 7.1% during the same period. In 2018, Ji’an factory in China was expanded to be a production base for automotive coils in anticipation of growth in demand for coils for EV in China. At the same time, we made capital investments in the factories in Romania and Slovenia. Acquisition of Pontiac Coil Inc. having its headquarters near Detroit, Michigan in the United States was executed as the first shot of our M&A strategies and it successfully accelerated Sumida’s growth.

The ongoing U.S.-China trade war makes it difficult to predict how the global economy is going to unfold in 2019. Our automotive sales in the Chinese market could be affected by its future developments. Also, preparations for the fifth-generation mobile communication system (5G) in various countries could be delayed due to political intentions. However, a growing trend towards electronization of automobiles as well as spread of electric vehicles that have driven Sumida’s growth is not expected to change and we have made steady investments in plant and equipment to adapt effectively to those trends. With advances of Internet technology, household appliances, vehicles, buildings, factories, and many other things in the world are starting to be connected to the Internet. As dissemination of the internet of things (IoT) is making progress, 5G will become an indispensable infrastructure to connect a lot more communication devices at once. This could also be a big business chance for Sumida. Our challenge is to not miss this opportunity. On the sales front, a sales company has been established in India in January 2019 where a big demand for our products can be expected. In addition, we aggressively seek the next M&A opportunities following acquisition of Pontiac to gain new royal customers. With these measures combined, we aim to achieve 10 billion-yen operating income by 2021.

3rd Quarter, Fiscal Year 2018
(July 1, 2018 through September 30, 2018)

Total sales in the third quarter of 2018 continued to be strong driven by solid demand in the automotive sector, up 10.9% when compared to the previous year, at 25,682 million yen.

Profitability also improved because of our strong sales and in addition, prices of raw materials (including copper) falling below expectations also contributed to our boosted profitability.

Third quarter operating profit rose 786 million yen from the previous quarter to 2,085 million yen, up 17.5% year on year. With everyone’s combined efforts at Sumida to overcome the challenges in the remaining fourth quarter, we are focused to ensure that our mid-term business plan stage III gets off to a good start in 2018, the first year of our four-year plan.

Currently, the 2018 edition of Sumida CSR Report is being prepared. In recent years, the concept that three factors in business decision suggested by ESG (Environment, Social and Governance) are vital for a company’s long-term growth, has been widely recognized on a global scale. We at Sumida also consider ESG as a very important basis for our sustainable growth.   　  

From the aspect of Environment, Sumida continues to fulfill its obligations as a global citizen to protect environment and promote the effective use of natural resources aiming to pass on a rich natural environment to the next generation. We have also been proactively engaged in nature conservation efforts following the requirements set by ISO14001 at our twenty business operations sites located in eight counties.

We target business development in areas which help to tackle the global issues the world faces today. For example, in today’s mobile society where car accidents have become a social problem, Sumida contributes to the reduction of fatal car accidents, as the number of cars equipped with ABS (Anti-Lock Braking System) in which Sumida’s products are used have been increasing. In the medical field, Sumida’s products are used in AED that are said to be able to save twice the number of human lives if they become widely used throughout the world.

In terms of Governance, Sumida shifted into a company with committees’ system in 2003, ahead of any listed company in Japan, aiming to clearly separate supervisory functions from execution to operations. Besides having a high proportion of independent outside directors, Sumida is one of the top listed companies in Japan that maintains a high percentage of non-Japanese directors, bringing local directors onboard from Europe and China where Sumida has solid business bases.

2nd Quarter, Fiscal Year 2018
(April 1, 2018 through June 30, 2018)

Sumida group will start working on issuance of a CSR Report (or, Sustainability Report) that declares Sumida’s commitment and actions towards Corporate Social Responsibility to environment and other social issues. We, Sumida group, have always been pursuing business opportunities while addressing issues related to the environment, health and safety and social contribution. Just recently, we have concluded the acquisition of a company in the United States for the first time since 2006 when VOGT joined Sumida group in Germany. With the progress of Sumida’s globalization, we believe that this CSR Report will help all Sumida stakeholders understand our CSR activities as a global corporation.

In the second quarter of 2018, total sales continued to be strong driven by our automotive business, performance was up 9.5% to 23,840 million yen compared to the same period of last year with the newly acquired Pontiac Coil, Inc. included in consolidation for the first time in this quarter (from June). In terms of profit, operating income, which significantly improved, as factors negatively impacted profit in the first quarter have almost been eliminated, increased 822 million yen from the first quarter to 1,281million yen (down 28% year on year).

As you already know, we aim to achieve a major numerical target of 10 billion yen per year in operating income according to the Mid-Term Business Plan III (2018-2021). To achieve this target, we must tackle the most crucial challenges in each of our three businesses. For our flagship automotive business, we must steadily expand new energy related businesses such as electric vehicles etc. For the industry business, we must develop IoT related businesses. For the consumer electronics business, the markets in North America and China must be further expanded. On top of that, a high-quality M&A with maximum synergy effects must be implemented to achieve this difficult target. All employees at Sumida group companies are committed to working together to clear this high hurdle

1st Quarter, Fiscal Year 2018
(January 1, 2018 through March 31, 2018)

The 63^rd Annual General Meeting of Shareholders was held at Odaiba in Tokyo on March 25, where I explained among other things Mid-Term Business Plan Stage III (2018-2021) in details. The shareholders had expressed considerable interest in the plan according to the results of the preliminary questionnaire and they asked many questions at the meeting. One of the questions I had was whether the hurdles to achieving operating income target of 10 billion yen are too high to clear. I responded to that question by saying that we have a great chance of realizing 10 billion-yen operating income during Stage III if income generated from M&A is added to the operating income from existing automotive business, which is expected to continue growing thanks to a quite a few new projects in the pipeline that take at least three years in most cases before putting into production starting from development.

Taking this opportunity, I would like to extend my sincere thanks to the shareholders who gave us good questions in the questionnaire as well as at the meeting.

In the first quarter of 2018, total sales continued strong driven by automotive-related, up 5.1% from the same period of the previous year to 22,701 million yen, record high quarterly sales. On the other hand, profit grew stagnant due to waning productivity at the factories in China with a high worker turnover around the time of Chinese New Year as well as changes of the product groups in production. With M&A-related professional fees putting an additional pressure on profit, operating income ended up with 456 million yen.

