Smk Corporation · TSE:6798

Smk — H1 FY2019 Earnings Presentation

23 slides from Smk's earnings presentation, Nov 7, 2019

  1. Slide 1: Business Report for FY2019 1st Half

    0/22 Business Report for FY2019 1st Half November 7th 2019

  2. Slide 2: FY2019 2Q Outline of Financial Statement

    1/22 FY2019 2Q Outline of Financial Statement Executive Vice President and CFO KOHEI OHGAKI

  3. Slide 3: Consolidated 2Q Financial Results

    2/22 <Consolidated> 2Q Financial Results Unit: Million yen FY2018 FY2019 Net Sales 4-9 4-9 Profit 40,000 1.1% UP 2,000 28,101 28,419 30,000 1,500 20,000 1,000 10,000 278 500 122 0 0 -120 -10,000 -500 -396 -520 -20,000 -1,000 -869 Net Sales Operating Profit Ordinary Profit Net Profit

  4. Slide 4: Consolidated 2Q Financial Results (by Quarter)

    3/22 <Consolidated> 2Q Financial Results (by Quarter) Unit: Million yen FY2019 FY2019 FY2019 Net Sales 4-6 7-9 4-9 Profit 30,000 28,419 3,000 8.0% UP 20,000 2,000 13,662 14,757 10,000 1,000 231 344 285 0 0 -120 -351 -396 -10,000 -740 -520 -1,000 -805 -20,000 -2,000 Net Sales Operating Profit Ordinar

  5. Slide 5: Consolidated Operating Expenses

    4/22 <Consolidated> Operating Expenses Unit: Million yen FY2018 FY2019 4-9 4-9 28,970 28,539 [ ]: Sales Ratio 30,000 [103.1%] [100.4%] Material costs Amount paid to subcontractors 25,000 Labor costs 13,490 48.0% Expenses 14,555 51.2% Depreciations 20,000 3.0% • Rise by 1.7% 15,000 837 in ratio of ma

  6. Slide 6: Consolidated Analysis of Changes in Operating Profit

    5/22 <Consolidated> Analysis of Changes in Operating Profit Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ FY2018 4-9 vs FY2019 4-9 ］ Total 500 After adjusting impact of ＋749 million yen foreign exchange rates Reduction in fixed costs (labor costs/expe

  7. Slide 7: Consolidated Non-operating Profit and Loss

    6/22 <Consolidated> Non-operating Profit and Loss Unit: Million yen FY2018 FY2019 4-9 4-9 1,147 -276 [ ]: Sales Ratio [4.1%] [-1.0%] Foreign exchange profit/loss 1,000 Revenues from and expenditure to 759 real estates 600 Financial account balance 266 200 263 Others 261 123 1 Foreign exchange gain 7

  8. Slide 8: Consolidated Extraordinary Profit and Loss

    7/22 <Consolidated> Extraordinary Profit and Loss FY2018 FY2019 Unit: Million yen 300 4-9 4-9 142 30 [ ]: Sales Ratio 200 Gain on sales of investment securities Gain on sales of fixed assets 100 195 Loss on sales of fixed assets 86 Loss on disposal of fixed 0 16 assets -37 -69 -18 -100 Profit before

  9. Slide 9: Consolidated Segment Information

    8/22 <Consolidated> Segment Information Unit: Million yen FY2019 4-9 Reporting Segment CS SCI R&D Others* TOTAL Total Division Division Center Net Sales 9,629 18,616 139 28,385 34 28,419 Operating Profit (Loss) (28) 80 (154) (101) (19) (120) FY2018 4-9 Reporting Segment CS SCI R&D Others* TOTAL Tota

  10. Slide 10: Consolidated Changes in Financial Results (Full-year)

    9/22 <Consolidated> Changes in Financial Results (Full-year) Unit: Million yen FY2018 FY2019 Net Sales Forecast Profit 5.9% DOWN 70,000 7,000 60,000 57,386 54,000 6,000 50,000 5,000 40,000 4,000 30,000 3,000 20,000 2,000 10,000 1,000 0 0 0 0 0 -10,000 -1,000 -707 No change from the revised forecast

