FY2023 1st half results and annual forecasts
November 13, 2023
Table of Contents
1.Performance for the First Half of FY2023
1.Overview of Consolidated Results
2.First-half Performance Trends
3.Sales and Operating Income by Segment
2. Annual Forecast for FY2023
1.Summary of the Business Environment
2.Forecast of Consolidated Results
3.Full-year Performance
4.Sales and Operating Income by Segment
3.Status and Initiatives by Segment
1.Environment and Energy
2.Info-communications
3.Automotive
4.Electronics
5.Industrial Materials
4.ROIC by Segment
5.Dividends
6.Toward Enhancing Corporate Values
1.Initiatives to Improve ROIC
ー1.Initiatives to Improve Earnings ー2.Initiatives to Improve Asset
Efficiency
ー3.Free Cash Flow
2.Mid-Term Management Plan 2025
Key Indicators and Targets
3.Corporate Social Contribution Activities
(Reference)
・First Half Performance (by Segment)
・Whole Year Performance (by Segment)
・Operating Income Increase/Decrease
Factors (First Half)
・Operating Income Increase/Decrease
Factors (Full-year)
・Region-specific,Segment-specific Capital
Investment
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1-1.Overview of Consolidated Results
bn
Net Sales
Operating Profit
Ordinary Income
Profit Attributable to Owners of the Parent
Dividend(/share)
FY2021 | FY2022 | FY2023 | FY2023 | |
1H | 1H | 1H | 1H | Growth |
Actual | Actual | Plan | Actual | |
1,570.4 | 1,891.1 | 1,950.0 | 2,072.1 | +10% |
46.1 | 49.7 | 50.0 | 67.3 | +35% |
60.3 | 60.9 | 44.0 | 60.8 | (0%) |
32.4 | 35.1 | 22.0 | 26.7 | (24%) |
25 | 25 | 25 | 25 |
Sales of wire harnesses, anti-vibration rubber, power cables, and other products increased 10% year-on-yearand reached a record high in the first half of the year due to the impact of yen depreciation in addition to sales expansion.
Operating income increased year-on-year as a result of increased sales, as well as drastic cost reduction and improvement of selling prices, exceeding the published forecast and reached a record high for the first half of the year.
Although net income decreased due to an increase in interest expenses and an extraordinary profit in the previous period, the published forecast was achieved.
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1-2.First Half Performance Trends
Record-high operating income in both 2Q (July-September) and 1H (April-September)
(¥bn) | 2,072.1 | |||||||||
1,891.1 | ||||||||||
1,439.4 | 1,459.2 1,528.4 1,523.8 | 1,570.4 | Sales1,950.0 | |||||||
1,310.5 | 1,312.1 | |||||||||
1,239.3 | OP | 67.3 | Plan | |||||||
65.7 | 64.3 | |||||||||
47.9 | 52.9 | 47.1 | 27.8 | 46.0 | 46.1 | 49.7 | 18.950.0 | |||
1Q | 31.3 | |||||||||
22.1 | 19.0 | |||||||||
21.8 | 21.2 | 19.4 | 29.0 | |||||||
48.4 | ||||||||||
2Q | 37.9 | 32.9 | ||||||||
26.1 | 30.7 | 25.8 | 26.5 | 25.7 | 30.7 | |||||
17.2 | ||||||||||
(37.2)
(11.4)
FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 |
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1-3.Sales and Operating Income by Segment
The automotive segment significantly exceeded the forecast announced at the beginning of the year due to a recovery in automobile production and improved productivity. On the other hand, the Info- communications and Industrial Materials segments failed to reach the levels announced at the beginning of the year due to a decline in orders for core products.
¥bn
Environment
and Energy
Info- communications
Automotive
Electronics
Industrial Materials and Others
Total
FY2022 | FY2023 | FY2023 | Growth | Difference | |||||
1H | 1H | 1H | ③-① | ③-② | |||||
Actual① | Plan➁ | Actual③ | |||||||
Sales | OP | Sales | OP | Sales | OP | Sales | OP | Sales | OP |
435.0 | 12.6 | 450.0 | 8.0 | 448.7 | 12.2 | +13.8 | (0.4) | (1.3) | +4.2 |
121.3 | 12.9 | 110.0 | 0.0 | 102.4 | (0.8) | (18.9) | (13.7) | (7.6) | (0.8) |
1,016.7 | △ 8.0 | 1,100.0 | 20.0 | 1,214.6 | 32.3 | +197.9 | +40.3 | +114.6 | +12.3 |
178.2 | 17.7 | 160.0 | 11.0 | 175.5 | 14.5 | (2.6) | (3.2) | +15.5 | +3.5 |
185.2 | 15.0 | 180.0 | 11.0 | 179.9 | 9.0 | (5.2) | (6.1) | (0.1) | (2.0) |
1,891.1 | 49.7 | 1,950.0 | 50.0 | 2,072.1 | 67.3 | +181.0 | +17.6 | +122.1 | +17.3 |
※Differences between the aggregate of all segments and Total are consolidated eliminations.