As one of the major goals in Mid-Term Business Plan Stage III (2018-2021), we aim to achieve 10 billion-yen operating income with 8.5 billion yen expected to come from organic growth and 1.5 billion yen from M&A. In terms of M&A, we have acquired Pontiac Inc. (“Pontiac”) in the United States in April this year as a first step. Headquartered near Detroit, Michigan in the United States, Pontiac has developed a close relationship with the excellent customers in the auto industry. As not many of Pontiac’s customers are overlapped with Sumida’s, we expect Pontiac’s sales network to bring in new customers for Sumida. Significant synergy effects created from utilizing Pontiac’s two production sites in the U.S. can also be expected to contribute to expansion of Sumida’s local business. In addition to business expansion in the U.S., we are planning to embark on a new project to develop our business in India. First, we will establish a sales office in India this year and eye the possibility of building a technical support center as well as a factory there. As seen above, we will make every effort from the start to achieve Mid-Term Business Plan Stage III.

63^rd Annual General Meeting of Shareholders

Overview

Date:  Sunday, March 25, 2018
Venue: Orion, Hilton Tokyo Odaiba (1^st Floor), 1-9-1 Daiba, Minato-ku, Tokyo
Start Time:  1:00 p.m.
End Time:  2:14 p.m.
Number of Attended Shareholders:  38

Reports

• Business Report, consolidated financial statements and reports on the audit results of consolidated financial statements by the independent auditors and the audit committee for the 63rd term (January 1 to December 31, 2017)
• Non-consolidated financial statements for the 63rd term (January 1 to December 31, 2017)

Resolutions

Resolution 1: Election of six (6) directors
Approved as proposed. Messrs. Shigeyuki Yawata, Johji Sato, Pak Hong Auyang, Yukihiro Moroe, Atsushi Kato and Michael Mühlbayer were re-elected.

Resolution 2: Issuance of performance-linked share acquisition rights
Approved as proposed.

Inquiries from the Shareholders

• Work style reform and Corporate Governance
• Target of the Mid-term Business Plan
• Impact of copper price fluctuations
• Reason for the decrease in the operating cash flow
• Managing currency exposure
• Impact of import tax reforms in the US
• Non-coil products

Documents related

• 2018-03-27 Notice of the Results of Voting at the 63rd Annual General Meeting of Shareholders
• 2018-03-26 Notice on the Determination of the Members of the Committees and Executive Officers
• 2018-03-26 Notice of the Resolutions adopted at the 63rd Annual General Meeting of Shareholders
• 2018-03-09 Notice Regarding a Partial Correction of the Notice of the 63rd Annual General Meeting of Shareholders
• 2018-03-02 Notice of the 63rd Annual General Meeting of Shareholders

Links to related information

Financial Results
Fiscal Year 2017 (Financial Results)

Annual General Meeting of Shareholders
63rd Annual General Meeting of Shareholders
Notice of the 63rd Annual General Meeting of Shareholders

General Enquiries:
PR/IR Team
Tel: +81-3-6758-2473

4th Quarter, Fiscal Year 2017
(October 1, 2017 through December 31, 2017)

Mid-term Business Plan Stage II (2015-2017) has come to an end and during this period sales significantly grew driven by strong sales in the automotive and industry-related markets.

To summarize our operational achievements: on the production front, low-cost plants such as our no. 2 factory in Vietnam and our Ji’an factory in China were newly established. At the same time, we also focused on expansion of our existing production sites in Europe and Mexico, as well as the automation of production lines for automotive-related products.

In terms of R&D activities, we were successful in significantly strengthening our technological capabilities by hiring many talented engineers both in Japan and overseas. However, the closing of our planned M&A dealings, originally targeted to be completed by the end of this business plan, have been carried over to our next stage of development.

With all these results combined, Mid-term Business Plan Stage II has been extremely successful as our operating income target of 5 billion yen was achieved a year ahead of schedule in FY2016, in addition to our strong growth in sales.

In the fourth quarter of FY2017, Sumida enjoyed a healthy sales increase in the markets of automotive, investment-linked factory automation and smartphones. Total sales for the quarter were up 20.2% year on year to 23,621million yen. As a result, full-year sales for FY2017 grew 11.2% from the previous year to 90,153 million yen, crossing the 90 billion-yen mark for the first time in Sumida history.

Operating income for the fourth quarter declined 12.9% year on year to 1,098 million yen due to an increase in copper prices. Operating income for the twelve-month period in FY2017 was almost the same level as the previous year, down 0.8% to 6,217 million yen.

In Mid-term Business Plan Stage III (2018-2021), the last leg of Sumida’s Master Plan (a 10 year long-term business plan, encompassing three stages of development) we aim at further developing our new energy vehicle-related business (abbreviated to NEV covering Electric Vehicles, Plug-in Hybrid Vehicles and Fuel Cell Vehicles) on top of our current core product groups in the Automotive segment.

For the Industry segment, we will seek out new business opportunities in the IoT-related area, as the market size is anticipated to explode from less than 500 billion yen in 2017 to 1,400 billion yen in 2020 and in the Consumer Electronics segment, we will continue to expand our markets in North America and China as well as in Japan.

Additionally, the realization of a high-quality M&A will be another target of high priority for us during this time. Our final goal will be to achieve more than 10 billion-yen operating income by the end of Stage III.

Summary of Consolidated Financial Results (IFRS)

3rd Quarter, Fiscal Year 2017
(July 1, 2017 through September 30, 2017)

The global automotive market has been undergoing an increasingly rapid paradigm shift from traditional combustion engine powered vehicles to new energy vehicles (NEVs) such as hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs).

48V Mild Hybrid Vehicles, an intermediate technology, developed by German automotive makers to fulfil vehicle emission standards which cannot be met by conventional vehicle technology but spares the expense of developing a full hybrid platform, are beginning to prevail throughout Europe. These mild hybrids are estimated to grow at 29% per annum in the global market through to 2023, whilst sales of EVs are expected to increase at 23% per annum over the same period.

Sumida’s current automotive-related business consists mainly of Anti-lock Braking System Coils (ABS coils) and Smart Entry Antennas, in addition to a few other engine-related products. However, as NEVs gain in popularity, so does the market for coils to be used in power control units, battery management systems and on-board chargers, which present many exciting opportunities for Sumida’s automotive-related business in the coming years. Mass production for some of these types of projects have already begun so our NEV-related business has kicked-off well.

Sumida’s operating performance for the 3rd quarter of 2017 continued strong driven by the automotive-related market. Total sales for the nine months ending September 30th, 2017 increased 8.4% year on year to 66,532 million yen. In terms of profit, operating income grew 2.2% year on year to 5,120 million yen thanks to improvement of production efficiency despite the increasing cost of raw materials. Net income through to the end of the third quarter in 2017 was 3,338 million yen, up 13.6% from the previous year.

Mid-term business plan Stage II will end at the end of 2017 and Stage III (2018-2021) business plan will soon be finalized. In Stage III, NEV-related products will be added to the existing main products for core automotive-related business. M&A opportunities, though not materialized in Stage II, will be continuously pursued in Stage III. Finally, we aim to achieve more than 10 billion-yen-operating income in the final year of Stage III, details of which will be disclosed at the earliest possible timing of next year.

