Slide 1: Business Report for FY2008
Business Report for FY2008 -From Apr.2008 to Sept.2008- SMK Corporation October, 2008
Slide 2: Outline of 2Q Financial Statement
AC-1/7 FY2008 Outline of 2Q Financial Statement Director and Executive Vice President Hajime Yamada
Slide 3: Consolidated 2Q Financial Result (April to September)
AC-2/7 ＜Consolidated＞ 2Q Financial Result （April to September） Sales Amount： 101.3% Income: Million yen Million yen 50,000 10,000 44,031 44,600 40,000 8,000 30,000 52.4% 6,000 3,807 3,904 20,000 3,165 4,000 2,337 1,996 1,710 10,000 2,000 0 0 FY2007 FY2008 April - September April - September Net Sale
Slide 4: Consolidated Sales Expenses
AC-3/7 ＜Consolidated＞ Sales Expenses FY2007 FY2008 (Unit: Million yen) Apr-Sept Apr-Sept 40,224 42,604 ( ):Ratio to total sales 50,000 (91.3%) (95.5%) Material Cost 〔（Material Cost+External Manufacturing Expenses for Processing）worsened by 1.0%〕 40,000 external 60.6%→61.6% manufacturing Approx. 454
Slide 5: Analysis of Sales Expenses
AC-4/7 <Consolidated> Analysis of Sales Expenses (Unit: Million yen) Analysis of factors for increase/decrease of consolidated operating income Net Total ［FY2007 Apr-Sept VS FY2008 Apr-Sept］ -1,811 million yen 800 A. Factors for B. Factors for income increase income decrease 600 Total 224 Total -2,0
Slide 6: Consolidated Non-operating income and loss
AC-5/7 ＜Consolidated＞Non-operating income and loss FY2007 FY2008 (Unit: Million yen) Apr-Sept Apr-Sept ( ):Ratio to total sales 1,500 97 1,169 (0.2%) (2.6%) Financial Comparison to the same quarter of the account 306 balance previous year +1,072 million yen 1,000 Increase in currency exchange profit
Slide 7: Consolidated Extraordinary gain or loss
AC-6/7 <Consolidated>Extraordinary gain or loss FY2007 FY2008 Apr-Sept Apr-Sept （Unit： million yen） 100 -70 -140 Gain from sale of fixed assets 50 76 Loss of disposed 36 fixed assets, etc. 0 8 9 Impairment loss -29 -28 Loss from valuation of investments in securities -50 Others -100 -125 -157 -150 -
Slide 8: Consolidated Financial Highlights (Quarterly)
AC-7/7 ＜Consolidated＞Financial Highlights （Quarterly） 1. FY2008 Prospect (Unit: Million yen) 1st Half Term 2nd Half Term Fiscal Term 1Q 2Q Total Total (Apr 08～June 08) (July 08～Sept 08) (Apr 08～Sept 08) (Oct 08～Mar 09) (Apr 08～Mar 09) (Result) (Result) (Result) (Prospect) (Prospect) ① Net Sales 21,3
Slide 9: FY2008 2Q Result and Prospect
P-1/13 FY2008 2Q Result and Prospect President and COO Tetsuya Nakamura
Slide 10: Trends in Net Sales and Income by Fiscal Term
Trends in Net Sales and Income by Fiscal Term P-2/13 (FY2007~FY2008) Income: Million yen Net Sales: Million yen Ratio Ratio to to FY2007 FY2007 98.8% 98.8% 100,000 Ratio Ratio to Prospect 91.6% to Prospect 91.6% 8,000 94,500 90,000 87,659 86,600 7,000 6,200 80,000 6,000 5,654 5,600 70,000 5,100 5,00
Slide 11: Trends in Net Sales and Income by Half Term
Trends in Net Sales and Income by Half Term P-3/13 (FY2007~FY2008/2H) Net Sales: Million yen Income: Million yen 50,000 8,000 44,031 43,628 44,300 44,600 45,000 42,000 7,000 40,000 6,000 35,000 5,000 30,000 3,904 25,000 4,000 3,807 3,400 3,165 20,000 3,000 15,000 2,337 2,300 2,000 10,000 2,200 1,996
Slide 12: 1H Net Sales by Market
P-4/13 1H Net Sales by Market （FY2006 ~ FY2008) Million yen +1.3% 50,000 44,031 44,600 45,000 705 928 39,300 3,282 -11.0% 2,919 40,000 714 +34.1% 4,387 +8.4% 4,756 2,448 35,000 -16.4% 5,245 30,000 +22.4% 18,432 +3.3% 19,044 25,000 15,063 20,000 15,000 3,556 +8.4% 3,856 3,483 +2.1% 10,000 12,345 +10.
