Slide 1: Business Report for FY2007
Business Report for FY2007 -From Apr.2007 to Sept.2007- SMK Corporation November, 2007 1
Slide 2: Consolidated Midterm Net Sales, Operating Income, Ordinary Income, Net Income
<Consolidated> Midterm Net Sales, Operating 2/36 Income, Ordinary Income, and Net Income Sales amount Unit:Million yen Profit Unit:Million yen 50,000 112.0% 8,000 44,031 45,000 41,000 7,000 39,300 39,774 40,000 107.4% 6,000 35,000 30,000 5,000 4,100 3,834 3,904 25,000 4,000 3,807 20,000 3,000 3,313
Slide 3: Consolidated Sales Expenses
＜Consolidated＞ Sales Expenses 3/36 FY2006 FY2007 1H 1H ( ): Ratio to Total Sales Unit:Million yen 35,987 40,224 (91.6%) (91.3%) 〔（Material costs＋Expenses for Material costs external manufacturing processing） 45,000 improved by 0.2%〕 40,000 60.8%→60.6% About 61 million yen Expenses for 35,000 externa
Slide 4: Analysis of sales expenses
4/36 ＜Consolidated＞ Analysis of sales expenses Analysis of factors for increase & decrease of consolidated operating income Unit:Million yen ［FY2006 1H vs. FY2007 1H］ 2,500 Net Total A. Factors B. Factors ＋494 million yen 1855 for income for income 2,000 increase decrease Total -1,422 Total 1,916 1,
Slide 5: Consolidated Non-operating income and loss
5/36 ＜Consolidated＞ Non-operating income and loss FY2006 FY2007 (Unit: Million yen) 1H 1H ( ): Ratio to total sales 521 97 Revenues (1.3%) (0.2%) from and 600 expenditure Comparison to the previous midterm to fixed 500 assets -424 million yen 400 321 Others 〔Exchange Gain→Exchange Loss 300 (Dividend
Slide 6: Net Sales and Operating Income by Product Division
Reference： <Consolidated> Net Sales and 6/36 Operating Income by Product Division （FY2006 1H, FY2007 1H) Unit: Million yen Net Sales %: Composition Operating Income ratio 45,000 44,031 39,300 2,282 5.2% 40,000 2,381 6.1% 4,500 35,000 15,974 36.3% 4,000 3,807 30,000 16,753 3,500 3,313 498 42.6% 25,00
Slide 7: Net Sales by Market FY2005~FY2007 (1H Result)
7/36 Net Sales by Market FY2005~FY2007(1H Result） Unit: Million yen 50,000 44,031 45,000 39,300 705 40,000 34,897 714 3,282 2,448 134.1% 4,387 35,000 711 2,198 111.3% 5,245 83.6% 30,000 5,869 89.4% 25,000 18,432 15,063 122.4% 20,000 11,059 136.2% 15,000 3,483 102.1% 3,556 3,483 100.0% 10,000 5,000 1
Slide 8: Consolidated Full-term Result & Plan
＜Consolidated＞ Full-term Result & Plan 8/36 + 10.7% Income：Million yen Net Sales： Million yen 90,000 +6.1% 87,500 82,500 14,000 79,074 80,000 12,000 10,000 70,000 6,200 6,800 7,100 8,000 6,190 5,166 5,500 60,000 4,600 6,000 3,693 4,000 4,000 50,000 2,000 40,000 0 FY2006 FY2007 Initial Plan FY2007 Re
Slide 9: Business Trend of Individual Markets - 1: Audio/Visual
Business Trend of 9/36 Audio / Visual (AV) Individual Markets -1 Comparison to last ＜Net Sales＞ Unit: Million yen year’s performance 110.7% 13,666 ■Increased Sales Amounts 12,345 TP 4 for Remote Controls 9 Increased sales amounts for digital home electronics FC 10,000 • For Flat Panel Displays: Japa
Slide 10: Business Trend of Individual Markets - 2: Car Electronics
Business Trend of 10/36 Individual Markets -2 Car Electronics Unit: Million yen Comparison to last year’s ＜Net Sales＞ performance 4,000 102.1% ■Increased sales amounts of 3,483 3,556 touch panels Increased sales amounts of factory installation touch TP panels for Japan and 1,733 overseas markets 1,7
Slide 11: Business Trend of Individual Markets - 3: Communication
Business Trend of 11/36 Individual Markets -3 Communication Comparison to last year’s performance ＜Net Sales＞ 122.4% Unit: Million yen ■Expansion of connector Others 5 18,432 18,000 TP 4 sales 1,515 FC 15,063 Increased sales amounts of connectors 16,000 24 due to steady production of cell phones 14,
