Smk Corporation · TSE:6798

Smk — H1 FY2023 Earnings Presentation

24 slides from Smk's earnings presentation, Nov 9, 2023

  1. Slide 1: FY2023 1st Half Investor Briefing

    1/24 FY2023 1st Half Investor Brief ing —Challenge, Creativity, Solutions SMK Corporation (6798) November 9, 2023

  2. Slide 2: FY2023 2Q Outline of Financial Statement

    2/24 FY2023 2Q 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

  3. Slide 3: Consolidated 2Q Financial Results

    <Consolidated> 2Q Financial Results 3/24 Unit: Million yen FY2022 FY2023 Net Sales 4-9 4-9 Profit △16.5% 27,638 27,000 4,500 23,075 (26,500) 3,348 3,500 2,983 17,000 2,500 1,118 (200) 1,500 7,000 1,010 (100) 752 500 △3,000 △ 177 (0) △500 Net Sales Operating Profit Ordinary Profit Net Profit Figures

  4. Slide 4: Consolidated 2Q Financial Results (by Quarter)

    <Consolidated> 2Q Financial Results (by Quarter) 4/24 Unit: Million yen FY2023 FY2023 FY2023 Net Sales 4-6 7-9 4-9 Profit 27,000 4,500 23,075 3,500 ＋9.1% 17,000 2,500 12,037 11,038 1,118 1,500 7,000 1,010 694 520 424 490 500 208 △3,000 △ 177 △500 △ 385 Net Sales Operating Profit Ordinary Profit Net

  5. Slide 5: Revision of Financial Result Forecast

    <Consolidated> Revision of Financial Result Forecast 5/24 Upper row: Percentage to net sales Lower row: Increase (decrease) ratio to FY2022 Forecast of consolidated operating results for FY 2023 (Full-year) Disclosed Operating Ordinary Net Sales Net Profit on Profit Profit Million yen % Million yen

  6. Slide 6: Operating Expenses

    <Consolidated> Operating Expenses 6/24 FY2022 FY2023 Unit: Million yen 4-9 4-9 [ ]: Sales Ratio 26,886 23,252 30,000 [97.3%] [100.8%] Material costs Amount paid to subcontractors 25,000 Labor costs 20,000 13,102 47.5% Expenses 10,569 45.8% Depreciations 15,000 2.3% 639 1.5% 342 • Improved by 2.5% 10

  7. Slide 7: Changes in Operating Profit vs. corresponding previous period

    <Consolidated> Changes in Operating Profit vs.corresponding previous period 7/24 Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ FY2022 4-9 vs. FY2023 4-9 ］ Total 1,200 Operating After adjusting impact of foreign exchange rates △929 million yen profit f

  8. Slide 8: Changes in Operating Profit vs. initial forecast

    <Consolidated> Changes in Operating Profit vs. initial forecast 8/24 Analysis of factors for increase/decrease Unit: Million yen of consolidated operating profit ［ Initial forecast vs. FY2023 4-9 ］ Total 400 △177 million yen (announced on Apr. 28, 2023) Initial forecast of operating profit Decrease

  9. Slide 9: Non-operating Profit and Loss

    <Consolidated> Non-operating Profit and Loss 9/24 FY2022 FY2023 Unit: Million yen 4-9 4-9 2,596 1,295 [ ]: Sales Ratio 3,000 [9.4%] [5.6%] Revenue from and expenditure to real estates 2,500 223 Foreign exchange profit/loss 2,000 Financial account balance 1,500 Others 2,220 214 1,000 Financial accoun

  10. Slide 10: Extraordinary Profit and Loss

    <Consolidated> Extraordinary Profit and Loss 10/24 240 FY2022 FY2023 Unit: Million yen 4-9 4-9 200 △20 146 [ ]: Sales Ratio Gain on sales of fixed assets 160 Loss on disposal of 120 fixed assets 182 Loss on valuation of 80 investment securities 40 Others Others 2 1 0 △ 23 △ 36 Loss on valuation of i

  11. Slide 11: Segment Information

    <Consolidated> Segment Information 11/24 FY2023 4-9 Unit: Million yen Reporting Segment CS SCI R&D Others* TOTAL Total Division Division Center Net Sales 10,349 12,512 205 23,067 7 23,075 Operating Profit/Loss (△) 526 △608 △91 △173 △3 △177 FY2022 4-9 Reporting Segment CS SCI R&D Others* TOTAL Total

