Slide 1: FY2025 1st Half Investor Briefing
1/30 FY2025 1st Half Investor Brief ing —Challenge, Creativity, Solutions SMK Corporation (6798) November 6, 2025
Slide 2: Agenda
Agenda 2/30 pp. 03-13 Outline of FY2025 1H Financial Results pp. 14-29 • FY2025 Forecast • Progress of Medium-Term Business Plan “SMK Next100” and Structural Reform Program
Slide 3: Outline of FY2025 1H Financial Results
3/30 Outline of FY2025 1H Financial Results Itaru Kitahira Vice President and CFO
Slide 4: FY2025 1H Financial Results
FY2025 1H Financial Results 4/30 1H sales decreased 2.0% year-on-year to ¥23.1 billion, partly due to yen appreciation. Operating profit declined from ¥108 million to -¥117 million, but sales, operating profit, and net profit all exceeded initial forecasts. Unit: ¥ millions FY2024 FY2025 FY2025 Yo
Slide 5: FY2025 1H Results by Segment
FY2025 1H Results | by Segment 5/30 CS YoY decline due to weak performance in ICT and Industry markets, despite solid results in Car Electronics and Home Appliance markets. SCI Loss narrowed thanks to strong performance in Car Electronics and Industry markets, offsetting weakness in the Home App
Slide 6: FY2025 Quarterly Results by Segment
FY2025 Quarterly Results | by Segment 6/30 CS Connectors for Car Electronics and Industry markets grew; 2Q sales and profit improved. SCI Camera modules and control units for automobiles grew; 2Q sales and profit improved. IC 2Q sales decreased due to transfer of communication module business
Slide 7: 1H Results Sales by Market
FY2025 1H Results | Sales by Market 7/30 ICT Below YoY due to weak performance of connectors for smartphones. Car Electronics Above YoY on strong performance of connectors, camera modules, and control units. Industry Below YoY due to healthcare decline, partly offset by renewable energy and in
Slide 8: 1H Results Sales by Region
FY2025 1H Results | Sales by Region 8/30 Japan Above YoY on strong performance of remote controls for sanitary and camera modules/control units for automobiles. North America Below YoY due to weak performance of units for smart appliances and housing equipment. Unit: ¥ millions FY2024 FY2025 YoY
Slide 9: 1H Results (YoY) Changes in Operating Profit
FY2025 1H Results (YoY) | Changes in Operating Profit 9/30 Impact of approx. ¥7 appreciation and increased fixed costs (mainly for technology exposition) led to lower operating profit YoY. Improvement expected in 2H from fixed cost reduction under structural reform program (domestic labor cost s
Slide 10: 1H Results (vs. Initial Forecast) Changes in Operating Profit
FY2025 1H Results (vs. Initial Forecast) | Changes in Operating Profit 10/30 Operating profit improved vs. initial forecast due to higher sales. Unit: ¥ millions Operating Profit improved ¥283 million After adjusting FX impact Operating loss in the initial Operating loss forecast Increase in for F
Slide 11: FY2025 Forecast
FY2025 Forecast 11/30 Unchanged from the initial forecast announced on May 8, 2025. 2H sales are expected to be in line with 1H, with profit supported by fixed cost reductions and improved cost efficiency from structural reforms. Unit: ¥ millions FY2024 Result FY2025 Forecast YoY Net Sales 48,05
Slide 12: Appendix Cash Position (FY2025 1H)
Appendix | Cash Position (FY2025 1H) 12/30 Unit: ¥ millions March 2025 September 2025 Difference [A] [B] [B – A] Assets 57,684 56,243 -1,441 Cash and cash equivalents 10,475 9,805 -669 Accounts receivable 13,935 12,418 -1,517 Inventories 7,673 7,630 -42 Fixed assets 24,535 25,172 +637 Liabilities 28
Slide 13: Appendix Cash Flow Position (FY2025 1H)
Appendix | Cash Flow Position (FY2025 1H) 13/30 Unit: ¥ millions FY2024 Apr - Sept FY2025 Apr - Sept Cash flow from operating activities 1,570 1,068 Working capital 920 1,228 Profit before taxes -7 -122 Depreciation 1,146 1,134 Payment for business restructuring expenses － -743 Others -488 -428 Cash
Slide 14: FY2025 Forecast and Progress of Medium-Term Business Plan SMK Next100
14/30 FY2025 Forecast and Progress of Medium-Term Business Plan “SMK Next100” and Structural Reform Program Yasumitsu Ikeda President, CEO and COO
Slide 15: FY2025 Forecast Sales & Profit by Segment
FY2025 Forecast | Sales & Profit by Segment 15/30 Unit: ¥ millions FY2025 FY2024 Full-year Comments on 2H Forecast Result 1H Result 2H Forecast Forecast Net Sales 22,156 11,091 10,482 21,573 Connector sales for smartphones CS and amusement down; operating Division Operating profit to stay near 1H le
Slide 16: Sales & Profit by Market CS Division
Sales & Profit by Market | CS Division 16/30 FY2025 1H Result Sales: ¥11 billion (-4% YoY) Operating profit: ¥660 million (-43% YoY) Despite strong Car Electronics and Home Appliance markets, weak performance in ICT and Industry markets led to lower sales and profit. FY2025 Forecast Sales: ¥21.5 b