Slide 12: Business Trend of Individual Markets - 4: Computer
Business Trend of 12/36 Individual Markets -4 Computer Unit: Million yen Comparison to ＜Net Sales＞ last year’s 6,000 performance ■Increased sales amounts of 5,245 83.6% units 9 Increased sales 521 4,387 amounts of cradles due Others 10 to steady demand of 4,000 430 TP digital still cameras ■Decrease
Slide 13: SMK's Management Goals
13/36 SMK’s Management Goals 1. Three challenges ＊Enhancement of SMK’s brand recognition ＊Quality improvement by TN (transnational) ZD activities → General （Absolute） Quality ＊Another try for creation of better quality products “Only conscientious parts can build good equipment” 2. Turn-around of re
Slide 14: Acquisition of remote control business segments of Interlink Electronics, USA
Acquisition of remote control business segments 14/36 of Interlink Electronics, USA Overview：Acquisition of two remote control business segments of Interlink Electronics Date of signing：August 15 Acquisition Value: US$ 11.5 million (1.32 billion yen) 1) Branded Business ：Retail sales in the US marke
Slide 15: CS Division
a 15/36 CS Division SMIK.
Slide 16: CS Division
ＣＳ Division 16/36 CS= Connection System 【Main products】 ：Connector/Jack ■Connector ■Jack Speaker terminal FPC connector I/O connector Card connector DC power supply jack, Headphone jack
Slide 17: CS Division Consolidated Net sales, Operating income
CS Division <Consolidated> Net sales, 17/36 Operating income Unit: Hundred million yen Sales Income 500 483 Net sales 408 Operating income 400 300 258 226 200 100 45 58 34 24 0 FY2006 FY2007 FY2007 1H FY2007 2H Result Prospect Result Prospect
Slide 18: CS Division Transition of market-specific sales
CS Division <Consolidated> Transition of 18/36 market-specific sales 100% 5% 3% 4% Industry 5% Information Technology 63% 68% 68% 65% 50% Car 6% 5% 6% electronics 5% Audio/Visual 26% 22% 24% 25% 0% FY2006 1H FY2006 2H FY2007 1H FY2007 2H Result Result Result Prospect
Slide 19: CS Division Card connectors & semi-conductor sockets Product strategy
CS Division Card connectors & semi-conductor sockets 19/36 Product strategy Small card connectors for mobile phones Sales transition 209 ★microSD/TransFlash *FY2005 as 100 176 TM card connectors 100 ★MemoryStick MicroTM card connectors p t i m i zationtioofns O varia product FY2005 FY2006 FY2007 g e
Slide 20: CS Division PB connectors Product strategy
CS Division PB connectors 20/36 Product strategy PB-4A (h=0.8mm type) 487 PB-4B (h=1.2mm type) 売上推移 Sales Transition *FY2005 as 100 available o f product 100 140 Shielde d de s ig n ns io n Expa variations Numbers of lined-up poles PB-4A:10, 16, 22, 24, 26, 28, 30P, FY2005 FY2006 FY2007 40, 42, 50,
Slide 21: CS Division Strategic markets/products
21/36 CS Division Strategic markets/products 16P interface connectors Automotive electronics Telecommunications low-profile (2.0 mm high when joined) Automobile use camera Coaxial Projected demand connectors connectors Unit: Million units TC-7 Shortest in the indusｔｒy 6 （H＝1.0mm） 3 4 Coaxial 2 conne
Slide 22: CS Division Objective for FY2007
CS Division Objective for FY 2007 22/36 １．Promotion of development of technologies and products ・Timing and speeding up ・Patent and quality ２．Pursuit of optimal means (production and sales) ・More financial efficiency （General/Conversion facilities) ・Promote support for overseas divisions ３．Elevation
Slide 23: FC Division
a 23/36 FC Division SMIK.
