Smk Corporation · TSE:6798
Smk — H1 FY2010 Earnings Presentation
47 slides from Smk's earnings presentation, Oct 27, 2010
Slide 1: Business Report for FY2010
Business Report for FY2010 From Apr. to Sep. 2010 SMK Corporation Oct , 2010
Slide 2: Outline of 1H Financial Statement
FY2010 Outline of 1H Financial Statement Director and Executive Vice President Hajime Yamada
Slide 3: Consolidated 1H Financial Result
1 ＜Consolidated＞1H Financial Result Sales Amount : FY2009 FY2010 Income : Million yen Apr-Sep Apr-Sep Million yen +2.2% 40,000 4,000 32,280 33,002 30,000 +39.0% 3,000 2,284 20,000 1,766 2,000 1,643 1,282 1,159 940 10,000 1,000 0 0 Net Sales Operating Income Ordinary Income Net Income
Slide 4: Consolidated Sales Expenses
2 ＜Consolidated＞ Sales Expenses Unit : FY2009 FY2010 ( ) : percentage to sales amount Million yen Apr-Sep Apr-Sep 30,637 30,718 40,000 (94.9%) (93.2%) [(Material costs＋Expenses for Material external manufacturing costs processing) improved by 1.7%] 30,000 58.6%→56.9% Expenses external -588 million y
Slide 5: Analysis of sales expenses
3 ＜Consolidated＞ Analysis of sales expenses Analysis of factors for increase/decrease of consolidated operating income Unit : Million yen [ FY2009 APR-SEP VS FY2010 APR-SEP ] Total 641 million yen 1,000 Factors for profit Factors for profit increase decrease 588 Total : 1,089 Total : -448 500 299 20
Slide 6: Non-operating profit and loss
4 ＜Consolidated＞ Non-operating profit and loss Unit : FY2009 FY2010 ( ) : percentage to Apr-Sep Apr-Sep sales amount Million yen -361 -518 (-1.1%) (-1.6%) Exchange loss Æ Increase 500 Currency 101 million yen exchang 327 profit/loss (End of term rate)･･･ Evaluation of debts and 324 credits 136 34 Re
Slide 7: Extraordinary gain or loss
5 ＜Consolidated＞ Extraordinary gain or loss Unit : ( ) : percentage to sales amount Million yen FY2009 FY2010 APR-SEP APR-SEP 150 Gain from sale of △29 fixed assets 59 Income from △60 recovery of bad 46 5 0 3 debts △ 27 △ 68 Loss of disposed fixed assets.etc △ 107 Others -150 Income before income ta
Slide 8: Financial Highlights (Quarterly)
＜Consolidated＞Financial Highlights (Quarterly) 6 １．FY2010 Plan Unit : Million yen 1st Half Term 2nd Half Term Fiscal Term 1QTR 2QTR TOTAL TOTAL TOTAL (10/APR～ (10/JUL (10/APR～ (10/APR～ (10/OCT～11/MAR) JUN) ～SEP) SEP) 11/MAR) [Plan] [Result] [Result] [Result] [Plan] ① Net Sales 16,056 16,946 33,002 3
Slide 9: 2Q Financial Result Compared with FY2010 1Q
＜Consolidated＞2Q Financial Result 7 Compared with FY2010 1Q Income : Sales Amount : FY2010 FY2010 Million yen Million yen Apr-Jun Jul-Sep +5.5% 20,000 4,000 16,946 16,056 15,000 3,000 - 12.0% 10,000 2,000 1,215 1,069 937 829 5,000 1,000 628 531 0 0 Net Sales Operating Income Ordinary Income Net Inco
Slide 10: Analysis of sales expenses Compared with FY2010 1Q
＜Consolidated＞ Analysis of sales expenses 8 Compared with FY2010 1Q Analysis of factors for increase/decrease of consolidated operating income Unit : Million yen [ FY2010 APR-JUN VS FY2010 JUL-SEP ] Total 1,000 - 146 million yen Factors for profit Factors for profit increase decrease Total 451 Total
Slide 11: Consolidated Cash Position
9 ＜Consolidated＞ Cash Position Unit : Million yen ２０１０/Ｍａｒ ２０１０/Ｓｅｐ Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets ５６，１１３ ５４，４２０ －１，６９３ Cash and cash equivalents ８，７５８ ７，４０５ －１，３５３ Accounts receivable １６，３３７ １６，２８８ △４９ Inventories ５，２４０ ５，６１５ ３７５ Fixed assets ２２，１３３ ２１，２２３ －９１０ Liabilities ２４，９８６ ２３，９２３ －１，０６３ A
