Slide 1: Business Report for FY2007
1/46 Business Report for FY2007 -From Apr.2007 to Mar.2008- SMK Corporation April, 2008
Slide 2: Consolidated Full Fiscal Term Performance
2/46 ＜Consolidated＞Full Fiscal Term Performance Compared to FY2006 Income: Million yen Sales Amount：Million yen 87,500 87,659 90,000 10,000 79,074 80,000 110.9% 9,000 70,000 8,000 6,800 7,100 60,000 6,190 7,000 5,654 6,000 50,000 5,166 4,600 109.4% 4,327 5,000 40,000 3,693 69.9% 4,000 30,000 3,000 2
Slide 3: Consolidated Sales Expenses
3/46 ＜Consolidated＞ Sales Expenses FY2006 FY2007 （Unit： million yen） 73,908 82,005 ( ): Ratio to total sales 90,00 (93.5%) (93.5%) 80,00 〔（Material costs＋Expenses for external manufacturing processing） Material Costs improved by 0.4%〕 70,00 61.5%→61.1% About 327 million yen 52.2% Expenses for 60,00
Slide 4: Consolidated Analysis of sales expenses
4/46 ＜Consolidated＞Analysis of sales expenses （Unit：million yen） Analysis of factors for increase/decrease of consolidated operating profits ［FY2006 vs. FY2007］ Net Total ＋488 million yen 4,000 A.Factors B.Factors 3,339 for profit for profit increase decrease 3,000 Total Total 3,666 -3,178 2,000 Inc
Slide 5: Consolidated Non-operating profit and loss
5/46 ＜Consolidated＞ Non-operating profit and loss FY2006 FY2007 （Unit： million yen） 1,024 -1,327 ( ): Ratio to total sales 1,500 (1.3%) (-1.5%) Financial 2 account 1,000 balance Comparison to last fiscal term 658 -2,351 million yen 500 594 Revenues from and Exchange gain→Exchange loss 271 270 expend
Slide 6: Consolidated Extraordinary gain or loss
6/46 ＜Consolidated＞ Extraordinary gain or loss FY2006 FY2007 （Unit： million yen） 800 34 -322 600 78 Gain from sale of fixed assets Gain from sale of 400 investments in securities 544 Loss of disposed fixed 200 92 assets, etc. 38 Impairment loss 0 40 △ 204 Allowance for doubtful △ 228 accounts -200 △
Slide 7: Consolidated FY2007 Trends in performance (Quarterly)
7/46 ＜Consolidated＞FY2007 Trends in performance (Quarterly) Unit：Million yen 100,000 87,659 7,000 90,000 6,000 5,654 4,327 80,000 20,688 306 5,000 70,000 1,652 1,541 60,000 4Q 4,000 22,940 3Q 2,094 1,538 4Q 50,000 3,000 2Q 2,088 913 3Q 40,000 2Q 1Q 2,000 739 1Q 30,000 23,610 2,366 1,000 1,719 1,598
Slide 8: Consolidated Comparison of Sales by Market
8/46 ＜Consolidated＞ Comparison of Sales by Market 110.9% Unit: Million yen 90,000 87,659 1,866 80,000 79,074 6,745 71,860 1,571 5,437 124.0% 8,897 1,520 111.7% 92.1% 70,000 4,866 9,661 82.7% 60,000 11,679 50,000 35,969 131.2% 30,325 118.6% 40,000 23,117 30,000 6,815 108.9% 7,424 6,589 103.4% 20,000
Slide 9: Consolidated Full Fiscal Term Plan (FY2008)
9/46 ＜Consolidated＞Full Fiscal Term Plan(FY2008) Compared to previous fiscal 107.8% term Net Sales：Million yen Income：Million yen 94,500 90,000 87,659 12,000 79,074 80,000 10,000 70,000 60,000 143.3% 8,000 99.0% 50,000 6,190 6,200 5,654 5,600 6,000 5,166 40,000 181.5% 4,327 3,693 3,800 30,000 4,000
Slide 10: Net Sales by Product Division
10/46 Reference：＜Consolidated＞ Net Sales by Product Division ( )：Composition Ratio Unit: Million yen 100,000 94,500 90,000 87,659 6,409 (7%) 5,256 (6%) 80,000 79,074 71,860 4,730 (6%) 70,000 4,798 (7%) 35,705 (38%) 32,942 (38%) 60,000 (42%) 33,534 50,000 33,743 (47%) 40,000 30,000 49,461 (56%) 52,38
Slide 11: Operating Income by Product Division