Summary of Consolidated Financial Results (IFRS)

2nd Quarter, Fiscal Year 2017
(April 1, 2017 through June 30, 2017)

New car unit sales in Europe as well as in Japan continue strong. Economy in China, where Sumida’s major production sites are located, has made a significant recovery since the beginning of this year. One of the major reasons for this recovery is that the Chinese government has strongly promoted factory automation including a use of robots in production to push forward a qualitative shift in manufacturing methods. In 2015, China initiated a master plan called “Made in China 2025” aiming to turn the country into a high-tech superpower within the next few decades. Their efforts seem to have begun to pay off just recently.

In the first half of 2017 ending June 30, Sumida’s total consolidated sales grew 4.4% from the previous year to 43,368 million yen, thanks to steady automotive sales with a central focus on Europe as described above, coupled with a strong demand for FA-related products from Chinese makers. In terms of profit, operating income was up 5.9% from a year earlier to 3,346 million yen due mainly to a further improvement of production efficiency. Net income was 2,106 million yen, up 15.0% year on year.

With only six months remaining in 2017, the final year of Mid-Term Business Plan Stage II (2015-2017), our performance for the first half of this year was reasonably acceptable. For the rest of the year, we will focus on achieving the plan under not-too-bad business environments as well as getting ready for the start of Stage III (2018-2021) through completion of expansions at Ji’an factory in China and factories in Europe. Now that we are in the midst of era of significant changes ranging from politics and economics to the global climate, every employee of the Sumida group has to become acutely sensitive to what is happening in the world to survive this kind of turbulent times.

 Summary of Consolidated Financial Results (IFRS)

1st Quarter, Fiscal Year 2017
(January 1, 2017 through March 31, 2017)

The 62^nd Annual shareholders’ meeting of Sumida Corporation was held on March 26, 2017 at the Hilton Tokyo Odaiba with attendance by 119 shareholders. Many good questions were raised during this meeting so I wanted to take this opportunity to share a few of them with you.

Our planned capital investments for 2017, approximately 7.2 billion yen, is the largest ever in Sumida’s history, 58% more than 2016. I was asked to elaborate on how this money would be spent. 1 to 2 billion yen of the total will go towards an expansion of our factories in China and Vietnam, and 80% of the remaining amount will go towards installing new machinery to increase production of automotive-related as well as industry-related products.

I was also questioned about whether Sumida would be affected in any way by the policies of the new U.S. administration. My response was that although we manufacture automotive-related products in Mexico to be exported to the United States, we are not directly affected by the new U.S. policies because these products are sold to a Tier 1 manufacturer located within Mexico.

Thank you to all shareholders who attended our shareholders’ meeting and provided us with valuable talking points about our business.

Moving on, starting from the beginning of this fiscal year Sumida has adopted IFRS accounting standards. From January 1, 2017, all of our financial statements will be disclosed based on these rules.

In the first quarter of 2017, total sales were up 4.8% from the previous year to 21,599 million yen driven by continuously strong sales of automotive products. Our gross margin increased 10.3% to 3,698 million yen thanks to further enhancement of production efficiency. Operating income, income before taxes and net income were up 28.0%, 42.2% and 55.0% respectively year-on-year at 1,566 million yen, 1,398 million yen and 981 million yen. As seen from the above, 2017, the final year of Mid-Term Business Plan Stage II (2015-2017) has got off to a very good start.

As stated earlier, this year we are planning to make the largest-ever capital investment in the history of Sumida.  The investments will be used to expand our productions sites, to strengthen our R&D capabilities, to promote further automation of our automotive-related production lines.

In order to do this, we have increased our capital by way of issuing up to 3.5 million new shares in April this year. With the strengthening of our operations backed up by success in raising capital in this way, we aim to achieve growth outweighing the dilution of equity brought about by the newly-issued shares in order to prepare for our next Mid-Term Business Plan Stage III (2018-2021).

Summary of Consolidated Financial Results (IFRS)

62^nd Annual General Meeting of Shareholders

Overview
Date:  Sunday, March 26th, 2017
Venue: Orion, Hilton Tokyo Odaiba (1st Floor), 1-9-1 Daiba, Minato-ku, Tokyo
Start Time:  1pm
End Time:  2:05pm
Number of Attended Shareholders:  119

Items reported:

1. Business Report, consolidated financial statements and a report on the audit results of consolidated financial statements by the accounting auditors and the audit committee for the 62^{nd term (January 1 to December 31, 2016)}

2. Non-consolidated financial statements for the 62nd term (January 1 to December 31, 2016)

Resolution: 

Agenda item : Election of seven (7) directors
Mr. Shigeyuki Yawata, Mr. Johji Sato, Mr. Pak Hong Auyang, Soichiro Uchida and Mr. Yukihiro Moroe, Mr. Atsushi Kato and Mr. Michael Mühlbayer were elected as proposed.

Inquiries from Shareholders:

• Breakdown of the 72 billion yen capital investment
• Progress of the CCC (Cash Conversion Cycle)
• Impact of the administration under US-President Trump
• Automotive-related business: alliances with specific customers or make deals with any customers
• Request to change the venue of the Annual General Meeting of Shareholders
• Uniformity of the R&D structure spread out in Japan, Germany and China/Hong Kong
• Transfer of funds from China
• Reasons for the implementation of IFRS and its impact
• Measures against increasing copper prices
• Impact of fluctuating foreign currency exchange
• Prospect of sales of automobiles in world
• M&A related risks
• Selection of candidates of outside directors

Links to related information:

Financial Results
Fiscal Year 2016 (Financial Results)

Annual General Meeting of Shareholders
Information regarding the 62nd Annual General Meeting of Shareholders

4th Quarter, Fiscal Year 2016
(October 1, 2015 through December 31, 2016)

2016, the year marking Sumida’s 60th anniversary since formal establishment, has been the most successful year in Sumida’s history.

Global new car sales showed continued growth throughout 2016 driven by the U.S. and European markets. As a result, Sumida enjoyed strong sales in 2016 on a local currency basis. With the aggressive capital investments made to our production capabilities since 2014, productivity enhancements in our factories located in both China and Mexico contributed significantly to our strong sales performance in 2016. In addition, our R&D team was strengthened through a number of new hires around the globe in preparation for the future development of new products.

On a local currency basis, sales for the fourth quarter of 2016 (ended December 31) were 19,651 million yen, up 7.8% when compared to the same period of 2015. However, after consolidation, overall sales were down by 4.3%.

In terms of profit, operating income grew 118.3% from the previous year to 1,145 million yen due to a combination of improved sales performance and productivity. Ordinary income was 935 million yen, an increase 229.7% on a year on year (YoY) basis and net income was 727 million yen, an increase of 268.0% YoY.

