Business Report for FY2009 From Apr to Mar SMK Corporation Apr, 2010

Transcription

1 1/51 Business Report for FY29 From Apr. 29 to Mar. 21 SMK Corporation Apr, 21

2 2/51 FY29 Outline of Financial Statement Director and Executive Vice President Hajime Yamada

3 <Consolidated> Financial Result 3/51 Sales Amount : Million yen FY % FY29 Income : Million yen 8, 72,742 64,371 8, 6, 6, % 4, 2, 238 1,29 2,479 2,582 1,862 4, 2, -2, 1,62-2, Net Sales Operating Income Ordinary Income Net Income

4 <Consolidated> Sales Expenses 4/51 Unit : Million yen 8, 6, 4, 2, FY28 FY29 72,54 61,892 (99.7%) (96.1%) 38,624 6,145 14, % 8.4% 19.8% 32,59 5,428 14,4 7, % 5,89 5, % 4,61 Operating 238 2,479 Income (.3%) (3.9%) 5.6% 8.4% 21.8% 9.% 6.3% ( ) : percentage to sales amount Material costs Expenses external manufacturing processing Labor costs Expenses Depreciation Allowances [(Material costs+expenses for external manufacturing processing) improved by 3.%] 61.5% 59.% -1,63 million yen [Expenses decrease million yen] Japan : -1,159 million yen Overseas : -77 million yen [Depreciation allowances decrease 1,63 million yen ] Japan: -1,556 million yen (capital spending cuts) Overseas: -74 million yen

5 <Consolidated> Analysis of sales expenses 5/51 5, 4, 3, 2, 1, -1, -2, -3, -4, -5, Analysis of factors for increase/decrease of consolidated operating income [ FY28 VS FY29 ] Unit : Million yen Total 5,464 1,866 1,63 1,63 Decrease in expenses Decrease in depreciation allowance Factors for profit increase Lower expenses for external manufacturing processing material costs 365 Decrease in labor costs Total 2,241 million yen Factors for profit decrease Total : -3,223 Decrease in sales amount -3,223

6 <Consolidated> Non-operating operating profit and loss 6/51 1, 5-5 FY28 FY (1.1%) ( ) : percentage to (.1%) sales amount Exchange loss: Increase 844 million yen Currency exchange profit/loss Revenues from and expenditure to fixed assets Financial account balance Other Unit : Million yen Exchange gain Exchange loss 1.FY28 28/Mar 1.19/$ 29/Mar 98.23/$ Yen appreciated by 1.96 yen Exchange gains on forward exchange contracts +65 million yen -1, Ordinary Income 1,29 2,582 (1.4%) (4.%) 2.FY29 29/Mar 98.23/$ 21/Mar 93.4/$ Yen appreciated by 5.19 yen

7 <Consolidated> Extraordinary gain or loss 7/ FY28 FY29 2, , Loss from revalutaion investment securities Loss for after-care of products Loss on liquidation of subsidiaries and affilates Loss due to impairment Unit : Million yen -1,2 Others -1,5-2,4 Income before income taxes Income taxes (Current and deferred) Net income 1, , ,62 1,862 ( 2.2%) (2.9%)

8 FY29 Result 1 Net Sales Compared to last fiscal term(%) 2 Operating Income Compared to last fiscal term(%) 3 Ordinary Income Compared to last fiscal term(%) 4 Net Income Compared to last fiscal term(%) <Consolidated>Financial Highlights (Quarterly) Unit : Million yen 1Q 1 st Half Term 2Q TOTAL 3Q 2 nd Half Term 4Q TOTAL Fiscal Term TOTAL (9/Apr~Jun) (9/Jul~Sep) (9/Apr~Sep)(9/Oct~Dec)(1/Jan~Mar)(9/Oct~1/Mar) (9/Apr~1/Mar) 15, , , , , , , /51 64, , , ,862 - FY28 Result 1 Net Sales Compared to last fiscal term(%) 2 Operating Income Compared to last fiscal term(%) 3 Ordinary Income Compared to last fiscal term(%) 4 Net Income Compared to last fiscal term(%) 1Q (8/Apr~Jun) 21, , , , st Half Term 2 nd Half Term 2Q TOTAL 3Q 4Q TOTAL (8/Jul~Sep) (8/Apr~Sep)(8/Oct~Dec)(9/Jan~Mar)(8/Oct~9/Mar) 23, , , , , , , , ,37-12, ,293-28, , , ,33 - Fiscal Term TOTAL (8/Apr~9/Mar) 72, , ,62 -