Slide 12: Consolidated Cash Flow Position
10 ＜Consolidated＞ Cash Flow Position Unit : Million yen FY2009 APR-SEP FY2010 APR-SEP Operating Cash Flow ５，４９４ ２，７８３ Working capital １，６４９ ３７０ Income before income taxes １，２５３ １，７０６ Depreciation １，８５９ １，６５９ Others ７３３ －９５２ Investing Cash Flow －１，１６０ －１，７９１ Free Cash Flow ４，３３４ ９９２ Financing Cash Fl
Slide 13: Consolidated Segment Information
11 ＜Consolidated＞ Segment Information FY2010 APR-SEP Unit : Million yen Segment repot TOTAL CS FC TP Other(*) （Consolidate d gain and Division Division Division loss exhibit） Net Sales 12,615 16,238 4,074 75 33,002 Segment gain or loss 592 1,636 -7 63 2,284 （Operating Income） (*) Other：research and
Slide 14: FY2010 2Q Result and Prospect
12 FY2010 2Q Result and Prospect President and COO Tetsuya Nakamura
Slide 15: Half Fiscal Term Performance (FY2008-FY2010)
Half Fiscal Term Performance (FY2008-FY2010) 13 Income: Million yen Unit : Million yen 50,000 8,000 44,600 45,000 7,000 +2.2% 40,000 6,000 5,000 35,000 32,280 32,091 33,000 33,002 32,998 4,000 30,000 3,165 28,142 3,000 25,000 +39.0% 1,600 1,766 1,634 2,000 1,996 1,282 1,300 2,284 20,000 1,710 1,643
Slide 16: Full Fiscal Term Performance (FY2008-FY2010)
14 Full Fiscal Term Performance (FY2008-FY2010) Net Sales: Million yen Income: Million yen 80,000 +2.5% 8,000 72,742 67,000 7,000 70,000 64,371 66,000 6,000 60,000 +45.2% 5,000 50,000 3,900 4,000 3,400 40,000 2,582 3,200 3,600 3,000 2,600 2,479 2,300 2,000 30,000 1,029 1,862 1,000 20,000 238 0 10,00
Slide 17: Trends in performance of Net Sales (Quarterly)
＜Consolidated＞Trends in performance of 15 Net Sales (Quarterly) Net Sales: Million yen 90,000 87,659 80,000 20,688 72,742 70,000 64,371 12,704 60,000 22,940 15,927 15,438 50,000 40,000 16,164 33,002(1H) 23,610 23,243 30,000 16,596 102.1% 16,946 4Q 20,000 3Q 2Q 10,000 20,421 21,357 15,684 102.4% 16,0
Slide 18: Fiscal Term Operating Income Performance
<Consolidated>Fiscal Term 16 Operating Income Performance Net Sales: Million yen 6,000 5,654 306 5,000 1,541 4,000 3,000 2,479 2,088 366 2,284(1H) 238 2,000 470 4Q 1069 929 937 3Q 1,000 1,719 2Q 1,067 1,215 706 1Q 0 -933 -1,000 -825 -2,000 FY2007 FY2008 FY2009 FY2010
Slide 19: Net Sales by Product Division (FY2007-FY2010)
Reference：Net Sales by Product Division 17 (FY2007-FY2010) Net Sales: Million yen 90,000 87,659 FY2007~2009: Full term result 5,256 (6%) FY2010：1H Result, 1Q Plan 80,000 ( )：Composition ratio 72,742 70,000 5,142 (7%) 66,000 Other 32,942 (38%) 64,371 213 8,605 (13%) 60,000 8,974 (14%) 28,371 (39%) 50
Slide 20: Half Fiscal Term: Net Sales by Product Division
Half Fiscal Term：Net Sales 18 by Product Division (FY2008-FY2010) Net Sales: Million yen ( )：Composition ratio 50,000 45,000 44,600 2,799 (6%) 40,000 35,000 32,280 33,002 16,543 32,091 Other (37%) 4,074 75 30,000 28,142 4,404 (14%) 4,570 (14%) (12%) 2,343 (8%) 25,000 12,996 (40%) 16,238 (49%) 20,000
Slide 21: Operating Income by Product Division
Operating Income by Product Division 19 (FY2008-FY2010) Income: Million yen 2,500 2,284 Other 1,996 64 2,000 208 1,643 1,500 228 1,635 1,000 694 836 1,868 500 823 721 591 0 -81 58 -45 -7 FY2008 1H FY2009 1H FY2009 2H FY2010 1H -500 -1,115 -1,000 -484 -1,500 -158 -2,000 -1,758 CS FC TP Other FY2008 2
