Slide 1: Business Report for FY2008
1/47 Business Report for FY2008 From Apr.2008 to Mar.2009 SMK Corporation May, 2009
Slide 2: Consolidated Full Fiscal Term Performance
2/47 ＜Consolidated＞Full Fiscal Term Performance Sales Amount： 83.0% Income: Million yen Million yen 4.2% 10,000 87,659 72,742 8,000 5,654 6,000 50,000 4,327 4,000 2,094 2,000 1,029 238 0 0 FY2007 FY2008 △ 1,620 -2,000 Net Sales Operating Income Ordinary Income Net Income
Slide 3: FY2008 Trends in Performance (Quarterly)
3/47 FY2008 Trends in Performance(Quarterly) Unit ：Million yen First Half Second Half Full business year First QTR Second Sub Total Third QTR 4th QTR Sub Total Total (08/4-6) QTR (08/4-9) (08/10-12) (09/1-3) (08/10-09/3) （08/4-09/3) (08/7-9) ①Net Sales 21,357 23,243 44,600 15,438 12,704 28,142 72,74
Slide 4: Consolidated Sales Expenses
4/47 ＜Consolidated＞Sales Expenses FY2007 FY2008 Unit ：Million yen 82,005 72,504 ( ):Ratio to total sales (93.5%) (99.7%) Material Costs 80,000 〔（Material costs＋Expenses for external manufacturing processing ） aggravated by 0.4%〕 Expenses for external 61.1%→61.5% About 325 million yen 60,000 45,739 5
Slide 5: Consolidated Analysis of sales expenses
5/47 ＜Consolidated＞Analysis of sales expenses Unit：Million yen Analysis of factors for increase/decrease of consolidated Operating profits［FY2007 vs. FY2008 ］ Total △５，４１６ million yen 5,000 Factors for Decrease in Decrease in profit decrease labor costs expenses Decrease in sales 886 574 amount Tota
Slide 6: Consolidated Non-operating profit and loss
6/47 ＜Consolidated＞Non-operating profit and loss FY2007 FY2008 Unit：Million yen ( ): Ratio to total sales △1,327 791 (△1.5%) (1.1%) Financial 1,000 account 105 249 ・Increase in exchange gain balance 500 594 +2,396 million yen 623 Currency ・Decrease exchange loss 0 121 16 exchange loss △ 97 +1,746 mi
Slide 7: Consolidated Extraordinary gain or loss
7/47 ＜Consolidated＞Extraordinary gain or loss FY2007 FY2008 Unit：Million yen △322 △2,371 92 69 0 86 10 Gain from sale of fixed assets △ 284 △ 78 △ 179 Loss of disposed fixed △ 691 assets,etc. △ 37 Impairment loss -1,000 Loss from sale of investments in securities △ 1,681 Others -2,000 -3,000 Income
Slide 8: Financial Position
8/47 Financial Position ２００８／Mar ２００９／Mar Differential Unit：Million yen （Ａ） （Ｂ） （Ｂ－Ａ） Assets ６６，７３７ ５８，１６８ △８，５６９ Cash and cash equivalents ７，２１７ ９，０８１ １，８６４ Accounts receivable ２０，８３０ １４，８６４ △５，９６６ Inventories ８，２０７ ６，２３５ △１，９７２ Fixed assets ２７，２０４ ２３，８６５ △３，３３９ Liabilities ３４，３５１ ２９，０８８ △５，２６３ Acc
Slide 9: Cash Flow Position
9/47 Cash Flow Position Unit：Million yen FY2007 FY2008 Operating Cash Flow ６，０７０ ９，２４９ Working capital △１，１０５ ５，７２３ Income before income ４，００５ △１，３４１ taxes Depreciation ４，９３４ ５，６１０ Others △１，７６４ △７４３ Investing Cash Flow △６，８１９ △４，０２０ Free Cash Flow △７４９ ５，２２９ Financing Cash Flow ５３３ △３，４１９ Increase
Slide 10: Consolidated Full Fiscal Term Performance
10/12 ＜Consolidated＞ Full Fiscal Term Performance Compared to Sales Amount：Million yen FY2007 Income：Million yen 83% 83% 100,000 94,500 10,000 87,659 86,600 90,000 76,000 8,000 80,000 72,742 6,200 70,000 5,654 5,600 5,100 6,000 60,000 4,327 3,800 3,600 50,000 4,000 2,800 40,000 2,094 1,029 2,000 30,
Slide 11: FY2008 Net Sales trends in performance (Quarterly)
＜Consolidated＞FY2008 11/47 Net Sales trends in performance (Quarterly) 90,000 87,659 Unit：Million yen 80,000 20,688 72,742 70,000 12,704 60,000 22,940 15,438 4Q 50,000 3Q 40,000 2Q 1Q 23,610 23,243 30,000 20,000 10,000 20,421 21,357 0 FY2007Net Sales FY2008Net Sales
Slide 12: Operating Income by trends in performance (Quarterly)