On a local currency basis, sales for FY2016 was 81,052 million yen, up 3.5%, however, after consolidation, overall sales were down by 6.0% when compared to the previous year. Operating income, ordinary income and net income were all better than expected, up 34.4% to 5,696 million yen, 45.2% to 4,805 million yen and 51.9% to 3,087 million yen respectively on a YoY basis.

We are pleased to announce that due to the improvement of our profitability, it has been decided to pay a dividend of 34 yen per share, an increase of 8 yen when compared to the previous year, a substantial increase in dividend for a second consecutive year.

Finally, 2017 is the final year of our Mid-term Business Plan (Stage II) 2015 -2017. Although the profit target outlined in the plan has already been exceeded, there is still much work to be done. Besides continuing on our journey to better profitability, several strategic moves are planned for 2017 in preparation for the next stage of our Master Plan, Mid-term Business Plan 2018 - 2021. These include M&A to maximize the effects of building synergies around the globe, improvements to our financial strength and the development of existing and new markets in China and India.

All of us in the Sumida Group, from top management down to our newer colleagues, will put in our best efforts to ensure success in the final year of our Mid-term Business Plan 2015 – 2017.

3rd Quarter, Fiscal Year 2016
(July 1, 2016 through September 30, 2016)

Being an important business barometer to measure the world’s economic trends, global new car sales continue to be going strong, with Europe serving as the driving force of this. In addition, new car sales in China have increased more than 20% compared to the previous year. This is due to the government issued tax break which continues to give a reduction in sales tax from 10% to 5% through to the end of this year for small cars with an engine size of 1600-cc or less; this accounts for 70% of total new car sales in China.

Under these circumstances, we exceeded our sales over last year on a local currency basis. Our good performance was driven by strong market demand in the automotive-related area, as well as, for new generations of Smartphones in the area of consumer electronics.
Our overall profit increase was attributed to a weak renminbi (positively affecting our production costs) and low prices of raw materials in addition to the results of our continuous efforts towards cost-cutting/improving efficiency in production.

During the period of July to September 2016, the value of the Japanese yen increased 15.9%, 16.4% and 20.7% against the U.S. dollar, the euro and the renminbi respectively when compared to the same quarter last year. In spite of this rapid appreciation of the yen, our profit structure was not susceptible to the negative effects of these FOREX fluctuations, thanks to our efforts to hedge and carefully manage the currencies we use in our daily business transactions.
In the third quarter of 2016, consolidated sales were down 10.3% to 19,876 million yen due to yen’s rapid appreciation, but they exceeded our figures from the previous year on a local currency basis. In terms of profit, operating income was up 14.9% to 1,706 million yen, ordinary income increased 35.9% to a record high of 1,530 million yen and net income increased by 1.9% to 779 million yen.

For the period of nine months ending September 30th 2016, the second year of the current mid-term business plan 2015-2017, we achieved 69.8% of the annual sales budget for 2016. However, more notably, we achieved 94.8%, 92.3% and 94.4% of our annual budget for operating income, ordinary income and net income respectively. With the exception of our yen-based sales which were negatively affected by the currency’s appreciation during this time period, our total performance was significantly strong throughout the third quarter.

With no negative factors expected in the fourth quarter, we are determined to keep up this momentum of strong growth and achieve our final targets for the current mid-term business plan 2015 – 2017.

Summary of Consolidated Financial Results

2nd Quarter, Fiscal Year 2016
(April 1, 2016 through June 30, 2016)

New car sales in Europe have continued to increase for 34 consecutive months on a year-on-year basis thanks to strong sales in Southern Europe countries such as France, Italy and Spain. Sumida’s automotive business has significantly benefited from this trend of growth in Europe. Our profit performed well through good sales, but it was greatly enhanced by cost reduction being achieved through savings in wages due to freezing of wage increase in China and depreciation of renminbi. The low prices of copper and other raw materials related to low oil prices helped to keep the total manufacturing costs down, too. In the meantime, Britain’s vote to exit the EU surprised the world financial markets. We need to closely monitor the aftermath of the UK’s decision since the volatile Euro against the U.S. dollar/yen may affect our business environments in many ways for quite some time to come.

In the second quarter of 2016, automotive-related sales were strong with a focus on Europe. Due to　yen’s sharp appreciation, total sales were down 4.7% from the previous year to 20,921 million yen, which, however, were higher than last year’s on a local currency basis. In terms of profit, operating income was up 45.8% from the previous year to 1,785 million yen with ordinary income up 54.9 % to 1,528 million yen and net income up 143.1% to 1,097 million yen, respectively. They were all record-high profits on quarterly basis, thanks to freezing of wage increase in China, depreciation of renminbi and other factors not forgetting our manufacturing team’s overall cost reduction programs. In the last several months, people from mass media and the Ministry of Economy, Trade and Industry visited us to learn about Sumida’s corporate governance. It seems that corporate governance systems at Japanese corporations have attracted a lot of attention these days with Stewardship Code and Corporate Governance Code released from the government. Sumida was the first listed company in Japan that adopted Committee System in 2003. We are determined to continue to seek ideal corporate governance in order to maximize our corporate value.

Summary of Consolidated Financial Results

1st Quarter, Fiscal Year 2016
(January 1, 2016 through March 31, 2016)

The 61st annual shareholders meeting of Sumida Corporation was held on March 21, a public holiday in Japan, at the Hilton Tokyo Odaiba with the biggest-ever attendance of 175 shareholders, 33 more shareholders than last year. I would like to take this opportunity to express my heartfelt thanks to those who attended the meeting. During an active question and answer session, one of the shareholders pointed out that I might be too optimistic about prospects for China economy as I presented this year’s business plan with increased sales and profit in spite of the many unforeseeable factors which could threaten the current business environments. However, I responded to him by saying that I felt based on my experience of having lived for more than 30 years in Asia and in China, Sumida’s main production sites that China could still keep a single digit growth although a high growth period of more than 10% might have been over. I also explained to him that Sumida have been dispersing risks by diversifying business into three major markets as well as spreading production sites across the globe in preparation for a sudden deterioration of China economy for any reason.

In the first quarter of 2016, our automotive-related sales were strong as large car sales in the United States increased due to low-priced gasoline and new car sales in Europe continued increasing for 31 consecutive months. However, total sales were down 4.5% to 20,603 million yen on a year-on-year basis. In terms of profit, operating income increased 6.2% to 1,064 million yen tanks to savings of law material costs in addition to improvement of production efficiency. Ordinary income decreased 11.1% to 810 million yen and net income attributable to owners of parent also dropped 21.8% to 483 million yen from a year earlier, which were negatively impacted by foreign exchange rates.

