Slide 1: FY2020 1st Half Investor Briefing
1/25 FY2020 1st Half Investor Briefing November 10th 2020
Slide 2: FY2020 2Q Outline of Financial Statement
2/25 FY2020 2Q Outline of Financial Statement Executive Vice President and CFO KOHEI OHGAKI
Slide 3: Consolidated 2Q Financial Results
3/25 <Consolidated> 2Q Financial Results Unit: Million yen FY2019 FY2020 Net Sales 4-9 4-9 Profit 40,000 19.4% DOWN 2,000 28,419 30,000 1,500 22,906 20,000 1,000 626 583 452 10,000 500 0 0 -120 -10,000 -500 -396 -520 -20,000 -1,000 Net Sales Operating Profit Ordinary Profit Net Profit
Slide 4: Consolidated 2Q Financial Results (by Quarter)
4/25 <Consolidated> 2Q Financial Results (by Quarter) Unit: Million yen FY2020 FY2020 FY2020 Net Sales Profit 4-6 7-9 4-9 25,000 22,906 2,500 20.1% UP 15,000 1,500 12,499 10,407 820 829 638 626 583 452 5,000 500 -194 -246 -5,000 -186 -500 Net Sales Operating Profit Ordinary Profit Net Profit
Slide 5: Consolidated Operating Expenses
5/25 <Consolidated> Operating Expenses Unit: Million yen FY2019 FY2020 4-9 4-9 [ ]: Sales Ratio 28,539 22,454 30,000 [100.4%] [98.0%] Material costs Amount paid to subcontractors 25,000 Labor costs 14,555 51.2% Expenses 20,000 Depreciations 11,058 48.3% 15,000 418 1.5% • Decreased by 2.7％ in ratio o
Slide 6: Analysis of Changes in Operating Profit
6/25 <Consolidated> Analysis of Changes in Operating Profit Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit Total ［ FY2019 4-9 vs FY2020 4-9 ］ 2,500 ＋572 million yen Reduction in Decrease in Decrease in fixed costs variable costs sales amount (labor costs
Slide 7: Analysis of Changes in Operating Profit vs Forecast
7/25 <Consolidated> Analysis of Changes in Operating Profit Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ FY2020 4-9 vs published forecast ］ Total 800 Reduction in fixed costs ＋602 million yen (labor costs/expenses/ depreciations) 600 663 Operating pr
Slide 8: Consolidated Non-operating Profit and Loss
8/25 <Consolidated> Non-operating Profit and Loss Unit: Million yen FY2019 FY2020 4-9 4-9 -276 174 [ ]: Sales Ratio 600 [-1.0%] [0.7%] Revenue from and expenditure to real estates 266 268 Employment adjustment subsidy 200 2 261 297 (Others) Foreign exchange profit/loss -1 -17 Financial account balan
Slide 9: Consolidated Extraordinary Profit and Loss
9/25 <Consolidated> Extraordinary Profit and Loss 120 Unit: Million yen FY2019 FY2020 4-9 4-9 [ ]: Sales Ratio 100 30 -31 80 Gain on sales of fixed assets 60 Loss on sales of fixed assets 40 86 20 Loss on disposal of fixed assets 20 0 Loss on liquidation of subsidiary -22 -20 -37 -40 -28 -18 -60 Pro
Slide 10: Consolidated Segment Information
10/25 <Consolidated> Segment Information FY2020 4-9 Unit: Million yen Reporting Segment CS SCI R&D Others* TOTAL Division Division Center Total Net Sales 9,347 13,403 147 22,898 8 22,906 Operating Profit (Loss) 730 (111) (134) 484 (32) 452 FY2019 4-9 Reporting Segment CS SCI R&D Others* TOTAL Divisi
Slide 11: Revised Financial Result Forecast
11/25 <Consolidated> Revised Financial Result Forecast Upper row: Percentage to net sales Lower row: Increase (decrease) ratio to FY2019 Forecast of consolidated operating results for FY 2020 (Full-year) Disclosed on Net Sales Operating Profit Ordinary Profit Net Profit Million yen % Million yen % M
Slide 12: Changes in Financial Results (Full-year)
12/25 <Consolidated> Changes in Financial Results (Full-year) Unit: Million yen FY2019 FY2020 Net Sales Forecast Profit 15.1% DOWN 60,000 54,161 6,000 50,000 46,000 5,000 40,000 4,000 30,000 3,000 20,000 1,400 2,000 800 900 10,000 1,000 0 0 -10,000 -244 -185 -1,000 -20,000 -2,000 -30,000 -3,000 -2,6
