Smk Corporation · TSE:6798
Smk — H1 FY2022 Earnings Presentation
25 slides from Smk's earnings presentation, Nov 11, 2022
Slide 1: FY2022 1st Half Investor Briefing
1/25 FY2022 1st Half Investor Brief ing —Challenge, Creativity, Solutions SMK Corporation (6798) November 11, 2022
Slide 2: FY2022 2Q Outline of Financial Statement
2/25 FY2022 2Q Outline of Financial Statement E xe c u t i ve V i c e P r e s i d e n t a n d C F O KOHEI OHGAKI
Slide 3: <Consolidated> 2Q Financial Results
<Consolidated> 2Q Financial Results 3/25 Unit: Million yen FY2021 FY2022 Net Sales 4-9 4-9 Profit ＋17.8% 30,000 5,000 27,638 (27,000) 23,465 4,000 3,348 (800) 20,000 2,983 (500) 3,000 2,000 10,000 1,226 979 752 (500) 1,000 411 0 0 Net Sales Operating Profit Ordinary Profit Net Profit Figures in (par
Slide 4: <Consolidated> 2Q Financial Results (by Quarter)
<Consolidated> 2Q Financial Results (by Quarter) 4/25 Unit: Million yen FY2022 FY2022 FY2022 Net Sales 4-6 7-9 4-9 Profit 30,000 5,000 27,638 4,000 3,348 20,000 ＋19.1% 2,983 3,000 15,022 12,616 2,000 1,772 1,457 10,000 1,526 1,576 752 1,000 536 216 0 0 Net Sales Operating Profit Ordinary Profit Net
Slide 5: <Consolidated> Operating Expenses
<Consolidated> Operating Expenses 5/25 FY2021 FY2022 Unit: Million yen 4-9 4-9 [ ]: Sales Ratio 23,054 26,886 30,000 [98.2%] [97.3%] Material costs Amount paid to subcontractors 25,000 Labor costs 20,000 13,102 47.5% Expenses 10,928 46.6% Depreciations 15,000 639 2.3% 573 2.4% • Raised by 0.8% 10,00
Slide 6: <Consolidated> Changes in Operating Profit
vs. previous <Consolidated> Changes in Operating Profit corresponding period 6/25 Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ FY2021 4-9 vs. FY2022 4-9 ］ Total 1,400 ＋341 million yen Increase in sales amount 1,200 278 Impact of foreign exchange rate
Slide 7: <Consolidated> Changes in Operating Profit vs. initial forecast
<Consolidated> Changes in Operating Profit vs. initial forecast 7/25 Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ Initial forecast vs. FY2022 4-9 ］ Total 1,000 (announced on Apr. 28, 2022) ＋252 million yen Decrease in fixed costs Operating (labor cos
Slide 8: <Consolidated> Non-operating Profit and Loss
<Consolidated> Non-operating Profit and Loss 8/25 FY2021 FY2022 Unit: Million yen 4-9 4-9 815 2,596 [ ]: Sales Ratio 3,000 [3.4%] [9.4%] Revenue from and expenditure to real estates 2,500 223 58 Employment adjustment subsidy 2,000 Foreign exchange profit/loss 1,500 Financial account balance 2,220 Ot
Slide 9: <Consolidated> Extraordinary Profit and Loss
<Consolidated> Extraordinary Profit and Loss 9/25 40 Unit: Million yen FY2021 FY2022 4-9 4-9 20 △52 △20 [ ]: Sales Ratio 10 2 Gain on sales of 0 fixed assets △23 △ 35 Loss on sales of △20 fixed assets △40 Loss on disposal of fixed assets △ 27 △60 Loss on valuation of investment securities △80 Profit
Slide 10: <Consolidated> Segment Information
<Consolidated> Segment Information 10/25 FY2022 4–9 Unit: Million yen Reporting Segment CS SCI R&D Others* TOTAL Total Division Division Center Net Sales 10,786 16,694 155 27,636 2 27,638 Operating Profit/Loss (△) 644 203 △96 752 0 752 FY2021 4–9 Reporting Segment CS SCI R&D Others* TOTAL Total Divi
Slide 11: <Consolidated> Revised Financial Result Forecast
<Consolidated> Revised Financial Result Forecast 11/25 Upper row: Percentage to net sales Lower row: Increase (decrease) ratio to FY2021 Forecast of consolidated operating results for FY 2022 (Full-year) Disclosed Operating Ordinary Net Sales Net Profit on Profit Profit Million yen % Million yen % M
Slide 12: <Consolidated> Financial Performance Trend (Full-year)
<Consolidated> Financial Performance Trend (Full-year) 12/25 FY2021 FY2022 Unit: Million yen Forecast Profit Net Sales 70,000 20.4% 7,000 58,100 60,000 6,000 50,000 48,243 5,000 40,000 3,700 4,000 3,413 3,200 2,992 30,000 3,000 1,900 20,000 2,000 10,000 703 1,000 0 0 Net Sales Operating Profit Ordin
