SUMIDA CORPORATION 3rd Quarter Results - 2005 27th October 2005 CEO YAWATA SHIGEYUKI 1 ＳＵＭＩＤＡ’s Strategy Consumer Electronics Automotive Related Industry O.E.M O.E.M Parts supplier Tier 1 Sumida Tier 2 Tier 3 2 ＳＵＭＩＤＡ’s Strategy Consumer Electronics Automotive Related Industry O.E.M O.E.M Specialist components supplier Parts supplier Sumida 3 Tier 1 ＴＯＢ for Saia Burgess •Friendly working relationship without “shareholding” •To form a team to become a solution provider SUMIDA CORPORATION Team building without financial investment or shareholdings JOHNSON ELECTRIC Saia-Burgess 4 The road to 1B7 （＄１M） ④Post 1B7 1000 ③M&A・Alliances etc. 500 ②Shortfall To provide the best possible return to the stakeholders. ① Current Business (Organic Growth) 0 ２００３ ２００４ ２００５ 5 ２００６ (M&A・Alliance Strategy) to continue to target •several Mid sized companies •large companies ２００７ SUMIDA CORPORATION 3rd Quarter Results - 2005 27th October 2005 GROUP PRESIDENT CHIU KA SHEUNG 6 2005 – Business Climate Sumida’s Strategy Strategy to increase market share 1 o wth r g 5% Profit Oriented Growth f Pro Low er P r ofit Mar gin Imp rove a fit M Pro i arg M it o ati R n rgin Market Environment Market Recovery Price Erosion Worsening Market Q1 2005 Q2 2005 Q3 2005 7 Q4 2005 2006 10% SUMIDA CORPORATION 3rd Quarter Results - 2005 27th October 2005 CFO MATSUDA SABURO 8 1. Consolidated Results of Operations for Q3 (million yen, %) 05 Q2 05 Q3 Change % Change Net Sales 9,519 10,225 706 7.4% Operating Profit 1,036 845 △191 △18.4% Operating Profit Ratio 10.9% 8.3% Ordinary Income 934 733 △202 △21.5% Net Income 631 590 △41 △6.5% 9 2. Net Sales (million yen, %) 04 Q3 05 Q3 Change % Change 8,855 9,741 886 10.0% PMC 663 484 △179 △ 27.0% Total 9,519 10,225 706 7.4% Legacy 4,746 4,945 199 △4.2% Inverter 2,551 2,784 233 9.1% Automotive 1,558 2,012 454 29.1% 5 Companies 8,855 9,741 886 10.0% 5 Companies 10 3. Operating Income (million yen, %) 04 Q3 05 Q3 Change % Change Legacy 2,334 2,217 △117 △5.0% Inverter 350 551 201 57.4% Automotive 480 395 △85 △17.7% 3,164 3,163 △1 0% 103 78 △25 △24.3% △2,231 △2,396 △165 1,036 845 △191 Subtotal PMC Elimination Operating Profit 11 △18.4% 4. Operating Profit Comparison (Unit : %) 04 Q3 05 Q3 % Change Legacy 49.2 44.8 △4.6% Inverter 13.7 19.8 6.1% Automotive 30.8 19.7 △11.1% 12 5. Profit Structure Analysis (million yen,%) Sales Margin Margin (Actual ・Forecast）（Theoretical） 30.9% 30.9% Fixed Costs 2,200 Operating profit 712 Operating profit ratio 7.6% 05 Q1 9,424 05 Q2 9,700 31.9% 31.4% 2,393 701 7.2% 05 Q3(E) 10,200 31.5% 32.3% 2,385 828 8.1% 05 Q3(A) 10,225 31.7% 32.3% 2,396 845 8.3% 05 Q4(E) 10,300 31.7% 32.3% 2,385 880 8.5% 05 Target 11,000 31.7% 33.6% 2,385 1,102 10.0% 13 6. 2005 Q3 Consolidated Results of Operations (against commitment) (million yen, %) Commitment Actual Favor (UF) Achievement 10,200 10,225 25 100.2% Margin 3,248 3,241 △7 99.8% Margin Ratio 31.8% 31.7% SGA 2,428 2,396 △ 32 820 845 25 Sales Operating Profit 14 103.0% 7. 2005 Q3 Consolidated Results of Operations (against commitment) (million yen, %) Commitment Actual Favor (UF) Operating Profit 820 845 Equity Method (75) (75) Others (25) (37) △12 Recurring Profit 720 733 13 15 25 Achievement 103.0% 101.8% 9. Consolidated Forecast for Q4 (million yen, %) 2005（Q4） 2004 (Q4) 2005 （Q3) 10,300 10.0%up 0.7%up Operating Profit 880 5.8%up 4.1%up Recurring Profit 750 15.0%up 2.3%up Net Income 850 1,417.9%up 44.1%up Sales 16 Disclaimer This material is provided to investors and business clients only for the purpose of evaluation of our company. Final decision must be made by each investor. The company shall not take any responsibility for any damage arising in connection with the information provided herein that investors may suffer. The forecasts of future performance contained in This report represent estimates based on factors the company considers relevant at this present time. Actual performance may vary. Consequently, no express or implied warranty can be made regarding future performance. 27th Oct.,2005 17