Smk Corporation · TSE:6798
Smk — Investor Presentation (June 2006)
32 slides from Smk's investor presentation, June 2006
Slide 1: Business Report for FY2005
June,2006 Business Report for FY2005 - From Apr.2005 to Mar.2006 - http://www.smk.co.jp/
Slide 2: Contents
Contents Page 1. Financial Section 2 - 8 2. Market Forecast and Our Strategies 9 - 26 3. Managerial Goals 27 - 31 1/31
Slide 3: Financial Section
Financial Section 2/31
Slide 4: Performance for 2004/2005/2006 (Consolidated)
Performance for 2004/2005/2006(Consolidated) Unit: Million Yen Net Sales Operating Income 80,000 71,860 75,000 5,000 66,438 5,000 4,134 4,290 4% 17% 60,000 8% 4,000 4% 3,000 40,000 2,000 20,000 1,000 0 0 FY2004 FY2005 FY2006E FY2004 FY2005 FY2006E Ordinary Income Net Income 6,000 5,512 5,600 4,965 5
Slide 5: Analysis of Sales Expense
Analysis of Sales Expense Comparison of consolidated operating profits in 2 fiscal terms;FY05/FY04 -3,000 -2,000 -1,000 0 1,000 2,000 3,000 Million Yen Increase in sales amount (including decreasing 2,039 prices) Factors for profit increase Decrease in material 155 cost 2,194 1,183 Increase in labor
Slide 6: Net Sales/Operating Income by Product Division
Net Sales/Operating Income by Product Division Million Yen (Consolidated) 80,000 75,000 71,860 70,000 66,438 5,162 4,798 4,609 Million Yen 60,000 50,000 33,743 34,474 5,000 30,382 4,134 4,290 1,070 40,000 694 983 30,000 20,000 35,365 3,900 3,657 4,080 31,447 33,319 10,000 0 -350 -150 FY2004 FY2005 F
Slide 7: Capital Investment & Depreciation (Consolidated)
Capital Investment&Depreciation (Consolidated) Million Yen Capital Investment Depreciation 6/31
Slide 8: Net Sales by Market
Net Sales by Market FY2003 31% 10% 7% 29% 21% 2% Audio&Visual Car Electronics FY2004 33% 9% 7% 29% 20% 2% Amusement Computer Telecom. FY2005 34% 9% 7% 32% 16% 2% 0% 20% 40% 60% 80% 100% Audio & Visual Car Electronics Amusement&Appliance Telecom. Computer Others 7/31
Slide 9: Net Sales/Production by Region
Net Sales/Production by Region FY2003 59% 24% 13% 4% Net Sales by Japan Asia Europe America FY2004 57% 22% 17% Region 4% FY2005 52% 26% 18% 3% 0% 20% 40% 60% 80% 100% FY2003 57% 34% 9% 1% Japan Asia Europe America Net Production by FY2004 53% 35% 11% Region 1% FY2005 47% 40% 12% 1% 0% 20% 40% 60% 80
Slide 10: Market Forecast and Our Strategies
Market Forecast and Our Strategies 9/31
Slide 11: Market forecast of each market
Market forecast of each market Market CY2005 CY2006FCT Audio-Visual Car Electronics Cellular Phone PC Office Equipment Home Appliance 10/31
Slide 12: Flat Panel TV: LCD and PDP TVs
Flat Panel TV LCD (10 inches and over) and PDP TVs W/W Production 40,000 Thousand units 37,687 04-06 Annual SMK‘s measures 35,000 rate of growth 8,515 Augmented marketing activities in 30,000 79% European & Chinese regions 4,445 25,000 23,416 Further expansion of remote control business 20,000 4,915
Slide 13: Audio Visual Market Production Forecast for FY2007
Audio Visual Market Production Forecast for FY2007 160 Growth Rate from 2005 to 2007 Unit :Million sets LCD Monitor SMK’s target in 2006 140 Production 1. LCD/PDP TV &Silicon AD Market 138.6 in 2007 120 2. LCD Monitor Market&Video 100 HDD/Silicon AD Game STB 3. Camcorder/DSC Market 80 DSC Video Game
Slide 14: Cellular Phone World Wide Potential
Cellular Phone World Wide Potential Unit: Million sets % Coaxial Connector 1000 100 872 830 800 763 FPC Connector 641 600 47.2% 47.6% 43.2% 50 Earphone Microphone 400 29.8% Camera Installed Rate % 200 Camera Connector 0 0 CY2004 CY2005 CY2006E CY2007E Source JEITA 13/31
Slide 15: Cellular Phone production by class
Cellular Phone production by class Unit:Thousand sets Over Production TOTAL 900M Unit? 900,000 Low end 800,000 Middle class(Japan) 762,860 Middle class (Overseas) 830,360 700,000 High end 600,000 640,590 500,000 525,450 400,000 300,000 200,000 100,000 0 CY2003 CY2004 CY2005 CY2006E Source:JEITA, Nom
Slide 16: Car Navigation
W-02 9/17 Car Navigation Car Navigation Production by Region Market trend Unit: Thousand sets Source 10,000 JEITA Silicon Audio corresponding 8,890 9,000 model increases 7,760 410 Others Demand for 3.5Jack and 8,000 6,810 260 2,200 7,000 USB CN increase. 130 1,980 EU Navigation for OEM 6,000 1,830 3
Slide 17: PC (Desktops & Notebooks)