  11. Slide 11: Consolidated Changes in Financial Results (Half year)

    10/22 <Consolidated> Changes in Financial Results (Half year) Unit: Million yen FY2018 FY2018 FY2019 FY2019 Net Sales Profit 4-9 10-3 4-9 10-3 Forecast 40,000 4,000 28,101 29,285 28,419 30,000 25,581 3,000 20,000 2,000 10,000 396 520 1,000 278 122 120 0 0 -120 -520 -10,000 -396 -1,000 -869 -965 -956

  12. Slide 12: Consolidated Cash Position

    11/22 <Consolidated> Cash Position Unit: Million yen Mar. 2019 Sept. 2019 Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets 58,713 55,718 (2,995) Cash and cash equivalents 10,889 9,614 (1,274) Accounts receivable 14,496 15,004 507 Inventories 8,071 6,427 (1,643) Fixed assets 24,430 23,971 (458) Liabilities 30,101 2

  13. Slide 13: Consolidated Cash Flow Position

    12/22 <Consolidated> Cash Flow Position Unit: Million yen FY2018 4-9 FY2019 4-9 Cash flow from operating activities 66 2,407 Working capital (1,689) 1,613 Profit before taxes 420 (366) Depreciation 1,791 1,656 Others (456) (496) Cash flow from investing activities (2,335) (1,543) Free cash flow (2,2

  14. Slide 14: Annual Dividend

    13/22 Annual Dividend At second At fiscal Annual quarter end year end FY2018 0.00 yen 50.00 yen 50.00 yen Result FY2019 0.00 yen ― ― Result FY2019 ― 50.00 yen 50.00 yen Forecast

  15. Slide 15: FY2019 Prospect

    14/22 FY2019 Prospect President, CEO and COO YASUMITSU IKEDA

  16. Slide 16: Net Sales by Product Div. (FY2018-FY2019)

    15/22 Net Sales by Product Div. (FY2018-FY2019) Unit: Million yen 94% %: Compared to previous term 94% 70,000 57,386 57,600 54,000 54,000 60,000 471 21 550 57 445 94 50,000 40,000 35,180 36,978 35,098 100% 30,000 54,000 20,000 10,000 21,712 20,015 18,362 85% 0 FY2018 Result FY2019/Apr FY2019/Jul FY2

  17. Slide 17: Operating Profit by Product Div. (FY2018-FY2019)

    16/22 Operating Profit by Product Div. (FY2018-FY2019) Unit: Million yen Profitability (%)=Profit/Sales 2,000 1.0% -1,834 600 0 0 1,000 641 258 414 378 0 2 -352 -342 -861 -103 -39 -1,000 -316 -914 -2,000 -3,000 FY2018 Result FY2019/Apr FY2019/Jul FY2019/Oct Initial Forecast Revised Forecast Forecast

  18. Slide 18: Reference: Net Sales by Market (FY2017-FY2019)

    17/22 Reference: Net Sales by Market (FY2017-FY2019) Unit: Million yen %: Compared to Target Markets 80,000 previous term -LPWA Industry/ Others 70,000 59,786 57,386 54,000 -Healthcare -Printer 60,000 -Renewable energy 11,605 7,185 79% 50,000 5,650 -CASE Car Elec- tronics -ADAS 40,000 18,184 20,338

  19. Slide 19: 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.

  20. Slide 20: SMK Dongguan Factory's One Stop Service

    19/22 SMK Dongguan Factory’s One Stop Service <for Improved Productivity and Acquisition of New Orders> Design Production Quality Control Procure- Logistics ment Assembly Die Auto Jig Machine Tooling Mold Progra- Paint mming Plate Print Stamp

  21. Slide 21: Approach to Car Electronics Market

    20/22 Approach to Car Electronics Market 2018 2020 2025 Autonomous Level Level Level Driving Level 2 3 4 Target Markets - ADAS C Connected A Auto- S Shared E Electric - V2X - EV/PHEV nomous Autonomous Safety Electric/ Website Connected Entertainment Renewal Multi Coaxial Ethernet 2 Piece Type Connec

  22. Slide 22: R&D Center's Approach to Open Innovation

    21/22 R&D Center’s Approach to Open Innovation NEC commenced the demonstration experiment of the smart street lighting employing SMK’s wireless module in Suginami Ward, Tokyo. Schedule 2019 2020 2021 Power supply Mass module Demo Pilot Product- ion LoRaWAN® module HTIP Mass (LR01) NEC Demo Pilot Pro

  23. Slide 23: 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

SMK — H1 FY2019 Earnings Presentation on 6ix