Slide 1: Business Report for FY2011
1/46 Business Report for FY2011 From Apr. to Sep. 2011 SMK Corporation Oct , 2011
Slide 2: Outline of 1H Financial Statement
2/46 FY2011 Outline of 1H Financial Statement Director and Executive Vice President Hajime Yamada
Slide 3: Consolidated 1H Financial Result
3/46 ＜Consolidated＞1H Financial Result Sales Amount : FY2010 FY2011 Income : Million yen Apr-Sep Apr-Sep Million yen - 13.6% 40,000 4,000 33,002 30,000 28,515 3,000 2,284 20,000 1,766 2,000 1,159 10,000 1,000 0 0 -42 -540 -590 -10,000 -1,000 Net Sales Operating Income Ordinary Income Net Income
Slide 4: Consolidated Sales Expenses
4/46 ＜Consolidated＞ Sales Expenses Unit : FY2010 FY2011 ( ) : percentage to sales amount Million yen Apr-Sep Apr-Sep 40,000 30,718 28,557 Material costs (93.1%) (100.1%) (1.4 increase (material costs + amount paid to subcontractors)) 30,000 Expenses external 56.9%→58.3% 409 manufacturing million yen
Slide 5: Analysis of sales expenses
5/46 ＜Consolidated＞ Analysis of sales expenses Analysis of factors for increase/decrease of consolidated operating income Unit : Million yen [ FY2010 APR-SEP VS FY2011 APR-SEP ] Total 1,000 -2,326 million yen Higher expenses for external 500 manufacturing Increase in processing Decrease in 114 5 lab
Slide 6: Non-operating profit and loss
6/46 ＜Consolidated＞ Non-operating profit and loss Unit : FY2010 FY2011 ( ) : percentage to Apr-Sep Apr-Sep sales amount Million yen △518 △498 [Exchange loss Æ Decrease (△1.5%) (△1.8%) 162 million yen] 500 Currency exchange profit/loss 1．FY2010 2nd Quarter 324 2010/3 ¥ 93.04/$ 174 Revenues from 2010/
Slide 7: Extraordinary gain or loss
7/46 ＜Consolidated＞ Extraordinary gain or loss Unit : FY2010 FY2011 ( ) : percentage to sales amount Million yen Apr-Sep Apr-Sep △60 △114 250 Gain from sale of fixed assets 5 3 26 0 △ 24 △8 Loss for after-care △ 68 △ 108 of products -250 Loss of disposed fixed assets.etc -500 Others Income before in
Slide 8: Financial Highlights (Quarterly)
＜Consolidated＞Financial Highlights (Quarterly) 8/46 Unit : Million yen 1st Half Term 2nd Half Term Fiscal Term FY2011 1Q 2Q TOTAL TOTAL TOTAL (11/4～6) (11/7～9) (11/4～9) (11/10～12/3) (11/4～12/3) [Result] [Result] [Result] [Plan] [Plan] ① Net Sales 14,111 14,404 28,515 32,285 60,800 ② Operating 47 △89
Slide 9: 2Q Financial Result Compared with FY2011 1Q
＜Consolidated＞2Q Financial Result 9/46 Compared with FY2011 1Q Income : Sales Amount : FY2011 FY2011 Million yen Million yen Apr-Jun Jul-Sep 20,000 +2.1% 2,000 15,000 14,111 14,404 1,500 10,000 1,000 5,000 500 47 0 0 -106 -161 -89 -5,000 -500 -434 -429 Net Sales Operating Income Ordinary Income Net
Slide 10: Analysis of sales expenses Compared with FY2011 1Q
＜Consolidated＞ Analysis of sales expenses 10/46 Compared with FY2011 1Q Analysis of factors for increase/decrease of consolidated operating income Unit : Million yen [ FY2011 APR-JUN VS FY2011 JUL-SEP ] Total 1,000 -136 million yen Factors for profit Factors for profit increase decrease Total 273 To
Slide 11: Consolidated Cash Position
11/46 ＜Consolidated＞ Cash Position Unit : Million yen ２０１１/３ ２０１１/９ Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets 53,059 51,611 △1,448 Cash and cash equivalents 7,442 6,810 △632 Accounts receivable 14,841 15,305 464 Inventories 5,672 5,556 △116 Fixed assets 21,205 20,366 △839 Liabilities 23,197 23,545 348 Accou
