Slide 1: Business Report for FY2010
1/51 Business Report for FY2010 From Apr. 2010 to Mar. 2011 SMK Corporation May, 2011
Slide 2: FY2010 Outline of Financial Statement
2/51 FY2010 Outline of Financial Statement Director and Executive Vice President Hajime Yamada
Slide 3: Consolidated Financial Result
3/51 ＜Consolidated＞ Financial Result Income : Sales Amount : FY2009 FY2010 Million yen Million yen Influence of exchange -2,926 （¥7.19/$ appreciating yen） -3.8％ 70,000 7,000 64,371 61,914 60,000 6,000 +11.1% 50,000 5,000 40,000 4,000 30,000 2,754 3,000 2,479 2,582 2,505 1,862 20,000 2,000 1,037 10,0
Slide 4: Consolidated Sales Expenses
4/51 ＜Consolidated＞ Sales Expenses FY2009 FY2010 Unit : Million yen ( ) : percentage to 61,892 59,160 sales amount 70,000 (96.1%) (95.6%) Material costs <Rate of average during period> 60,000 FY2009 ： ¥ 92.82/$ Expenses FY2010 ： ¥ 85.63/$ 50,000 external 32,590 50.6% 30,565 manufacturing processing
Slide 5: Analysis of sales expenses
5/51 ＜Consolidated＞ Analysis of sales expenses Analysis of factors for increase/decrease of consolidated operating income [ FY2009 VS FY2010 ] Total Unit : Million yen 1,500 275 million yen Factors for profit Factors for profit 1,037 increase decrease 1,000 Total 1,407 Total : -1,132 500 363 Increas
Slide 6: Consolidated Non-operating profit and loss
＜Consolidated＞ Non-operating profit and loss 6/51 FY2009 FY2010 ( ) : percentage to Unit : Million yen 103 - 249 sales amount (0.1%) (- 0.4%) 1,000 Currency exchange profit/loss 500 655 626 Revenues Exchange loss : Increase from and 284 million yen 178 81 expenditure 0 △ 77 1．FY2009 △ 135 to fixed a
Slide 7: Consolidated Non-operating profit and loss
7/51 ＜Consolidated＞ Non-operating profit and loss FY2009 FY2010 Unit : Million yen - 508 - 688 200 Loss arising from disaster 90 0 38 38 △ 106 △ 58 △ 17 Gain from sale of fixed assets △ 166 -200 Loss of disposed fixed assets △ 378 -400 Loss for after-care of products △ 485 △ 152 Loss on liquidation
Slide 8: Financial Highlights (Quarterly)
＜Consolidated＞Financial Highlights (Quarterly) 8/51 Unit : Million yen 1st Half Term 2nd Half Term Fiscal Term FY2010 Result 1Q 2Q TOTAL 3Q 4Q TOTAL TOTAL (10/Apr～Jun) (10/Jul～Sep) (10/Apr～Sep)(10/Oct～Dec) (11/Jan～Mar) (10/Oct～11/Mar) (10/Apr～11/Mar) ① Net Sales 16,056 16,946 33,002 14,732 14,180 28
Slide 9: FY2010 2H Financial Results compared with FY2010 1H
<Consolidated> FY2010 2H Financial Results 9/51 compared with FY2010 1H FY2010 FY2010 Net Sales: Million yen APR-SEP OCT-MAR Income: Million yen - 12.4% 35,000 33,002 3,500 28,912 - 79.4% 25,000 2,284 2,500 1,766 15,000 1,500 1,159 739 470 5,000 500 - 122 -5,000 -500 Net Sales Operating Income Ordin
Slide 10: Analysis of sales expenses compared with FY2010 1H
＜Consolidated＞ Analysis of sales expenses 10/51 compared with FY2010 1H Analysis of factors for increase/decrease of consolidated operating income [ FY2010 APR-SEP VS FY2010 OCT-MAR ] Total Unit : Million yen 2,000 -1,814 million yen Factors for profit increase Factors for profit decrease Total: 633
Slide 11: Consolidated Cash Position
11/51 ＜Consolidated＞ Cash Position Unit : Million yen ２０１０/MAR ２０１１/MAR Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets ５６，１１３ ５３，０５９ - ３，０５４ Cash and cash equivalents ８，７５８ ７，４４２ - １，３１６ Accounts receivable １６，３３７ １４，８４１ - １，４９６ Inventories ５，２４０ ５，６７２ ４３２ Fixed assets ２２，１３３ ２１，２０５ - ９２８ Liabilities ２４，９８６ ２３，１
Slide 12: Consolidated Cash Flow Position
