Slide 1: Business Report for FY2018
1/22 Business Report for FY2018 May 9, 2019
Slide 2: FY2018 Outline of Financial Statement
2/22 FY2018 Outline of Financial Statement Executive Vice President and CFO KOHEI OHGAKI
Slide 3: <Consolidated> Financial Results
3/22 <Consolidated> Financial Results Unit: Million yen FY2017 FY2018 Net Sales Profit 4.0% DOWN 75,000 15,000 59,786 57,386 60,000 12,000 45,000 9,000 30,000 6,000 Inventory write-down in joint venture -740 15,000 Others -1,094 3,000 485 358 0 0 -288 -707 -834 -15,000 -1,834 -3,000 Net Sales Operat
Slide 4: <Consolidated> Operating Expenses
4/22 <Consolidated> Operating Expenses Unit: Million yen FY2017 FY2018 59,301 59,220 [ ]: Sales Ratio [99.2%] [103.2%] 60,000 Material costs Amount paid to subcontractors 50,000 26,131 43.7% Labor costs 28,841 50.3% 40,000 Expenses Depreciations 2,096 30,000 3.5% 1,296 2.3% Raise by 5.4% 20,000 19
Slide 5: <Consolidated> Analysis of Sales Expenses
5/22 <Consolidated> Analysis of Sales Expenses Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ FY2017 vs FY2018 ］ Total After adjusting impact of -2,319 million yen foreign exchange rates 1,000 500 Operating loss for this term Impact of foreign exchange
Slide 6: <Consolidated> Non-operating Profit and Loss
6/22 <Consolidated> Non-operating Profit and Loss Unit: Million yen FY2017 FY2018 -127 1,127 [ ]: Sales Ratio [-0.2%] [2.0%] Foreign exchange profit/loss 1,200 1,000 350 Revenue from and expenditure to 800 real estates 600 604 520 Others 400 200 190 257 【Exchange loss ⇒ Exchange gain】 0 ＋1,272 milli
Slide 7: <Consolidated> Extraordinary Profit and Loss
7/22 <Consolidated> Extraordinary Profit and Loss FY2017 FY2018 Unit: Million yen 212 1,011 2,500 46 [ ]: Sales Ratio 2,000 Gain on sales of 1,500 investment securities 195 2,341 Gain on sales of 1,000 1,317 fixed assets 500 Loss on impairment 0 -148 -199 -500 -154 Loss on disposal of fixed assets -
Slide 8: <Consolidated> Segment Information
8/22 <Consolidated> Segment Information Unit: Million yen FY2018 Reporting Segment CS FC TP R&D Others* TOTAL Total Division Division Division Center Net Sales 21,712 26,007 9,173 471 57,365 21 57,386 Operating Profit (Loss) 258 (412) (449) (316) (919) (914) (1,834) FY2017 Reporting Segment CS FC TP
Slide 9: <Consolidated> Cash Position
9/22 <Consolidated> Cash Position Unit: Million yen Mar. 2018 Mar. 2019 Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets 61,474 58,713 (2,761) Cash and cash equivalents 10,599 10,889 289 Accounts receivable 15,251 14,496 (754) Inventories 8,775 8,071 (704) Fixed assets 25,465 24,430 (1,035) Liabilities 30,837 30,1
Slide 10: <Consolidated> Cash Flow Position
10/22 <Consolidated> Cash Flow Position Unit: Million yen FY2017 FY2018 Cash flow from operating activities 2,788 1,608 Working capital (658) (678) Profit before taxes 570 303 Depreciation 4,187 3,664 Others (1,311) (1,681) Cash flow from investing activities (787) (2,091) Free cash flow 2,001 (483)
Slide 11: Financial Forecast and Annual Dividend
11/22 Financial Forecast and Annual Dividend %: Increase (decrease) ratio to previous term (1) Forecast of Consolidated Financial Results Operating Ordinary Net Profit Net Sales Profit (Loss) Profit (Loss) (Loss) Million yen % Million yen % Million yen % Million yen % FY2018 57,386 (4.0) (1,834) － (