9 <Consolidated>Trends in performance Net Sales,Operating Income (Quarterly) 9/51 Unit : Million yen 25, 2, 21,357 23,243 Net Sales Unit : Million yen 1,5 1, 5 1,67 Operating Income , 15,438 15,684 16,596 15,927 16, ,74-1, , FY28 1Q 2Q 3Q 4Q FY29 1Q 2Q 3Q 4Q -1,5 FY28 1Q 2Q 3Q 4Q FY29 1Q 2Q 3Q 4Q

10 <Consolidated> FY29 4Q Financial Result compared with FY29 3Q 1/51 Net Sales: Million yen 2, 1.5% Income: Million yen 2, 16,164 15,927 15, 1,5 22.1% 1, 5, , 5 FY29 OCT-DEC FY29 JAN-MAR Net Sales Operating Income Ordinary Income Net Income

11 4 3 <Consolidated> FY29 4Q Analysis of sales expenses compared with FY29 3Q Analysis of factors for increase/decrease of consolidated operating income [ FY29 OCT-DEC VS FY29 JAN-MAR ] Unit : Million yen Factors for profit increase Total 267 Total - 14 million yen Factors for profit decrease Total / Decrease in sales amount Increase in depreciation allowance Increase in external manufacturing processing material costs -1-2 Decrease in expenses Decrease in labor costs

12 <Consolidated> Cash Position 12/51 Unit : Million yen 29/MAR 21/MAR Differential (A) (B) (B-A) Assets Cash and cash equivalents 58,168 9,81 56,113 8,758-2, Accounts receivable 14,864 16,337 1,473 Inventories 6,234 5, Fixed assets 23,865 22,133-1,732 Liabilities Accounts payable and accrued expenses Interest-bearing dept 29,88 9,189 16,893 24,986 1,841 1,965-4,12 1,652-5,928 Net assets Common stock 29,79 7,996 31,127 7,996 2,48 - Capital adequacy ratio 49.9% 55.3% 5.4%

13 <Consolidated> Cash Flow Position 13/51 Unit : Million yen Operating Cash Flow Working capital Income before income taxes Depreciation Others Investing Cash Flow Free Cash Flow Financing Cash Flow Increase (decrease) in interest-bearing dept Purchases of treasury stock Dividends paid Initial balance Final balance FY28 9,249 5,723-1,341 5, ,2 5,229-3,419-1, ,73 9,72 FY29 9, ,74 4,2 2,486-2,48 6,523 6,741-6, ,72 8,749

14 14/51 FY29 Result and FY21 Prospect President and COO Tetsuya Nakamura

15 Full Fiscal Term Performance (FY27-FY29) FY29) 15/51 Net Sales: Million yen Income: Million yen 1, 8, 9, 87,659 7, 8, 7, 6, 5,654 4,327 72,742 64,371 67, 3,9 6, 5, 4, 5, 4, 3, 2,94 1,29 2,479 2,582 1,862 3,2 2,6 3, 2, 1, 2, 1, 238-1,62-1, -2, FY27 Result FY28 Result FY29 Result FY21 Plan Net Sales Operating Income Ordinary Income Net Income

16 16/51 Half Fiscal Term Performance (FY27-FY29) FY29) 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Unit : Million yen 44,31 43,628 44,6 3,87 3,94 32,28 32,91 33, 28,142 34, 3,165 2,3 2,337 1,282 1,6 1,996 1,3 2, 1,847 1,71 1,643 1, , , ,758-2,136-3,33 1H Result 2H Result 1H Result 2H Result 1H Result 2H Result 1H Plan 2H Plan FY27 FY28 FY29 FY21 Net Sales Operating Income Ordinary Income Net Income 8, 7, 6, 5, 4, 3, 2, 1, -1, -2, -3,

17 Fiscal Term Sales & Operating Income Performance (FY2-FY21) FY21) 17/51 Net Sales: Million yen 9, 8, 7, 6, 5, 4, 3, 2, 1, F Y 2 3,494 F Y F Y 2 2 1,155 F Y ,438 2,943 F Y 2 4 Net Sales 4,134 4,29 F Y 2 5 F Y ,659 Published number 72,742 67, 64,371 5,166 5,654 F Y 2 7 F Y 2 8 Operating Income 238 F Y 2 9 Income: Million yen 2,479 F Y 2 1 3,2 12, 11, 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, -1,