Slide 12: Consolidated Cash Flow Position
12/46 ＜Consolidated＞ Cash Flow Position Unit : Million yen FY2010 APR- FY2011 APR-SEP SEP Cash Flow from operating activities 2,783 162 Working capital 370 △980 Income before income taxes 1,706 △654 Depreciation 1,659 1,635 Others △952 161 Cash Flow from investing activities △1,791 △1,887 Free Cash
Slide 13: Consolidated Segment Information
13/46 ＜Consolidated＞ Segment Information Unit : Million yen Reporting Segment TOTAL FY2011 APR-SEP Other(*) （Consolidated CS Div. FC Div. TP Div. Total gain and loss exhibit） Net Sales 10,919 12,324 5,162 28,405 110 28,515 Segment gain or loss △86 43 △35 △78 36 △42 （Operating Income） Reporting Segme
Slide 14: FY2011 2Q Result and Prospect
14/46 FY2011 2Q Result and Prospect President and COO Tetsuya Nakamura
Slide 15: Overview of Business Climate in the Electronics Industry
Overview of Business Climate in the Electronics Industry (JEITA data) 15/46 Despite expected recovery in second half of 2011, orders weakened and future prospects are unclear ¾ 2009 results: 3,128,700 million yen (72% of previous year) ¾ 2010 results: 3,616,900 million yen (116% of previous year;
Slide 16: Half Fiscal Term Performance (FY2009-FY2011)
Half Fiscal Term Performance (FY2009-FY2011) 16/46 Unit : Million yen Income: Million yen 35,000 6,000 33,002 32,280 32,091 32,285 30,000 28,912 28,515 5,000 25,000 4,000 20,000 3,000 2,284 15,000 1,766 2,000 1,282 1,300 1,643 940 922 840 10,000 1,159 739 1,000 990 836 742 -122 -42 5,000 0 470 -540
Slide 17: Full Fiscal Term Performance (FY2009-FY2011)
17/46 Full Fiscal Term Performance (FY2009-FY2011) Net Sales: Million yen Income: Million yen 70,000 8,000 64,371 61,914 62,000 60,800 7,000 60,000 6,000 50,000 5,000 4,000 40,000 2,582 3,000 2,754 30,000 2,479 2,505 1,600 2,000 1,862 1,700 20,000 1,000 950 700 400 1,037 300 0 10,000 -1,000 0 -2,000
Slide 18: Net Sales by Product Division (FY2008-FY2011)
Net Sales by Product Division (FY2008-FY2011) 18/46 Net Sales: Million yen 90,000 FY2008~2010: Result ( )：Composition ratio 80,000 FY2011： Forecast 72,742 70,000 5,142 (7%) 64,371 others 61,914 60,800 others 186 others 60,000 8,952 242 (14%) 8,350 304 (13%) 10,722 28,371 (39%) (18%) 50,000 40,000 27
Slide 19: Operating Income by Product Division
Operating Income by Product Division 19/46 (FY2008-FY2011) Income: Million yen FY2008~2010 : Result FY2011 ： Plan 3,500 3,000 2,754 109 2,479 2,500 95 184 2,000 2,223 1,500 1,481 1,000 238 700 90 56 500 753 719 406 565 148 0 -276 -143 -239 -500 FY2008 FY2009 FY2010 FY2011Plan CS FC TP Others
Slide 20: Net Sales by Market (FY2009-FY2011)
Net Sales by Market (FY2009 – FY2011) 20/46 Sales Amount ： Million yen -13.6% 35,000 32,280 33,002 32,091 591 418 605 1,691 1,795 2,180 28,912 28,515 30,000 3,718 3,874 3,780 566 548 2,431 2,970 25,000 3,417 3,496 20,000 12,860 11,765 11,899 10,539 10,387 15,000 3,166 4,076 4,039 10,000 4,187 4,306
Slide 21: The Current Business Environment
The Current Business Environment 21/46 We have to confront these negative factors: ¾ 東日本大震災の影響 Harmful Impact of the Great East Japan Earthquake ¾ 電力供給不安 Power supply anxiety ¾ 円高 Yen appreciation ¾ 原材料の高止まり Continuing high raw material prices ¾ 各種の規制 Various regulations ¾ 欧米経済・金融不安 the economy in t
