SUMIDA CORPORATION 4th Quarter & Fiscal Year Results - 2006 27th February, 2007 CFO SABURO MATSUDA 1 1. Consolidated Results of Operations for Q4 (Unit: million yen) 2005 Q4 Change (%) 2006 Q4 2006 Q4 Achievement Forecast (%) 10,317 17,162 66.3 15,800 108.6 Operating income 926 608 (34.3) 1,100 55.3 Operating income ratio 9.0 3.5 Ordinary income 997 492 (50.7) 930 52.9 1,153 (55) (104.8) 550 － Net sales Net income 2 7.0 2. Consolidated Results of Operations for Q4 (substantial) (Unit ：million yen) 2005 Q4 Change (%) 2006 Q4 2006 Q4 Achievement Forecast (%) 10,317 17,162 66.3 15,800 108.6 Operating income 926 1,230 32.8 1,100 111.8 Operating income Ratio 9.0 7.2 Ordinary income 997 1,114 11.7 930 119.8 1,153 567 (50.8) 550 103.1 Net sales Net income 3 7.0 3. Consolidated Results of Operations for Full fiscal year 2006 (Unit :million yen) FY2005 Change (%) FY2006 FY2006 (Substantial) 39,666 63,508 60.1 63,508 60.1 Operating income 3,183 4,171 31.0 4,793 50.6 Operating income ratio 8.0% 6.6% Ordinary income 2,853 4,505 57.9 5,127 79.7 Net income 2,435 2,182 (10.4) 2,804 15.2 Net sales 7.5% 4 4. Net Sales Analysis (Unit：million yen) FY2006 FY2005 Change(%) Power Solution 3,807 2,794 36.3% Power Inductor 15,272 12,679 20.5% 4,555 3,842 18.6 23,634 19,315 22.4% Inverter 7,520 10,536 (28.6%) Automotive 8,231 7,592 8.4% Others 2,864 2,223 28.8% VOGT 21,259 － － Total 63,508 39,666 60.1% Signal 5 5-1. Operating Profit Analysis (Unit：million yen) Net sales Operating income Former SUMIDA VOGT Total 42,249 21,259 63,508 3,073 1,098 4,171 7.3％ 5.2％ 6.6％ 6 5-2. Operating Profit Analysis (Unit：million yen) Former SUMIDA FY2006 Operating income 3,073 FY2005 Operating income 3,183 (110) FY2006 Inverter (200) Automotive (800) Legacy 1,300 Panta 50 SGA (460) (110) 7 Mexico： (400) Material Cost： (400) 6. Non-operating Profit and Loss/ Extraordinary Profit and Loss ◎Non-operating Profit and loss Foreign currency Exchange gain Equity method loss (Shareholders' equity fluctuation gain) 1,145 million yen increase by 1,006 million yen 514 million yen increase by 128 million yen (288 million yen) 226 million yen ◎ Extraordinary profit Restructuring cost Restructuring of Automotive Business 137 million yen Restructuring of VOGT 291 million yen Total 8 428 million yen 7-1. Goodwill（as of 1st January 2006） TOB PPR Total Acquisition amount €19,835K €17,000K €36,835K Net assets € 9,770K € 5,630K €15,400K Goodwill €10,065K €11,370K €21,435K = 3,350 million yen PPR (Profit Participation Right) ① Right to exercise Stock Option (equivalents1,300,000 shares) at €1 per share （Super Majority) ② We can enjoy tax free merit by €84M ③ We can remove Minority interest by €84M 9 7-2. Goodwill (Unit ：million yen) B/S Deferred income tax assets 4,800 Minority interest Goodwill no resorted interest 1,800 3,350 B/S B/S Deferred income tax assets 4,800 Valuation reserve Goodwill △3,250 1,550 Minority interest no resorted interest 1,800 3,350 10 3,350 7-3. Goodwill PPR Payable 1st January €5,630K End of December €1,360K favor €4,270K €4,270K = 622 million yen 11 8. Forecast of 1st Quarter for 2007 FY2007 Forecast for Q1 Net sales (million yen) FY2006 Actual for Q1 Favor (%) 16,400 14,806 10.8 Operating income (million yen) 900 1,082 (16.8) Operating income ratio (%) 5.5 7.3 Ordinary income (million yen) 650 1,206 (46.1) 390 727 (46.4) 20.62 37.44 － Net income (million yen) Net income per share (yen) 12 SUMIDA CORPORATION 4th Quarter & Full Fiscal Year Results - 2006 27th February, 2007 CEO SHIGEYUKI YAWATA 13 Product-by-product Sales of FY2006 Rank 2005 FY2006 Share (％) FY2005 FY2006/FY2005 Actual Change（％） 2006 Products Actual 1 VOGT Components 18,878 29.73 1 2 Power Inductor 15,272 24.05 12,679 20.45 ↑↑ 3 3 Automotive 8,230 12.96 7,592 8.40 ↑ 2 4 Inverter 7,520 11.84 10,534 -28.61 ↓↓ 4 5 Signal 4,555 7.17 3,842 18.56 ↑ 5 6 Power Solution 3,806 5.99 2,795 36.17 ↑↑ 7 VOGT EMS 2,381 3.75 6 8 Stelco 2,238 3.52 1,780 25.73 ↑↑ 8 9 Jensen 129 0.20 101 27.72 ↑↑ Others 499 0.79 341 46.33 ↑ Magnetics 23,502 37.01 19,316 21.67 ↑↑ Total 63,508 100.00 39,664 60.11 ↑↑↑ 14 Business Challenge of FY2007 Outlook for FY2007 1B7 Expansion of company scale By the end of FY2007, to establish the basis of Sales 100 billion yen and EBITDA sales ratio 10% Actual status of FY2006 Sales 63.5 billion yen EBITDA at 11.6% (Operating income 4,170 million yen, Depreciation & Amortization 2,800 million yen) Organic Growth ¾ To achieve over 70 billion yen of sales ¾ Magnetics & Automotive to lead whole SUMIDA group performance supported by the steady growth of worldwide electronics device market M&A ¾ To seek M&A opportunities actively (target company: sales scale over 10 billion yen) Improvement of profitability Expansion of sales scale In addition to organic growth, to seek M&A opportunities actively towards achievement of 1B7 Magnetics: to promote cost reduction by introduction of automation Automotive: to restructure Mexico Factory Inverter: to retreat unprofitable product items EBITDA sales ratio To aim EBITDA not only at 10%, but over 10% by improvement of profitability VOGT: To streamline Eastern European operations and partially transfer to China To aim at adding 1 billion yen profits To strengthen profitability and establish the firm basis of post 1B7 as well as to 15 dedicate ourselves towards achievement of 1B7 FY2007 Improvement of Operational Profit (unit: million yen) Net Sales Operational Income Ratio 100,000 (%) 12 10 80,000 8 60,000 6 4 40,000 2 20,000 0 2003 2004 Year 2006 SUMIDA (excluding VOGT) Operating Income Ratio VOGT Operating Income Ratio End of FY2007 2005 2006 2007 7.3% => 8.7% (Excluding Inverter, Mexico) 5.2% => 8.1% (Excluding 622 million yen) Challenge to Operating Income Ratio 10% 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. 17