18 <Consolidated> Net Sales by Market 18/51 9, 8, 7, 6, 5, 87,659 1,866 6,745 8,897 35,969 72,742 1,898 4,834 7, % 72.1% 64, % 1,23 3,486 7, % 126.2% 12.7% Unit : Million yen 67, 7 4,4 7,8 4, 3, % 24, % 24,9 3, 2, 1, 7,424 26,755 6,77 7,242 7, % 12.2% 22, % 2, % 21,8 FY27 FY28 FY29 FY21 Plan Audio & Visual Car Electronics Telecom Computer Amusement & Appliance Others

19 Unit : thousands 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, <Main Market Trends-1> 13,85 16,18 Flat Panel TV(LCD and PDP TVs) <No. of units produced W/W> PDP TV LCD TV 119, CAGR:+21.8% 146,938 14,48 132,89 177,896 14,56 163,39 <SMK strategy> Propose and expand product sales based on market needs Expand interface connector product lineup 19/51 Further increase remote control sales Expand market share of models to capture volume zone Expand RF (wireless) remote control business Intensify promotion of shield FPC supported connectors Source:JEITA CY28(Result) CY29(Result) CY21(Plan)

20 <Main Market Trends-2> Car Navigation Systems 2/51 Unit : thousands 1, 9, 8, 7, 6, 5, 4, <No. of units produced W/W> 8-1 CAGR 2.3% 8,91 8,5 8,9 <SMK strategy> Expand touch-panel business in line with increased use of car navigation systems Concentrated sales promotion of products based on market needs Intensify promotion of car camera modules, digital broadcast connectors, car antenna coaxial connectors 3, 2, 1, Source:JEITA CY28(Result) CY29(Result) CY21(Plan) Intensify new business expansion activities Promote product development by targeting overseas OEM manufacturers (auto manufacturers) and consolidating approach towards electric vehicle

21 Unit : thousands 1,4, 1,2, 1,, 8, 6, <Main Market Trends-3> <No. of units produced W/W> Mobile Phones 8-1 CAGR +1.3% 1,21,14 1,242,94 1,131,31 21/51 <SMK strategy> Improve cost competitiveness to increase sales Improve VA proposal ability and speed-up development Achieve high reliability focusing on smartphone products Propose and develop highly-reliable switches, internal connectors, and touch panels etc. 4, 2, Source:JEITA CY28(Result) CY29(Result) CY21(Plan) Intensify participation in next generation wireless communications market Focus on developing new products for antennas and high frequency components

22 <Main Market Trends-4> Personal Computer Personal Computer(Desktop & Notebook PCs) 22/51 Unit : thousands 35, 3, 25, 2, 15, 1, 5, Source:JEITA <No. of units produced W/W> Notebook Desktop 285,86 139, , , CAGR +4.3% 282,753 Notebook 164,858 Desktop 117,895 31,96 115,29 CY28(Result) CY29(Result) CY21(Plan) <SMK strategy> Improve Windows 7 supported remote controls and touch panels Approach major overseas manufacturers Promote expansion of high frequency components to the notebook computer and i-card market Propose composite coaxial connector and antenna for mobile WiMAX Development promotion of high value added products Quick-release power connectors, new pointing device attached remote controls etc.

23 Reference:< :<Consolidated>Net Sales by Product Division (FY27-FY21) FY21) 23/51 Sales Amount : Million yen ( ):Composition ratio 1, 9, 87,659 8, 7, 6, 5,256 32,942 (6%) (38%) 72,742 5,142 (7%) 64,371 8,974 (14%) 67, 8,998 (13%) 5, 28,371 (39%) 4, 27,637 (43%) 31,626 (47%) 3, 2, 49,461 (56%) 39,229 (54%) 1, 27,759 (43%) 26,376 (39%) FY27 Result FY28 Result FY29 Result FY21 Plan CS FC TP

24 Reference:< :<Consolidated> Operating Income by Product Division (FY27-FY21) FY21) 24/51 Profit Amount : Million yen 7, 6, 5, 4, 3, 2, 1, -1, -2, 5, , , , ,822 1,516 1,175 FY27 Result FY28 Result FY29 Result FY21 Plan CS FC TP

