Slide 1: Business Report for FY2009
1/51 Business Report for FY2009 From Apr. 2009 to Mar. 2010 SMK Corporation Apr, 2010
Slide 2: FY2009 Outline of Financial Statement
2/51 FY2009 Outline of Financial Statement Director and Executive Vice President Hajime Yamada
Slide 3: Consolidated Financial Result
3/51 ＜Consolidated＞ Financial Result Income : Sales Amount : Million yen FY2008 FY2009 Million yen △11.5% 80,000 72,742 8,000 64,371 60,000 6,000 +938.8% 40,000 4,000 2,479 2,582 1,862 20,000 2,000 1,029 238 0 0 -20,000 △ 1,620 -2,000 Net Sales Operating Income Ordinary Income Net Income
Slide 4: Consolidated Sales Expenses
4/51 ＜Consolidated＞ Sales Expenses Unit : ( ) : percentage to Million yen FY2008 FY2009 sales amount 72,504 61,892 80,000 (99.7%) (96.1%) [(Material costs＋Expenses for Material costs external manufacturing processing) improved by 3.0%] 60,000 Expenses external 61.5%→59.0% -1,603 million yen 38,624 5
Slide 5: Consolidated Analysis of sales expenses
5/51 ＜Consolidated＞ Analysis of sales expenses Analysis of factors for increase/decrease of consolidated operating income [ FY2008 VS FY2009 ] Unit : Million yen Total 5,000 2,241 million yen Factors for profit 4,000 increase Factors for profit decrease 3,000 Total 5,464 Total : -3,223 1,866 1,630 1
Slide 6: Consolidated Non-operating profit and loss
6/51 ＜Consolidated＞ Non-operating profit and loss Unit : Million yen FY2008 FY2009 791 103 (1.1%) (0.1%) ( ) : percentage to Exchange loss: Increase sales amount 1,000 844 million yen 249 Exchange gain ÆExchange Currency exchange profit/loss loss 500 655 623 Revenues from and 1．FY2008 expenditure to
Slide 7: Consolidated Extraordinary gain or loss
7/51 ＜Consolidated＞ Extraordinary gain or loss FY2008 FY2009 Unit : Million yen △2,371 1 △508 △ 23 0 △1 △ 106 Loss from revalutaion investment securities -300 △ 691 △ 378 Loss for after-care of products -600 Loss on liquidation of subsidiaries and affilates -900 Loss due to impairment △1,681 -1,200
Slide 8: Consolidated Financial Highlights (Quarterly)
＜Consolidated＞Financial Highlights (Quarterly) 8/51 Unit : Million yen 1st Half Term 2nd Half Term Fiscal Term FY2009 Result 1Q 2Q TOTAL 3Q 4Q TOTAL TOTAL (09/Apr～Jun) (09/Jul～Sep) (09/Apr～Sep) (09/Oct～Dec)(10/Jan～Mar)(09/Oct～10/Mar) (09/Apr～10/Mar) ① Net Sales 15,684 16,596 32,280 16,164 15,927 320
Slide 9: Trends in performance: Net Sales, Operating Income (Quarterly)
＜Consolidated＞Trends in performance 9/51 Net Sales,Operating Income (Quarterly) Unit : Net Sales Operating Income Unit : Million yen Million yen 25,000 1,500 23,243 1,067 937 1,000 929 21,357 706 20,000 366 500 470 16,596 0 15,684 15,927 16,164 15,000 15,438 -500 △825 12,704 -1,000 △933 10,000 FY2 0
Slide 10: FY2009 4Q Financial Result compared with 3Q
<Consolidated> FY2009 4Q Financial Result 10/51 compared with FY2009 3Q Net Sales: Million yen △1.5% Income: Million yen 20,000 2,000 16,164 15,927 15,000 1,500 △22.1% 10,000 1,000 764 613 470 536 5,000 366 500 309 0 0 FY2009 FY2009 OCT-DEC JAN-MAR Net Sales Operating Income Ordinary Income Net Inco
Slide 11: FY2009 4Q Analysis of sales expenses compared with 3Q
