SUMIDA: Investor News

Notice of the Mid-Term Business Plan (2015-2017)

February 10th 2015 Press Release

SUMIDA CORPORATION announces the Mid-Term Business Plan (MTBP) Stage II, a three year business plan that will run from 2015 through 2017. In the fiscal year 2014, the final year of the preceding MTBP Stage I, consolidated total sales were 77.5 billion yen, exceeding the target of 60 billion yen thanks to the strong automotive-related sales in addition to the benefit generated by a drop in the yen’s value. In terms of profit, operating income was 3.3 billion yen compared to the target of 5 billion yen. Because Sumida has dollar-based cost structure, more-than-expected appreciation of the dollar against the yen had a negative impact on the profit by inflating the total costs. Transition from the dollar-based cost structure will be one of the challenges for Sumida in the Stage II.

MTBP Stage II will aim for 100 billion yen sales, 5 billion yen operating income and net income of 2.6 billion yen as well as more than 12% of ROE. The stage II will be a growth stage focusing particularly on profit. 

- Priority Business Areas - 

 

Automotive business

  • Expand sales of our main products by increasing installation rate in automobiles
  • Strengthen mechatronics product line by utilizing technologies developed for ABS
  • Develop new products for use in EV/HEV
 

Industry Business

  • Expand products for the use in industrial equipment and communication infrastructures in China
  • Increase sales of RFID products
  • Focus R&D resources on development of coils for medical equipment 
  • Develop power-conditioners for energy-related market
 

We will aim to achieve approximately 80% of total sales from automotive and industry businesses combined.

 

- Major Strategies - 

 
  • Focus on developing higher value-added products by utilizing coil technologies accumulated since the inception of our business 65 years ago
  • Strengthen the sales force in the big markets such as U.S. and China where sales significantly increased in the Stage I
  • Increase profitability by launching profitable products into the markets, reducing direct labor and law materials, and cutting production overhead and SG&A expenses.
  • Promote the transition from labor-intensive business to capital-intensive business with automated production lines 
  • Improve the total efficiency by further promoting “Global One” concept
  • Adopt IFRS to enhance comparability of our financial data

 

Please click on the press release link above to view the full pdf version of this item. 


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

Archive