Slide 13: Net Sales by Product Division 1H and 2H
Reference：Net Sales by Product Division P-5/13 1H and 2H （FY2006～FY2008) Million yen 50,000 1H 2H 44,031 44,600 43,628 45,000 42,000 39,300 2,282 2,799 39,774 2,974 40,000 3,452 2,381 2,349 35,000 15,974 16,543 16,968 30,000 16,039 16,753 16,781 25,000 20,000 15,000 25,775 25,258 23,686 22,509 10,00
Slide 14: Operating Income by Product Division
Reference：Operating Income by Product Division P-6/13 （FY2006～ FY2008) Million yen 6,000 5,654 5,166 849 5,000 831 4,000 3,600 503 3,000 4,815 4,495 2,000 3,171 1,000 0 -10 -74 -160 FY2006 Full Term FY2007 Full Term FY2008 Full Term -1,000 Result Result Prospect CS FC TP
Slide 15: Business trends of major markets: Audio/Visual
Business trends of major markets-1 P-7/13 Audio/Visual (AV) Unit： Million yen Comparison to last year’s ＜Sales＞ performance 95.8% 13,666 ■Increase in Remote 13,095 Control Units 12,345 Contribution to sales by remote control units for 10,000 FC projectors and flat panel TVs 9,837 8,652 10,014 ■Decre
Slide 16: Business trends of major markets: Car electronics
Business trends of major markets-2 P-8/13 Car electronics Comparison to last year’s ＜Sales＞ performance 108.4% Unit： Million yen 4,000 3,856 ■Increase in Connectors 3,483 3,556 Increased sales amounts of antenna connectors for terrestrial digital tuners for domestic 1,449 markets TP ■Increase in Rem
Slide 17: Business trends of major markets: Communication
Business trends of major markets-3 P-9/13 Communication Comparison to last year’s ＜ Sales＞ performance 103.3% Unit： Million yen 20,000 18,432 19,044 ■Expansion of Products for Smart TP and 58 9 FC 2,142 Phones others 1,515 Increased sales amounts of connectors and 15,063 switches due to strong deman
Slide 18: Business trends of major markets: Computer
Business trends of major markets-4 P-10/13 Computer Unit： Million yen Comparison to last year’s ＜Sales＞ 6,000 performance 108.4% 5,245 ■Increase in Touch Panels 521 4,756 Increased sales amounts of 4,387Others 34 optical touch panels due to TP strong demand for ATMS 4,000 430 for foreign markets 948
Slide 19: FY2008 2H Management Policy
P-11/13 FY2008 2H Management Policy Place the highest priority on the response towards the adverse market environment Sustain our policy to increase sales with fair profit, but temporarily halt our straightforwardly aggressive business attitude. Revise our transactions with low rate of return (Cost
Slide 20: Topics 1: Renewal of SMK Website
P-12/13 Topics 1： Renewal of SMK Website Major Renewal of our Website （as of November 2008) 1. Our product database is enhanced 2. More search options （e.g. Google Search） 3. CSR page is newly created 4. Usability is improved
Slide 21: Topics 2: Renewal of 1st Floor entrance at SMK Headquarters
Topics2： Renewal of 1st Floor P-13/13 entrance at SMK Headquarters Before After ＊Completed in the end of August, 2008 ＊Major renewal in 25 years ＜Objective＞ 1. To improve our brand image 2. For recruiting purposes 3.To change the attitude of employees
Slide 22: CS Division
] 7 CS-1/8 CS Division SMIK.
Slide 23: CS Division
CS-2/8 CS Division CS= Connection System 【Major Products】 ：Connector/Jack ■Connector ■Jack Coaxial Pin Jacks Connectors Speaker Terminals FPC Connectors DC Power Supply Jacks I/O Connectors Card Connectors Headphone Jacks
Slide 24: CS Division Net Sales, Operating Income
CS-3/8 CS Division Net Sales, Operating Income (Consolidated) Unit：Hundred Million Yen 600 Net Sales 120 495 (97%) 478 Operating 500 100 Income Profit 400 Rate 80 9.7% 300 48.1 253 225 60 6.6% 200 31.7 40 7.4% 5.8% 100 18.7 13.0 20 0 0 FY2007 FY2008 FY2008 1H FY2008 2H Result Prospect Result Prospec
Slide 25: CS Division Transition of market-specific sales
CS Division Transition of market-specific sales CS-4/8 (Consolidated) 100% 3% 3% 3% 4% Industry Information Technology 72% 72% 72% 74% 50% 4% 6% 6% 7% Car electronics 20% 19% 19% 16% Audio/Visual 0% FY2007 1H FY2007 2H FY2008 1H FY2008 2H Result Result Result Prospect
Slide 26: CS Division Product Strategy: Jack
CS-5/8 CS Division Product Strategy Jack Sales Transition Small Jacks ＊FY2006 as 100 329 ( )：April IR （356） 206 100 Digital Still Cameras Mobile phones FY2006 FY2007 FY2008 Small Game Consoles Result Result Prospect Notebook PCs Thin ・ Space Effective Increased Resistance to Camcoders Twisting Force
Slide 27: CS Division Product Strategy: PB Connector
CS-6/8 CS Division Product Strategy PB Connector PB-4A PB-4B Sales Transition (h=0.8mmﾀｲﾌﾟ) (h=1.2mmﾀｲﾌﾟ) 530 Number of pins 10～80P Number of pins 12～ ＊FY2006 as 100 60P ( )：April IR 381 （536） Various Usages Expanded variation 100 FY2006 FY2007 FY2008 Result Result Prospect Shielding Higher contact
Slide 28: CS Division Strategic markets/products
CS Division Strategic markets/products CS-7/8 Car electronics Telecommunications Antenna connector Co-axial compatible with Connector reception of terrestrial Strengthened approach TC-7 digital broadcasts to growing markets （H＝1.0mm） VR-1 Series Domestic Market TS-11 Approach to 60% Market Share for
Slide 29: CS Division FY2008 Policy
CS-8/8 CS Division FY2008 Policy 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 of overal
Slide 30: FC Division
| . FC-1/7 FC Division SMIK.