＜Consolidated＞ FY2009 4Q Analysis of sales 11/51 expenses compared with FY2009 3Q Analysis of factors for increase/decrease of consolidated operating income [ FY2009 OCT-DEC VS FY2009 JAN-MAR ] Total Unit : Million yen - 104 million yen 400 Factors for profit Factors for profit increase decrease 300
Slide 12: Consolidated Cash Position
12/51 ＜Consolidated＞ Cash Position Unit : Million yen ２００９/MAR ２０１０/MAR Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets ５８，１６８ ５６，１１３ －２，０５５ Cash and cash equivalents ９，０８１ ８，７５８ － ３２３ Accounts receivable １４，８６４ １６，３３７ １，４７３ Inventories ６，２３４ ５，２４０ － ９９４ Fixed assets ２３，８６５ ２２，１３３ － １，７３２ Liabilities ２９，０８８ ２４，９８
Slide 13: Consolidated Cash Flow Position
13/51 ＜Consolidated＞ Cash Flow Position Unit : Million yen FY2008 FY2009 Operating Cash Flow ９，２４９ ９，００３ Working capital ５，７２３ ４２３ Income before income taxes －１，３４１ ２，０７４ Depreciation ５，６１０ ４，０２０ Others － ７４３ ２，４８６ Investing Cash Flow － ４，０２０ － ２，４８０ Free Cash Flow ５，２２９ ６，５２３ Financing Cash Flow －
Slide 14: FY2009 Result and FY2010 Prospect
14/51 FY2009 Result and FY2010 Prospect President and COO Tetsuya Nakamura
Slide 15: Full Fiscal Term Performance (FY2007-FY2009)
15/51 Full Fiscal Term Performance (FY2007-FY2009) Net Sales: Million yen Income: Million yen 100,000 8,000 90,000 87,659 7,000 80,000 6,000 72,742 70,000 5,654 67,000 5,000 4,327 64,371 3,900 60,000 4,000 50,000 2,582 3,000 3,200 2,479 2,600 40,000 2,000 2,094 1,862 1,029 30,000 1,000 238 20,000 0
Slide 16: Half Fiscal Term Performance (FY2007-FY2009)
16/51 Half Fiscal Term Performance (FY2007-FY2009) Unit : Million yen 50,000 8,000 44,031 43,628 44,600 45,000 7,000 40,000 6,000 35,000 33,000 34,000 5,000 3,904 32,280 32,091 4,000 30,000 3,165 28,142 3,807 2,300 3,000 25,000 2,337 1,282 1,600 2,000 1,996 1,300 2,000 20,000 1,847 1,710 1,600 1,643
Slide 17: Fiscal Term Sales & Operating Income Performance (FY2000-FY2010)
Fiscal Term Sales & Operating Income 17/51 Performance (FY2000-FY2010) Net Sales: Million yen Income: Million yen 90,000 87,659 12,000 11,000 80,000 Published number 72,742 10,000 70,000 66,438 67,000 9,000 64,371 60,000 8,000 7,000 50,000 5,654 6,000 5,166 40,000 4,134 4,290 5,000 3,200 4,000 3,494
Slide 18: Consolidated Net Sales by Market
18/51 ＜Consolidated＞ Net Sales by Market 90,000 87,659 Unit : Million yen 1,866 6,745 88.5% 104.1% 80,000 8,897 72,742 70,000 1,898 67,000 4,834 72.1% 64,371 700 1,023 4,400 7,681 3,486 60,000 98.8% 126.2% 7,800 7,592 35,969 102.7% 50,000 30,207 24,900 40,000 81.5% 24,625 101.1% 30,000 7,424 6,077 7
Slide 19: Main Market Trends-1: Flat Panel TV
＜Main Market Trends-1＞ 19/51 Flat Panel TV（LCD and PDP TVs) Unit : ＜No. of units produced W/W＞ thousands ＜SMK strategy＞ ’08-’10 CAGR:+21.8% 200,000 ■ PDP TV ●Further increase remote control sales 177,896 Expand market share of models to 180,000 ■ LCD TV 14,506 capture volume zone 160,000 Expand RF (
Slide 20: Main Market Trends-2: Car Navigation Systems
＜Main Market Trends-2＞ 20/51 Car Navigation Systems Unit : ＜No. of units produced W/W＞ thousands ＜SMK strategy＞ 10,000 ’08-’10 CAGR △2.3% ●Expand touch-panel business in line with increased use of car navigation 8,910 systems 9,000 8,500 8,090 8,000 7,000 ●Concentrated sales promotion of products ba
Slide 21: Main Market Trends-3: Mobile Phones