11/46 Reference：<Consolidated> Operating Income by Product Division Unit: Million yen 6,000 5,654 5,600 5,166 150 849 5,000 831 1,206 4,000 3,000 4,495 4,815 2,000 4,244 1,000 0 -10 -160 FY2006 Result FY2007 Result FY2008 Plan -1,000 CS FC TP
Slide 12: Flat Panel TV
<Business trends of major markets> Flat Panel TV 12/46 <W/W production quantities> LCD (10 inches and over) and PDP TVs ( Unit: 1,000) ’06-’08 CAGR: 41% 120,000 114,192 <SMK’s action> ■ PDP TV ●Further expansion of sales of remote controls ■ LCD TV 14,282 ●Intensification of TN production and supply
Slide 13: Car Navigation Systems
<Business trends of major markets> Car Navigation Systems 13/46 <W/W production quantities> ( Unit: 1,000) ’06-’08 CAGR 14% 12,000 <SMK’s action> 10,000 ●Expansion of sales of touch panels ●Marketing of connectors for automotive camera modules, automotive cameras and connectors 8,000 11,250 compatib
Slide 14: Mobile Phones
<Business trends of major markets> Mobile Phones 14/46 <W/W production quantities> ( Unit: 1,000) ’06-’08 CAGR 12% 1,400,000 <SMK’s action> 1,200,000 ●Earning more business from major overseas customers 1,000,000 1,224,100 ●Expansion of availability of new products for thinner and more functional te
Slide 15: Personal Computer (Desktop & Notebook PCs)
<Business trends of major markets> Personal Computer 15/46 <W/W production (Desktop & Notebook PCs) quantities> ( Unit: 1,000) ’06-’08 CAGR 13% 320,000 302,000 280,000 267,700 <SMK’s action> 235,400 ●Intensified marketing activities for Windows Vista 240,000 compatible remote controls of new design
Slide 16: SMK's Management Goals
16/46 SMK’s Management Goals 1. Three challenges ＊Enhancement of SMK’s brand recognition ＊Quality improvement by TN (transnational) ZD activities → General （Absolute） Quality ＊Another try for creation of better quality products “Only conscientious parts can build good equipment” 2. Turn-around of re
Slide 17: Three Challenges
17/46 Three Challenges １ Enhancement of SMK’s brand recognition ２ Quality Improvement by TN (transnational) ZD activities General （Absolute） Quality ３ Another try for creation of better quality products
Slide 18: Manufacturing
18/46 Manufacturing Acquiring and Handing down Core Technology to the Next Generation Seeds Exciting Expedition Dream Troop Workshop
Slide 19: Executive Management Change
Executive Management Change 19/46 （Director, Auditor: as of June 24th） 1. Directors （Promotion） Yasumitsu Ikeda New: Director and Executive Deputy President, Director in Charge of TN Sales Division Before: Director and Executive Vice President, Director in Charge of TN Sales Division （New Appointmen
Slide 20: TEXPO 2008 Overview
20/46 Overview Date：June 4th, 2008 (Wed) ～6 th(Fri) 3 days Location： Le Meridien Pacific Theme： Tokyo（Manyo） Vision to Creation, It’s Our Challenge! Expected Number of Exhibits： About 400 Items Seminar are held over 3 days. Expected Number of Visitors ： 3,500 people Briefing on Technology Exhibited
Slide 21: Number of New Product Press Releases
Number of New Product Press Releases 21/46 <Comparison Top 10 Companies of Electronic Parts> Number of New Product Releases 35 (12 months from April 2007 to March 2008) SMK 30 29 28 Company A 25 Company B Company C 20 Company D 15 Company E Company F 10 Company G 5 Company H Company I 0 FY2006 FY200
Slide 22: CS Division
" 22/46 CS Division SMK
