Smk Corporation · TSE:6798
Smk — FY2024 1H Earnings Presentation
31 slides from Smk's earnings presentation, Nov 7, 2024
Slide 1: FY2024 1st Half Investor Briefing
1/31 FY2024 1st Half Investor Brief ing —Challenge, Creativity, Solutions SMK Corporation (6798) November 7, 2024
Slide 2: Outline of FY2024 2Q Financial Results
2/31 Outline of FY2024 2Q Financial Results Itaru Kitahira Vice President and CFO
Slide 3: FY2024 2Q Financial Results
FY2024 2Q Financial Results 3/31 Sales increased by 2.3% year-on-year (YoY) to 23.6 billion yen. Operating profit turned positive, as the profit margin improved, shifting from a loss of 177 million yen to a profit of 108 million yen. Unit: Million yen FY2023 1H FY2024 1H YoY Result Result Net Sa
Slide 4: FY2024 2Q Results by Segment
FY2024 2Q Results | by Segment 4/31 CS Division : Strong performance in the ICT, Car Electronics, and Industry markets. SCI Division: While strong in the Home Appliance market, weak in the ICT, Car Electronics, and Industry markets. Unit: Million yen FY2023 FY2024 YoY Comments 1H Result 1H Resul
Slide 5: FY2024 Quarterly Results by Segment
FY2024 Quarterly Results | by Segment 5/31 ( ): YoY Unit: Million yen FY2024 Difference 1Q to 2Q Trend 1Q 2Q vs. 1Q (+21.1％) (+3.1％) Stable (At the same level as 1Q) Net Sales CS 5,717 5,801 ＋84 Connectors for tablets Division Renewable energy-related Operating (+1,147.8％) (+23.1％) Profit connec
Slide 6: FY2024 2Q Results Sales by Market and Region
FY2024 2Q Results | Sales by Market and Region 6/31 Unit: Million yen FY2023 FY2024 YoY Comment on Sales 1H Result 1H Result % Increase/Decrease Difference ICT 3,771 4,052 +280 ＋7.4% Japan <Home> Remote controls for sanitary: Home Appliance 9,045 10,026 +980 +10.8％ Strong by Market <Car> Control uni
Slide 7: FY2024 2Q Results (YoY) Changes in Operating Profit
FY2024 2Q Results (YoY) | Changes in Operating Profit 7/31 On a constant-currency basis, operating profit decreased due to a decline in sales. However, the weaker yen, improved variable cost ratio from the product mix, and reduction in fixed costs contributed to a positive operating profit. Unit:
Slide 8: FY2024 Forecast
FY2024 Forecast 8/31 Based on the 1H performance, the full-year profit forecast has been revised upward. A 40 yen commemorative dividend for the SMK’s 100th anniversary will be paid at the end of FY2024. Unit: Million yen FY2023 Result FY2024 Forecast FY2024 Forecast YoY announced on May 9 revis
Slide 9: Cash Position
Cash Position 9/31 Unit: Million yen March 2024 September 2024 Difference A B B–A Assets 58,444 57,390 △1,053 Cash and cash equivalents 10,258 10,942 +683 Accounts receivable 13,222 11,644 △1,578 Inventories 9,257 8,948 △308 Fixed assets 24,619 24,594 △25 Liabilities 26,300 26,250 △50 Accounts payab
Slide 10: Cash Flow Position
Cash Flow Position 10/31 Unit: Million yen FY2023 4-9 FY2024 4-9 Cash flow from operating activities 2,062 1,570 Working capital 75 920 Profit before taxes 1,264 △7 Depreciation 1,254 1,146 Others △532 △488 Cash flow from investing activities △977 △1,012 Free cash flow 1,084 558 Cash flow from finan
Slide 11: FY2024 Prospect and Progress of Medium-Term Business Plan SMK Next100
11/31 FY2024 Prospect and Progress of Medium-Term Business Plan “SMK Next100” Yasumitsu Ikeda President, CEO and COO
Slide 12: Sales and Profit by Segment (FY2023-FY2024)
Sales and Profit by Segment (FY2023-FY2024) 12/31 Unit: Million yen FY2024 Forecast YoY FY2023 Comment on Profit Result Announced Revised in A in May Oct. C/A Increase/Decrease B C Net Sales 20,586 23,420 23,158 +12.5% Profit increase due to higher CS sales Division Improvement in product mix Op
Slide 13: Reference: Net Sales by Market and Region (FY2023-FY2024)
<Reference> Net Sales by Market and Region (FY2023-FY2024) 13/31 Unit: Million yen FY2024 Forecast YoY FY2023 Comment on Sales Result Announced Revised in A in May Oct. C/A Increase/Decrease B C Japan ICT 7,908 9,000 8,700 +10.0% <Home> Remote controls for sanitary and connectors for digital cameras
Slide 14: Progress of MP: Basic Policy (Unchanged)
Progress of MP | Basic Policy (Unchanged) 14/31 In preparation for great progress in the next 100 years, we will accelerate structural reforms for sustainable growth. Based on the promotion of sustainable management, we will work to achieve sustainable growth in sales and profits, advance the so
Slide 15: Progress of MP: Toward Sustainable Growth in Sales and Profit
Progress of MP | Toward Sustainable Growth in Sales and Profit 15/31 Challenges Initiatives Expand sales in focus markets. CS Division - Strong performance in the car electronics/E-Bike, tablet, and Sustainably expand sales and renewable energy markets. improve profitability Advance simulation t
Slide 16: Progress of MP: Management Conscious of Cost of Capital and Stock Price
Progress of MP | Management Conscious of Cost of Capital and Stock Price16/31 Challenges Initiatives • Weak sales and profit and uncertainty in 1. Steadily execute initiatives to achieve the growth potential Medium-Term Business Plan • High profit volatility 2. Improve capital efficiency • Low ROE d
