Sumitomo Electric Industries : How to recover earnings in the automotive segment (November 17, 2022)
November 24, 2022 at 03:34 am EST
Share
How to recover earnings in the automotive segment
2022年11月17日
Changes in earnings in the automotive segment
Contribution to the company's
operating income
OP
Others
Automotive
10%
44%
Automotive
(¥bn)
56%
100
Others
FY17
90%
FY21
50
98.6
96.8
88.7
84.7
68.2
48.2
39.0
12.3
0
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
-2-
Plan
FY2022 2H priority issues
• Recovery of earnings from current performance
Negotiations with customers regarding soaring ocean freight
Contribution to
and material prices,
sure capture of rebounding customer demand in the 2nd half
1 profit
• Out-and-outefficiency of assets
Reduction of inventories,
stringent selection of capital investment
• Secure earnings from existing businesses
2
ofImprovementreliability
• Further strengthening of manufacturing capabilities
• Strengthening of partnerships with OEMs that focus
on CASE
• Strengthening and further cultivation of our unrivaled
3
ofDemonstrationoriginality
technology in the existing wiring harness business
• Manufacturing innovation
• Further development of Sumitomo-style work
methods (work-style reforms, DX promotion)
-3-
Sales target for 2025 and 2030 (wiring harness)
（¥bn）
1,500.0
FY221,800.0
Electrification (high-voltage compatible parts)
Connected
(high-speed communication parts)
Sales of gas
FY25vehicle-related products
2,000.0
Sales of electric
vehicle-relatedLow-voltage
productswiring harness and others
FY30
With an increasing trend of electrification in the overall market toward 2030, our sales of electric vehicle-relatedproducts have also expanded.
In addition to the improvement of our mainstay business (low-voltage wiring harnesses and others), we also need to expand sales of CASE-relatedproducts (particularly in the electrification and connected areas).
-4-
To recover earnings
We formulated the following three strategies:
Expansion of existing
1 business by deepening our core technology
2 CASE-related product
3 Our group collective strength
-5-
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
Original Link
Original Document
Permalink
Disclaimer
Sumitomo Electric Industries Ltd. published this content on 24 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2022 08:33:08 UTC.
Sumitomo Electric Industries, Ltd. is one of the world's leaders of electric wires and cables, and fiber optic manufacturing. Net sales (including intragroup) break down by sectors of activity as follows:
- automotive (54.8%): cable beams, rubber anti-vibration products, etc.;
- energy and environment (21.1%): copper electric wires, electric cables, magnet wires, power cables, etc.;
- electronic (7.8%): electronic wires, semiconductors components, electronic components, printed circuit boards, etc.;
- information and communication (7.5%): fiber optic cables, optic components, network cabling systems, etc.;
- others (8.8%): primarily steel special wires.
Net sales break down geographically as follows: Japan (42.7%), China (19.7%), Asia (10.7%), the United States (11.8%), the Americas (4.2%) and other (10.9%).
SUMITOMO ELECTRIC INDUSTRIES, LTD. 
