Smk Corporation · TSE:6798
Smk — H1 FY2006 Earnings Presentation
41 slides from Smk's earnings presentation, Oct 30, 2006
Slide 1: Business Report for FY2006
October,2006 Business Report for FY2006 - From Apr.2006 to Sep.2006 - http://www.smk.co.jp/
Slide 2: Consolidated Performance for FY2005/1H to FY2006/1H
2/18 <Consolidated> Performance for FY2005/1H to FY2006/1H Unit:Million yen 40,000 39,300 5,000 36,963 37,000 35,000 34,897 4,500 4,000 30,000 3,834 3,500 25,000 3,313 2,945 3,000 2,700 2,567 20,000 2,500 2,349 2,400 2,335 2,000 15,000 1,839 1,941 1,750 1,500 1,634 10,000 1,000 5,000 500 0 0 FY2005
Slide 3: Consolidated FY2006 1H settlement-of-accounts: Sales Expense
3/18 <Consolidated> FY2006 1H settlement-of-accounts presentation 1. Sales Expense Unit:Million yen FY2005 FY2006 1H 1H 32,548 35,987 (93.3%) (91.6%) ( ):Percentage to sales amount 40,000 Material costs Expenses for external manufacturing processing 30,000 Labor costs 53.1% 53.6% Expenses 20,000 Dep
Slide 4: Analysis of sales expenses
4/18 2. Analysis of sales expenses Analysis of profit increase/decrease factors for FY2006 1H Comparison of consolidated operating profits in 2 fiscal terms [FY2005 1H vs. FY2006 1H] (Unit:Million yen) A.Factors for profit increases B.Factors for profit decrease 2,179 total Total -1,215 increase all
Slide 5: Non-operating profits and losses
5/18 3. Non-operating profits and losses FY2005 FY2006 (Unit:Million yen) 1H 1H 596 521 (1.7%) (1.3%) ( ):Percentage to sales amount Revenues from and expenditure to fixed assets 312 Misc. revenues 321 Financial account balance Foreign currency exchange gain or loss 72 328 156 Comparison with the pr
Slide 6: Net sales / Operating Profit by Product Division
Net sales / Operating Profit by Product Division 6/18 (FY2005 1H, FY2006 1H) Unit:Million yen Net Sales 45,000 39,300 34,897 Operating Profit 40,000 2,381 35,000 Million yen 2,643 30,000 16,753 4,000 3,313 25,000 16,132 3,500 2,349 3,000 672 20,000 2,500 15,000 661 2,000 10,000 20,166 1,500 2,751 16
Slide 7: 1H Net Sales by Market (FY2004-FY2006)
7/18 1H Net Sales by Market(FY2004 -FY2006) 45,000 Million yen 112.6% 39,300 40,000 33,309 34,897 714 99.4% 100.4% 2,448 35,000 711 715 112.2% 2,198 111.3% 5,245 1,959 89.4% 30,000 5,869 86.6% 6,776 25,000 15,063 11,059 136.2% 20,000 8,764 126.2% 15,000 3,483 3,129 111.3% 3,483 100% 10,000 11,964 11
Slide 8: Net Sales / Operating Profit / Ordinary profit / Net Profit
Net Sales / Operating Profit / Ordinary profit / Net Profit 9/18 (FY2005-FY2006) Profit : Million yen Net Sales : Million yen 77,300 80,000 75,000 10,000 71,860 9,000 70,000 8,000 60,000 6,400 7,000 50,000 5,512 5,600 5,500 6,000 5,000 40,000 5,000 4,290 3,600 3,900 3,473 4,000 30,000 3,000 20,000 2
Slide 9: Business trend of individual markets-1 Audio & Visual
Business trend of Audio & Visual 10/18 individual markets-1 [Net Sales] Comparison to last year performance 106.7% Unit:Million yen 12,345 Remote control unit 11,575 TP TN sales increase 9 • For thin TVs:European and ASEAN 4 markets 10,000 FC •For STBs:North American market New conecctters’ contribu
Slide 10: Business trend of individual markets-2 Car Electronics
Business trend of Car Electronics 11/18 individual markets-2 [Net Sales] Unit:Million yen Comparison to last 4,000 year performance 100.0% Temporary decline in 3,483 3,483 Touch panels Sales decline due to change of product models TP 2,005 1,733 Increase in Connectors 2,000 Sales increase of jacks f
Slide 11: Business trend of individual markets-3 Communication
Business trend of Communication 12/18 individual markets-3 Comparison to last [Net Sales] year performance Unit:Million yen 136.2% Increase in units 16,000 Others 24 15,063 TP 8 Increase in sales of 14,000 FC BluetoothTM units due 2,909 to rising domestic 12,000 11,059 9 demand for music 10,000 2,57
Slide 12: Business trend of individual markets-4 Computer