Slide 13: Changes in Financial Results (Half year)
13/25 <Consolidated> Changes in Financial Results (Half year) Unit: Million yen Net Sales FY2019 FY2019 FY2020 FY2020 Profit 4-9 10-3 4-9 10-3 40,000 Forecast 4,000 28,419 30,000 25,742 3,000 22,906 23,094 20,000 2,000 774 10,000 626 1,000 211 452 583 348 317 0 0 -120 -124 -10,000 -396 -1,000 -520 -
Slide 14: Consolidated Cash Position
14/25 <Consolidated> Cash Position Unit: Million yen Mar. 2020 Sept. 2020 Differential （Ａ） （Ｂ） （Ｂ－Ａ） Assets 50,204 48,164 (2,040) Cash and cash equivalents 10,514 8,708 (1,806) Accounts receivable 12,332 12,287 (45) Inventories 6,426 6,049 (377) Fixed assets 19,872 20,020 147 Liabilities 25,575 22,8
Slide 15: Consolidated Cash Flow Position
15/25 <Consolidated> Cash Flow Position Unit: Million yen FY2019 4-9 FY2020 4-9 Cash flow from operating activities 2,407 1,051 Working capital 1,613 (620) Profit before taxes (366) 595 Depreciation 1,656 1,035 Others (496) 41 Cash flow from investing activities (1,543) (1,049) Free cash flow 864 1
Slide 16: Annual Dividend
16/25 Annual Dividend At second At fiscal Annual quarter end year end FY2019 0.00 yen 40.00 yen 40.00 yen Result FY2020 0.00 yen ― ― Result FY2020 ― 40.00 yen 40.00 yen Forecast
Slide 17: FY2020 Prospect
17/25 FY2020 Prospect President, CEO and COO YASUMITSU IKEDA
Slide 18: Net Sales by Product Div. (FY2019-FY2020)
18/25 Net Sales by Product Div. (FY2019-FY2020) Unit: Million yen 85% %: Compared to previous term 98% 70,000 54,161 47,000 46,000 60,000 281 73 50,000 410 30 371 27 40,000 35,137 30,000 28,024 26,931 77% 20,000 10,000 18,670 18,536 18,670 100% 0 FY2019 FY2020/Apr FY2020/Oct Result Initial Forecast
Slide 19: Operating Profit by Product Div. (FY2019-FY2020)
19/25 Operating Profit by Product Div. (FY2019-FY2020) Unit: Million yen Profitability (%)=Profit/Sales 1,500 0.4% 1.7% -244 200 800 1,000 69 500 1,028 604 10 0 141 -101 -279 -252 -281 -44 -117 -21 -500 FY2019 FY2020/Apr FY2020/Oct Result Initial Forecast Revised Forecast Exchange 1H:106.57JPY 1USD=
Slide 20: Reference: Net Sales by Market (FY2018-FY2020)
20/25 Reference: Net Sales by Market (FY2018-FY2020) Unit: Million yen %: Compared to 57,386 54,161 previous term 60,000 7,185 46,000 50,000 6,140 Industry/ 4,130 67% Others 40,000 20,338 17,879 13,430 75% Car 30,000 Electronics 20,000 Home 20,397 21,369 17,920 84% Appliance 10,000 ICT 9,464 8,772 1
Slide 21: FY2020 Priority Matters
21/25 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 22: Transformation of Subsidiaries
22/25 Transformation of Subsidiaries July 2020 Closure of Chongqing Office in China (switched to SOHO) July 2020 Liquidation of SMK-BRAZIL Sep. 2020 Bankruptcy of SMK-LOGOMOTION Oct. 2020 Relocation of SMK-KOREA SMK-KOREA Chongqing Office SMK-LOGOMOTION SMK-BRAZIL
Slide 23: COVID-19 Related Products: Contactless Solutions
23/25 COVID-19 Related Products <Contactless Solutions> Key Target Products Markets/Applications Office Elevator Capacitive Touchless Panel Touch Panel Equipped With Proximity and with Image Sensor Hover Sensing Functions Kiosk ATM 3D Shape Touchless Switch Voice Recognition Remote Control Unit Medi
Slide 24: Online Exhibition
24/25 Online Exhibition 1. Online SMK Advanced Development Technology Show Oct. 29 (Thu.) – 30 (Fri.), 2020 - Attending to customers online - Videos including demonstration of products - Product explanation with photos and illustrations - Inquiries via chat - Seminars (6 sessions in 2 days) Online S
Slide 25: Notice
25/25 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