Slide 17: Sales & Profit by Market SCI Division
Sales & Profit by Market | SCI Division 17/30 FY2025 1H Result Sales: ¥12 billion (flat YoY) Operating loss: ¥533 million (improved by ¥320 million YoY) Strong performance in Home Appliance (sanitary and air-conditioning) and Car Electronics markets. Lower cost ratio through cost pass-through, com
Slide 18: Sales & Profit by Market Innovation Center
Sales & Profit by Market | Innovation Center 18/30 FY2025 1H Result Sales declined due to transfer of communication module business to SCI Division in June and reallocation of resources to priority businesses. FY2025 Forecast Sales below initial forecast (announced in May) due to withdrawal from
Slide 19: Forecast Sales by Market
FY2025 Forecast | Sales by Market 19/30 Unit: ¥ millions FY2024 FY2025 Forecast YoY Result Comments [A] May [B] Oct [C] [C/A] Below YoY due to decline in connector ICT 6,949 6,700 6,147 -11.5% sales for smartphones Below YoY due to weak performance of remote controls/units for housing Home Appliance
Slide 20: Forecast Sales by Region
FY2025 Forecast | Sales by Region 20/30 Unit: ¥ millions FY2024 FY2025 Forecast YoY Result Comments [A] May [B] Oct [C] [C/A] Below YoY due to absence of recovery of R&D costs for automotive units seen in Japan 17,255 17,100 16,900 -2.1% FY2024 and decline in remote controls/ units for solar power s
Slide 21: Progress of SMK Next100 Sales & Profit by Segment
Progress of SMK Next100 | Sales & Profit by Segment 21/30 Challenging market conditions continue from FY2024 2H into FY2025. Structural reforms announced in March 2025 enhance competitiveness. FY2025 sales forecast below target amid ICT slowdown, yet ¥500 million profit expected through reform
Slide 22: Structural Reform Program (Unchanged)
Structural Reform | Structural Reform Program (Unchanged) 22/30 Medium-Term Accelerate structural reforms for sustainable growth Business Plan Invest resources and reform cost structure to return to a growth trajectory in sales and profit “SMK Next100” Strengthen management base through integrat
Slide 23: Growth Strategy CS Division
Growth Strategy | CS Division 23/30 Company-wide Considering the expanding applications of electronics and the growing market potential, Strategy we designate CS Division as a key growth area and increase resource investment. Management Aim for growth that outperforms competitors Policy Focus re
Slide 24: Growth Strategy SCI Division
Growth Strategy | SCI Division 24/30 Management Thoroughly implement structural reforms for profitability Policy Develop sensor and sensing business as a new core pillar Initiatives Progress Maintain and expand core businesses Strong sales growth in Home Appliance and Car Electronics markets
Slide 25: Growth Strategy Innovation Center
Growth Strategy | Innovation Center 25/30 Aim for early commercialization Management Accelerate the business development cycle to ensure strict cost control Policy through quick decisions on continuation or exit Initiatives Progress Concentrate resources on focus areas: Accelerating business d
Slide 26: Advancing Structural Reform Progress in Cost Structure Reform
Advancing Structural Reform | Progress in Cost Structure Reform 26/30 Reducing fixed costs by ¥310 million in FY2025 1H and ¥560 million in 2H through workforce optimization in Japan and sales structure streamlining in the U.S. and Europe. Initiatives Progress Voluntary retirement: 118 employees
Slide 27: News 1 New Product Press Releases
News – 1 | New Product Press Releases 27/30 FB-12 Series Board to FPC Connector for Battery Connection Added to the Lineup • Large current capacity Rated current: 15A—about twice that of the previous FB-8 Series. • Space-saving design Compact size (0.6 mm height, 1.9 × 4.4 mm), reducing the occupi
Slide 28: News 2 Exhibition Highlights
News – 2 | Exhibition Highlights 28/30 Automotive Engineering Exposition 2025 Motor Technology Exhibition 2025 Date May 21–23, 2025 Date July 23–25, 2025 Venue PACIFICO Yokohama Venue Tokyo Big Sight Main Exhibits • Right angle low profile FAKRA connectors Main Exhibits • Active Floating • Ultra
Slide 29: News 3 TEXPO2025 and Integrated Report 2025
News – 3 29/30 | SMK Technology Exposition TEXPO2025 Date July 2–4, 2025 Venue Tokyo International Forum E2 Theme From Electronic Components to Solutions □ Showcasing SMK’s 100-year journey and cutting-edge technologies and services □ Number of Exhibits: 225 | Integrated Report 2025 Japanese: Publ
Slide 30: Notice
Notice 30/30 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