Press Release

3
2003
Consolidated Financial Results for the
3rd Quarter ended 30 September 2003
SUMIDA CORPORATION
3-3-6 Nihonbashi Ningyocho
Chuo-ku, Tokyo
103-8589 Japan
1
Consolidated Financial Highlights for the 3rd Quarter ended 30 September 2003
1. Consolidated Results of Operations
(Million yen, %)
Period
9-month period
(January - September)
3rd Quarter
Category
2003
Net sales
% Of
Total
2002
% Of
Total
%
Change
% Of
Total
2003
8,033
100.0
8,474
100.0
(5.2)
22,397
Operating profit
709
8.8
641
7.6
10.5
1,581
7.1
Ordinary income
607
7.6
614
7.3
(1.1)
1,401
Income before income taxes
472
5.9
571
6.7
(17.4)
Net income
402
5.0
428
5.0
27.21
---
31.95
26.55
---
31.64
% Of
Total
2002
100.0 26,778
%
Change
100.0
(16.4)
1,737
6.5
(9.0)
6.3
1,717
6.4
(18.4)
(22)
(0.1)
1,646
6.1
---
(6.2)
(59)
(0.3)
1,312
4.9
---
---
---
(3.99)
---
98.34
---
---
---
---
---
---
97.20
---
---
Amounts per common share
(yen)
Net income:
(Basic)
Net income:
(Fully diluted)
2. Consolidated Financial Position
(Million yen)
Period
Category
3rd Quarter
2003
Total assets
2002
29,503
31,665
(2,162)
5,599
5,525
74
17,787
19,477
(1,690)
14,832
13,423
1,409
1,199.24
1,451.01
(251.77)
60.3
61.5
---
Capital stock
Total shareholders’ equity
Total number of
(thousand shares)
stocks
issued
Shareholders’ equity per share (yen)
Shareholders’ equity ratio
Change
(%)
2
3. Conditions of Consolidated Cash Flow
(Million yen)
Period
3rd Quarter
Category
2003
9-month period (January - September)
Change
2003
2002
Change
2002
Cash flows from operating activities
403
1,346
(943)
604
1,989
(1,385)
Cash flows from investing activities
(354)
(360)
6
(1,319)
(1,187)
(132)
Cash flows from financing activities
416
(235)
651
401
(658)
1,059
4,242
5,081
(839)
4,242
5,081
Cash and cash equivalents , end of period
(839)
Consolidated Earnings Forecasts (4th Quarter 2003: Three months ending December 31, 2003)
Period
Category
4th Quarter
2002
2003(Estimate)
%Change
8,000
8,018
(0.2)
Operating profit (million yen)
700
434
61.3
Ordinary income (million yen)
667
398
67.6
Net income (million yen)
440
(194)
---
29.80
(14.49)
---
Net sales (million yen)
Net income per share (yen)
Consolidated Quarterly Business Results
(Million yen)
2003
Period
Category
2002
2001
3Q
2Q
1Q
4Q
3Q
2Q
1Q
4Q
3Q
2Q
1Q
8,033
7,162
7,202
8,018
8,474
9,349
8,955
7,582
7,636
8,114
8,226
Operating profit
709
571
301
434
641
592
504
541
156
81
333
Ordinary income
607
488
306
398
614
589
514
356
(44)
(277)
47
472
440
(934)
7
571
566
509
(14) (1,405)
(219)
(141)
402
481
(942)
(194)
428
502
382
839 (1,651)
(131)
(94)
Net sales
Income
taxes
before
Net income
income
3
Consolidated Yearly Business Results
(Million yen)
2003 (E)
2002
2001
2000
1999
30,397
34,796
31,558
33,575
24,574
Operating profit
2,281
2,171
1,112
3,318
2,687
Ordinary income
2,068
2,116
82
2,967
2,439
Income before income
taxes
540
1,653
(1,779)
2,632
1,580
Net income
381
1,118
(1,037)
1,973
1,003
Shareholders’ equity
18,227
18,910
19,534
18,581
15,083
Total assets
29,943
30,666
32,340
32,000
26,220
25.80
83.64
(78.11)
163.43
101.56
1,228.93
1,408.72
1,471.29
1,539.48
1,374.60
Net sales
Per share(yen)
EPS
Shareholders’ equity
*Foreign exchange adjustments are included in shareholders’ equity
4
CEO's Message for the 3rd Quarter of 2003
“CEATEC Japan 2003" was held in October 2003 at Makuhari Messe in Chiba Prefecture.