Slide 31: FC Division
FC-2/7 FC Division FC=Functional Components 【Main products】： Switch/Keyboard/Control Panel/Bluetooth/Microphone Remote Control Unit/Camera Module ■SW (Switch) ■UN (Unit) Bluetooth Electret Condenser Various types of switches Microphone (ECM) ■RC (Remote Control) ■MD (Module) Remote Control Unit Colo
Slide 32: FC Division Net Sales, Operating Income
FC-3/7 FC Division Net Sales, Operating Income (Consolidated) Net Sales Unit：Hundred Operating Income Million yen 40 400 Net Sales 329 325 Operating Income 30 300 200 20 165 160 100 8.5 10 5.0 2.1 3.0 0 FY2007 FY2008 FY2008 1H FY2008 2H Result Prospect Result Prospect
Slide 33: FC Division Transition of Market-Specific Sales
FC Division FC-4/7 Transition of Market-Specific Sales (Consolidated) 100% 15% 15% 13% 14% Industry 16% 21% 23% 24% Information Technology 4% 4% 5% 4% Car electronics 50% 65% 60% 59% 58% Audio/Visual Audio/Visual 0% FY2007 1H FY2007 2H FY2008 1H FY2008 2H Result Result Result Prospect
Slide 34: FC Division Product Strategy: SW
FC-5/7 FC Division Product Strategy：①SW 300 Keyword for Growth： Thin, Small, Long life ％ Peel Off Strength、Good Feeling Slide SW, MT SW, 200 Detector SW, others 233 189 100 152 122 100 0 FY2006 1H FY2006 2H FY2007 1H FY2007 2H FY2008 1H Result Result Result Result Result
Slide 35: FC Division Product Strategy: Concept RC
FC-6/7 FC Division Product Strategy：②Concept RC RF module Stationary LCD Easy to operate egg- Remote Control Unit shaped remote control unit
Slide 36: FC Division Policy for FY2008
FC-7/7 FC Division Policy for FY2008 Realize the growth with Profit Offense：Create differential products Increase Number of Engineers Defense：Establishment of Global Purchasing Organization Improve productivity by manufacturing innovation
Slide 37: TP Division
: | TP-1/6 TP Division SMIK.
Slide 38: TP Division
TP Division TP-2/6 Touch Panel Resistance Film/Glass Type Main Sensitive Touch MainItems Items Panel Glass/Glass Type Film/Film Type SMK Touch Panels Force-feedback Capacitive Touch Panel LCD Module Unit Optical Touch Glass Panel Panel Acrylic Panel LCD Module Unit
Slide 39: TP Division Net Sales, Operating Profit
TP-3/6 TP Division Net Sales, Operating Profit (Consolidated) Unit: Hundred Million yen Net Sales 70 63 Operating Profit 60 53 50 40 35 30 28 20 10 0.1 0 -10 (0.1) (0.7) (0.8) FY2007 FY2008 FY2008 1H FY2008 2H Result Prospect Result Prospect
Slide 40: TP Division Transition of Market-Specific Sales
TP Division TP-4/6 TP-4/6 Transition of Market-Specific Sales (Consolidated) 100% 19% 37% 35% Industry 3% 43% 3% Information 5% 17% Technology 50% 78% 60% 52% 48% Car electronics 0% FY2007 1H FY2007 2H FY2008 1H FY2008 2H Result Result Result Prospect
Slide 41: TP Division Strategic Markets and Product Strategy
TP Division TP-5/6 Strategic Markets and Product Strategy Mobile Phone with Touch Panel Projected Demand Mobile MobileEquipment EquipmentMarket Market Capacitive TP % Resistance Sensitive Touch Panel 200 DSC, DVC, Mobile Phone, Smart Phone, UMPC, PND, Mobile Media Player, etc. 2005 2006 2007 2008 20
Slide 42: TP Division Objective for FY2008
TP-6/6 TP Division Objective for FY2008 Expansion of Sales Europe Asia Overseas Market Mobile Phone Domestic Market Smart Phone KEYWORD
Slide 43: Notice
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 prepar