＜Consolidated＞Operating Income 12/47 by trends in performance (Quarterly) 6,000 5,654 Unit：Million yen 306 5,000 1,541 4,000 3,000 2,088 4Q 238 2,000 3Q 929 2Q 1,000 1Q 1,719 1,067 0 FY2007 FY2008 -933 -1,000 -825 -2,000
Slide 13: Comparison of Sales by Market
13/47 ＜Consolidated＞ Comparison of Sales by Market Unit : Million yen 83.0% 90,000 87,659 1,866 80,000 79,074 6,745 1,571 5,437 124.0% 8,897 72,742 1,898 70,000 92.1% 71.7% 4,834 9,661 86.3% 7,681 60,000 35,969 50,000 30,325 118.6% 84.0% 30,207 40,000 30,000 6,815 7,424 108.9% 6,077 81.9% 20,000 25,
Slide 14: Consolidated Full Fiscal Term Plan (FY2009)
14/47 ＜Consolidated＞ Full Fiscal Term Plan（FY2009) Compared to previous fiscal term Net Sales：Million yen Income：Million yen 90,000 87,659 12,000 96.2% 80,000 72,742 10,000 70,000 70,000 8,000 60,000 5,654 6,000 50,000 4,327 40,000 4,000 30,000 2,094 2,200 1,500 1,500 2,000 1,029 20,000 238 0 10,000
Slide 15: Reference: Net Sales by Product Division
Reference ：＜Consolidated＞ 15/47 Net Sales by Product Division ( )：Composition Ratio Unit : Million yen 100,000 90,000 87,659 79,074 5,256 (6%) 80,000 4,730 (6%) 72,742 70,000 70,000 5,142 (7%) 32,942 (38%) 7,517 (11%) 60,000 33,534 (42%) 28,371 (39%) 50,000 25,327 (36%) 40,000 30,000 (52%) 49,461 (5
Slide 16: Reference: Operating Income by Product Division
Reference：＜Consolidated＞ 16/47 Operating Income by Product Division Unit : Million yen 7,000 6,000 5,654 5,166 849 5,000 831 4,000 3,000 4,495 4,815 2,000 1,500 103 477 1,000 238 753 920 0 -10 -276 -160 -1,000 -239 FY2006 Result FY2007 Result FY2008 Result FY2009 Plan -2,000 CS FC TP
Slide 17: Transition of Sales and Operating Income (From 1970)
＜Consolidated＞ Transition of Sales and Operating Income 17/47 (From 1970~) Unit : Million yen Right scale： Exchange rate for Dollar： 87,659 160 Left scale ： yen/$ 85,000 Net Sales ：(FY2009 is "Plan"） closing price of every end of Mar（1$=yen） Operating income ：(Before 1978 is "Single Base") 150 75,00
Slide 18: Comparison of Monthly booking (After FY2002)
＜Consolidated＞Comparison of 18/47 Monthly booking (After FY2002） FY2008 FY2007 FY2006 FY2005 FY2004 FY2003 FY2002 APR MAY JUN JUL AUG SEP OCT NOV DEC 2009 JAN FEB MAR
Slide 19: Trends of major markets: Flat Panel TV
19/47 <Trends of major markets> Flat Panel TV（LCD and PDP TVs) ＜W/W production unit＞ 140,000 (thousand units) ’07-’09 CAGR: 18.1% ＜SMK’s response＞ ■ PDP TV 126,593 ● Further increase of sales for remote 120,000 ■ LCD TV 113,312 14,600 controls Expand the RF remote control business 13,880 100,000 90,
Slide 20: Trends of major markets: Car Navigation Systems
20/47 <Trends of major markets> Car Navigation Systems ＜W/W production unit＞ (thousand units) ＜SMK’s response＞ ’07-’09 CAGR △9.8% 10,000 ● Maintaining sales of the touch panel 9,540 business aiming at when the market recovers 8,910 8,000 7,760 ●Intensive distribution of products that fit the needs o
Slide 21: Trends of major markets: Mobile Phones
21/47 <Trends of major markets> Mobile Phones ’07-’09 CAGR △2.5% ＜W/W production unit＞ ＜SMK’s response＞ (thousand units) 1,200,000 1,185,980 ● Further improve the reliability of our 1,141,630 customers by strengthening the TN 1,085,210 distribution structure 1,000,000 ● Intensive distribution target
Slide 22: Trends of major markets: Personal Computer
Personal Computer 22/47 <Trends of major markets> (Desktop & Notebook PCs) ＜W/W production units＞ 320,000 (thousand units) ’07-’09 CAGR △4.0% ＜SMK’s Response＞ 280,000 284,898 280,348 ●Strengthen the distribution of remote 259,209 control for Windows Vista Notebook Strengthen the development of 240,0
Slide 23: Topics-1 Cancellation of unification with Yamaichi Electronics Co.