Slide 22: Specific actions incl. countermeasures for yen rising
Specific actions incl. countermeasures for yen rising 22/46 シェアー１％アップ作戦、標準品の拡販 他 営業 Strategy for UP 1% of Share Sales Expand sales of standard products etc. 現地通貨ベース調達の強化、現場不良撲滅 他 生産 Enhance procurement on a local currency basis Production Eliminate defaults at the manufacturing site etc. フロントローディング＆
Slide 23: Topics-1 Flood damage in Thailand
23/46 Topics-1 Flood damage in Thailand ＊Many of Japanese companies are covered with water and closedown. ＊Almost with purchase no influence. ＊Sales influence.
Slide 24: Topics-2 Power-saving track record
24/46 Topics-2 Power-saving track record SMK Inside of the Tokyo Electric Power jurisdiction. (kW) The used electric power sum total (kWh) 1,600 1,488 Maximum demand power kW 800K 1,453 （left axis） 1,325 1,405 1,407 The peak reduction value 1,400 700K 1,253 1,368 1,148 -15% Æ 1,331 1,200 1,082 1,093
Slide 25: Topics-3 Schedule to be held in TEXPO2012
Topics-3 Schedule to be held in 25/46 TEXPO2012 SMK Private technology show Date ：2012, Jun 6th ～8th Place ：Garden city in Shinagawa
Slide 26: Net Sales (FY2001-FY2010)
Net Sales (FY2001~FY2010) 26/46 Sales Amount : Million yen Currency exchange rate ：US dollar （yen） Net Sales 100,000 Convert to FY2007 rate Currency exchange rate 87,659 190 90,000 77,927 79,272 79,074 80,000 170 71,860 72,742 72,385 70,000 62,814 66,438 64,371 60,753 61,914 150 58,133 60,000 130 50
Slide 27: CS Division
27/46 CS Division SMIK,
Slide 28: CS Division
28/46 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 29: CS Division Net Sales, Operating Income
CS Division Net Sales, Operating Income 29/46 (Consolidated) Operating Income : 100 Million yen Sales Amount : 100 Million yen 40 400 Net Sales 30 300 Operating 232 244 Income 20 200 135 109 10 100 5.65 1.48 2.34 0 0 -0.86 FY2010 FY2011 FY2011 1H FY2011 2H Result plan Result plan -100
Slide 30: CS Division Transition of market-specific sales
CS Division Transition of market-specific sales 30/46 (Consolidated) 100% 6% 6% 9% 9% Industry Information Technology 66% 66% 62% 64% 50% Car 10% 12% 12% 9% Electronics 18% 18% 16% 17% Audio/Visual 0% FY2010 1H FY2010 2H FY2011 1H FY2011 2H Result Result Result Plan
Slide 31: CS Division - Product Strategy
CS Division - Product Strategy ~ Increased sales through enhanced functionality and new technological ideas 31/46 Solar connectors: PV Series Sales 3500 Green energy ＊FY2009=100 2800 Market expansion 600 ◆ Industry's smallest class 100 ◆ Easy to manufacture Increased varieties FY2009 FY2010 FY2011 F
Slide 32: CS Division Technical expansion into growing and new markets
CS Division Technical expansion into 32/46 growing and new markets Smartphone/Mobile Phone and Tablet PC Market Ecology Market Crimp and pressure Multipole and Connectors for LED lighting connectors arrangement into series Long-lasting ID Series - lowest profile class Environmentally- friendly micro
Slide 33: CS Division FY2011 Policy