Slide 23: CS Division
23/46 CS Division CS= Connection System 【Major Products】 ：Connectors/Jacks ■Connectors ■Jacks Coaxial Pin Jacks FPC Connectors Connectors Speaker Terminals I/O DC Power Supply Jacks Card Connectors Connectors Headphone Jacks
Slide 24: CS Division Net Sales, Operating Income
24/46 CS Division Net Sales, Operating Income (Consolidated) Net Sales Unit：Hundred Million Yen Income 600 120 524 495 500 Net Sales 100 Operating Income 400 80 300 48.2 60 42.4 200 40 100 20 0 0 FY2007 Result FY2008 Plan
Slide 25: CS Division Transition of market-specific sales
25/46 CS Division Transition of market-specific sales (Consolidated) 100% 5% 4% 3% Industry Information 66% 68% 69% Technology 50% 5% 5% 5% Car electronics 24% 23% 23% Audio/Visual 0% FY2006 FY2007 FY2008 Result Result Plan
Slide 26: CS Division Product strategy: Card connector and semiconductor sockets
Card connector and semiconductor 26/46 CS Division Product strategy sockets Super small card connectors Sales transition *FY2006 as 100 ( ): April IR 126 138 Thin/small/space effective 100 More composite/ more multifunctional ｍｉｃｒｏＳＤ／ ＴｒａｎｓＦｌａｓｈ™ Card connector FY2006 FY2007 FY2008 Memory Stick Resu
Slide 27: CS Division Product strategy: PB connectors, Sma Port
27/46 CS Division Product strategy PB connectors PB-4A PB-4B Sales transition (h=0.8mm type) (h=1.2mm type) *FY2006 as 100 536 Number of pins: 12 to 60 Number of pins: 10 - 80 ( ): April IR Narrower spacing 381 Lower profile Higher contact reliability 100 Expanded variation Shielding Increase in dem
Slide 28: CS Division Strategic markets/products
28/46 CS Division Strategic markets/products Car electronics Telecommunications Coaxial connector, TC-7 Automotive camera （H＝1.0mm） connectors Coaxial connector Higher resolution images (for external Increased demand for wireless connection), communication TS-9 Wireless LAN SMB coaxial connectors Sm
Slide 29: CS Division Objective for FY2008
29/46 CS Division Objective for FY2008 １．Promotion of development of technologies, products, and production technologies ・ Timeliness and speeding up ・ Patents and added value ２．Pursuit of optimal means (production and sales) ・More effective investment (general/conversion facilities) ３． Enhancement
Slide 30: FC Division
a 30/ 46 FC Division SMK
Slide 31: FC Division
31/46 FC Division FC=Functional Components 【Main Products】 ：Switch/Keyboard/Control Panel/Bluetooth/ Microphone/Remote Control Unit/Camera Module ■SW (Switch) ■UN (Unit) Various types of switches Electret Condenser Bluetooth Microphone (ECM) ■RC (Remote Control) ■MD (Module) Remote Control Unit Colo
Slide 32: FC Division Net Sales, Operating Income
32/46 FC Division Net Sales、Operating Income (Consolidated） Unit：Hundred Operating Million yen Net Sales Income 500 100 Net Sales 400 80 Operating 357 Income 329 300 60 200 40 12.1 100 20 8.5 0 0 FY2007 Result FY2008 Plan
Slide 33: FC Division Transition of Market-Specific Sales
33/46 FC Division Transition of Market-Specific Sales（Consolidated） 100% 17% 15% 14% Industry Information 17% 21% 24% Technology 4% 4% 4% Car Electronics 50% 58% 64% 58% Audio/Visual 0% FY2006 FY2007 FY2008 Result Result Plan
Slide 34: FC Division Product Strategy