Topics-1 Cancellation of unification with 23/47 Yamaichi Electronics Co. November 2008, Basic agreement Worsening Worsening market market environment environment March 2009, Cancellation of unification
Slide 24: Topics-2 Transfer of executive officer
24/47 Tipics-2 Transfer of executive officer Valid date：25th Jun 2009 （Announce date：27th APR 2009) New Before Name Representative Director, Director,Executive Yasumitsu Ikeda Executive Deputy Deputy President President Chairman of auditors Chairman, Terutaka Ikeda meeting Representative Director Co
Slide 25: SMK's Emergency Response
SMK’s Emergency Response 25/47 Short Shortterm term Immediate ImmediateRisk RiskFactors Factors countermeasures countermeasures Securing profit during sales decrease ・Swine Flu ⇒lowering the break-even point ⇒Impacted the Mexico Factory ・ Inventory Reduction ・Environmental Compatibility ・ Reduction
Slide 26: Management Policy 2009
26/47 Management Policy 2009 Basic Stance：Expansionary Course Accompanied by Fair Profit Tomorrow’s seeds ＊ technical/product development Active Investment ＊Environmental Management New Business
Slide 27: CS Division
" 27/47 CS Division SMK
Slide 28: CS Division
28/47 CS Division CS= Connection System 【Main Products】 ：Connectors/Jacks ■Connectors ■Jacks Coaxial Pin Jacks FPC Connectors Speaker Terminals Connectors DC Power Supply Jacks Card Interface Connectors Headphone Jacks Connectors
Slide 29: CS Division Net Sales, Operating Income
29/47 CS Division Net Sales,Operating Income(Consolidated) Net Sales Unit：Hundred Million Yen Income 500 100 400 392 95% 372 Net Sales 80 Operating Income 300 60 200 40 100 20 7.5 123% 9.2 0 0 FY2008 Result FY2009 Plan
Slide 30: CS Division Transition of market-specific sales
30/47 CS Division Transition of market-specific sales (Consolidated) 100% 3% 4% 4% Industry 72% 72% 73% Information 50% Technology 5% Car Electronics 6% 5% 20% 18% 18% Audio / Visual 0% FY2007 FY2008 FY2009 Result Result Plan
Slide 31: Priority products
31/47 Priority products Board to Board PB-35 0.35mm pitch Connector h=0.7mm PB-4A (h=0.8mm) PB-4D Lower profile/Space saving PB-4B 0.4mm pitch Expanding repertory (h=1.2mm) h=0.7mm Compatible with shield Coaxial Connector TS-11 (h=0.95mm) Ultra small・Low profile Coaxial Connector TS-5，9(Right angle
Slide 32: Expanding new products into growing markets
32/47 Expanding new products into growing markets Smart Phone／Mobile Phone Market Audio&Visual Portable instrument Market Micro SD Card Connector HDMI Connector C/ D type Hinge type/Composition type For DSC、Camcorders、Mobile Phones New Battery Connector Lens Connector Narrow pitch For digital camera
Slide 33: CS Division FY2009 Policy
CS Division FY2009 Policy 33/47 Priority Measures for Performance Improvement Strengthen Business Establishment for Demand Recovery Period １．Thoroughly Implement the Crisis Proposal Measures POINT ・Income oriented Securing Profits ・Speed Select and ２．Pursuit of Efficiency Focus ・Enrich and Implement
Slide 34: FC Division
" 34/47 FC Division SMK
Slide 35: FC Division
FC Division 35/47 FC=Functional Components 【Main Products】 ：Switch/Keyboard/Control Panel/Earphone Mic /Cradle/Microphone/Remote Control Unit/Camera Module ■SW (Switch) ■UN (Unit) Bluetooth Units Various types of switches Antenna （Microphone-free Control Panel headset） ■RC (Remote Control) ■MD (Modu