33/46 CS Division ＦＹ2011 Policy Return to Growth 1. Proactive technological and o nl y 1" product development e v e lop " No . 1" D i m for " A Concentrate on and speedily enter growing markets Work to create high-value added products 2. Seek greater s tm ent I n ve tion efficiency duc Pro Desig n P
Slide 34: FC Division
34/46 FC Division SMIK,
Slide 35: FC Division
35/46 FC Division FC=Functional Components 【Major Products】 ■SW (Switch) ■RC (Remote Control) Various types of switches ■CU (Composite Unit) Transfer Jet™ Antenna Coupler AC adapters Control Panel Camera Module
Slide 36: FC Division Net Sales, Operating Income
FC Division Net Sales, Operating Income 36/46 (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 400 Net Sales 301 Operating 300 Income 253 200 123 130 100 22.2 4.0 0.4 3.6 0 FY2010 FY2011 FY2011 1H FY2011 2H Result Plan Result Plan
Slide 37: FC Division Transition of market-specific sales
FC Division Transition of market-specific sales 37/46 (Consolidated) 100% Industry 13 17 21 25 29 Information 31 Technology 31 26 5 50% 5 4 Car 5 Electronics 53 47 43 45 Audio/Visual 0% FY2010 1H FY2010 2H FY2011 1H FY2011 2H Result Result Result Plan
Slide 38: FC Division Priority Approach Market, Priority Product
FC Division Priority Approach Market, 38/46 Priority Product Smart 1-dome Audio switch ＆ Visual Phone 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 Remote control Remote co
Slide 39: FC Division FY2011 Policy
39/46 FC Division ＦＹ2011 Policy Business Environment Efforts 1. Strengthen sales ・Cooling down of the global economy promotion activities ・Strong yen ・Develop new customers ・High price of raw materials ・Increase share of existing customers ・Disasters (supply chain fragmentation) 2. Improve new produ
Slide 40: TP Division
40/46 TP Division SMIK,
Slide 41: TP Division
41/46 TP Division TP=Touch Panel 【Main products】 Touch Panel 【Main applications】 Resistance Sensitive Touch Panel Capacitive Touch Panel Optical Touch Panel
Slide 42: TP Division Net Sales, Operating Income
TP Division Net Sales, Operating Income 42/46 (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 120 Net Sales 12 107 100 Operating 10 84 Income 80 8 60 52 56 6 40 4 20 2 0.6 0.9 0 0 -0.4 -20 -1.4 -2 FY2010 FY2011 FY2011 1H FY2011 2H Result Plan Result Plan
Slide 43: TP Division Transition of market-specific sales
TP Division Transition of market-specific sales 43/46 (Consolidated) 100% 17% 22% Industry 26% 25% Information 25% 36% 25% Technology 24% 50% Car Electronics 49% 49% 53% 47% Audio/Visual 0% 1% 1% 0% 0% FY2010 1H FY2010 2H FY2011 1H FY2011 2H Result Result Result Plan
Slide 44: TP Division Prioritized products and markets
44/46 TP Division Prioritized products and markets Expand Sales of New Products ITO-less resistance sensitive system Medium-sized capacitive system Automotive capacitive system Size: 2 to 15 inches (film/glass type) Size: 7 to 11.6 inches Applications: Mobile equipment, Applications: Tablet terminal
Slide 45: TP Division FY2011 Policy
45/46 TP Division ＦＹ2011 Policy Expand operations 1 Capture foreign market 2 Secure profits Develop new Site improvement Focus on PH plant products "out-out" products Exchange rate measures - Weak dollar response - Production base shift Purchase US dollars / expand adoption of overseas materials
Slide 46: Notice
46/46 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