Slide 17: Progress of MP: ESG & Sustainability Management
Progress of MP | ESG & Sustainability Management 17/31 Challenges Initiatives Reorganized sustainability promotion structure. (July 2024) - Integrated and restructured the CSR Committee and Crisis-management Promoting ESG & sustainability Committee into the CSR/Sustainability Committee. management
Slide 18: SMK's 100th Anniversary
SMK’s 100th Anniversary 18/31 In April 2025, SMK will celebrate its 100th anniversary. 1. SMK Private Show “TEXPO2025” Theme: Turning Technology into Solutions Date: July 2 (Wed) to July 4 (Fri), 2025 Venue: Tokyo International Forum SMK’s 100-year journey Cutting-edge components, technologies,
Slide 19: CS Division (Connection System)
CS Division (Connection System) 19/31 [Major Products] Connectors Information & Home Appliance & Car Electronics Communication Technology Industry/Others High frequency High-current FPC/FFC connectors Coaxial FAKRA Connectors for board to board small board to board with locking structure connectors
Slide 20: CS: Sales and Profit / Sales by Market
CS | Sales and Profit (Consolidated) / Sales by Market 20/31 <FY2024 1H> Sales in 1H increased by 11% YoY to 11.5 billion yen, and operating profit increased by 121% YoY to 1.16 billion yen. Performance in the Car Electronics, ICT, and Industry markets was strong compared to the previous year. <FY
Slide 21: CS: Progress of Medium-Term Business Plan
CS | Progress of Medium-Term Business Plan 21/31 1. Business Environment • Global economy is on a growth trajectory. • Despite instability from conflicts (Ukraine, Israel) and canal issues, inventory adjustments are settling, and demand is recovering. 2. Sales Performance • Conducting order-taking a
Slide 22: CS: Focus Markets and Products
CS | Focus Markets and Products 22/31 Car Electronics Market Sales Expansion of Products for BMS of xEV • Expand sales and product lineup of FPC connectors for EV batteries. → Activate business negotiations and expand sales ADAS, Infotainment • Develop high-speed transmission connectors for higher-
Slide 23: SCI Division (Sensing, Communication & Interface)
SCI Division (Sensing, Communication & Interface) 23/31 [Major Products] Switches, automotive cameras, wireless modules, remote controls, touch sensors Main Applications SW - Switch - CU - Composite Unit - ▶ Control switches ▶ Switches for smartphones ▶ Automotive cameras ▶ Wireless modules HCF Mini
Slide 24: SCI: Sales and Profit / Sales by Market
SCI | Sales and Profit (Consolidated) / Sales by Market 24/31 <FY2024 1H Result> Sales were 12 billion yen, 96% YoY, and operating profit worsened from △608 million yen to △851 million yen. Sales in the Home Appliance market were strong, at 115% YoY, while in the ICT market were 38% YoY, and in th
Slide 25: SCI: Progress of Medium-Term Business Plan
SCI | Progress of Medium-Term Business Plan 25/31 1. Existing Markets • Home Appliance & Housing: Strong performance, especially in products for sanitary and air conditioners. • Car Electronics: Sales increased due to the resolution of inventory adjustments at major customers and additional adopted
Slide 26: SCI: Focus Markets and Products
SCI | Focus Markets and Products 26/31 <Home Appliances & Housing Markets> <Car Electronics Market> • Cultivate relationships with major customer. • Propose unit products and expand the E-Bike • Leverage our global development and production business. system. • Expand automotive product line of came
Slide 27: Innovation Center
Innovation Center 27/31 In April 2024, Innovation Center was established by integrating former R&D Center and the team creating new businesses through open innovation activities in the former Marketing Department in the Sales Division. This reorganization aims to centralize and strengthen new busine
Slide 28: IC: Sales and Profit / Sales by Market
IC | Sales and Profit (Consolidated) / Sales by Market 28/31 <Sales> Communication Module | Due to reduced demand from existing customers, sales were 90.3% of the plan. Bluetooth® modules: Sales decreased due to reduced demand from existing customers for mobile printers and medical devices. Sub-GH
Slide 29: IC: Progress of Medium-Term Business Plan
IC | Progress of Medium-Term Business Plan 29/31 Medium-Term Growth Strategy Topics 1. Promote development combining sensors • Installed Acoustic sensors in retail store fixtures. POC underway and algorithms. to develop predictive maintenance algorithms based on failure • Improve profit margins and
Slide 30: IC: Focus Markets and Products
IC | Focus Markets and Products 30/31 EMG Sensor “Muscle Tracker ” SAS Risk Visualization Technology Features Features • Using SMK's proprietary algorithm, enables muscle activity • Analyze breathing sounds during sleep using smartphones visualization and muscle fatigue detection from EMG and microp
Slide 31: Notice
Notice 31/31 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