12/51 ＜Consolidated＞ Cash Flow Position Unit : Million yen FY2009 FY2010 Operating Cash Flow ９，００３ ６，２３０ Working capital １，５８６ １，２３３ Income before income taxes ２，０７４ １，８１７ Depreciation ４，０２０ ３，６５２ Others １，３２３ - ４７２ Investing Cash Flow - ２，４８０ - ４，００１ Free Cash Flow ６，５２３ ２，２２９ Financing Cash Flow -
Slide 13: Consolidated Segment Information
＜Consolidated＞ Segment Information 13/51 Unit : Million yen (*) Other：research and development, lease, real-estate rental, factoring Segment report TOTAL FY2010 CS FC TP Other(*) （Consolidate Total d gain and Division Division Division loss exhibit） Net Sales 23,242 30,080 8,350 61,672 242 61,914 Se
Slide 14: Business Forecast / Dividends
14/51 <Consolidation> Business Forecast / Dividends ・ Consolidated Performance Forecast FY2011 ： Undetermined ⇒ results due to be released in 2011/7 (at time of FY2011 1Q earnings announcement) ・ Annual dividend End of the End of year Annual second quarter FY2010 5.00 yen 4.00 yen 9.00 yen FY2009 0.
Slide 15: FY2010 Result and Prospect
15/51 FY2010 Result and Prospect President and COO Tetsuya Nakamura
Slide 16: The Impact of the East Japan Great Earthquake
The Impact of the East Japan Great Earthquake 16/51 Hitachi Works, Ibaraki Works ●Employees and their co-residing family members were all unharmed ●Some buildings and facilities were damaged Recommenced Fukushima Daiichi Nuclear operations from Toyama Works Power Plant 22nd March Ibaraki Ibaraki wor
Slide 17: Earthquake damage situation: Hitachi Works
The East Japan Great Earthquake damage situation : 17/51 Hitachi Works
Slide 18: Earthquake damage situation: Ibaraki Works
The East Japan Great Earthquake damage situation : 18/51 Ibaraki Works 【 Ibaraki SMK Co., Ltd. 】
Slide 19: Half Fiscal Term Performance (FY2007-FY2010)
19/51 Half Fiscal Term Performance (FY2007～FY2010) 50,000 Unit : Million yen 8,000 44,031 43,628 44,600 45,000 7,000 6,000 40,000 5,000 35,000 3,904 32,280 32,091 33,002 28,912 4,000 30,000 3,807 3,165 28,142 3,000 2,337 25,000 1,766 1,282 2,284 2,000 1,996 1,300 20,000 1,847 1,710 1,643 739 423 1,1
Slide 20: Fiscal Term Sales & Operating Income Performance
Fiscal Term Sales & Operating Income Performance Net Sales: Million yen Income: Million yen 90,000 87,659 12,000 79,074 Published number 11,000 80,000 74,179 71,860 72,742 10,000 70,000 66,438 64,371 9,000 62,814 61,914 60,753 60,000 58,133 8,000 7,000 50,000 5,166 5,654 6,000 40,000 4,134 4,290 5,0
Slide 21: Consolidated Net Sales by Market
21/51 ＜Consolidated＞ Net Sales by Market Net Sales: Million yen 90,000 87,659 88.5% 1,866 96.2% 6,745 80,000 8,897 72,742 1,898 70,000 4,834 64,371 61,914 1,023 132.2% 1157 7,681 3,486 60,000 4,611 7,592 94.8% 35,969 7,197 50,000 30,207 91.1% 40,000 24,625 22,438 30,000 7,424 6,077 7,242 113.6% 8,22
Slide 22: Net Sales by Product Division (FY2007-FY2010)
Reference ：＜Consolidated＞Net Sales by Product Division 22/51 (FY2007-FY2010) Unit : Million yen ( ) : component ratio 100,000 87,659 90,000 5,256 (6%) 80,000 72,742 70,000 5,142 (7%) 64,371 Others 61,914 Others 32,942 (38%) 186 242 60,000 TP (39%) 8,952 (14%) 8,350 (13%) 28,371 50,000 FC 40,000 27,5
Slide 23: Operating Income by Product Division (FY2007-FY2010)
Operating Income by Product Division 23/51 (FY2007-FY2010) Income : Million yen 5,654 5,500 849 4,500 3,500 2,754 Others 2,479 Others 2,500 4,815 184 109 95 2,223 1,500 1,481 238 500 753 719 565 -10 -276 -143 -500 -239 FY2007 Results FY2008 Results FY2009 Results FY2010 Results CS FC TP
Slide 24: Main market trends 1: Flat Panel TV
<Main market trends -1> 24/51 Flat Panel TV (LCD and PDP TVs) <W/W production numbers> Unit : thousands ’09-’11 CAGR: +21.7% <Action by SMK> ● Expand remote control business sales 250,000 ■ PDP TV 229,155 Expand RF (wireless) ■ LCD TV remote control business 18,351 Promote development of products fo
