Slide 1: FY2022 Investor Briefing
0/26 FY2022 Investor Brief ing —Challenge, Creativity, Solutions SMK Corporation (6798) May 17, 2023
Slide 2: Outline of Financial Statement
1/26 FY2022 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 Financial Results
Consolidated | Financial Results 2/26 Unit: Million yen FY2021 FY2022 Net Sales Profit ＋13.7% 60,000 9,000 54,842 48,243 45,000 6,000 ＋60.3% 30,000 3,413 2,992 2,503 3,000 15,000 1,128 1,334 703 0 0 Net Sales Operating Profit Ordinary Profit Net Profit
Slide 4: Consolidated Financial Results (by Quarter)
Consolidated | Financial Results (by Quarter) 3/26 Unit: Million yen FY2022 FY2022 FY2022 FY2022 Net Sales 4-6 7-9 10-12 1-3 Profit 20,000 15,022 14,461 2,500 12,743 12,616 10,000 1,526 1,457 1,500 1,576 1,772 536 724 500 216 0 △ 348 △500 △ 489 △ 533 △ 356 △ 1,116 △10,000 △1,500 Net Sales Operating
Slide 5: Consolidated Operating Expenses
Consolidated | Operating Expenses 4/26 Unit: Million yen FY2021 FY2022 [ ]: Sales Ratio 47,540 53,714 [98.5%] [97.9%] 60,000 Material costs Amount paid to subcontractors 50,000 Labor costs Expenses 40,000 26,671 48.6% 23,129 47.9% Depreciations 30,000 2.3% 1,099 2.0% Raised by 0.4% 1,132 • 20,000 in
Slide 6: Changes in Operating Profit
Consolidated | Changes in Operating Profit vs. previous 5/26 corresponding period Analysis of factors for increase/decrease of operating profit Unit: Million yen ［ FY2021 vs. FY2022 ］ Increase in Total 2,000 Impact of foreign sales amount ＋425 million yen exchange rates 177 1,800 (weak yen & RMB) 92
Slide 7: Changes in Operating Profit vs. initial forecast
Consolidated | Changes in Operating Profit vs. initial forecast 6/26 Analysis of factors for increase/decrease of operating profit Unit: Million yen ［ Initial forecast vs. FY2022 ］ (announced on Apr. 28, 2022) Total After adjusting impact of -372 million yen foreign exchange rates 2,500 2,000 Initia
Slide 8: Non-operating Profit and Loss
Consolidated | Non-operating Profit and Loss 7/26 Unit: Million yen FY2021 FY2022 2,710 1,375 [ ]: Sales Ratio 3,000 [5.6%] [2.5%] Revenue from and expenditure to real estates 2,500 482 Employment adjustment subsidy 2,000 318 Foreign exchange gain/loss Financial account balance 1,500 Others (Gain/lo
Slide 9: Extraordinary Profit and Loss
Consolidated | Extraordinary Profit and Loss 8/26 200 Unit: Million yen FY2021 FY2022 [ ]: Sales Ratio (Loss on △158 impairment) △597 2 (Gain on sales of investment securities) △3 0 18 △ 38 △ 76 Gain on sales of investment △ 115 securities △2 (Loss on sales Loss on valuation of investment △200 of fi
Slide 10: Segment Information
Consolidated | Segment Information 9/26 Unit: Million yen FY2022 Reporting Segment CS SCI R&D Others* TOTAL Total Division Division Center Net Sales 19,997 34,482 339 54,819 23 54,842 Operating Profit/Loss (△) 894 393 △160 1,127 1 1,128 FY2021 Reporting Segment CS SCI R&D Others* TOTAL Total Divisio
Slide 11: Cash Position
Consolidated | Cash Position 10/26 Unit: Million yen Mar. 2022 Mar. 2023 Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets 54,794 56,365 1,571 Cash and cash equivalents 8,555 8,969 414 Accounts receivable 12,800 13,176 376 Inventories 9,545 10,073 528 Fixed assets 23,063 23,113 50 Liabilities 24,150 24,090 △60 Acco
Slide 12: Cash Flow Position
Consolidated | Cash Flow Position 11/26 Unit: Million yen FY2021 FY2022 Cash flow from operating activities 2,433 3,591 Working capital △2,799 △758 Profit before taxes 3,254 1,906 Depreciation 2,696 2,884 Others △718 △441 Cash flow from investing activities △1,631 △1,944 Free cash flow 801 1,647 Cas
Slide 13: Financial Forecast and Annual Dividend
Financial Forecast and Annual Dividend 12/26 %: Increase/decrease ratio (1) Forecast of Consolidated Financial Results to previous term Operating Ordinary Net Sales Net Profit Profit Profit Million yen % Million yen % Million yen % Million yen % FY2022 54,842 13.7 1,128 60.3 2,503 △26.7 1,334 △55.4
Slide 14: Analysis of FY2023 Operating Profit