PC (Desktops & Notebooks) W/W Production Thousand units 04-06Annual rate 203,824 of growth 3,309 SMK‘s measures 200,000 11% 183,918 2,300 339 164,180 3,355 18,362 2,314 252 4,391 19,667 271 Sales promotion of remote controls for 3,528 PCs with TV functions and Windows 150,000 20,040 Media Center Edi
Slide 18: CS Division - Camera Connector Sales Growth
CS Division-Camera Connector Sales Growth 7,000 Sales of FY2002=100 6,000 5,760 5,370 5,000 4,000 3,286 3,000 2,000 1,370 1,000 702 100 0 FY2002 FY2003 FY2004 FY2005 FY2006E FY2007E 17/31
Slide 19: CS Division - Card Connector
CS Division-Card Connector Card connecter 0.4mm PB Connector for cellular phone PB-4 Micro SD CN M2 card connector Cellular, DSC, i-pod Mega-SIM for GSM 18/31
Slide 20: CS Division - Coaxial Connector
CS Division-Coaxial Connector VC connector Micro coaxial connector Mobile phone for Car-navigation Car-audio I/O connector Micro USB CN 10P I/F connector USB-ready HDMI CN for camcorder 19/31
Slide 21: FC Division - Strategic Markets/Products
FC Division - Strategic Markets/Products 1. Switches Digital Still Camera Digital Audio, Cellular Phone market Lever Push Switch Super Thin type Slide Switch Small Horizontal Switch Double Action Switch Small Detector Switch 2. Cellular Phone market Head Set (Microphone+Earphone+Antenna) Talk Music
Slide 22: FC Division - Position of Major RC Suppliers
FC Division - Position of Major RC Suppliers Ranking of Top10 RC Suppliers Production QTY (FY2004 (Qty) Estimation) FY2002 FY2003 FY2004E Million units/Month 1 0.0 1.0 2.0 3.0 4.0 Rank 2 Chinese Company 4.0 3 SMK 4.0 4 European A 3.8 5 Japanese A 3.8 6 Japanese 3.0 B 7 Japanese C 2.5 8 Japanese 2.1
Slide 23: TP Division - Touch Panel Vol. and Size by Application
TP Division - Touch Panel Vol. and Size by Application Unit: thousand sets/Year 50,000> Mobile : SMK having 45,000> business : Target 10,000> DSC 5,000> PDA 4,000> DVC Game Car Navigation 3,000> 2,000> Interphone POS 1,000> MFP 500> PC 300> Handy terminal Medical KIOSK 200> 100> ATM FA Arcade game Q
Slide 24: TP Division - Customer List of Car Market
TP Division - Customer List of Car Market 23/31
Slide 25: Research & Development Center - Bluetooth Modules
Research & Development Center - Bluetooth Modules Bluetooth Serial Port Adapter BT201 BT201 Bluetooth Thermal Printer PDA Bluetooth Headset Engine BT202 BT202 Bluetooth Headset Unit PDA 24/31
Slide 26: R&D Center - Infrared Transmission & Power Line Communication
Research & Development Center – Infrared Transmission & Power Line communication Infrared Transmission FM Modulation / Demodulation Modules AT100 for NTSC / PAL Video Transmission AT100 Security Camera Transceiver Receiver Monitor Infrared Power Line Communication 40kHz / 60kHz DS-SS Engine PD402-38
Slide 27: Collaborative Sales of Research & Development Center
Collaborative Sales of Research & Development Center Unit:Million Yen 10,000 8,900 9,000 RF Module Bluetooth 8,000 IR 7,000 PLC&Others 6,000 5,779 5,610 5,000 4,377 4,241 4,000 3,676 3,000 2,000 4,322 4,157 3,275 1,000 14(Bluetooth) 76 2,098 10 4 39 (IR) 5 0 2(PLC) 3 1 5 FY2004 FY2005 FY2006E FY2007
Slide 28: Managerial Goals
Managerial Goals 27/31
Slide 29: Corporate Social Responsibility
Corporate Social Responsibility “P S R” reflects on “C S R” Personal Corporate Social Social Responsibility Responsibility <Reference> SMK Philosophy SMK Action Guidelines SMK-Group Charter for Corporate Behavior SMK Environmental Charter Company Creed 28/31
Slide 30: Environmental Management
Environmental Management 1.ISO14001 Certification Sept.’05 Acquired at Head Quarter,Japan. SMK has acquired at all of its manufacturing works in Japan and other countries. 2.Compliance with Laws and Regulations 1)Environmental compliance RoHS directive being put into enforcement in July ’06) 2)Compl
Slide 31: The Objectives and The Medium Term Targets
The Objectives and The Medium Term Targets The Objectives for FY2006 1 Enhancement of SMK Brand power 2 Promotion of TN Trans National wide activity in order to achieve ZD Zero Defect 3 Another challenge in product creation The Medium Term Targets 1. Become a 100 billion yen sales enterprise by the
Slide 32: Distribution ratio of shareholders
Distribution ratio of shareholders thousand shares 82,630 79,000 79,000 100% 80% 37.8% 40.3% 46.6% 60% 11.2% 10.6% 11.3% 5.5% 40% 12.7% 8.3% 20% 45.5% 3.4 33.8% 3.0 36.4%3.4 Directors,Auditors, Corporate Executive Officers 0% End of March '00 End of March '05 End of March '06 Japanese individuals &