25 Ability reinforcement of Filipino factory (Touch Panel) 25/51 Extension area :4, m2 house of 2 stories Finish date :21,Oct Investment amount :1 1 billion yen Capacity of production :1.5 times Extension area

26 Transfer of executive officer 26/51 Valid date : 21, JUN, 24th ( Announce date :21,APR,26th) Vice President Vice President Vice President Superior Advisor Adviser New Director and Executive Vice President Executive Vice President Before Executive Vice President Vice President TP senior general manager Production Management Dept.General Manager General Affairs Dept. General Manager Director and Senior Executive Vice President Executive Vice President Name Sakurai Yoshio Paul Evans Yanagi Shigechika Ishibashi Takemi Ohgaki Kohei Yamoto Tadashi Irisawa Makoto

27 Number of New Product Press Releases <Comparison Top 1 Companies of Electronic Parts> 27/51 35 Number of new product releases : 12 months from April of the previous year to March this year SMK A B C D E F G I H FY 27 FY 28 FY 29 * Out of 5 companies listed in the 5 Major Companies for Electronic Parts, an article from February 22, 21 in Dempa Shimbun (Newspaper) * The top 1 companies listed here were identified by counting the number of new product press releases from each company s website in SMK.

28 Paradigm shift 28/51 The change of of markets The impact of of manufacturing industry past Lower price=poor quality present Lower price = Acceptable quality From vertical integration to horizontal division of work There is a move to introduce the vertical integration again?

29 21 SMK Management Policies 29/51 Basic Approach: Expansion with reasonable profits Review production system to deal with the paradigm shift of the market. Focus on basics of manufacturing and accumulate element technologies internally. Plan new strategic products and expand sales by restructuring marketing activities. Make strategic investments to produce high-value-added products. Rebuild business in Europe and expand business in developing countries. Develop businesses in ecology, energy and health markets. Improve competitiveness by enhancing environmental management Make enhancements to SMK risk management (compliance, business secrets, and BCM). Making innovations to be a value-creating company which can realize continuous growth.

30 21 Slogan 3/51 Dedication to to and devotion in in marketing and selling. Creation, manufacturing, and perfecting of of products.

31 CS Division 31/51

32 CS Division 32/51 Major Products :Connector/Jack Connector CS=Connection System JackJack Coaxial Connector FPC Connector Pin Jack Speaker Terminal Card Connector Interface Connector DC Power Supply Jack Headphone Jack

33 33/51 CS Division Net Sales, Operating Income (Consolidated) Sales Amount : 1 Million yen Net Sales Operating Income Operating Income : 1 Million yen FY28 FY29 FY21 Result Result Plan

34 CS Division Transition of market (Consolidated) Transition of market-specific sales 34/51 1% Composition ratio:% 4% 5% 6% Industry 72% 68% 66% Information Technology 5% % 6% 18% 9% 18% 9% 2% FY28 FY29 FY21 Result Result Plan Car Electronics Audio/Visual

35 Sales transit *FY28=1 1 CS Division Product strategy - sales expansion through higher functionality and technological ideas Improve high value added products for internal connections: FPC connectors For compact devices: smartphones and electronic books etc FY28 FY29 FY21 Result Result Plan Space-saving, low-profile EN Series successful, production upgrade Car electronics Meter area, sensors, radar connection EC/EF Series successful Development of new BF Series products Improve high value added products for internal connections: insulation Displacement connectors and Crimping connectors Sales transit *FY28= FY28 FY29 FY21 Result Result Plan High-reliability, robust type currently improving variation Increase amount of information support high-speed transmission Lowest profile in the industry Emphasis on durability and performance For compact devices: smartphones and electronic books etc. Low-profile insulation displacement ID Series Increase number of adopting manufacturers 1.2mm pitch Board to wire crimping connectors 35/51 Increased variation

36 CS Division Market strategy speed speed-up development 36/51 Mobile phone / portable device market Board to board connectors PB-4>> improved variation Strive for low-profile / space-saving products Composite card connectors Low-profile type Battery connector (new mechanism) Waterproof technology Weatherability / flame-retardant Eco market Solar cell Module connectors Increased variation Size / lock structure Wireless modules increase installation rate Coaxial connectors TS-9 support mobile WiMAX Expand application >>notebook PCs >>smart meters etc. Car electronics market Car camera connectors Installation rate UP PV-1 PV-2 PV-3 PV-4 Next generation illumination LED illumination connectors Healthcare market Increased personal use Medical equipment connectors (Interface connectors, sensor connectors etc.)