The late Ichiro Yawata started Sumida 60 years ago with a strong determination to establish a company that would never go bankrupt. As 2016 is the 60th anniversary for Sumida, all
Sumida employees are getting excited about many events being planned within Sumida Group. But, I, as CEO of Sumida Group, am planning to visit as many Sumida business locations in the world as possible through the end of this year to convey our founder’s principles and Sumida DNA to the next-generation employees, as well as to ask them what images and directions they have in mind with regards to future development of Sumida Group beyond the third stage of our mid-term business plan (2018-2020), which I think will play an important role in the shaping of my leadership behavior for the coming years.

Summary of Consolidated Financial Results

SUMIDA CORPORATION would like to inform you that the 61st Annual General Meeting of Shareholders will be held as outlined below.

Date: Monday, March 21, 2016
Venue: Orion, Hilton Hotel Tokyo (1st Floor), 1-9-1 Daiba, Minato-ku, Tokyo (map)
Agenda:  The election of seven (7) directors 
Start Time: 13:00
End Time: 14:13
Number of Attended Shareholders: 175

Reported Items:

1. Business Report, consolidated financial statements and a report on the audit results of consolidated financial statements by the accounting auditors and the audit committee for the 61st term (January 1 to December 31, 2015)
2. Non-consolidated financial statements for the 61st term (January 1 to December 31, 2015)
   
   

Resolved Items:
Agenda No. 1: Appointment of seven (7) directors
Mr. Shigeyuki Yawata, Mr. Johji Sato, Mr. Pak Hong Auyang, Soichiro Uchida and Mr. Yukihiro Moroe, Mr. Atsushi Kato, and Mr. Michael Mühlbayer were reappointed as proposed.

Links to Related Information:

Financial Results for FY2015

General Enquiries:
PR/IR Team
Tel: +81-3-6758-2473

4th Quarter, Fiscal Year 2015
(October 1, 2015 through December 31, 2015)

We have enjoyed a quite successful year in 2015, the first year of the Mid-Term Business Plan Stage II (2015-2017). With continuing strong automotive-related sales, our total sales were up 11% from the record-high level of the previous year. During 2015, we focused on expanding production capacity in various parts of the world such as in Romania, Slovenia and Mexico as well as in China and Vietnam. On the sales front, we strengthened our distributor networks in the U.S. and China, and thus preparations for becoming a 100 billion yen sales company have been completed from the aspects of both production and sales.

In 2015, new car sales increased in Europe and the U.S. thanks to a favorable economy and a low-priced gasoline. In addition, with increasing number of electrical systems and devices recently developed for use in automobiles, demand for our automotive-related products has steadily increased. As a result, our total sales grew 11.2% in 2015 over the previous year to 86,237 million yen, marking the second consecutive record-breaking annual sales. In terms of profit, expansion of production capacity in the lower-cost areas, automation of automotive-related production lines and enhancement of production efficiency as well as reduction of law materials costs all contributed to a profit increase. Operating income, ordinary income and net income were up 26.7%, 18.2% and 51.0% respectively from a year earlier, to 4,237 million yen, 3,309 and 2,032 million yen respectively. Linking dividend to the profit increase, total dividend payout for the year of 2015 has been decided to be 26 yen per share, an increase of 6 yen per share from the previous year.

For 2016, we have some concerns about an adverse effect on the world economy from a deteriorating China economy and a substantial decline of oil prices. On the other hand, with the aid of low-priced gasoline as well as of last-minute demand for cars before increase of consumption tax in Japan and termination of automobile acquisition tax reduction in China, the world’s new car sales is expected to increase 3% in 2016 over 2015. On top of that, depreciation of renminbi and a decline in raw materials prices will serve as costs reduction factors for Sumida. Under these circumstances, Sumida’s total sales are expected to grow 2.0% in 2016 to 88 billion yen with operating income of 4.77 billion yen, up 12.6% from 2015. Being the 60th anniversary of Sumida’s foundation, 2016 is a very important year for Sumida to achieve the Mid-Term Business Plan Stage II (2015-2017). Everyone in the Sumida Group will prepare for the final year of 2017 with the utmost efforts during 2016.

Summary of Consolidated Financial Results

3rd Quarter, Fiscal Year 2015
(July 1, 2015 through September 30, 2015)

Total sales in fiscal 2015 third quarter ended September 30, 2015 were up 9.1% from the same quarter a year ago to 22,152 million yen due to the continued strong automotive-related sales reflecting the robust new car sales in Europe and the U.S. which are major battle grounds for Sumida.

The third quarter sales have reached an all-time high beating the previous record set in the second quarter of this year.

In terms of profit, operating profit grew 3.4% from the same period last year to 1,484 million yen, which has also hit a record high for the first time in eight years since 2007 third quarter.

Summary of Consolidated Financial Results

2nd Quarter, Fiscal Year 2015
(April 1, 2015 through June 30, 2015)

Consolidated sales for the second quarter of 2015 was up 15.7% from the same quarter of last year to 21,961 million yen. This was driven by steady automotive-related sales in North America and Europe on the back of increased sales of high-end cars.

Our consolidated quarterly sales for the second quarter in 2015 broke our previous quarterly sales record which was achieved in the first quarter of 2015.

In terms of profit, operating income and ordinary income were up 51.6% to 1,224 million yen and 54.0% to 987 million yen respectively. Net income for the quarter was 451 million yen compared to 440 million yen in the same quarter last year.

Summary of Consolidated Financial Results

1st Quarter, Fiscal Year 2015
(January 1, 2015 through March 31, 2015)

Consolidated sales for the first quarter of 2015 was 21,585 million yen, up 15.8% when compared to the same period of last year. This result was thanks to steady automotive-related sales in North America and Europe due to increased sales of high-end cars. The Yen’s depreciation against the US dollar also contributed to the sales increase. However, sales to the consumer electronics market was not fully recovered with the exception of smartphones. 

Our consolidated quarterly sales for the first quarter of 2015 was the highest ever recorded and broke our previous record high which we achieved in the third quarter in 2014.

In terms of profit, operating income and ordinary income were up 91.4% to 1,003 million yen and 164.8% to 911 million yen respectively. Net income for the quarter was 618 million yen compared to 246 million yen in the same quarter last year.

