Slide 1: FY2019 Investor Briefing
1/22 FY2019 Investor Briefing May 29, 2020
Slide 2: FY2019 Outline of Financial Statement
2/22 FY2019 Outline of Financial Statement Executive Vice President and CFO KOHEI OHGAKI
Slide 3: <Consolidated> Financial Results
3/22 <Consolidated> Financial Results Unit: Million yen FY2018 FY2019 Net Sales Profit 75,000 5.6% DOWN 15,000 57,386 60,000 54,161 12,000 45,000 9,000 30,000 6,000 15,000 3,000 0 0 -707 -834 -244 -185 -15,000 -1,834 -3,000 -2,651 Net Sales Operating Profit Ordinary Profit Net Profit
Slide 4: <Consolidated> Financial Results
4/22 <Consolidated> Financial Results Unit: Million yen FY2019 Forecast FY2019 Net Sales published on Profit Jan. 28, 2020 75,000 1.5% DOWN 15,000 60,000 55,000 54,161 12,000 45,000 9,000 <Impact of COVID-19 in 4Q> 30,000 Net Sales -920 6,000 Operating Profit -640 15,000 3,000 150 450 200 0 0 -244 -
Slide 5: <Consolidated> Operating Expenses
5/22 <Consolidated> Operating Expenses Unit: Million yen FY2018 FY2019 59,220 54,405 [ ]: Sales Ratio [103.2%] [100.5%] 60,000 Material costs Amount paid to subcontractors 50,000 Labor costs 28,841 27,382 Expenses 40,000 50.3% 50.6% Depreciations 30,000 1,296 2.3% 817 1.5% • Improved by 0.5% 20,000
Slide 6: <Consolidated> Analysis of Changes in Operating Profit
6/22 <Consolidated> Analysis of Changes in Operating Profit Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ FY2018 vs. FY2019 ］ Total 1,500 ＋1,590 million yen Reduction in fixed costs (labor costs/expenses/ depreciations) 1,000 1,621 500 Increase in var
Slide 7: <Consolidated> Non-operating Profit and Loss
7/22 <Consolidated> Non-operating Profit and Loss Unit: Million yen FY2018 FY2019 1,127 59 [ ]: Sales Ratio [2.0%] [0.2%] 1,200 Foreign exchange profit/loss 1,000 350 Revenue from and expenditure to 800 real estates 600 Financial account balance 520 491 400 200 Others 279 264 0 Foreign exchange gain
Slide 8: <Consolidated> Extraordinary Profit and Loss
8/22 <Consolidated> Extraordinary Profit and Loss FY2018 FY2019 Unit: Million yen 1,011 -2,980 1,500 [ ]: Sales Ratio 195 1,000 1,316 Gain on sales of 500 investment securities 54 0 -153 -9 Gain on sales of fixed assets -199 (Others) -500 -148 -72 -1,000 Loss on impairment -1,500 -2,953 Loss on disp
Slide 9: <Consolidated> Segment Information
9/22 <Consolidated> Segment Information Unit: Million yen FY2019 Reporting Segment CS SCI R&D Others* TOTAL Total Division Division Center Net Sales 18,670 35,137 281 54,088 73 54,161 Operating Profit (Loss) 141 10 (279) (127) (117) (244) FY2018 Reporting Segment CS SCI R&D Others* TOTAL Total Divis
Slide 10: <Consolidated> Cash Position
10/22 <Consolidated> Cash Position Unit: Million yen Mar. 2019 Mar. 2020 Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets 58,713 50,204 (8,509) Cash and cash equivalents 10,889 10,514 (374) Accounts receivable 14,496 12,332 (2,164) Inventories 8,071 6,426 (1,645) Fixed assets 24,430 19,872 (4,557) Liabilities 30,1
Slide 11: <Consolidated> Cash Flow Position
11/22 <Consolidated> Cash Flow Position Unit: Million yen FY2018 FY2019 Cash flow from operating activities 1,608 6,345 Working capital (679) 3,931 Profit before taxes 303 (3,165) Depreciation 3,664 3,292 Others (1,680) 2,287 Cash flow from investing activities (2,091) (2,525) Free cash flow (483) 3