Slide 13: <Consolidated> Financial Performance Trend (Half year)
<Consolidated> Financial Performance Trend (Half year) 13/25 Unit: Million yen FY2021 FY2021 FY2022 FY2022 Net Sales Profit 4-9 10-3 4-9 10-3 40,000 Forecast 6,000 30,462 5,000 30,000 27,638 24,778 4,000 23,465 3,348 2,983 20,000 3,000 2,187 2,013 2,000 10,000 1,226 1,148 979 752 352 1,000 411 292 2
Slide 14: <Consolidated> Cash Position
<Consolidated> Cash Position 14/25 Unit: Million yen Mar. 2022 Sept. 2022 Differential (A) (B) (B-A) Assets 54,794 59,295 4,501 Cash and cash equivalents 8,555 9,790 1,235 Accounts receivable 12,800 14,482 1,682 Inventories 9,545 10,946 1,401 Fixed assets 23,063 23,028 △35 Liabilities 24,150 25,606
Slide 15: <Consolidated> Cash Flow Position
<Consolidated> Cash Flow Position 15/25 Unit: Million yen FY2021 4-9 FY2022 4-9 Cash flow from operating activities 1,495 1,816 Working capital △802 △1,985 Profit before taxes 1,174 3,328 Depreciation 1,372 1,393 Others △249 △920 Cash flow from investing activities △1,010 △887 Free cash flow 485 929
Slide 16: Annual Dividend
Annual Dividend 16/25 At second At fiscal Annual quarter end year end FY2021 0.00 yen 70.00 yen 70.00 yen Result FY2022 0.00 yen ― ― Result FY2022 ― 90.00 yen 90.00 yen Forecast
Slide 17: FY2022 Prospect
17/25 FY2022 Prospect President, CEO and COO YASUMITSU IKEDA
Slide 18: Net Sales by Product Div. (FY2021-FY2022)
Net Sales by Product Div. (FY2021-FY2022) 18/25 Unit: Million yen 120% %: Compared to 106% previous term 48,243 55,000 58,100 60,000 29 357 23 450 50,000 4 309 40,000 31,536 34,866 123% 28,387 30,000 20,000 10,000 19,543 22,992 22,849 117% 0 FY2021 Result FY2022/Apr FY2022/Oct Initial Forecast Revis
Slide 19: Operating Profit by Product Div. (FY2021-FY2022)
Operating Profit by Product Div. (FY2021-FY2022) 19/25 Unit: Million yen Profitability (%)=Profit/Sales 1.5% 2.7% 3.3% 2,500 703 1,500 1,900 2,000 580 1,500 575 0 1,000 1,495 500 1,036 1,092 0 △135 △159 △172 △196 △7 △3 △500 FY2021 Result FY2022/Apr FY2022/Oct Initial Forecast Revised Forecast 1H: 13
Slide 20: Reference: Net Sales by Market (FY2020-FY2022)
Reference: Net Sales by Market (FY2020-FY2022) 20/25 Unit: Million yen %: Compared to 60,000 48,560 48,243 58,100 previous term 5,070 111% 50,000 3,906 4,587 40,000 20,840 120% Industy/Others 14,819 17,321 30,000 Car Electronics 20,000 19,199 21,570 128% 16,912 Home Appliance 10,000 10,635 10,620 11
Slide 21: FY2022 Priority Matters
FY2022 Priority Matters 21/25 1. Conduct business operation to agilely cope with change in business environments. 2. Expand business with high-value-added products & solutions and Enhance corporate structure. 3. Strengthen ESG management.
Slide 22: Open Innovation
Open Innovation 22/25 Technology Partner(s) Mass Production UWB type monitoring sensor EchoCare (Israel) from FY2023 Radar-based vital sensor - undisclosed - from FY2025 (for automotive/consumer use) Analysis of illness and emotions National Cerebral and Cardiovascular Center, from FY2023 through sp
Slide 23: Environmental Initiatives
Environmental Initiatives 23/25 1. Install solar panels ★ Start of operation Sites FY2022 FY2023 Toyama Works Feb. 2023 ★ Hitachi Works Bldg. 2 Feb. 2023 ★ Hitachi Works Bldg. 1 May 2023 ★ SMK Philippines July 2023 ★ SMK Malaysia Sept. 2023 ★ Rendering (Toyama Works) Head Office Mar. 2024 ★ 2. Enhan
Slide 24: Exhibitions
Exhibitions 24/25 Exhibition Date Venue In- SMK Advanced Development Technology Nov. 2–Dec. 12 Head Office Annex house Show 2022 Automotive Engineering Exposition 2022 May 25–27 PACIFICO Yokohama Japan Smart Sensing 2022 June 15–17 Tokyo Big Sight 5th Smart House Expo Sept. 28–30 INTEX Osaka Frankfu
Slide 25: Notice
Notice 25/25 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