The following presentation is a translation of a digest ......Apr 28, 2020 · The following...

The following presentation is a translation of a digest version of the original presentation in Japanese.

1FY2020 Q1 IR Presentation

Tuesday, April 28, 2020SUMIDA CORPORATION (6817)

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SUMIDA CORPORATION (6817) Tuesday, April 28, 2020

FY2020 Q1 IR Presentation

SUMIDA CORPORATION (6817)

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Tuesday, April 28, 2020



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【Business performance】Forecast of FY2020 announced on February 6, 2020 did not include the effects of COVID-19 pandemic, which is currentlybeing closely examined. FY2020 financial results may be largely impacted by COVID-19 depending on how it is developed.

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【FY2020 1Q financial results】Sales declined 11.3% to 20,573 million yen compared to the previous year.Operating income was a loss of 260 million yen.As a prevention measure of COVID-19 infections imposed by the Chinese government, production at our plants was temporally suspended from Lunar New Year in late January through February, causing disruption of products distribution and stagnant sales. In March, we quickly increased our production and delivered our products from the backlog of orders received in January and February. However, many customers shutdown their factories due to the spread of COVID-19 infections and demand for our products was adversely affected.

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The followings are the main factors for increase and decrease of operating income (“OI”).-Sales decrease of 2,625 million yen reduced OI by 644 million yen-Increase of fixed costs unable to be recovered of 289 million yen due to declined plant utilization reduced OI by that amount. -Expenses spent for structural reforms reduced OI by 201 million yen-Compensation for absence from work paid in China in February combined with overtime paid to workers in March for rapidly restarting plant operations reduced OI by 93 million yen-Social insurance payment exempted by the Chinese government increased OI by 84 million yen-Reduction of production overhead increased OI by 61 million yen.

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The followings are the main factors for increase and decrease of operating income (”OI”).-Sales decrease of 3,298 million yen reduced OI by 776 million yen-Increase of fixed costs unable to be recovered of 484 million yen due to decline of plant utilization reduced OI by that amount. -Expenses spent for structural reforms reduced OI by 201 million yen.-Working hours‘ cut at plants in Europe in 2019 4Q reduced OI by 182 million yen in 2020 1Q.-Decline of productivity reduced OI by 77 million yen.-Compensation for absence from work paid in China in February combined with overtime paid to workers in March for rapidly restarting plant operations reduced OI by 65 million yen-Social insurance payment exempted by the Chinese government increased OI by 103 million yen-Reduction of production overhead increased OI by 117 million yen.

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Compared to the end of last year, working capital (Trade Receivables + Inventories – Trade Liabilities ) decreased and a net of Interest-bearing Loans decreased by 1.2 billion yen.

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As requested by the customers, some of the investment items have been postponed.As a result, free cash flow turned positive.

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The following presentation is a translation of a digest ......Apr 28, 2020 · The following...

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