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Earnings presentation6817SUMIDA CORPORATIONElectrical Equipment and Precision Instruments

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the first half of the fiscal year ending December 2026, revenue increased 12.2% year on year, while operating profit declined 43.2%, and profit before tax and net income were negative. A provision of approximately ¥1 billion related to quality issues with automotive products significantly reduced profit, but the company explained that operating profit was at the same level as the previous year excluding the provision.

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Wording
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Contents of this document

Earnings presentationSecond quarter of the fiscal year ending December 202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥79,858 million+12.2%
Operating profit¥1,912 million-43.2%
Ordinary income¥571 million-73.7%
Net income¥240 million-85.6%
Operating profit margin2.4%, down 2.3 percentage points year on year
Results for the three months of the current quarter
Revenue
¥41,430 million+15.8%
Operating profit
¥401 million-81.1%
Profit before tax
¥-328 million-124.0%
Profit for the period
¥-486 million-145.0%
Full-year earnings forecast
Revenue
¥156,000 million
Operating profit
¥7,500 million
Profit before tax
¥4,850 million
Profit for the period
¥3,650 million
EPS
¥110.4
Operating profit margin
4.8 %
Net profit margin
2.3 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
YoY
Provision for product warranties for automotive products-987
Receipt of compensation in FY2025 Q2-572
Lower fixed-cost burden from higher capacity utilization1,039
Improved production efficiency227
Foreign exchange impact-551
Impact of revenue-496
Impact of wages-141
Increase in raw material costs-52
Increase in manufacturing overhead-6
Schmidbauer98
Optimization of production capacity in China54
Other-189
QoQ
Provision for product warranties for automotive products-987
Lower fixed-cost burden from higher capacity utilization193
Improved production efficiency60
Impact of wages23
Impact of revenue23
Increase in raw material costs-445
Increase in manufacturing overhead-306
Foreign exchange impact-137
Other-580
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
USD/JPY¥150.00
EUR/JPYJPY 180.00
CNY/JPY¥21.43 per yuan
HKD/JPY¥19.23 per Hong Kong dollar
Copper prices13,000 USD/ton
New initiatives
  • Joint development of next-generation power conversion systems with Infineon
  • Rebuilding the quality assurance framework
Key KPIsA metric the company considers important as a management benchmark.
  • xEV-related automotive sales¥64 million+43.4%
  • Data center-related sales¥20 million+134.6%
  • Megatrend-related revenue¥95 million+78.0%
  • CCC93 days-3.0%
  • DIO88 days+9.0%
Financial targets
Net debt-to-equity ratio
End of December FY250.81
End of June FY260.83
Orders received and order backlog
Value of new projects won
¥880 million
Target fiscal year2025
Number of stores and locations
Ticket sales23 locations
Manufacturing24 locations
R&D11 locations
Capital expenditures
¥2,818 million
Annual Dividend
¥53 per share
Interim26
End of period27
Payout ratio
48
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥79,858 million (YoY +12.2%)
Operating profit¥1,912 million (YoY -43.2%)
Ordinary income¥571 million (YoY -73.7%)
Net income¥240 million (YoY -85.6%)
Operating profit margin2.4%, down 2.3 percentage points year on year
Results for the three months of the current quarterRevenue ¥41,430 million (YoY +15.8%) / Operating profit ¥401 million (YoY -81.1%) / Profit before tax ¥-328 million (YoY -124.0%) / Profit for the period ¥-486 million (YoY -145.0%)
Full-year earnings forecastRevenue ¥156,000 million / Operating profit ¥7,500 million / Profit before tax ¥4,850 million / Profit for the period ¥3,650 million / EPS ¥110.4 / Operating profit margin 4.8 % / Net profit margin 2.3 %
Breakdown of Factors Affecting the ChangeYoY Provision for product warranties for automotive products -987 / Receipt of compensation in FY2025 Q2 -572 / Lower fixed-cost burden from higher capacity utilization 1,039 / Improved production efficiency 227 / Foreign exchange impact -551 / Impact of revenue -496 / Impact of wages -141 / Increase in raw material costs -52 / Increase in manufacturing overhead -6 / Schmidbauer 98 / Optimization of production capacity in China 54 / Other -189 / QoQ Provision for product warranties for automotive products -987 / Lower fixed-cost burden from higher capacity utilization 193 / Improved production efficiency 60 / Impact of wages 23 / Impact of revenue 23 / Increase in raw material costs -445 / Increase in manufacturing overhead -306 / Foreign exchange impact -137 / Other -580
Key KPIsxEV-related automotive sales ¥64 million (YoY +43.4%), Data center-related sales ¥20 million (YoY +134.6%), Megatrend-related revenue ¥95 million (YoY +78.0%), CCC 93 days (YoY -3.0%), DIO 88 days (YoY +9.0%)
Number of stores and locationsTicket sales 23 locations / Manufacturing 24 locations / R&D 11 locations
Assumptions Underlying the Business OutlookUSD/JPY ¥150.00 / EUR/JPY JPY 180.00 / CNY/JPY ¥21.43 per yuan / HKD/JPY ¥19.23 per Hong Kong dollar / Copper prices 13,000 USD/ton
Financial targetsNet debt-to-equity ratio End of December FY25 0.81 / End of June FY26 0.83
Annual Dividend¥53 per share
Payout ratio48
Capital expenditures¥2,818 million
Orders received and order backlogValue of new projects won ¥880 million
New initiativesJoint development of next-generation power conversion systems with Infineon, Rebuilding the quality assurance framework
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planSegment resultsUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company recognized a provision for product warranties, including estimated future costs associated with inventory disposal and inspection, due to quality issues with certain products for automotive applications. In addition, foreign-exchange movements, copper prices, and increases in petrochemical product, energy and logistics costs were identified as concerns. On the revenue side, growth was driven by xEVs, data center-related business and the contribution from the consolidation of Schmidbauer.

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | SUMIDA CORPORATION (6817) timely disclosure | Komori