667 firms from 17 countries participated and some 200,000 visitors attended the exhibition.
Among the displays were new generation TVs, including liquid crystal TVs with evidence of
ground-wave digital broadcasting near at hand and environmentally friendly automobiles such
as hybrid cars and fuel cell-powered cars. At a number of booths, those in the electronic
parts industry in particular, many automobile-related electronic products were on display.
Sumida Group participated in this exhibition by putting emphasis on our three major growth
groups of business comprising (1) legacy coils cultivated over Sumida’s 50-year history, (2)
new generation TV-related coils with flat panel-related ones as the axis and (3)
automotive-related coils. Our booth attracted a large number of visitors.
The 2003 business year is the first year of Sumida Group's Mid-Term Vision aiming at
achieving our sales target of ¥100 billion with the ratio of operating profit to net sales at 10%
in the 2007 business year. This business year is also the year of large restructuring, with
pains to cut off our unprofitable business segments including SRC in North America business
and Opto businesses drastically from Sumida Group, while giving prominence to our three
major growth groups of business. However, withdrawal from our unprofitable operations is
producing visible results in terms of numerical value, with the ratio of operating profit to net
sales recovering sharply to nearly 9% in the 3rd quarter of 2003.
Meanwhile, our global meeting was held for the second time this year in the middle of
October and 66 key members from all over the world gathered to discuss achievement of the
Mid-Term Vision in Tokyo. At this meeting, discussions were focused for one full week on
the theme of radically reviewing our present organizational setup in order to achieve the
Mid-Term Vision. Our automotive group was set up in July this year prior to the major
restructuring in an attempts to test the effectiveness of creating a product focused group. In
view of the positive results of this trial being actually felt in a short period, we are planning to
restructure our organizational setup in 2004 focused on Product management groups. Each
of our product group will be composed of resources from sales, manufacturing, research and
development, quality and service. The chief of such product management groups will be
selected by attaching much importance not on capabilities as a conventional “business
administrator” but on capabilities as an entrepreneur.
The difference being that
“entrepreneurs do the correct things” and “business administrators do things correctly”.
With as the restructuring Sumida will motivate leaders of our product groups to focus on
achievement of commitments with each commitment clearly defined.
Shigeyuki Yawata
CEO of the Sumida Group
5
Sales by Product Category
(Million yen, %)
Period
3rd Quarter
9-month period
(January - September)
2003
Category
% Of
2002
total
% Of
%
total
Change
2003
% Of
2002
total
% Of
%
