Slide 1: FY2023 Investor Briefing
1/19 FY2023 Investor Brief ing —Challenge, Creativity, Solutions SMK Corporation (6798) May 23, 2024
Slide 2: Agenda
Agenda 2/19 1. Outline of FY2023 Financial Results p. 03 – 13 2. FY2024 Forecast p. 14 – 18
Slide 3: 1. Outline of FY2023 Financial Results
3/19 1. Outline of FY2023 Financial Results
Slide 4: 1-1 FY2023 Results
1‐1 FY2023 Results 4/19 Significant sales and profit decline due to prolonged inventory adjustments and decreased stay-at-home demand following COVID-19. Increased operating loss due to inventory write-downs. Slight positive ordinary profit due to foreign exchange gains. Net loss due to impair
Slide 5: 1-2 FY2023 Results by Quarter
1‐2 FY2023 Results | by Quarter 5/19 1Q started slow, turned profitable in 2Q, but lost momentum in 3Q. In 4Q, sales recovered to over 12 billion yen, and operating profit nearly broke even, but a 684-million-yen inventory write-down resulted in an operating loss. Unit: Million yen FY2023 Net Sale
Slide 6: 1-3 FY2023 Results by Segment
1‐3 FY2023 Results | by Segment 6/19 CS : Despite a decrease in tablet-related demand post-COVID-19, solid performance in camera-related products and robust sales to Chinese smartphone customers led to a YoY increase in sales and profit. SCI: Significant YoY sales decline in housing equipment an
Slide 7: 1-4 FY2023 Results Operating Expenses
1‐4 FY2023 Results | Operating Expenses 7/19 Material cost ratio improved by 1.1% due to factors such as product mix. Labor and expense ratio increased by 5.9% due to sales decrease. Unit: Million yen FY2022 FY2023 53,714 47,765 [ ]: Sales Ratio 60,000 [97.9%] [102.7%] Material costs 50,000 Amou
Slide 8: 1-5 Changes in Operating Profit vs. corresponding previous period
1‐5 FY2023 Results | Changes in Operating Profit vs.corresponding previous 8/19 period Significant decrease in operating profit due to sales decline resulting from inventory adjustments in the home appliance and car electronics markets, coupled with inventory write-downs. Despite efforts to redu
Slide 9: 1-6 Changes in Operating Profit vs. initial forecast
1‐6 FY2023 Results | Changes in Operating Profit vs. initial forecast 9/19 Significant decrease in operating profit due to sales decline resulting from inventory adjustments in the home appliance and car electronics markets, coupled with inventory write-downs. Despite reducing fixed costs, signi
Slide 10: 1-7 Non-operating Profit and Loss
1‐7 FY2023 Results | Non-operating Profit and Loss 10/19 FY2023 benefited from foreign exchange gains due to a weaker yen and revenues from real estate. Unit: Million yen [ ]: Sales Ratio FY2022 FY2023 2,000 1,375 1,469 Revenue from and expenditure [2.5%] [3.2%] to real estate Foreign exchange gai
Slide 11: 1-8 Extraordinary Profit and Loss
1‐8 FY2023 Results | Extraordinary Profit and Loss 11/19 Gains on sales of real estate and investment securities contributed to profits, while recognizing impairment losses on fixed assets and extra retirement payments due to organizational restructuring at U.S. sites. FY2022 FY2023 Unit: Million
Slide 12: 1-9 Cash Position
1‐9 FY2023 Results | Cash Position 12/19 Unit: Million yen Mar. 2023 Mar. 2024 Differential (Ａ) (Ｂ) (Ｂ－Ａ) Assets 56,365 58,444 2,079 Cash and cash equivalents 8,969 10,258 1,289 Accounts receivable 13,176 13,222 46 Inventories 10,073 9,257 △816 Fixed assets 23,113 24,619 1,506 Liabilities 24,090 26,
Slide 13: 1-10 Cash Flow Position
1‐10 FY2023 Results | Cash Flow Position 13/19 Unit: Million yen FY2022 FY2023 Cash flow from operating activities 3,591 3,719 Working capital △758 1,610 Profit before taxes 1,906 △53 Depreciation 2,884 2,451 Others △441 △289 Cash flow from investing activities △1,944 △1,617 Free cash flow 1,647 2,1
Slide 14: 2. FY2024 Forecast
14/19 2. FY2024 Forecast
Slide 15: 2-1 FY2024 Forecast
2‐1 FY2024 Forecast 15/19 Slight increase in sales amid an uncertain market environment. Significant YoY improvement in operating profit, but continued losses expected; we will actively pursue additional sales expansion and expense reductions. Unit: Million yen FY2023 Result FY2024 Forecast YoY
Slide 16: 2-2 FY2024 Forecast Sales and Profit by Segment
2‐2 FY2024 Forecast | Sales and Profit by Segment 16/19 CS : Growth in connectors for tablets due to new model effects. Solid performance in automotive connectors. SCI: Continued weakness in remote controls and units for air conditioners and housing equipment. Unit: Million yen FY2023 FY2024 YoY
Slide 17: 2-3 FY2024 Forecast Sales by Market
2‐3 FY2024 Forecast | Sales by Market 17/19 Ongoing uncertain market conditions in 1H due to inventory adjustments in certain products Environment in the home appliance (particularly housing equipment) and car electronics markets. Market recovery expected from H2, despite varying demand across m
Slide 18: 2-4 FY2024 Forecast Changes in Operating Profit
2‐4 FY2024 Forecast | Changes in Operating Profit 18/19 Increase in sales from market recovery in 2H and reduction in inventory write-downs recorded in the previous term, leading to a smaller operating loss. Unit: Million yen After adjusting impact of foreign exchange rates 1,000 Decrease in varia
Slide 19: Notice
Notice 19/19 All information in this material concerning the forecast of business achievements, projections of general business conditions and our business strategies is dependent on our conclusion made to a normally foreseeable extent applying information reasonably accessible to us at the time of