34/46 FC Division Product Strategy 2007: Selective breeding (product development) and SW Seeding (sales promotion) 2008: Harvesting (production/sales increase) 2009: Expand harvest volume BT units ⇒ Shifting to high value-added products UN To become a pioneer in the mobile phone market de-facto stan
Slide 35: FC Division Product Strategy
35/46 FC Division Product Strategy ☆New Concept Remote Controls Crystal Key Remote Control Palm-held Remote Control Transparent and colorfully Configured to fit in a palm, presents an illuminated indication area and operation feeling such as "turning a touch type operation system around"
Slide 36: FC Division Major Market
36/46 FC Division Major Market Remote Control Unit for Flat panel TV Presentation Remote Control Unit （RF) （Bluetooth) RF module ☆Computer market ☆ Audio Visual market Antenna for one-segment broadcasting 4Way MT Switch Lever Switch Detector Switch ☆For Digital Camera Side Show Remote Windows Vista-
Slide 37: FC Division Major Market
37/46 FC Division Major Market ☆Car Electronics market ☆Cellular Phone Market Camera modules Antenna Small Slide Switch (thin type) Small Horizontal Switch (thin type) Bluetooth ＆ Earphone Microphone Dome- Switch Rubber single key AC Adapter switch Remote Control Unit
Slide 38: FC Division Policy for FY2008
38/46 FC Division Policy for FY2008 Realize the growth with Profit Offense：Create the Differential Products Increase the Number of Engineers Defense：Establish the Global Purchasing Organization Improve the Productivity by Manufacturing Innovation
Slide 39: TP Division
" 39/ 46 TP Division SMK
Slide 40: TP Division
40/46 TP Division Touch Panel Resistance Film / Glass Type Touch Panel Main MainItems Items Glass / Glass Type Film / Film Type SMK Touch Force-feedback Panels LCD Module Unit Optical Glass panel Touch Panel Acrylic panel LCD Module Unit
Slide 41: TP Division Net Sales, Operating Profit
41/46 TP Division Net Sales、Operating Profit（Consolidated） Unit：Hundred Million yen 100 Net Sales 80 Operating Profit 64 60 53 40 20 (0.1) 1.5 0 -20 FY2007 Result FY2008 Plan
Slide 42: TP Division Transition of Market-Specific Sales
42/46 TP Division Transition of Market-Specific Sales (Consolidated) Unit：Hundred Million Yen 80 64 60 53 Industry 47 36% 29% 40 22% 3% Information Technology 3% 3% Car electronics 20 75% 68% 61% 0 FY2006 FY2007 FY2008 Result Result Plan
Slide 43: TP Division Strategic Markets
43/46 TP Division Strategic Markets １ Mobile equipment market Input system FY2008 vs FY2007 Application Size(inch) Projected growth of annual demand in the market Resistance Capacitive Touch Panel Touch Panel 1 Mobile phone 2.5 ～ 3.5 ○ 195% 2 Smart Phone 3 ～4 ○ 180% 3 Ultra Mobile PC 5.6 ～ 7 ○ 200%
Slide 44: TP Division Product strategy
44/46 TP Division Product strategy Touch Recognition Optical touch panel/LCD module Unit 《Features》 Robust and long life Unintended input protective Capacitive Touch Panel 《Features》 Gesture input capable Multi-touch capable Small size Force-feedback touch panel 《Features》 Low power consumption Vari
Slide 45: TP Division Objective for FY2008
45/46 TP Division Objective for FY2008 FY2008 Key activity points Expansion of Sales 1 Marketing in the overseas market Glass/Glass ：Europe and USA 新市場、新商品への飽くなき挑戦と黒字体質の維持拡大 Film/Glass ：Europe, China, and ASEAN Optical ：Europe and China 2 Marketing of new products Touch Recognition Optical Touch Pan
Slide 46: Notice
46/46 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