Slide 12: Financial Forecast and Annual Dividend
12/22 Financial Forecast and Annual Dividend %: Increase (decrease) (1) Forecast of Consolidated Financial Results ratio to previous term Operating Ordinary Net Profit Net Sales Profit (Loss) Profit (Loss) (Loss) Million yen % Million yen % Million yen % Million yen % FY2019 54,161 (5.6) (244) － (18
Slide 13: FY2019 Result and FY2020 Prospect
13/22 FY2019 Result and FY2020 Prospect President, CEO and COO YASUMITSU IKEDA
Slide 14: Net Sales by Product Div. (FY2018-FY2020)
14/22 Net Sales by Product Div. (FY2018-FY2020) Unit: Million yen %: Compared to 80,000 previous term 94% 87% 98% 57,386 55,000 54,161 47,000 60,000 471 21 281 73 60% 30 410 146% 40,000 35,180 35,137 28,024 100% 80% 20,000 21,712 18,670 18,536 86% 99% 0 FY2018 Result FY2019/Jan FY2019 Result FY2020
Slide 15: Operating Profit by Product Div. (FY2018-FY2020)
15/22 Operating Profit by Product Div. (FY2018-FY2020) Unit: Million yen Profitability (%)=Profit/Sales 0.4% 1,000 -1,834 150 -244 200 500 10 604 258 141 0 -101 -279 -281 -117 -500 -861 -21 -1,000 -316 -1,500 -914 -2,000 -2,500 FY2018 Result FY2019/Jan FY2019 Result FY2020 Forecast Revised Forecast
Slide 16: Reference: Net Sales by Market (FY2018-FY2020)
16/22 Reference: Net Sales by Market (FY2018-FY2020) Unit: Million yen %: Compared to 60,000 57,386 previous term 54,161 7,185 6,140 50,000 47,000 5,600 91% 40,000 20,338 Industry/ 17,879 Others 14,700 82% 30,000 Car Electronics 20,000 20,397 21,369 17,300 81% Home 10,000 Appliance 9,464 8,772 9,400
Slide 17: FY2020 Priority Matters
17/22 FY2020 Priority Matters 1. Conduct business operation in response to the COVID-19 crisis 2. Restore profitability by reducing break-even point 3. Expand business and strengthen the corporate structure with an eye toward post COVID-19
Slide 18: SMK Group Operating Status (as of May 25)
18/22 SMK Group Operating Status (as of May 25) Base Resumed from Attendance Toyama Japan Not affected Hitachi China Shenzhen March 11 100% Works Dongguan March 10 100% ASEAN Malaysia May 4 90% Philippines April 13 (partially) 40% North America Mexico May 4 (partially) 75% Country/Region Working sty
Slide 19: Approach to ICT Market
19/22 Approach to ICT Market Unit: Million yen %: Compared to 10,000 previous term 5,000 9,464 9,400 107% 8,772 0 FY2018 Result FY2019 Result FY2020 Forecast Target Applications Key Promotion Products 5G Smartphone, tablet PC, RF connector, board to board base station (including connector, local 5G
Slide 20: R&D Center's Approach to Smart Street Light business
20/22 R&D Center’s Approach to Smart Street Light business LPWA＋System ■Potential of smart street light (worldwide) FY2013: 3M ⇒ FY2020: 17M units ■Other applications Strength Tilt sensing NEC commenced the demonstration evaluation experiment of the smart street lighting employing SMK’s wireless mod
Slide 21: New Approach: smk-X
21/22 New Approach: smk-X Scope of smk-X Smile curve Added Value (Profitability) Product R&D, Design, Service planning Manufacturing Business flow
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