Business trend of Computer 13/18 individual markets-4 [Net Sales] Unit:Million yen Comparison to last year performance 89.4% Cradle 6,000 5,869 Decrease in cradle sales due to 538 Others continually decreasing digital 12 5,245 camera prices TP 521 4,000 FC 3,442 FPC Connector 2,887 Decrease in FPC c
Slide 13: SMK's major management challenges
SMK’s 3 major management challenges14/18 1.Three Challenges Enhancement of SMK’s brand power. Promotion of TN wide activity for ZD (Zero Defect) to improve quality. Another try for product creation Start for “SMILE” activity (For 3 years) SMK Manufacturing Innovation Leads to ZD 2.Turning red-ink bu
Slide 14: Topics-1 Opening / expansion of overseas sales offices
15/18 Topics-1 Opening / expansion of 4 overseas sales offices (Sept. to Oct. 2006) Opening: Chicago,Dortmund and Beijing Expansion: Seoul
Slide 15: Topics-2 Enhancement of production bases
16/18 Topics-2 Enhancement of production bases 1.China Dongguan : Addition of production floors(Consolidation of factories 1 and 2, plus construction of a new building) Production capacity ->A 50% increase over the 2005 capacity (effective from Oct. 2006) Shenzhen: A 50% increase by addition of prod
Slide 16: The 7th medium term business plan
17/18 The 7th medium term business plan (for 2007 through 2009) being laid down Slogan CREATING AN EXCITING FUTURE Target 2010 Sales - 100 billion yen, Operating Profit - 10% Earliest achievement of becoming a 100 billion yen selling company maintaining reasonable profits
Slide 17: Innovation and creation company management
18/18 Innovation and creation -Practicing speedy company management
Slide 18: CS Division
CS-1/10 CS Division 1. Transition of sales and profits 2. Market-specific sales 3. Product strategy and Division policy CS Div. IR’06.10
Slide 19: Connector Jack
CS-2/10 CS= Connection System Main products Connector/Jack Connector Jack Speaker terminal FPC connector I/O connector Card connector DC power supply jack, Headphone jack CS Div. IR’06.10
Slide 20: Consolidated Net sales, Operating profits
<Consolidated>Net sales,Operating profits CS-3/10 Unit:100 million 80 (118%) Net sales Operating profits 11.7% 60 Percentage of profits 11.0% 46.1 (95%) 36.6 40 27.5 13.6% 18.6 20 9.7% 0 CS Div. IR’06.10
Slide 21: Transition of consolidated market-specific sales
Transition of consolidated market-WG-specific sales CS-4/10 Living 1% 1% 1% 1% 5% 4% 3% 4% 5% 6% 6% 5% Industrial Car electronics Audio/visual 32% 29% 26% 27% Information technologies 57% 60% 64% 63% 1H Result 2H Result 1H Result 2H Prospect CS Div. IR’06.10
Slide 22: Interface connectors
Sale transition Interface connectors CS-5/10 *With FY2004 as 100 Connectors for mobile phones Multi-functionality and addition of high value,Good business records with small and compound items Connectors for notebook PCs Optimization of items compatible HDMI Connector with fast transmission and stan
Slide 23: B to B Connectors
Sale transition B to B Connectors CS-6/10 Strategic *With FY2004 as 100 0.4mm Pitch products B to B connectors PB-4B :H=1.2mm PB-4A:H=0.8mm H=0.7mm is sio n tr ans m s pee d Sales Hig h EM C strategy Enrichment of shielded products Deployment for general applicability to portable equipment DSCs,camc
Slide 24: Car electronics
Car electronics CS-7/10 ETC Coaxial connectors,TC- 15 series Multi-pole external connectors In-vehicle NK-10:Connector for camera connector market FOMA-USB signal Monitor camera connectors Coaxial connectors for digital broadcast Coaxial connector,SMB series Front Back North America:Xm broadcast Bus
Slide 25: Enhancement of SMK-SZ's production capacity
CS-8/10 Enhancement of SMK-SZ’s production capacity CS Div. IR’06.10
Slide 26: Enhancement of domestic production capacity using automatic machines
CS-9/10 Enhancement of domestic production capacity using automatic machines CS Div. IR’06.10
Slide 27: Div.'s policy for FY2006
CS-10/10 Div.’s policy for FY2006 1.Promotion of development of technologies and products 2.Pursuit of optimal means 3.Elevation of total strength CS Div. IR’06.10