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2-1.Summary of the Business Environment
Although there are concerns about a slowdown in the global economy due to rising global prices, prolonged monetary tightening, and a further increase in political and geopolitical risks,
- Progress of decarbonized society continues, investment in energy infrastructure and renewable energy is brisk
- Global automobile production is expected to recover in the second half of the year and beyond as parts shortages are resolved.
- In the information and telecommunications sector, demand is temporarily stagnant due to customers' investment restraints and inventory adjustments, but solid growth is expected in the medium term due in part to the creation of new demand from the generative AI.
Earnings forecast revised upward based on 1H results and future outlook.
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2-2.Forecast of Consolidated Results
bn Net Sales Operating Profit
Ordinary Income
Profit Attributable to Owners of the Parent
Dividend(/share)
USD
EUR
Copper
FY2022 | FY2023 | FY2023 |
Previous | Revised | |
Actual① | Plan➁ | Plan③ |
4,005.6 | 4,100.0 | 4,300.0 |
177.4 | 180.0 | 200.0 |
173.3 | 170.0 | 183.0 |
112.7 | 100.0 | 110.0 |
50 | 50 | 50 |
(2nd half) | ||
136 | 130 | 140 |
141 | 140 | 150 |
1209k/t | 1200k/t | 1200k/t |
Growth | Dfference |
③-① | ③-② |
+294.4 | +200.0 |
+22.6 | +20.0 |
+9.7 | +13.0 |
(2.7) | +10.0 |
0.0 | 0.0 |
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2-3.Full Year Performance
Sales and operating income both revised upward from the announcement at the beginning of the year
Aiming for record-high operating income of 200 billion yen
4,300.0 4,400.0
4,005.6
(¥bn) | 4,100.0 | |||||||
3,082.2 3,178.0 | 3,367.9 | |||||||
2,933.1 | 3,107.0 | 2,918.6 | Sales | |||||
2,822.8 | 2,814.5 | |||||||
OP | ||||||||
Previous | ||||||||
Plan | ||||||||
200.0 | 250.0 | |||||||
173.1 | 166.3 | 177.4 | 180.0 | |||||
134.5 | 143.5 | 150.5 | ||||||
127.2 | ||||||||
122.2 | ||||||||
113.9 | ||||||||
FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | Mid-Plan |
Plan | 25M |
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2-4.Sales and Operating Income by Segment
Revised segment forecasts based on 1H results and current business environment.
The automotive segment aims to achieve a new record high and achieve the mid-term management plan of 25M ahead of schedule.
FY2022 | FY2023 | FY2023 | Growth | Difference | ||||||
Actual① | Previous Plan➁ | Revised Plan③ | ③-① | ③-② | ||||||
bn | Sales | OP | Sales | OP | Sales | OP | Sales | OP | Sales | OP |
Environment | 928.2 | 37.9 | 960.0 | 38.0 | 970.0 | 40.0 | +41.8 | +2.1 | +10.0 | 2.0 |
and Energy | ||||||||||
Info- | 250.3 | 21.9 | 230.0 | 6.0 | 220.0 | 1.0 | (30.3) | (20.9) | (10.0) | (5.0) |
communications | ||||||||||
Automotive | 2,186.8 | 55.7 | 2,300.0 | 85.0 | 2,500.0 | 110.0 | +313.2 | +54.3 | +200.0 | +25.0 |
Electronics | 366.0 | 38.3 | 340.0 | 22.0 | 350.0 | 24.0 | (16.0) | (14.3) | 10.0 | 2.0 |
Industrial Materials | 363.3 | 24.0 | 370.0 | 29.0 | 360.0 | 25.0 | (3.3) | +1.0 | (10.0) | (4.0) |
and Others | ||||||||||
Total | 4,005.6 | 177.4 | 4,100.0 | 180.0 | 4,300.0 | 200.0 | +294.4 | +22.6 | +200.0 | 20.0 |
※Differences between the aggregate of all segments and Total are consolidated eliminations.
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3-1.Environment and Energy
Business Environment
- Progress toward a decarbonized society continues. Energy infrastructure and investments related to renewable energy remain active, with continued strong demand for high-voltage power cables and transmission and distribution equipment
・Recovery in automobile production has led to an increase in demand for rectangular magnet wires for electric vehicles
Left:Sales Right:OP (¥bn)
Initiatives
- Expanding orders for power cables (interconnection cables, wind power generation, etc.), increasing production capacity, reducing costs, improving quality, developing new products, and strengthening project management
- Reducing costs and developing next-generation products for rectangular magnet wires used in electric vehicles.
- Creating further synergy with Nissin Electric
Topics
Redox flow batteries
New order received for Queensland, Australia and Kashiwazaki, Niigata
Contributing to the realization of a sustainable society through long-life and safe RF batteries
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Disclaimer
Sumitomo Electric Industries Ltd. published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2023 19:49:00 UTC.