＜Main Market Trends-3＞ 21/51 Mobile Phones Unit : thousands ＜No. of units produced W/W＞ ＜SMK strategy＞ 1,400,000 ’08-’10 CAGR +1.3% ● Improve cost competitiveness 1,210,140 1,242,940 to increase sales Improve VA proposal ability and 1,200,000 1,131,310 speed-up development 1,000,000 ● Achieve high r
Slide 22: Main Market Trends-4: Personal Computer
＜Main Market Trends-4＞ 22/51 Personal Computer(Desktop & Notebook PCs) Unit : ＜No. of units produced W/W＞ thousands ＜SMK strategy＞ 350,000 ■ Notebook ’08-’10 CAGR +4.3% ● Improve Windows 7 supported ■ Desktop remote controls and touch panels 310,096 Approach major 300,000 285,086 282,753 overseas ma
Slide 23: Net Sales by Product Division (FY2007-FY2010)
Reference：＜Consolidated＞Net Sales by Product Division 23/51 (FY2007-FY2010) Sales Amount ： Million yen ( )：Composition ratio 100,000 90,000 87,659 5,256 (6%) 80,000 72,742 70,000 5,142 67,000 (7%) 64,371 32,942 (38%) 8,998 60,000 8,974 (14%) (13%) 28,371 (39%) 50,000 40,000 27,637 (43%) 31,626 (47%)
Slide 24: Operating Income by Product Division (FY2007-FY2010)
Reference：＜Consolidated＞ Operating Income 24/51 by Product Division (FY2007-FY2010) Profit Amount ： Million yen 7,000 6,000 5,654 849 5,000 4,000 3,200 2,479 203 3,000 4,815 183 2,000 1,822 1,516 1,000 238 753 779 1,175 -10 0 -276 -239 -1,000 FY2007 Result FY2008 Result FY2009 Result FY2010 Plan -2,
Slide 25: Ability reinforcement of Filipino factory (Touch Panel)
Ability reinforcement of Filipino factory 25/51 （Touch Panel） Extension area ：：4,000㎡×house 4,000㎡×house of 2 stories Finish date ：：2010,Oct 2010,Oct Investment amount ：：1 1 billion yen Capacity of production ：：1.5 1.5 times Extension area
Slide 26: Transfer of executive officer
Transfer of executive officer 26/51 Valid date : 2010, JUN, 24th （ Announce date ：2010,APR,26th） Ｎｅｗ Before Name Director and Executive Vice Executive Vice President Sakurai Yoshio President Executive Vice President Vice President Paul Evans Vice President TP senior general Yanagi Shigechika manager
Slide 27: Number of New Product Press Releases
Number of New Product Press Releases 27/51 <Comparison Top 10 Companies of Electronic Parts> Number of new product releases : 12 months from April of the previous year to 35 March this year 30 SMK A 25 B C 20 D E 15 F 10 G I 5 H 0 FY 2007 FY 2008 FY 2009 * Out of 50 companies listed in the “50 Major
Slide 28: Paradigm shift
Paradigm shift 28/51 The The change change of of markets markets The The impact impact of of manufacturing manufacturing industry industry past past Lower price=Poor quality present present Lower price = Acceptable quality From vertical integration to horizontal division of work There is a move to i
Slide 29: 2010 SMK Management Policies
29/51 2010 SMK Management Policies Basic Approach： Expansion with reasonable profits • Review production system to deal with the paradigm shift of the market. • Focus on basics of manufacturing and accumulate element technologies internally. • Plan new strategic products and expand sales by restruct
Slide 30: 2010 Slogan
2010 Slogan 30/51 Dedication Dedication to to and and devotion devotion in in marketing marketing and and selling. selling. Creation, Creation, manufacturing, manufacturing, and and perfecting perfecting of of products. products.