total
Change
8.6
579
6.8
20.2
1,641
7.3
1,521
5.7
7.9
4,077
50.8
3,509
41.4
16.2
10,745
48.0
10,930
40.8
(1.7)
Other Coils
579
7.2
366
4.3
58.2
1,596
7.1
1,337
5.0
19.4
Automotive
1,650
20.5
1,539
18.2
7.2
5,272
23.5
4,977
18.6
5.9
TOTAL
7,002
87.1
5,993
70.7
16.8
19,254
85.9
18,765
70.1
2.6
Optoelectronics
656
8.2
1,094
12.9
(40.0)
2,007
9.0
3,861
14.4
(48.0)
Magnetics
375
4.7
1,387
16.4
(73.0)
1,136
5.1
4,152
15.5
(72.6)
8,033
100.0
8,474
100.0
(5.2)
22,397
100.0
26,778
100.0
(16.4)
Coil Business
696
AV Coils
IT Communications
Coils
TOTAL
Sales by Region
Period
Region
(Million yen, %)
9-month period (January - September)
3rd Quarter
2003
% Of
2002
Total
% Of
%
Total
Change
2003
% Of
2002
Total
% Of
%
Total
Change
Japan
2,220
27.6
2,293
27.1
(3.2)
6,426
28.7
6,679
24.9
(3.8)
HK/China
1,779
22.1
1,354
16.0
31.4
4,232
18.9
4,805
17.9
(11.9)
651
8.1
626
7.4
4.0
1,689
7.5
1,808
6.8
(6.6)
1,635
20.4
1,589
18.7
2.9
4,479
20.0
5,252
19.6
(14.7)
NAFTA
859
10.7
1,353
16.0
(36.5)
2,481
11.1
3,871
14.5
(35.9)
EU
889
11.1
1,259
14.8
(29.4)
3,090
13.8
4,363
16.3
(29.2)
8,033
100.0
8,474
100.0
(5.2)
22,397
100.0
26,778
100.0
(16.4)
ASEAN
Taiwan/Korea
TOTAL
6
Product Segment Information
(Million yen, %)
2002
2003
1Q
2Q
3Q
4Q
YTD
1Q
2Q
3Q
YTD
Net sales
Coil Business
Optoelectronics
Magnetics
Elimination
Total
6,291
1,315
1,349
--8,955
6,481
1,452
1,416
--9,349
5,993
1,094
1,387
--8,474
5,949
904
1,165
--8,018
24,714
4,765
5,317
--34,796
5,966
820
416
--7,202
6,286
531
345
--7,162
7,002
656
375
--8,033
19,254
2,007
1,136
--22,397
Operating expense
Coil Business
Optoelectronics
Magnetics
Elimination
Total
5,006
1,232
1,682
531
8,451
5,115
1,364
1,703
575
8,757
4,732
988
1,539
574
7,833
4,870
893
1,303
518
7,584
19,723
4,477
6,227
2,198
32,625
5,032
805
543
521
6,901
5,130
547
417
497
6,591
5,652
668
474
530
7,324
15,814
2,020
1,434
1,548
20,816
Operating profit
Coil Business
Optoelectronics
Magnetics
Elimination
Total
1,285
83
(333)
1,366
88
(287)
1,261
106
(152)
1,079
11
(138)
4,991
288
(910)
934
15
(127)
1,156
(16)
(72)
1,350
(12)
(99)
3,440
(13)
(298)
(531)
504
(575)
592
(574)
641
(518)
434
(2,198)
2,171
(521)
301
(497)
571
(530)
709
(1,548)
1,581
Operating profit ratio
Coil Business
Optoelectronics
Magnetics
Elimination
Total
20.4
6.3
(24.7)
--5.6
21.1
6.1
(20.3)
--6.3
21.0
9.7
(11.0)
--7.6
18.1
1.2
(11.8)
--5.4
20.2
6.0
(17.1)
--6.2
15.7
1.8
(30.5)
--4.2
18.4
(3.0)
(20.9)
--8.0
19.3
(1.8)
(26.4)
--8.8
17.9
(0.6)
(26.2)
--7.1
7
Consolidated Balance Sheet
(Unit: thousand yen)
3Q 2003
%
ASSETS
Ⅰ
Current assets
1.Cash & cash equivalents
2.Trade receivables
3.Inventories
4.Others
5.Allowance for doubtful accounts
Ⅱ
Total current assets
Non-current assets
(1) Tangible fixed assets
1.Buildings
2.Machinery & equipment
3.Furniture & fixture
4.Land
5.Construction in progress
6.Accumulated depreciation
Total tangible fixed assets
(2) Intangible fixed assets
1.Leasehold rights
2.Software
3.Others
Total intangible fixed assets
4,242,157
6,778,396
2,913,514
1,851,004
(18,427)
15,766,644
Year End
2002
3Q 2002