Slide 28: FC Division
FC Division Achievement for the 1st half of FY2006 and projection for the 2nd half 1.<Consolidated> Sales and operating profits 2.<Consolidated> Market-specific sales 3.Introduction of key strategic products
Slide 29: FC=Functional Components
FC=Functional Components [Main products]:Switch/Keyboard/Control panel/Earphone microphone/Cradle/Microphone/Remote Control Unit/Camera module SW (Switch) UN (Unit) Earphone Cradle Electret Condenser Various type of switches microphone Microphone (ECM) RC (Remote Control) MD (Module) Remote Control
Slide 30: Consolidated Net sales, Operating profit
1.<Consolidated> Net sales,Operating profit [Net sales] [Profit] Unit:100 million yen Net sales Operating Net sales Operating Net sales Operating Net sales Operating profit profit profit profit FY2005 FY2006 FY2006 1H FY2006 2H Result Projection Result Projection
Slide 31: Consolidated Market-specific sales
2.<Consolidated> Market-specific sales %(Composition ratio) FY2005 FY2006 FY2006 1H FY2006 2H Result Projection Result Projection
Slide 32: FC Division's key strategic products-1
FC-5/7 3. FC Division’s key strategic products -1 Mobile phone application market BluetoothTM pendants Remote controls for Windows Earphone microphone Vista 1-Seg. Broadcast antennas PC market Remote controls for large flat-screen TVs AV equipment application market
Slide 33: FC Division's key strategic products-2
3.FC Division’s key strategic products -2 Mobile phone parts market Car electronics parts market Small horizontal Rubber single key switches switch Thin slide switches Detector switches(DSI/DSJ) Multi function switches AV equipment application market
Slide 34: FY2006: Seeding for the medium term business plan
FY2006 : Seeding for the medium term business plan (for FY2007 through through FY2009) Product development Human resources Cost reduction
Slide 35: TP Division
TP Division Contents 1.Introduction of TP Division and its products 2.Achievement and projection of consolidated sales amounts and profits 3.Market specific-ratio of sales 4.TP Div’s major activity points
Slide 36: TP Division touch panel main products
TP Division Glass+Glass+polarization Touch Panel plate type (Low reflectance type) •Linear polarization type Main Mainproducts products •Circular polarization type Film+Glass type Resistance sensitive Analog type •General use type system •Low reflectance type •Contamination-resistant type Digital ty
Slide 37: Consolidated Net sales and Operating profit
<Consolidate>Net sales and Operating profit Unit:100 million yen Net sales Operating profit 51 48 Domestic 27 24 Overseas 1.5 1.1 0.4 3.5 FY2005 FY2006 FY2006 1H FY2006 2H Result Projection Result Projection
Slide 38: TP Div's consolidated market-specific ratio of sales
TP Div’s <Consolidated> market-specific ratio of sales Ratio of sales per market:% Others PC ATM 21% 19% 21% POS 75% 75% 70% Car electronics FY2004 Result FY2005 Result FY2006 Projection
Slide 39: FY2006 key activity points
FY2006 key activity points Achievement of planned sales(for improved profits) 1 Marketing of differentiation products Touch panels of Glass+Glass,high transparency and low reflectance Film+Glass,force feedback,and integrated optical types 2 Marketing in the overseas markets Glass+Glass:Europe and US
Slide 40: Markets under an intense focus (by size)
Markets under an intense focus (by size) 50,000> Mobile Business achieved Smart phone Target Game 10,000> Portable nav. PDA 5,000> MFP PPC DVC Car Navi 3,000> PC POS 2,000> 1,000> Interphone Arcade game 500> Portable terminal FA ATM KIOSK 300> 100> <Qty> Medical Unit:K set/Y 2.5 3.8 6.5 7 8 10.4 12.
Slide 41: Force feedback touch panel and optical touch panels
Force feedback touch panel Optical touch panels Car nav. PDA/PC Shinkansen’s cockpit seats Household Portable elec.appliances terminals ATM Terminal Resistance Optical touch sensitive system PPC/MFP POS panels & LCD module &LCD module User side Bank clerk side