Slide 25: Main market trends 2: Car Navigation Systems
<Main market trends -2> 25/51 Car Navigation Systems <W/W production numbers> ’09-’11 CAGR: +8.0% <Action by SMK> Unit : thousands ● Expansion of touch panel business to meet 10,000 9,480 increased rate of installed car navigation 9,040 systems 9,000 8,130 8,000 7,000 ● Concentrated and expanded sal
Slide 26: Main market trends 3: Mobile Phones
<Main market trends -3> 26/51 Mobile Phones <W/W production numbers> ’09-’11 CAGR: +12.6% <Action by SMK> Unit : thousands ■ Smartphone ● New proposals for high-reliability and 1,600,000 differentiated products for the expanding ■ Feature Phone smartphone market 1,425,735 Touch panels, interface con
Slide 27: Main market trends 4: Personal Computers
<Main market trends -4> 27/51 Personal Computers (Desktop, Notebook & Tablet PCs) <W/W production numbers> ’09-’11 CAGR: +20.1% Unit : thousands <Action by SMK> ■ Notebook ● Strengthen efforts in the 450,000 ■ Desktop expanding tablet PC market ■ Tablet 411,767 Propose new ideas for and promote 400,
Slide 28: Overseas production ratio/sales ratio
28/51 【Overseas】 production ratio/sales ratio % 80.0 72.3 72.2 70.9 69.4 70.0 67.0 62.8 60.0 55.0 56.0 56.6 56.4 54.7 55.4 54.3 54.4 53 53.4 50.0 46.7 43.3 43.5 40.0 42.8 Overseas Sales ratio 30.0 Overseas Production ratio 20.0 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010
Slide 29: Forecast for FY2011
Forecast for FY2011 29/51 1H 2H SMK Production Return to pre-earthquake levels As per left + facility enhancement such as new products ●Supply Chain Management ●Alternate production ●Respond to power shortages (help to save energy such as introducing in-house power generation and revising employment
Slide 30: FY2011 Slogan: Implement New Growth Strategy
FY2011 Slogan 30/51 Implement New Growth Strategy and Build Change Responsive Corporate Structure
Slide 31: Don't give up, Japan
Don’t give up, Japan Don’t give up, Tohoku
Slide 32: CS Division
32/51 CS Division SMIK,
Slide 33: CS Division: Connection System
33/51 CS Division CS= Connection System 【Major Products】 ：Connector/Jack ■Connector ■Jack Pin Jack Jack box Coaxial Connector FPC Connector Interface DC Power Supply Jack Card Connector Connector Headphone Jack
Slide 34: CS Division Net Sales, Operating Income
34/51 CS Division Net Sales, Operating Income (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 600 Net Sales 60 500 Operating Income 50 400 392 40 300 277 30 232 200 20 100 7.5 7.2 5.7 10 0 FY2008 FY2009 FY2010 Results Results Results
Slide 35: CS Division Transition of market-specific sales
CS Division Transition of market-specific sales 35/51 (Consolidated) 100% 4% 5% 6% Industry Information 72% 68% 66% Technology 50% Car 6% 9% 11% Electronics Audio/Visual 18% 18% 17% 0% FY2008 FY2009 FY2010 Results Results Results
Slide 36: CS Division - Product Strategy
CS Division - Product Strategy ~ Increased sales through enhanced 36/51 functionality and new technological ideas “PV Series” photovoltaic cell module connectors Sales Market expansion ＊FY2009=100 2800 Green energy 100 600 ◆ Industry's smallest class ◆ Easy to manufacture Increased FY2009 FY2010 FY2
Slide 37: CS Division Technical development in growing and new markets
ＣＳ Division Technical development in growing and 37/51 new markets Car Carelectronics electronics Small Smalldevices: devices:smartphones , smartphones, Meter Metercomponents, components,sensors, sensors, mobile radar connection, etc. mobiletelephones, telephones,and andee-books, -books, etc. etc. r