Slide 31: CS Division
31/51 CS Division SMIK,
Slide 32: CS Division
32/51 CS Division CS=Connection System 【Major Products】 ：Connector/Jack ■Connector ■Jack Coaxial Connector Pin Jack FPC Connector Speaker Terminal Interface DC Power Supply Jack Card Connector Connector Headphone Jack
Slide 33: CS Division Net Sales, Operating Income
33/51 CS Division Net Sales, Operating Income (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 400 392 40 Net Sales Operating Income 300 278 264 30 200 20 11.8 100 7.5 7.8 10 0 FY2008 FY2009 FY2010 Result Result Plan
Slide 34: CS Division Transition of market-specific sales
CS Division Transition of market-specific sales 34/51 (Consolidated) Composition ratio：% 100% 4% 5% 6% Industry Information 72% 68% 66% Technology 50% Car 9% 9% Electronics 6% Audio/Visual 18% 18% 20% 0% FY2008 FY2009 FY2010 Result Result Plan
Slide 35: CS Division Product strategy
CS Division Product strategy - sales expansion through 35/51 higher functionality and technological ideas Increase amount of information →support high-speed Improve high value added products for internal connections: FPC connectors transmission For compact devices: smartphones and Sales transit 172
Slide 36: CS Division Market strategy – speed-up development
36/51 CS Division Market strategy – speed-up development Mobile phone / portable device market Eco market Board to board connectors Solar cell PB-4>> improved variation Module connectors Strive for low-profile / space-saving products Composite card connectors Low-profile type Waterproof technology I
Slide 37: CS Division FY2010 Policy
CS Division ＦＹ2010 Policy 37/51 Reactivation to growth constitution strength １．Development power strengthening Improvement of Speed New items Choice and Concentration Sales/Profit ratio Sales ( )：profit ratio 392 Operating Income ２．Pursuit of Efficiency 278 264 Keep gain on board All perfectly suit
Slide 38: FC Division
38/51 FC Division SMIK,
Slide 39: FC Division
39/51 FC Division 【Main products】 FC=Functional Components ■SW (Switch) ■UN (Unit) Bluetooth Unit Various types of switches Antenna (Microphone-free Control Panel Bluetooth headset) ■RC (Remote Control) ■MD (Module) Remote Color Intelligent Camera Module Control Remote Control
Slide 40: FC Division Net Sales, Operating Income
40/51 FC Division Net Sales, Operating Income (Consolidated) Sales Amount : 100 Million yen Operating Income : 100 Million yen 400 Net Sales 40 Operating Income 316 300 284 276 30 200 18.2 20 15.2 100 10 0 0 -2.7 -100 -10 FY2008 FY2009 FY2010 Result Result Plan
Slide 41: FC Division Transition of market-specific sales
FC Division Transition of market-specific sales 41/51 (Consolidated) Composition ratio：% 100% 13 11 9 Industry Information 22 25 29 Technology 4 4 4 Car Electronics 50% Audio/Visual 61 60 58 0% FY2008 FY2009 FY2010 Result Result Plan
Slide 42: FC Division Priority Approach Market/Priority Product
42/51 FC Division Priority Approach Market/Priority Product Smart Phone Audio&Visual 1 Dome Switch Antenna coupler MT Switch Midmount (H=0.4mm) Horizontal Push Capacitive switch RF Remote Control Panel Switch Control Unit Long stroke push switch Remote control unit Remote Control Unit for Automotive
Slide 43: FC Division TOPIC
«: 9 FC Division TOPIC 43/51 Crystal | Lipstick Mouse The Best Mouse for Mobile PC Features Wireless Control:RF2.4GHz ©@ Power Source:Rechargeak Lithium Polymer Batter Recharging | Made with CRYSTALLIZED™ - Swarovski Elements Made with CRYSTALLIZED™ - Swarovski Elements\s2IO7A+—HORBRAY bIVASIVOFOLIH
Slide 44: FC Division FY2010 Objectives
44/51 FC Division ＦＹ2010 Objectives Shift to a path of growth Strengthen technological development No.1 product Strengthen marketing Capture volume zone Maintain profit structure (Cut variable costs + reduce fixed costs)
Slide 45: TP Division
45/50 TP Division SMIK,
Slide 46: TP Division
46/51 TP Division TP=Touch Panel 【Main application】 【Main products】 Touch Panel 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 Operating Income : 100 Million yen 100 10 Sales 90 90 Operating Income 75 8 50 51 5 25 1.8 2.0 3 0 0 ▲ 2.4 FY2008 FY2009 FY2010 Result Result Plan
Slide 48: TP Division Transition of market-specific sales
TP Division Transition of market-specific sales 48/51 (Consolidated) Composition ratio：% 100% Industry 27% 26% 43% Information 32% 28% Technology 50% 10% Car 47% 44% Electronics 41% 0% 0% 2% 0% Audio/Visual FY2008 FY2009 FY2010 Result Result Plan
Slide 49: TP Division Priority Products and Priority Markets
49/51 TP Division Priority Products and Priority Markets Capacitance Capacitance Application-based product lineup enhancement Break into new application markets Strive for increased product Expand cell-phone market share thinness and lower costs In-car In-car market market High value added products
Slide 50: TP Division FY2010 Policy
TP Division FY2010 Policy 50/51 In preparation for expanding market １ Expansion of sales FY2009 Result Africa Overseas 3% Europe Capture of overseas market Market 0% Sales ratio Asia USA 29% Asia(Outside of Japan） 163 FY2010 Plan 141 Japan 100 100 93 USA Europe 68% 4% 1% 63 FY2008 Result = index num
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