37 CS Division FY21 Policy 2.Pursuit of Efficiency Reactivation to growth 1.Development power strengthening Speed Keep gain on board All perfectly suit New items Choice and Concentration Total quality 3.Improvement of Competitiveness 392 Manufacturing --- self-manufacture unmanned Improvement of Sales/Profit ratio Sales ( ):profit ratio Operating Income (1.9%) constitution strength (2.8%) 37/51 (4.5%) FY28 FY29 FY21 Marketing power Push ahead with SCM make something of IT

38 FC Division 38/51

39 Main products SW (Switch) FC Division FC=Functional Components UN (Unit) 39/51 Various types of switches Antenna Bluetooth Unit (Microphone-free Bluetooth headset) Control Panel RC (Remote Control) MD (Module) Remote Control Color Intelligent Remote Control Camera Module

40 4/51 Net Sales, Operating Income (Consolidated) FC Division Net Sales, Operating Income (Consolidated) Sales Amount : 1 Million yen 4 3 Net Sales Operating Income Operating Income : 1 Million yen FY28 Result FY29 Result FY21 Plan -1

41 1% FC Division Transition of market (Consolidated) Composition ratio:% Transition of market-specific sales Industry 41/51 5% Information Technology Car Electronics Audio/Visual % FY28 FY29 FY21 Result Result Plan

42 FC Division Priority Approach Market/Priority Product 42/51 Smart Phone Audio&Visual 1 Dome Switch Midmount Horizontal Push Switch Capacitive switch Antenna coupler RF Remote Control Unit MT Switch (H=.4mm) Control Panel Remote Control Unit for Automotive Car Electronics Long stroke push switch Camera module Remote control unit for air conditioner Remote control unit for Sanitary Home Appliance

43 FC Division TOPIC 43/51

44 FC Division FY21 Objectives 44/51 Shift to a path of growth Strengthen technological development No.1 product Strengthen marketing Capture volume zone Maintain profit structure (Cut variable costs + reduce fixed costs)

45 TP Division 45/5

46 TP Division TP=Touch Panel Main products Touch Panel 46/51 Main application Resistance Sensitive Touch Panel Capacitive Touch Panel Optical Touch Panel

47 47/51 Net Sales, Operating Income (Consolidated) TP Division Net Sales, Operating Income (Consolidated) Sales Amount : 1 Million yen 1 75 Sales Operating Income 9 9 Operating Income : 1 Million yen FY28 Result FY29 Result FY21 Plan

48 1% TP Division Transition of market (Consolidated) Composition ratio:% Transition of market-specific sales 48/51 43% 27% 26% Industry 5% 1% 32% 28% Information Technology 47% 41% 44% Car Electronics % % % 2% FY28 FY29 FY21 Result Result Plan Audio/Visual

49 49/51 Division Priority Products and Priority Markets TP Division Capacitance Application-based product lineup enhancement Strive for increased product thinness and lower costs In-car market Break into new application markets Expand cell-phone market share High value added products Decoration touch panel (full flat) Multi-touch input resistance-sensitive system Dokodemo touch two-step input force feedback function Expand market share SMK-PH Plant Plant expansion (due for completion by October 21) Production capacity 15%

50 1 Capture of overseas market Asia(Outside of Japan) TP Division FY21 Policy In preparation for expanding market Expansion of sales 163 USA Overseas Market Sales ratio FY21 Plan USA 4% Europe 1% FY29 Result Africa 3% Asia 29% 5/51 Japan 68% Europe % 2 FY28 Result = index number 1 FY29 Result FY21 Plan Expansion of gain Products lineup Development of new products Asia 34% Japan 61% Products promotion of streamlining

51 Notice 51/51 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 preparation of this material. However, the reality is that it contains risks and uncertainties which may cause result to materially differ from business projections, stated or implied, due to situations which are unforeseeable under normal conditions, or of results which are beyond a reasonably foreseeable outcome at that time. Despite our active efforts to disclose information which is considered to be important to investors of our company, total dependence on the business projections in this material, stated or implied, must be refrained from when decisions of any kind are made regarding our company. *The materials for this presentation to our investors is available on the IR Information Section of our Web site,