Slide 38: CS Division FY2011 Policy: Restart to Growth
CS Division FY 2011 Policy 38/51 Restart to Growth 1. Revitalized and speeded up development Ecology Improved products for growing markets Car Electronics Efforts to create high-value added products 2. Capture the volume zone: V-Project Smartphone Simplified manufacturing processes e-book 3. Efficie
Slide 39: FC Division
39/51 FC Division SMIK,
Slide 40: FC Division: Functional Components
40/51 FC Division FC=Functional Components 【Major Products】 ■SW (Switch) ■UN (Unit) Transfer Jet™ AC adapters Control Panel Various types of switches Antenna Coupler ■MD (Module) ■RC (Remote Control) Camera Module Remote Control
Slide 41: FC Division Net Sales, Operating Income
41/51 FC Division Net Sales, Operating Income (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 400 Net Sales 80 Operating Income 301 300 284 275 60 200 40 22.2 100 14.8 20 0 0 -2.7 -100 -20 FY2008 FY2009 FY2010 Results Results Results
Slide 42: FC Division Transition of market-specific sales
FC Division Transition of market-specific sales 42/51 (Consolidated) 100% 13 11 15 Industry 22 25 Information 30 Technology 4 4 Car 50% 5 Electronics 61 60 Audio/Visual 50 0% FY2008 FY2009 FY2010 Results Results Results
Slide 43: FC Division Priority Approach Market/Priority Product
FC Division Priority Approach Market/Priority Product43/51 Smart Audio Phone 1 Dome Switch ＆ Visual Antenna coupler Midmount Remote control Capacitance RF Remote with Motion Horizontal Push Control Unit control sensor Switch Switch Long stroke Remote control unit Remote Control Unit push switch for
Slide 44: FC Division FY2011 Policy
FC Division FY 2011 Policy Business 44/51 Sales profits 400 Great East Japan Earthquake 80 Lehman Shock Fukushima incident 284 301 300 275 60 200 40 Undetermined 22.2 100 14.8 20 0 0 -2.7 -100 -20 FY2008 results FY2009 results FY2010 results FY2011 plans 【Basic Plan】 【Basic Plan】 【Basic Plan】 【Basic
Slide 45: TP Division
45/51 TP Division SMIK,
Slide 46: TP Division: Touch Panel
46/51 TP Division TP=Touch Panel 【Major Products】 Touch Panel 【Main application】 Resistance Sensitive Touch Panel Capacitive Touch Panel Optical Touch Panel
Slide 47: TP Division Net Sales, Operating Income
47/51 TP Division Net Sales, Operating Income (Consolidated) Sales Amount : 100 Million yen Composition ratio：% Operating Income : 100 Million yen ( 176% ) 100 20 90 ( 93% ) Sales 84 Operating Income 75 15 51 50 10 25 5 1.8 0 0 ▲ 1.4 ▲ 2.4 FY2008 FY2009 FY2010 Results Results Results
Slide 48: TP Division Transition of market-specific sales
TP Division Transition of market-specific sales 48/51 (Consolidated) 100% 26% Industry 27% 43% 25% Information Technology 32% 50% 10% Car 47% 49% Electronics 41% Audio/Visual 0% 0% 0% 0% FY2008 FY2009 FY2010 Results Results Results
Slide 49: TP Division Emphasis approach
49/51 TP Division Emphasis approach TP Division Sales Results Development and expansion of overseas market FY2009 Result=100 180 150 Further expansion of overseas business 100 In-car market Put in Capacitive Touch Panel Cost decrease with low-priced material FY2009 FY2010 FY2011Plan Information Tech
Slide 50: TP Division FY2011 Policy
TP Division FY 2011 Policy 50/51 In preparation for expanding market 1 Capture of overseas market 2 Securing of profit Site remediation New product Pay attention to PH factory products (Export business ) development SMK-PH Go into full-scale operation Exchange-rate from DEC/2010 loss measures Existi
Slide 51: Notice
51/51 Notice 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