 Summary of Consolidated Financial Results

60th Annual General Meeting of Shareholders

Overview
Date:  Saturday, March 21st, 2015
Venue:  Orion, Hotel Nikko Tokyo (1st Floor), 1-9-1 Daiba, Minato-ku, Tokyo
Start Time:  12:00 noon
End Time:  1:30 p.m.
Number of Attended Shareholders:  142

Reported Items:

1. Business Report, consolidated financial statements and a report on the audit results of consolidated financial statements by the accounting auditors and the audit committee for the 60th term (January 1 to December 31, 2014)
2. Non-consolidated financial statements for the 60th term (January 1 to December 31, 2014)

Resolved Items: 

Agenda No. 1: Appointment of seven (7) directors
Mr. Shigeyuki Yawata, Mr. Johji Sato, Mr. Pak Hong Auyang, Soichiro Uchida and Mr. Yukihiro Moroe were reappointed as proposed. Mr. Atsushi Kato and Mr. Michael Mühlbayer were newly appointed this year as proposed. 

Agenda No. 2: Issuance of performance-linked stock acquisition rights
This resolution item was approved as proposed.

Inquiries from Shareholders:

• Compliance
• Efficient control of numerous subsidiaries
• Reasons for the 100 billion JPY sales target
• Development of the operating cash-flow
• Reasons for the share price drop
• Our strength
• Performance-linked stock acquisition rights and their impact on existing shareholders
• Production measures in order to achieve the 100 billion JPY sales target
• Future thoughts about the location in China

Links to related information

Fiscal Year 2014 Financial Results
   Information regarding the 60th Annual General Meeting of Shareholders 

4th Quarter, Fiscal Year 2014
(October 1, 2014 through December 31, 2014)

Net sales for the fiscal year 2014 increased by 13,669 million yen (21.4%) from the previous fiscal year to 77,563 million yen, partly attributable to the depreciation of the yen and the appreciation of the U.S. dollar and euro compared to the previous fiscal year.

Despite continued sluggish growth of consumer electronics related products with the exception of those for smartphones and tablet PCs, robust sales of automotive and industrial products drove our performance. In the automotive market, the advance in automotive electrification for safety, environment, comfort technologies as well as strong demand for luxury vehicles in Europe and North America drove growth. In the industrial market, there was strong demand for factory automation equipment and other industrial products.

Operating income increased by 97.0% year on year to 3,345 million yen owing to productivity improvements and price reduction for raw materials as well as revenue increase. Net income was 1,346 million yen (in FY2013, a net loss of 2,008 million yen was posted partly due to the impact of flood damage in Germany and the review of recoverability of deferred tax assets).

Summary of Consolidated Financial Results

3rd Quarter, Fiscal Year 2014
(July 1, 2014 through September 30, 2014)

The consolidated net sales for the period increased by 19.0% compared to the same period in 2013 to 20,304 million yen. Contributing to this growth were a number of factors: the smartphone market which showed a significant growth in the consumer electric- related business,  the increase in production of vehicles and electrification which boosted the demand for electric devices in the automotive-related business, the growth of industrial instruments in industry-related business, as well as the depreciation of the Japanese yen against the US dollar & Euro through the 3rd quarter FY2014.

With the increase in sales, an operating income amounting to 1,436 million yen (114.1% compared to the same period in 2013) and an ordinary income of 1,378 million yen was achieved (194.6% compared to the same period in 2013). Net income was 650 million yen, which is 70.2% compared to the same period in 2013.

Summary of Consolidated Financial Results

2nd Quarter, Fiscal Year 2014
(April 1, 2014 through June 30, 2014)

Consolidated sales for the second quarter in 2014 were up 18.5% from the same quarter of last year to 18,986 million yen thanks to steady automotive-related sales in North America and Europe. In the automotive industry, increased production and advancing electrification contributed to an increase in demand for electronic components, although in the consumer electronics market sales were not fully recovered. Yen’s depreciation against US dollars and euro also contributed to the sales increase.

In terms of profit, operating income and ordinary income were up 80.0% to 808 million yen and up 92.5% to 641 million yen respectively. An extraordinary loss of 292 million yen due to damages caused by last year’s floods in Germany was offset by extraordinary income from insurance money of 375 million yen. Net income for the quarter was 404 million yen compared to net loss of 2,082 million yen in the same quarter last year.

Summary of Consolidated Financial Results

1st Quarter, Fiscal Year 2014
(January 1, 2014 through March 31, 2014)

Consolidated sales for the first quarter in 2014 were up 31.1% from the same quarter of last year to 18,647 million yen thanks to steady automotive-related sales in North America and Japan on the back of increased sales of high-end cars, although consumer electronics sales were not fully recovered. Yen’s depreciation against US dollars and euro also contributed to the sales increase.

In terms of profit, operating income and ordinary income were up 117.9% to 524 million yen and 114.2% to 344 million yen respectively. As extraordinary loss of 116 million yen due to damages caused by last year’s floods in Germany was offset by extraordinary income from insurance money of 171 million yen, net income for the quarter was 246 million yen compared to 26 million yen in the same quarter last year.

Summary of Consolidated Financial Results

59th Annual General Meeting of Shareholders

Overview
Date:  Friday, March 21st, 2014
Venue:  Apollon, Hotel Nikko Tokyo (1st Floor), 1-9-1 Daiba, Minato-ku, Tokyo
Start Time:  1pm
End Time:  2:28pm
Number of Attended Shareholders:  126

Reported Items:

1. Business Report, consolidated financial statements and a report on the audit results of consolidated financial statements by the accounting auditors and the audit committee for the 59th term (January 1 to December 31, 2013).

2. Non-consolidated financial statements for the 59th term (January 1 to December 31, 2013).

Resolved Items: 

Agenda: Appointment of nine (9) directors
Mr. Shigeyuki Yawata, Mr. Ulrich Ruetz, Mr. Johji Sato and Mr. Pak Hong Auyang were reappointed as proposed. Mr. Soichiro Uchida and Mr. Yukihiro Moroe were newly appointed this year as proposed.

Inquiries from Shareholders:

• Forecast of labor wage increase in China
• Sales size of the business which was acquired from Nihon Koden
• Advantage of the western-style governance system
• View on replacing manufacturing site in Japan
• Mid-term business plan
• View on current share price level
• Capital Ratio
• Cash flow statement
• Communication in the company
• Forex assumption

4th Quarter, Fiscal Year 2013

Net sales for the current fiscal year increased by 24.5% from the previous fiscal year to 63,893 million yen, which was partly attributable to the depreciation of the yen against the U.S. dollar and the euro compared to the previous fiscal year.

Operating income decreased by 3.2% year on year to 1,698 million yen because, in spite of stable prices for raw materials such as copper, there were such factors as rising costs due to the further depreciation of the yen against the U.S. dollar and Ordinary income decreased by 3.5% year on year to 1,107 million yen due to foreign exchange losses despite the improvement in non-operating income and expenses due to such factors as an increase in gain on valuation of derivatives and a decrease in interest expenses.