53.4
%
5,080,704
6,776,584
3,954,877
1,023,713
(65,343)
16,770,535
53.0
%
4,789,274
6,440,099
3,645,101
1,239,564
(41,238)
16,072,800
52.4
6,094,023
9,150,411
2,761,728
1,254,190
6,392,276
10,566,007
3,206,591
1,256,032
6,302,920
10,413,262
3,144,559
1,255,183
155,539
(9,657,532)
9,758,359
33.1
311,299
(10,143,889)
11,588,316
36.6
335,307
(10,307,893)
11,143,338
36.3
2.3
598,568
--196,290
794,858
2.5
582,306
173,188
8,152
763,646
2.5
544,652
138,962
3,991
687,605
(3) Investments & other assets
1.Investments in securities
2.Others
Total investments & other assets
Total fixed assets
TOTAL ASSETS
318,140
2,972,668
3,290,808 11.2
13,736,772 46.6
29,503,416 100.0
Next page continues
8
175,628
2,335,606
2,511,234
7.9
14,894,408 47.0
31,664,943 100.0
143,770
2,542,925
2,686,695
8.8
14,593,679 47.6
30,666,479 100.0
Consolidated Balance Sheet (Continued)
LIABILITIES
Current liabilities
Ⅰ
1.Trade payables
2.Short-term loans
3.Other current liabilities
Ⅱ
Total current liabilities
Non-current liabilities
1.Long-term loans
2.Straight bond
3.Deferred tax liabilities
4.Other non-current liabilities
Total non-current liabilities
TOTAL LIABILITIES
(Minority interest)
Minority interest
SHAREHOLDERS ’ EQUITY
Ⅰ Capital Stock
Ⅱ Legal reserves
Ⅲ Consolidated retained earnings
Ⅳ Unrealized gains/losses on securities at
market valuation
Ⅴ Cumulative translation adjustments
Ⅵ Treasury stock
TOTAL SHAREHOLDERS’ EQUITY
TOTAL LIABILITIES & SHAREHOLDERS ’
EQUITY
2,333,554
4,523,002
1,976,231
8,832,787
29.9
2.823,786
5,248,661
2,282,590
10,355,037
195,331
2,883,960
11,716,747
9.8
39.7
1,583,318
--211,509
26,202
1,821,029
12,176,066
5.8
38.5
1,324,616
--204,001
261,477
1,790,094
11,752,602
---
---
11,907
0.0
3,726
0.0
5,598,570
5,396,835
8,857,622
19.0
18.3
30.0
5,524,631
5,322,646
9,392,878
17.4
16.8
29.7
5,527,181
5,325,272
9,198,400
18.0
17.4
30.0
60,318
(2,108,264)
(18,412)
17,786,669
0.2
(7.1)
(0.1)
60.3
44,186
0.1
(2.5)
(803,912)
(3,459) (0.0)
19,476,970 61.5
28,360
0.1
(3.8)
(1,164,091)
(4,971) (0.0)
18,910,151 61.7
29,503,416 100.0
31,664,943 100.0
30,666,479 100.0
1,284,510
1,200,000
204,119
9
32.7
2,365,892
5,129,741
2,466,875
9,962,508
32.5
5.8
38.3
Consolidated Income Statement
( unit : thousand yen)
3Q
2003
2002
% of
Sales
Amount
9-month Period (January - September)
2003
2002
Amount
% of
Sales
Amount
% of
Sales
% of
Sales
Amount
Ⅰ Net sales
8,033,482
100.0
8,473,664
100.0
22,397,117
100.0
26,777,769
100.0
Ⅱ Cost of sales
5,850,611
72.8
6,274,727
74.0
16,365,381
73.1
20,236,005
75.6
2,182,871
27.2
2,198,937
26.0
6,031,736
26.9
6,541,764
24.4
1,474,197
18.4
1,557,485
18.4
4,450,942
19.8
4,804,297
17.9
708,674
8.8
641,452
7.6
1,580,794
7.1
1,737,467
6.5
Gross income
Ⅲ Selling, general & administrative
Operating profit
Ⅳ Non-operating income (expenses)
Interest & dividends received
9,092
11,369
25,967
43,285
17,515
21,564
54,727
65,528
Exchange gain (loss)
(70,759)
(38,481)
(105,433)
(6,576)
Investment loss on equity method
22,518
---
74,493
---
21,628
29,049
8,759
Interest cost & discount expense
Other