  12. Slide 12: Financial Performance Trend (Full-year)

    <Consolidated> Financial Performance Trend (Full-year) 12/24 FY2022 FY2023 Unit: Million yen Forecast Profit Net Sales 70,000 △8.8% 7,000 60,000 6,000 54,842 50,000 50,000 5,000 40,000 4,000 30,000 2,503 3,000 20,000 2,000 1,334 1,128 1,100 800 10,000 1,000 100 0 0 Net Sales Operating Profit Ordinar

  13. Slide 13: Cash Position

    <Consolidated> Cash Position 13/24 Unit: Million yen Mar. 2023 Sept. 2023 Differential (A) (B) (B-A) Assets 56,365 59,140 2,775 Cash and cash equivalents 8,969 9,931 961 Accounts receivable 13,176 13,311 134 Inventories 10,073 10,990 917 Fixed assets 23,113 23,812 699 Liabilities 24,090 25,825 1,735

  14. Slide 14: Cash Flow Position

    <Consolidated> Cash Flow Position 14/24 Unit: Million yen FY2022 4-9 FY2023 4-9 Cash flow from operating activities 1,816 2,062 Working capital △1,985 75 Profit before taxes 3,328 1,264 Depreciation 1,393 1,254 Others △920 △532 Cash flow from investing activities △887 △977 Free cash flow 929 1,084 C

  15. Slide 15: Annual Dividend

    Annual Dividend 15/24 At second At fiscal Annual quarter end year end FY2022 0.00 yen 100.00 yen 100.00 yen Result FY2023 50.00 yen ― ― Result FY2023 ― 50.00 yen 100.00 yen Forecast

  16. Slide 16: FY2023 Prospect

    16/24 FY2023 Prospect President, CEO and COO YASUMITSU IKEDA

  17. Slide 17: Net Sales by Product Div. (FY2022-FY2023)

    Net Sales by Product Div. (FY2022-FY2023) 17/24 Unit: Million yen 91% %: Compared to 98% previous term 54,842 51,000 50,000 60,000 23 339 35 412 50,000 122% 40,000 34,482 26,929 78% 30,000 51,000 20,000 10,000 19,997 22,623 113% 0 FY2022 Result FY2023 Forecast FY2023 Forecast revised in July revised

  18. Slide 18: Operating Profit by Product Div. (FY2022-FY2023)

    Operating Profit by Product Div. (FY2022-FY2023) 18/24 Unit: Million yen Profitability (%)=Profit/Sales 2.1% 1.4% 0.2% 1,600 1,128 700 100 1 1,200 393 800 1,396 400 894 700 0 △160 △400 △1,057 △800 △1,200 △231 △1,600 △7 FY2022 Result FY2023 Forecast FY2023 Forecast revised in July revised in Oct. 1H:

  19. Slide 19: Reference: Net Sales by Market (FY2021-FY2023)

    Reference: Net Sales by Market (FY2021-FY2023) 19/24 Unit: Million yen FY2023 FY2023 Factors for FY2023 YoY Increase/Decrease Key Target Growth (vs. FY2022) 48,243 54,842 50,000 － Touch sensors for all-in-one printers • Renewable 4,834 Industry/ energy 97％ ＋ Units for • Healthcare Others 4,680 photo

  20. Slide 20: FY2023 Priority Matters

    FY2023 Priority Matters 20/24 1. Generate sales and profit through enhanced transnational activities. 2. Develop a new strategy to achieve sustainable growth. 3. Promote ESG management.

  21. Slide 21: Enhancement of Japan's Production sites

    Enhancement of Japan’s Production sites 21/24 ■ Enhancement of Hitachi Works (Showa Denshi) <Objectives> ✓ Establishment of production system for new products. ✓ Enhancement of domestic production capabilities. ⇒ Production Capacity of SCI products at Hitachi Works: 200% Before v After v v v SW v RC

  22. Slide 22: Exhibitions

    Exhibitions 22/24 ✓ Enhanced participation in public exhibitions (FY2022: 13 ⇒ FY2023: 15) ✓ Press release on new healthcare business (November 9 th) Exhibition Date Venue In-house SMK Advanced Development Nov. 8-10 Head Office Annex 1 show Technology Show 2023 Automotive Engineering Exposition 2023

  23. Slide 23: ESG Initiatives

    ESG Initiatives 23/24 1. Integrated Report Published/will be published on the SMK website on October 30th (Japanese) on November 30th (English) https://www.smk.co.jp/company/ir/integrated_report/ 2. Aiming for Carbon Neutrality ■ Long-term target: FY2045 Achieve carbon neutrality ■ Medium-term targe

  24. Slide 24: Notice

    Notice 24/24 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

SMK — H1 FY2023 Earnings Presentation on 6ix