Consolidated | Analysis of FY2023 Operating Profit 13/26 ［ FY2022 vs. FY2023 ］ Unit: Million yen (announced on Apr. 28, 2023) Total Improve in variable cost ratio -28 million yen 2,000 575 Increase in sales amount 1,500 Operating 486 profit for Initial forecast previous term of operating profit 1,12
Slide 15: FY2022 Result and FY2023 Prospect
14/26 FY2022 Result and FY2023 Prospect President, CEO and COO YASUMITSU IKEDA
Slide 16: Net Sales by Product Div. (FY2021-FY2023)
Net Sales by Product Div. (FY2021-FY2023) 15/26 Unit: Million yen %: Compared to previous term 114% 100% 48,243 54,500 54,842 55,000 23 339 497 35 147% 4 309 34,482 31,726 92% 28,387 54,500 19,543 19,997 22,742 114% FY2021 Result FY2022 Forecast FY2022 Result FY2023 Forecast revised in Jan. 2023 Exc
Slide 17: Operating Profit by Product Div. (FY2021-FY2023)
Operating Profit by Product Div. (FY2021-FY2023) 16/26 Unit: Million yen Profitability (%)=Profit/Sales 1.5% 2.8% 2.1% 2.0% 703 1,500 1,128 1,100 1 9 0 393 235 1,500 1,036 1,083 894 △135 △160 △226 △196 FY2021 Result FY2022 Forecast FY2022 Result FY2023 Forecast revised in Jan. 2023 Exchange 112.55JP
Slide 18: Reference | Net Sales by Market (FY2021-FY2023)
Reference | Net Sales by Market (FY2021-FY2023) 17/26 Unit: Million yen FY2023 FY2023 Factors for FY2023 YoY Increase/Decrease Key Target Growth (vs. FY2022) 48,243 54,842 55,000 － Touch sensors for • Renewable 4,834 4,710 Industry/ all-in-one printers energy 97％ • Healthcare Others ＋ Units for 4,58
Slide 19: Equipment Investment
Equipment Investment 18/26 Unit: Billion yen 3.1 Strengthen Management Infrastructure (including environment and IT) Solar power generation 1.0 Machinery renewal and building repair 2.1 Digital Transformation (DX), etc. Improve Productivity Philippines Factory | 0.7 0.7 Rendering of solar power syst
Slide 20: Sales & Profit by Product Division
Progress of Medium-Term Business Plan | Sales & Profit by Product Division 19/26 Unit: Billion yen Operating profit ratio (%) Sales Profit 80 FY2021 FY2022 FY2023 8 70 60.7 55.0 7 5.1% 54.8 2.0% 60 52.6 2.1% 1.1 6 48.5 48.2 0.3 0.5 1.0% 1.5% 0.9 3.0% 50 5 0.5 0.3 32.2 3.10 40 4 29.0 34.5 31.7 27.6 2
Slide 21: Net Sales by Market
Progress of Medium-Term Business Plan | Net Sales by Market 20/26 Unit: Billion yen 60.7 52.6 54.8 55.0 48.5 48.5 48.2 5.5 5.0 4.8 4.7 Industry/Others 3.9 4.1 4.6 19.7 17.8 20.9 20.0 Car Electronics 14.8 17.1 17.3 20.6 Home Appliance 19.2 16.4 17.7 21.2 20.4 16.9 ICT 10.6 10.9 9.4 12.1 14.9 9.9 7.9
Slide 22: Product Portfolio
Progress of Medium-Term Business Plan | Product Portfolio 21/26 FY2020 Result FY2023 Medium-Term Plan FY2023 Forecast Communication 105.00JPY/USD Communication 105.00JPY/USD Communication 130.00JPY/USD modules, others modules, others modules, others 1% 2% 1% Touch Connectors for Touch Connectors for
Slide 23: Key Initiatives
Progress of Medium-Term Business Plan | Key Initiatives 22/26 Initiatives Details - Improve production per head in the production departments Improve Target: FY2023 115% (vs. FY2020) Productivity FY2022 result Overseas: 122%, Japan 104% FY2023 plan Overseas: 130%, Japan 110% - Strengthen prevention
Slide 24: FY2023 Priority Matters
FY2023 Priority Matters 23/26 1. Generate sales and profit through enhanced transnational activities. 2. Develop a new strategy to achieve sustainable growth. 3. Promote ESG management.
Slide 25: ESG Initiatives
ESG Initiatives 24/26 1. Evaluation by ESG Rating Agencies ESG Ratings SMK Score Industry Average E: 43 E:20 S&P Global 33 S: 30 20 S:18 As of May 15, 2023 G: 26 G:21 Industry: ITC Electronic Equipment, Instruments & Components CDP Climate Change 2022 B- C Activity Group: Electrical & electronic equ
Slide 26: Management Indicators
Management Indicators 25/26 FY2020 FY2021 FY2022 FY2023 Medium-Term Medium-Term Medium-Term Unit: Billion yen Result Plan Result Plan Result Plan Forecast CS 19.8 20.4 19.5 22.7 20.0 27.4 22.7 Net Sales SCI 28.4 27.6 28.4 29.0 34.5 32.2 31.7 R&D 0.3 0.5 0.3 0.9 0.3 1.1 0.5 Total incl. others 48.5 48
Slide 27: Notice
Notice 26/26 26/43 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 ti