Slide 24: FC Division
24/36 FC Division FC=Functional Components 【Main products】 ：Switch/Keyboard/Control panel/Earphone microphone/Bluetooth/Microphone/Remote control unit/Camera module ■SW (Switch) ■UN (Unit) Earphone Electret Condenser Various types of switches Bluetooth Microphone (ECM) microphone ■RC (Remote Control
Slide 25: FC Division Consolidated Net Sales, Operating income
FC Division 25/36 <Consolidated>Net Sales, Operating income Unit: Hundred million yen Sales Income 500 50 Net Sales 400 Income 40 335 339 300 30 200 160 179 20 11 100 8 6 10 5 0 0 FY2006 FY2007 FY2007 1H FY2007 2H Result Prospect Result Prospect
Slide 26: FC Division Transition of Market-Specific Sales
FC Division 26/36 <Consolidated> Transition of Market-Specific Sales 100% 17% 17% 15% 15% Industry 16% 15% Information 25% 25% Technology 4% 4% 4% 4% Car electronics 50% 64% 66% Audio/Visual 55% 56% 0% FY2006 1H FY2006 2H FY2007 1H FY2007 2H Result Result Result Prospect
Slide 27: FC Division Product
27/36 FC Division Product Up to 2007: Breed improvement (product development) SW and sowing (marketing) 2008 and on: Reaping (production/sales increase) Marketing activity for BT units, AC chargers and UN antennas Development of products differentiating us from RC competing RC manufacturers RF and s
Slide 28: FC Division Major markets
FC Division Major markets 28/36 Mobile phone AV equipment application market parts market Multi-function Thin slide switches 2-dome switches switches RF modules best suited for remote control applications Small horizontal Detector switches Car electronics parts market switches (DSI/DSJ) Rubber singl
Slide 29: FC Division Objective for FY2007
FC Division Objective for FY2007 29/36 Active Product Development Advancement of Technical Capabilities Reformation of Product Development Sector Custom Products Custom Products Strengthen Ability for Price Competition
Slide 30: TP Division
a 30/36 TP Division SMIK.
Slide 31: TP Division Touch Panel
31/36 TP Division Film/Glass structure •Standard type •Reinforced glass type Touch Panel •Anti-smudge type •High transparency type •Low reflectance type Resistance sensitive •Anti-bacterial system type Main Mainitems items Glass/Glass structure ・Linear polarization type ・Circular polarization type ・
Slide 32: TP Division Consolidated Net Sales, Operating Profit
TP Division 32/36 <Consolidated> Net Sales, Operating Profit Unit: Hundred Million yen Sales Income 60 Net sales 47 52 Operating Income 50 40 30 30 23 20 10 0 ▲ 0.1 ▲ 1.6 ▲ 0.6 ▲ 0.5 -10 FY2006 FY2007 FY2007 1H FY2007 2H Result Prospect Result Prospect
Slide 33: TP Division Transition of Market-Specific Sales
TP Division 33/36 <Consolidated> Transition of Market-Specific Sales 100% Industry 25% 21% 19% 33% 5% 3% 2% Information 3% Technology 50% 78% 73% 74% Car electronics 64% 0% Audio/Visual FY2006 1H FY2006 2H FY2007 1H FY2007 2H Result Result Result Prospect
Slide 34: Cost and Production Capacity Efforts
Cost and Production Capacity Efforts 34/36 130 100 125 FY2007 FY2008 FY2009 250 180 100 FY2007 FY2008 FY2009 ・Investment for semi-automatic facilities ・Use of overseas resources ・High value added goods ・Chinese market ・Development of differentiated products 270 200 3D Instruction Manual 100 FY2007 F
Slide 35: TP Division Objective for FY2007
TP Division Objective for FY 2007 35/36 FY200７ Key activity points Expansion of Sales 1 Marketing of differentiation products Touch panels of Glass+Glass, in-vehicle high transparency and low reflectance Film+Glass, force feedback, and integrated optical types 2 Marketing in the overseas market Glas
Slide 36: Notice
36/36 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