In net income (loss), the Company posted a 2,008 million yen net loss (net income of 725 million yen for the previous fiscal year.) The net loss resulted from such factors as insurance income of 1,426 million yen in extraordinary income due to the impact of floods damage in Germany offset by 1,742 million yen in loss on disaster in extraordinary losses. And, in consideration of the current business environment including the impact of floods, the Company decided to reverse deferred tax assets as the result of a review of recoverability of deferred tax assets and recorded income taxes-deferred of 2,089 million yen.

Summary of Consolidated Financial Results

3rd Quarter, Fiscal Year 2013

In the third quarter of 2013, total consolidated sales was up 29.1% from the same quarter of last year to 17,068 million yen due to steady sales of smart entry system that stimulated new demands in Europe and U.S. as well as in China. New models of smart phones also contributed to the sales increase. In terms of profit, operating income was up 12.9% compared to the previous year to 670 million yen due to earlier-than-expected recovery from the floods in Germany in June on top of the increased revenue.

Summary of Consolidated Financial Results

2nd Quarter, Fiscal Year 2013

In the second quarter of 2013, total sales increased 20.0% to 16,021 million yen compared to the same period last year thanks to continuous sales expansion in North America with a central focus on automotive sales, and a quick recovery of FA (Factory Automation)-related industrial sales in China as well as weakening exchange rates of yen.

In terms of profit, in addition to not having achieved business plan in local currencies basis, due to 19% significantly higher-than-expected minimum wage increase implemented in May in Guangdong Province in China and yen’s further depreciation against the dollar, operating income was down 20.4% year on year to 449 million yen, which was however 87.1% up from the previous quarter. Along with extraordinary loss of 569 million yen booked for the damages caused by the floods in Germany, a part of deferred taxes had to be reversed as a result of downward revision of earnings forecast for the year to December, making net loss for this quarter 2,082 million yen.

Summary of Consolidated Financial Results

1st Quarter, Fiscal Year 2013

In the first quarter of 2013, total sales increased 15.0% to 14.2 billion yen compared to the same quarter last year and achieved the highest quarterly sales since the third quarter of 2008 due to increased automotive sales in North America and surging sales of renewable energy-related products in Japan. In terms of profit, operating income was up 14.7% to 240million yen compared to the same quarter last year. Depreciation of the yen against US dollar and euro during the first quarter of 2013, average of which were 89.6 yen per dollar (77.7 yen in 1Q-2012) and 118.9 yen per euro (101.8 yen in 1Q-2012) respectively also contributed to this favorable performance in the first quarter of 2013. 

Summary of Consolidated Financial Results

58th Annual General Meeting of Shareholders

Overview
Date:  Wednesday, March 20th, 2013
Venue:  Apollon, Hotel Nikko Tokyo (1st Floor), 1-9-1 Daiba, Minato-ku, Tokyo
Start Time:  1pm
End Time:  1:51pm
Number of Attended Shareholders:  131

Reported Items:
1. Business Report, consolidated financial statements and a report on the audit results of consolidated financial statements by the accounting auditors and the audit committee for the 58th term (January 1 to December 31, 2012).

2. Non-consolidated financial statements for the 58th term (January 1 to December 31, 2012).

Resolved Items:
Agenda: Appointment of nine (9) directors
Mr. Shigeyuki Yawata, Mr. Kohtaro Miyagi, Mr. Ulrich Ruetz, Mr. Masaru Hattori and Mr. Charles F. Martin, Mr.Nobuyuki Oneda, Mr.Shinji Yoko were reappointed as proposed. Mr.Johji Sato and Mr. Auyang Pak Hong were newly appointed this year as proposed.

Inquiries from Shareholders:

• Major efforts to reducing cost
• China Plus 1 and risk management in China

4th Quarter, Fiscal Year 2012

In 2012 Q4, total sales was 12,358 million yen and operating income was 374 million yen, up 3.7% and 24.5% respectively compared to the same quarter last year. For FY 2012, due to stagnant sales in the consumer electronics, total sales ended up with 51.3 billion yen, down 2.8 % from last year. Operating income was also down 19.1% to 1.7 billion yen compared to the previous year.

Operating income which exceeded last year’s in Q4 could not make up for a decline in the preceding quarters. 

Summary of Consolidated Financial Results

3rd Quarter, Fiscal Year 2012

In terms of financial highlights in Q3 2012, total sales ended up with 13 billion and 221 million yen, down 3.5% from the same quarter last year due to stagnant sales in consumer electronics, although sales in automotive continued to be strong. Yen’s sharp appreciation against euro also contributed to the decreased sales with sales in euro converted to yen.

With regards to profit, operating income was up 9.8% from last year to 582 million yen thanks to the cost-cutting measures and ordinary income increased 396.8% to 408 million yen compared with last year mainly because foreign exchange loss was significantly reduced. 

Summary of Consolidated Financial Results

2nd Quarter, Fiscal Year 2012

In the second quarter of 2012, total sales ended up with 13.3 billion yen, down 3.8% from a year earlier, but up 7.8% from the previous quarter in spite of yen’s excessive appreciation against euro in this quarter, a negative factor for our sales expressed in yen. Sales for automotive-related products were growing steadily, especially in Europe, but total sales were dragged down by stagnant sales in consumer electronics market.

In terms of profit, operating profit dropped 16.4% to 552 million yen on a year-on-year basis, but improved 179.2% from the previous quarter, primarily reflecting increased sales and the favorable effects on various cost-saving measures that started last year such as transfer of production lines to the lower-costs satellite factories. 

Summary of Consolidated Financial Results

1st Quarter, Fiscal Year 2012

Total consolidated sales was ¥12,375 million, down 6.7 percent from ¥13,259 million in the prior-year quarter for consumer electronics and industrial related grew weaker. Operating income was ¥197 million down 68.0 percent from ¥618 million in the prior-year quarter from influence of the production adjustment. Ordinary income was ¥164 million, down 75.3 percent from ¥665 million in the prior-year quarter. Quarterly net income was ¥90 million, down 78.5 percent from ¥19 million in the prior-year quarter. 

Summary of Consolidated Financial Results

57th Annual General Meeting of Shareholders

Overview
Date:  Tuesday, March 20th, 2012
Venue:  Apollon, Hotel Nikko Tokyo (1st Floor), 1-9-1 Daiba, Minato-ku, Tokyo
Start Time:  2pm
End Time:  3:15pm
Number of Attended Shareholders:  102

Reported Items:
1. Business Report, consolidated financial statements and a report on the audit results of consolidated financial statements by the accounting auditors and the audit committee for the 57th term (January 1 to December 31, 2011).

2. Non-consolidated financial statements for the 57th term (January 1 to December 31, 2011).

Resolved Items:
Agenda: Appointment of nine (9) directors
Mr. Shigeyuki Yawata, Mr. Robert E. Patterson, Mr. Ashok B. Melwani, Mr. Kohtaro Miyagi, Mr. Ulrich Ruetz, Mr. Masaru Hattori and Mr. Charles F. Martin were reappointed as proposed. Mr. Nobuyuki Oneda and Mr. Shinji Yoko were newly appointed this year as proposed.