Slide 22: Net Sales by Market (FY2008-FY2010)
Net Sales by Market (FY2008 – FY2010) 20 Sales Amount ： Million yen 50,000 44,600 45,000 928 +2.2% 2,919 40,000 4,756 32,280 33,002 35,000 32,091 418 605 591 28,142 1,691 1,795 2,180 30,000 970 3,718 3,874 3,780 19,044 1,915 25,000 2,925 20,000 12,860 11,765 11,899 11,163 15,000 3,856 3,166 4,076 4,
Slide 23: 1H Net Sales by Market - 1
＜Consolidated＞ 1H Net Sales by Market -1 21 Net Sales: Million yen、 Audio & Visual market 14,000 13,095 13,000 5 100.8% 12,000 11,000 10,424 10,511 Car Electronics 0 TP 3 10,000 127.6% 9,000 8,000 10,014 Net Sales: Million yen、 7,000 FC 5,000 6,000 8,667 3,856 4,039 8,228 4,000 5,000 3,166 3,000 1,4
Slide 24: 1H Net Sales by Market - 2
＜Consolidated＞ 1H Net Sales by Market -2 22 Net Sales: Million yen、 20,000 19,044 58 3 Telecom market 18,000 2,142 16,000 92.5% Computer market 14,000 12,860 12,000 TP 1 11,899 1,671 Other 7 874 10,000 FC Net Sales: Million yen、 101.7% 1,716 16,841 3,630 5,000 4,756 8,000 38 4,000 948 3,718 3,780 19
Slide 25: Monthly booking Entry (FY2007-)
23 Monthly booking Entry (FY2007～） FY2010 FY2010 FY2010 FY2009 FY2008 FY2007 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Slide 26: Management Policy of SMK FY2010
24 Management Policy of SMK FY2010 Reasonable profits accompanied by expansion Business challenge problems that confront one ① Yen appreciation ② China risk ③ Volume zone & double standard
Slide 27: CEATEC JAPAN 2010
CEATEC JAPAN 2010 25
Slide 28: CS Division
26 CS Division SMIK,
Slide 29: CS Division
27 CS Division CS=Connection System 【Major Products】 ：Connector/Jack ■Connector ■Jack Pin Jack Jack box Coaxial Connector FPC Connector Interface DC Power Supply Jacks Card Connector Connector Headphone Jacks
Slide 30: CS Division Net Sales, Operating Income
CS Division Net Sales, Operating Income 28 (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 400 Net Sales 40 Operating 30 300 278 (89%) Income 247 200 20 (96%) (112%) 126 121 100 7.8 8.7 10 5.9 (47%) 2.8 0 FY2009 FY2010 FY2010 1H FY2010 2H Result plan Result plan
Slide 31: CS Division Transition of market-specific sales
CS Division Transition of market-specific sales 29 (Consolidated) 100% 4% 6% 6% Industry 7% Information Technology 69% 66% 66% 65% 50% Car 9% 10% 10% 9% Electronics 18% 17% 18% 20% Audio/Visual 0% FY2009 1H FY2009 2H FY2010 1H FY2010 2H Result Result Result Plan
Slide 32: CS Division Product Strategy
CS Division Product Strategy – Expand sales through increased functionality and new technological ideas 30 Shielded FPC connectors Support high image quality and FPC Connectors Strong sales of smartphones, high-speed transmission e-Books, wireless modules, Changing sales figures 210 data communicati
Slide 33: CS Division Technical expansion into growing and new markets
CS Division Technical expansion into 31 growing and new markets ⇒ 55% miniaturization compared to our Photovoltaic Cell Module Connector PV Series traditional products Waterproofing technology high-current compatible Simple workmanship Weatherability and flame retardancy Size/lock structure More var
Slide 34: CS Division FY2010 Policy
