Slide 1: Business Report for FY2017
1/22 Business Report for FY2017 May 8, 2018
Slide 2: FY2017 Outline of Financial Statement
2/22 FY2017 Outline of Financial Statement Executive Vice President and CFO KOHEI OHGAKI
Slide 3: <Consolidated> Financial Results
3/22 <Consolidated> Financial Results Unit: Million yen FY2016 FY2017 Net Sales Profit 5.1% DOWN 75,000 2,500 62,971 59,786 60,000 2,000 23.0% DOWN 45,000 1,398 1,500 1,017 30,000 1,000 630 485 15,000 358 500 0 0 -15,000 -288 -500 Net Sales Operating Profit Ordinary Profit Net Profit
Slide 4: <Consolidated> Operating Expenses
4/22 <Consolidated> Operating Expenses Unit: Million yen FY2016 FY2017 62,341 59,301 [ ]: Sales Ratio [99.0%] [99.2%] 70,000 Material costs Amount paid to subcontractors 60,000 Labor costs 50,000 Expenses 29,767 47.3% 26,131 43.7% 40,000 Depreciations 2.4% 1,481 2,096 3.5% Improvement by 2.5% 30,0
Slide 5: <Consolidated> Analysis of Sales Expenses
5/22 <Consolidated> Analysis of Sales Expenses Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［FY2016 vs FY2017］ Total 1,500 After adjusting impact of -145 million yen foreign exchange rates 1,200 Reduction in Operating profit fixed costs for (labor cost
Slide 6: <Consolidated> Non-operating Profit and Loss
6/22 <Consolidated> Non-operating Profit and Loss FY2016 FY2017 Unit: Million yen [ ]: Sales Ratio 768 -127 1,000 [1.2%] [-0.2%] Currency excahnge profit/loss 800 Revenues from and expenditure to fixed assets 600 628 604 Financial account balance 400 200 Others 192 206 0 -27 -16 Currency exchange lo
Slide 7: <Consolidated> Extraordinary Profit and Loss
7/22 <Consolidated> Extraordinary Profit and Loss FY2016 FY2017 -157 212 Unit: Million yen 2,500 46 [ ]: Sales Ratio 2,000 Gain on redemption of 1,500 investment securities 2,341 1,000 Gain on sales of 99 investment securities 500 459 Gain on sales of fixed 0 assets -260 -172 -12 -181 -6 -500 -443 L
Slide 8: <Consolidated> Segment Information
8/22 <Consolidated> Segment Information Unit: Million yen FY2017 Reporting Segment Others* TOTAL CS Div. FC Div. TP Div. Total Net Sales 28,422 21,420 9,582 59,424 362 59,786 Operating Profit (Loss) 3,203 (1,360) (832) 1,011 (526) 485 FY2016 Reporting Segment Others* TOTAL CS Div. FC Div. TP Div. To
Slide 9: <Consolidated> Cash Position
9/22 <Consolidated> Cash Position Unit: Million yen Mar. 2017 Mar. 2018 Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets 62,318 61,807 (510) Cash and cash equivalents 10,117 10,599 481 Accounts receivable 14,853 15,251 397 Inventories 7,199 8,775 1,575 Fixed assets 28,044 25,258 (2,785) Liabilities 30,999 31,169 1
Slide 10: <Consolidated> Cash Flow Position
10/22 <Consolidated> Cash Flow Position Unit: Million yen FY2016 FY2017 Cash flow from operating activities 4,604 2,788 Working capital 59 (658) Profit before taxes 1,241 570 Depreciation 4,381 4,187 Others (1,077) (1,311) Cash flow from investing activities (3,465) (787) Free cash flow 1,139 2,001
Slide 11: Financial Forecast and Annual Dividend
11/22 Financial Forecast and Annual Dividend %: Increase (decrease) ratio to previous term (1) Forecast of Consolidated Financial Results Operating Ordinary Net Profit Net Sales Profit Profit (Loss) Million yen % Million yen % Million yen % Million yen % FY2017 59,786 (5.1) 485 (23.0) 358 (74.4) (28
Slide 12: FY2017 Result and FY2018 Prospect
12/22 FY2017 Result and FY2018 Prospect President, CEO and COO YASUMITSU IKEDA
Slide 13: SMK Executive Appointment <June 22, 2018>
13/22 SMK Executive Appointment <June 22, 2018> Promoted Vice President New Post Present Post Name Executive Vice President Vice President Masanobu Ikeo Transnational CS Division, Transnational CS Division, CS Division (Senior CS Division (Senior General General Manager) Manager) Executive Vice Pres
Slide 14: Net Sales by Product Division (FY2015-FY2018)
14/22 Net Sales by Product Division (FY2015-FY2018) Unit: Million yen %: Compared to previous term 95% 105% 80,000 77,206 195 14,467 62,971 62,500 59,786 263 470 60,000 362 11,931 9,582 80% 9,480 99% 35,449 40,000 21,420 79% 27,238 27,349 128% 20,000 27,095 28,422 121% 25,200 89% 23,539 0 FY2015 Res
Slide 15: Operating Profit by Product Division (FY2015-FY2018)
15/22 Operating Profit by Product Division (FY2015-FY2018) Unit: Million yen 5.4% Profitability (%)=Profit/Sales 6,000 4,171 1.0% 1.6% 0.8% 485 1,838 3,000 630 370 113 1,000 3,203 2,215 333 1,919 1,124 0 -786 -329 -252 -1,360 -128 -616 -832 -526 -3,000 FY2015 Result FY2016 Result FY2017 Result FY201
Slide 16: Reference: Net Sales by Market (FY2015-FY2018)
16/22 Reference: Net Sales by Market (FY2015-FY2018) Unit: Million yen %: Compared to previous term 77,206 80,000 7,119 62,971 62,500 59,786 60,000 21,178 8,077 9,100 78% 11,605 144% 18,982 19,800 109% 40,000 18,184 96% 32,207 24,086 22,900 125% 20,000 18,326 76% 16,700 11,825 11,669 99% 10,700 92%
Slide 17: FY2018 Priority Matters
17/22 FY2018 Priority Matters 1. Short-term: Revive Profitability Improve unprofitable business and deficit-ridden company Launch the new large project successfully Improve productivity, Realize quality level for car electronics 2. Mid- to long-term: Realize New Growth Explore new markets, C
Slide 18: Transformation of Japan/Overseas Bases
18/22 Transformation of Japan/Overseas Bases <JAPAN> Integrate TP production in Toyama into MITEC (December 2017) Enlarge production space for FC products at Hitachi Works (May 2018) <CHINA> Relocate China Technology Center (June 2017) and Shenzhen factory (February 2018) Expand Dongguan factory (Ju
Slide 19: Approach to Car Electronics Market
19/22 Approach to Car Electronics Market C A S E Connected Autonomous Shared Electric Connectivity Safety HMI Ecology High Speed Data IF Connector Camera Connector Capacitive Touch Panel Metal-stamped Connector Explosion Proof Valve USCAR-30 RF Module FAKRA Connector Piezoelectric Connector Touch Sw
Slide 20: Approach to Home Appliance Market
20/22 Approach to Home Appliance Market 2018 2020 2022 IoT 4K/8K 5G AI Speaker 4K/8K TV VR (HMD) Smart Home Appliance Smart Home USB Type-C™ Small Capacitive Touch IR blaster Panel & Controller IC DC Jack AD Jack Active Optical Connector Controller RF Module External Speaker Capacitive Switch
Slide 21: Break out of your shell for new growth!
21/22 Theme for T97 Business Plan Break out of your shell for new growth!
Slide 22: 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