Inquiries from Shareholders:

• Reasons for the rise of the cost rate
• Breakdown of the extraordinary loss/profit
• Sales of the 4th quarter
• Strategies how to cope with fluctuating copper prices
• Fluctuating copper prices and foreign exchange rates
• Operation of the financial subsidiary
• Corresponding with rising interest rates
• Term of office of outside directors

4th Quarter, Fiscal Year 2011

We achieved total consolidated sales of 11,913 million yen for the quarter, year-on-year decrease by 5.6%. Operating income fell year-on-year by 25.8% to 300 million yen due to increase of labor cost in China. Ordinary income was 3 million yen and net loss was 196 million yen. 

Summary of Consolidated Financial Results

3rd Quarter, Fiscal Year 2011

Net sales for the first half of FY2011 0.8% decreased over the previous fiscal year to 13,705million yen due to a steady sales performance in Europe, mainly in automotive segment. On the other hand, sales in Asia, especially in Japan, were affected by the earthquake and tsunami in March.

Due to sluggish sales, implementation of production adjustments, price increase of copper and other raw materials, and wage increase for the workers at our Chinese factories, operating income decreased 51.9% compared to the previous fiscal year to 530 million yen.

Ordinary income was 91.5% down from the previous fiscal year to 82 million yen Compared to previous year, due to foreign exchange loss booked in non-operating expenses (as a result of the recent appreciation of the Japanese yen). As a result of the above, net income decreased 99.8% compared to the previous fiscal year to 1million yen. 

Summary of Consolidated Financial Results

2nd Quarter, Fiscal Year 2011

Net sales for the first half of FY2011 1.6% decreased over the previous fiscal year to 13,880million yen due to a steady sales performance in Europe, mainly in automotive segment. On the other hand, sales in Asia, especially in Japan, were affected by the earthquake and tsunami in March.

Due to price increase of copper and other raw materials, and wage increase for the workers at our Chinese factories, operating income decreased 36.2% compared to the previous fiscal year to 661 million yen. Ordinary income was 21.3% up from the previous fiscal year to 542 million yen.

Compared to previous year where we suffered a foreign exchange loss, we were able to have a foreign exchange gain this year in non-operating income/expense. As a result of the above, net income increased 7.5% compared to the previous fiscal year to 272 million yen.

Summary of Consolidated Financial Results

1st Quarter, Fiscal Year 2011

We achieved total consolidated sales of 13,259 million yen for the quarter, year-on-year increase by 2.8% owing to steady increase of Automotive and Industrial sales contributed to the overall sales increase.

Operating income fell year-on-year by 39.7% to 618 million yen due to sudden increase of raw material price and increase of labor cost in China. With foreign exchange gain and evaluation profit from derivatives in non-operating income, ordinary income was 665 million yen, year-on-year decrease by 15.4%. We recorded an extraordinary loss for the cost incurred for Japan disaster net income was 419 million yen, year-on-year decrease by 35.7%. 

Summary of Consolidated Financial Results

56th Annual General Meeting of Shareholders

Overview
Date:  Saturday, March 19th, 2011
Venue:  Apollon, Hotel Nikko Tokyo (1st Floor), 1-9-1 Daiba, Minato-ku, Tokyo
Start Time:  1pm
End Time:  1:40pm
Number of Attended Shareholders:  55

Reported Items:
1. Business Report, consolidated financial statements and a report on the audit results of consolidated financial statements by the accounting auditors and the audit committee for the 56th term (January 1 to December 31, 2010).

2. Non-consolidated financial statements for the 56th term (January 1 to December 31, 2010).

Resolved Items:
Agenda: Appointment of nine (9) directors
Mr. Shigeyuki Yawata, Mr. Chiu Ka Sheung, Mr. Robert E. Patterson, Mr. Ashok B. Melwani, Mr. Kazuhide Kondo, Mr. Masato Tsuru, Mr. Kohtaro Miyagi, Mr. Ulrich Ruetz, Mr. Masaru Hattori and Mr. Charles F. Martin were reappointed as proposed.

4th Quarter, Fiscal Year 2010

Net sales of FY2010 4th Quarter ending December 31, 2010 deceased 0.5% to 12,615 million yen compared with the same quarter of the prior year. In terms of profit, operating income was down 53.4% year on year to 404 million yen. With interest expenses and others, ordinary income and net income were 45 million yen and 415 million yen, respectively.

Summary of Consolidated Financial Results

3rd Quarter, Fiscal Year 2010

The business has steadily improved for FY2010 3rd Quarter ended September 30, 2010. Net sales increased 12.2% to 13,829 million yen compared with the same quarter of the prior year. In terms of profit, operating income was up 77.9% year on year to 1,103 million yen, primarily reflecting increased sales, improved business structure through reduction of fixed costs, and streamlined production system. With interest expenses and others, ordinary income and net income were 961 million yen and 889 million yen, respectively.

Summary of Consolidated Financial Results

2nd Quarter, Fiscal Year 2010

Sales in the 2nd quarter of fiscal 2010 continued to make a good progress and increased 9.3% compared with 1Q this year to 14,107 million yen (up 40.1% year on year).

In terms of profit, due to effects of productivity improvement achieved through streamlined manufacturing as well as the increased sales, operating income grew 1.2% compared with the previous quarter to 1,037 million yen, a significant improvement from a loss of 377 million yen during the same period last year. Although 7% operating income ratio was maintained, ordinary income and net income were 448 million yen and 254 million yen respectively after booking foreign exchange loss due to a sudden depreciation of euro and interest expenses.

Summary of Consolidated Financial Results

1st Quarter, Fiscal Year 2010

Total consolidated sales for Sumida Group were 12,894 yen million in the 1st quarter of FY2010, up 50.3% compared with the same period last year. Sales increased for the fourth consecutive quarter starting from the 1st quarter of FY2009. A steady recovery in the automotive business and a firm market condition for the consumer electronics business which usually gets weak in the first quarter, contributed to our sales increase.

In terms of profit we achieved operating income of 1,025 million yen compared to a loss of 1,345 million yen in the 1st quarter of the prior year, reflecting not only the increased sales, but also a favorable impact from streamlined manufacturing operations and business restructuring to reduce the fixed costs.

With interest expenses and foreign exchange loss, though partially offset by a gain on derivative financial instruments, ordinary income and net income were 787 million yen and 652 million yen respectively, which, however, improved significantly from prior year period’s ordinary loss of 1,057 million yen and net loss of 1,071 million yen.

Summary of Consolidated Financial Results