CS Division ＦＹ2010 Policy 32 成長市場のマッピング再考 Reconsider mapping of growing markets Continue focus on high value-added fields Speed New product development Technical partnerships Improved products in growing markets Priority products：ＦＰＣ, PB, Coaxial car electronics / tablet PCs ecology / medical equipm
Slide 35: FC Division
33 FC Division SMIK,
Slide 36: FC Division
34 FC Division FC=Functional Components 【Major Products】 ■SW (Switch) ■UN (Unit) Transfer Jet™ AC adapters Control Panel Various types of switches Antenna Coupler ■RC (Remote Control) ■MD (Module) Remote Control Camera Module
Slide 37: FC Division Net Sales, Operating Income
FC Division Net Sales, Operating Income 35 (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 400 Net Sales 80 (118%) 325 300 276 Operating 60 Income 200 (100%) 40 (167%) 162 162 25 100 15 16 (56%) 20 9 0 0 FY2009 FY2010 FY2010 1H FY2010 2H Result Plan Result Plan
Slide 38: FC Division Transition of market-specific sales
FC Division Transition of market-specific sales 36 (Consolidated) 100% 11 Industry 12 13 14 20 28 Information 29 28 Technology 3 4 4 Car 5 Electronics 50% 65 57 53 54 Audio/Visual 0% FY2009 1H FY2009 2H FY2010 1H FY2010 2H Result Result Result Plan
Slide 39: FC Division Priority Approach Market, Priority Product
FC Division Priority Approach Market, 37 Priority Product Audio&Visual 1-dome switch Remote Smart Phone Control for IPTV antenna Development of coupler Featuring a Remote Control Thin Horizontal capacitive type RF Remote with Motion switch switch Control Control Sensor Rubber single-key switch Remot
Slide 40: FC Division FY2010 Policy
FC Division ＦＹ2010 Policy 38 Shift to path of growth Strengthen technical 技術開発強化 No.1 product No,1商品 development Strengthen marketing Capture volume zone Maintain profitable structure (cut variable costs + reduce fixed costs)
Slide 41: TP Division
39 TP Division SMIK,
Slide 42: TP Division
40 TP Division TP=Touch Panel 【Main products】 【Main applications】 Resistance Sensitive Touch Panel Capacitive Touch Panel Optical Touch Panel
Slide 43: TP Division Net Sales, Operating Income
TP Division Net Sales, Operating Income 41 (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 100 (96%) Net Sales 10 90 86 75 Operating 7.5 Income (110%) 50 45 5 41 25 1.8 (67%) 2.5 1.2 1.2 0 0 0 FY2009 FY2010 FY2010 1H FY2010 2H Result Plan Result Plan
Slide 44: TP Division Transition of market-specific sales
TP Division Transition of market-specific sales 42 (Consolidated) 100% 28% 26% 27% 26% Industry 24% Information Information 26% 27% Technology 50% 39% Car 49% 49% 47% Electronics 33% 1% 1% Audio/Visual 0% 0% 0% FY2009 1H FY2009 2H FY2010 1H FY2010 2H Result Result Result Plan
Slide 45: TP Division Prioritized products and markets
TP Division Prioritized products and markets 43 Increase Increase share share Automotive Automotivemarket market Mobile Mobilephone phonemarket market ・・Develop Develophigh highvalue-added value-added ・I ・Improve mproveproduct productlineup lineup products products according accordingtotoapplication
Slide 46: TP Division FY2010 Policy
TP Division ＦＹ2010 Policy 44 Expand operations １ Increase sales Attack overseas market Overseas market sales ratio FY2010 forecast ～Respond to weak FY2009 results U.S. Europe dollar ～ U.S. 1% Europe 4% 3% 0% Shift production base Asia Purchase in dollars 29% Asia Japan Japan 47% 68% 48% Rare metal f
Slide 47: Notice
45 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 pre