non-operating
(expenses)
income
Non-operating income (expenses)
Ordinary income
515
(101,185)
(1.2)
(27,048)
(0.3)
(179,637)
(0.8)
(20,060)
(0.1)
607,489
7.6
614,404
7.3
1,401,157
6.3
1,717,407
6.4
Ⅴ Extraordinary income (losses)
Gain on sales of fixed assets
Loss on disposal of fixed assets
Directors’ retirement bonus
Unrealized loss on investment
1,512
(77)
142,232
156
14,880
12,625
27,516
41,339
---
---
50,000
---
57,209
---
166,251
---
---
---
1,203,941
---
64,914
30,535
117,353
(30,535)
securities
Loss on sales of subsidiary
Structural reorganization expenses
Extraordinary income (losses)
Income before income taxes
Income taxes
Income on minority shareholders
Net income
(135,491)
(1.7)
(43,237)
(0.6)
(1,422,829)
(6.4)
(71,718)
(0.3)
471,998
5.9
571,167
6.7
(21,672)
(0.1)
1,645,689
6.1
70,151
0.9
142,792
1.7
40,540
0.2
333,645
1.2
---
---
---
---
3,336
0.0
---
---
401,847
5.0
428,375
5.0
(58,876)
(0.3)
1,312,044
4.9
10
Consolidated Cash Flow Statement
(Unit: thousand yen)
9-month Period (Jan. - Sep.)
3Q
Period
Account
2003
2002
2003
2002
I. Cash Flows from Operating Activities
Net income
401,847
428,375
(58,876)
1,312,044
Depreciation & Amortization
388,867
521,252
1,123,390
1,563,712
14,880
12,625
27,516
41,339
(601,367)
677,778
(978,788)
(737,692)
48,852
219,764
8,988
(394,542)
321,169
(73,691)
455,671
690,128
(170,837)
(440,493)
26,122
(485,544)
403,411
1,345,610
604,023
1,989,445
(305,803)
(357,510)
(979,093)
(1,149,371)
2,646
2,983
190,848
2,989
(50,638)
(5,789)
(530,416)
(40,776)
(353,795)
(360,316)
(1,318,661)
(1,187,158)
(1,081,763)
108,796
(606,670)
104,880
313,298
(264,702)
(40,106)
(794,106)
Cash dividends paid
(147,664)
(133,949)
(281,901)
(266,716)
Proceeds from bond issuance
1,200,000
---
1,200,000
---
132,569
55,080
142,769
297,840
Loss on disposal of fixed assets
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in inventories
Increase (Decrease) in Accounts Payable
Others
Cash Flows from Operating Activities
II. Cash Flows from Investing Activities
Acquisition of tangible fixed assets
Proceeds from sale of tangible fixed assets
Others
Cash Flows from Investing Activities
Ⅲ. Cash Flows from Financing Activities
Net borrowings (repayments) of short -term loans
Repayments of long-term debt
Revenue from issuance of stocks
Others
Cash Flows from Financing Activities
Ⅳ. Effect of exchange rate changes on cash and cash equivalents
Ⅴ. Net increase (decrease) in cash and cash equivalents
Ⅵ. Cash and cash equivalents at beginning of year
Ⅶ. Decrease in cash and cash equivalents on exception from
(696)
---
(13,440)
---
415,744
(234,775)
400,652
(658,102)
(266,766)
34,775
(231,837)
(412,749)
198,594
785,294
(545,823)
(268,564)
4,043,563
4,295,410
4,789,274
5,349,268
---
---
(1,294)
---
4,242,157
5,080,704
4,242,157
5,080,704
consolidation
Ⅷ. Cash and cash equivalents at end of interim period (year)
The explanatory notes given in English are for reference only. For any doubts or uncertainties regarding the
English translation, refer to the original text in Japanese.
11