Slide 12: FY2018 Result and FY2019 Prospect
12/22 FY2018 Result and FY2019 Prospect President, CEO and COO YASUMITSU IKEDA
Slide 13: SMK Executive Appointment (June 25, 2019)
13/22 SMK Executive Appointment (June 25, 2019) New Post Present Post Name 1. New Director and Executive Executive Vice Director Vice President President Tetsuo Candidate Transnational Sales Division, Transnational Sales Division, Hara Sales Division (Division Director), Sales Division (Division Dir
Slide 14: Net Sales by Product Division (FY2017-FY2019)
14/22 Net Sales by Product Division (FY2017-FY2019) Unit: Million yen %: Compared to 80,000 Previous term 96% 100% 97% 59,786 59,000 60,000 7 501 57,386 21 57,600 57 354 471 550 9,581 9,580 9,173 8,232 96% 90% SCI SCI SCI SCI 40,000 31,001 21,420 36,695 35,180 36,978 27,115 26,007 28,746 121% 113% 1
Slide 15: Operating Profit by Product Division (FY2017-FY2019)
15/22 Operating Profit by Product Division (FY2017-FY2019) Unit: Million yen Profitability (%)=Profit/Sales 4,000 0.8% 1.0% 485 -600 -1,834 600 3,000 2,000 3,401 1,000 SCI 956 SCI 25 -409 641 0 246 258 414 -434 -412 SCI -315 -1,250 -437 -449 -352 SCI -861 -1,000 -316 -103 -2,006 -756 -914 -2,000 -35
Slide 16: Reference: Car Electronics Market Net Sales by Product Division
16/22 Reference: <Car Electronics Market> Net Sales by Product Division (FY2017-FY2019) Unit: Million yen 112% 101% %: Compared to Previous term 25,000 100% 20,335 20,338 20,640 20,000 18,184 7 4 11 1 6,182 7,330 7,270 SCI 15,000 SCI SCI 85% 89% 8,136 SCI 12,427 12,034 12,067 10,797 4,737 5,852 97%
Slide 17: Reference: Home Appliance Market Net Sales by Product Division
17/22 Reference: <Home Appliance Market> Net Sales by Product Division (FY2017-FY2019) Unit: Million yen %: Compared to 111% 109% Previous term 93% 25,000 21,909 22,250 22 56 20,397 1 113 5 18,326 382 20,000 235 111 48% 119 31 197% 15,000 SCI SCI SCI 19,349 19,731 17,914 SCI 20,197 20,310 10,000 15,
Slide 18: FY2019 Priority Matters
18/22 FY2019 Priority Matters 1. Restore profitability by reducing break-even point. 2. Expand business by enhancing cooperation between new system of Product & Sales Div. 3. Create new business through open innovation.
Slide 19: Organization Change: Consolidation of Product Divisions
19/22 Organization Change (effective as of April 1, 2019) <Consolidation of Product Divisions> FC Division SCI Division TP Division SCI＝Sensing, Communication & Interface <Vision> SCI Division creates "Only One" products, focusing on development of "Sensing technology" supporting the IoT era, "Commu
Slide 20: Organization Change: New Structure of Sales Division
20/22 Organization Change (effective as of April 1, 2019) <New Structure of Sales Division> 1. Personnel Change of Sales Division Director Mikio Wakabayashi Tetsuo Hara Director and Executive Vice President Director and Executive Vice President (From June 25, 2019) 2. Reorganization Based on the Red
Slide 21: Approach to New Business
21/22 Approach to New Business Caaresys 【SMK’s Sales Target】 Contactless Occupancy Detection/ Biometric Sensor FY2021 target is taken as 100 1,000 600 100 200 Prevent leaving Prevent drowsy children in vehicle driving FY2021 FY2022 FY2023 FY2024 CoreNetix 【SMK’s Sales Target】 IP500® (LPWA Module） FY
Slide 22: Notice
22/22 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