Slide 36: FC Division Net Sales, Operating Income
36/47 FC Division Net Sales,Operating Income(Consolidated) Unit：Hundred Million Yen Net Sales(first half) 300 284 30 89% 253 Net Sales(second semester) Operating Income 118 200 20 138 100 10 165 115 4.8 + 7.5 0 0 FY2008 FY2009 Result -2.7 Plan -100 -10
Slide 37: FC Division Transition of market-specific sales
37/47 FC Division Transition of market-specific sales (Consolidated) 100% 17% 13% 17% Industry Information 22% 23% Technology 21% 4% 4% 3% Car Electronics 50% 58% 61% 57% Audio / Visual 0% FY2007 FY2008 FY2009 Result Result plan
Slide 38: FC Division FY2009 Priority Measure-1
38/47 FC Division FY2009 Priority Measure-1 Strengthen the development of future oriented technology and products emphasizing on remote controls and switches Remote Control Increase of added value・・・high function/multifunction To more”usefulness” To more”easiness” From IR transmission to RF Easy ent
Slide 39: FC Division FY2009 Priority Measure-2
39/47 FC Division FY2009 Priority Measure-2 Increase sales of switches…expanding the market ¾ Mobile phone ⇒ Digital Camera / CAR / Industry Horizontal SW Dome SW Detector SW Lock & Momentary SW Improve the switch products repertoire to meet the diversified needs ¾ Pursue smaller and thinner switche
Slide 40: FC Division Policy for FY2009
40/47 FC Division Policy for FY2009 Strengthen Profitability （Compared to FＹ2008） Variable costs：▲ ７％ （Material costs＋Processing costs） Change for Labor costs：▲１０％ the better Expense：▲２０％ For next great leap forward Capital investment for major development products,research and development costs.
Slide 41: TP Division
" 41/47 TP Division SMK
Slide 42: TP Division
42/47 TP Division TP=Touch Panel Resistance Touch 【Main 【Main Products】 Products】 Panel SMK Capacitance Touch Touch Panel Panels Optical Touch Panel
Slide 43: TP Division Net Sales, Operating Income
43/47 TP Division Net Sales,Operating Income(Consolidated) Unit：Hundred Million Yen 100 Net Sales Operating Profit 80 75 60 51 40 20 1 0 ▲2 -20 FY2008 Result FY2009 Plan
Slide 44: TP Division Transition of market-specific sales
44/47 TP Division Transition of market-specific sales (Consolidated) 100% 29% 29% Industry 43% 3% Information 10% 35% 50% Technology 68% 47% 36% Car Electronics 0% FY2007 FY2008 FY2009 Result Result Plan
Slide 45: TP Division Product Strategy and Major Market
45/47 TP Division Product Strategy and Major Market Net Sales by Touch Panel system KEYWORD 200% KEYWORD “Mobile” “Mobile” Capacitance ＴＰ Resistance ＴＰ Mobile Phone、DSC、DVC、Smart Phone、 Optical ＴＰ UMPC、PND、Media Player for Mobile Phone etc. 2007 2008 2009 2010 2011 Small Small size size Touch Touch
Slide 46: TP Division Policy for FY2009
46/47 TP Division Policy for FY2009 In preparation for expanding market １ Expanding net sales Capacitance TP Resistance TP Concentrate heavily on main products Force feed back TP Market capture For automobiles For mobile phone units For POS、ATM EU+ Asia Area From Japan to EU + U.S.A Japan + Asia are
Slide 47: Notice
47/47 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