Business Report for FY2008

Transcription

1 Business Report for FY28 -From Apr.28 to Sept.28- SMK Corporation October, 28

2 AC-1/7 FY28 Outline of 2Q Financial Statement Director and Executive Vice President Hajime Yamada

3 AC-2/7 <Consolidated> 2Q Financial Result (April to September) 5, 4, Sales Amount: Million yen 11.3% 44,31 44,6 Income: Million yen 1, 8, 3, 52.4% 6, 2, 1, 3,87 3,94 2,337 1,996 3,165 1,71 4, 2, FY27 April - September FY28 April - September Net Sales Operating Income Ordinary Income Net Income

4 <Consolidated> Sales Expenses AC-3/7 5, 4, 3, 2, 1, FY27 Apr-Sept 22,81 3,893 7,424 FY28 Apr-Sept 4,224 42,64 (91.3%) (95.5%) 51.8% 8.8% 16.9% 23,727 3,766 8,14 4,77 9.2% 4,383 2,29 4.6% 2,624 Operating Income 3,87 1, % 8.4% 18.2% 9.8% 5.9% ( ):Ratio to total sales Material Cost Expenses for external manufacturing processing Labor Cost Expenses Depreciation Allowance (Unit: Million yen) (Material Cost+External Manufacturing Processing)worsened by 1.% 6.6% 61.6% Approx. 454 million yen Labor Cost Increase by 68 million yen Newly Consolidated Subsidiary Companies (3 companies 3 people)and Increase in workers in overseas works FY27/Apr.-Sept. 13, people FY28/Apr.-Sept. 13,4 people Main works reporting increase Malaysia, the Philippines Increase by 4 people

5 8 6 AC-4/7 <Consolidated> Analysis of Sales Expenses Analysis of factors for increase/decrease of consolidated operating income [FY27 Apr-Sept VS FY28 Apr-Sept] A. Factors for income increase Total 224 B. Factors for income decrease Total -2,35 (Unit: Million yen) Net Total -1,811 million yen Higher expenses for external manufacturing processing Material costs Increase in labor costs Increase in expenses Increase in depreciation allowance -2-4 Increased sales amount (after price reduction)

6 AC-5/7 <Consolidated>Non-operating operating income and loss 1,5 1, 5 FY27 Apr-Sept FY28 Apr-Sept 97 1,169 (.2%) (2.6%) ( ):Ratio to total sales Financial account balance Revenues from and expenditure to fixed assets Currency exchange profit Others (Unit: Million yen) Comparison to the same quarter of the previous year +1,72 million yen Increase in currency exchange profit +1,24 million yen Previous 2Q Yen higher by 2.62 yen (At the end of September 27) (Mar. 7) (Sept. 7) Current 2Q Yen lower by 3.38 yen (At the end of September 28) 1.19 (Mar. 8) (Sept. 8) -5-9 Ordinary Income 3,94 3,165

7 AC-6/7 <Consolidated>Extraordinary gain or loss FY27 Apr-Sept FY28 Apr-Sept (Unit: million yen) Gain from sale of fixed assets Loss of disposed fixed assets, etc. Impairment loss Loss from valuation of investments in securities Others Income before income taxes Income taxes (Current and deferred) Net income 3,834 3,25-1,497-1,315 2,337 1,71

8 AC-7/7 <Consolidated>Financial Highlights (Quarterly) 1. FY28 Prospect 1st Half Term 1Q 2Q Total (Unit: Million yen) Fiscal Term (Apr 8~June 8) (July 8~Sept 8) (Apr 8~Sept 8) (Oct 8~Mar 9) (Apr 8~Mar 9) (Result) (Result) (Result) (Prospect) (Prospect) 1 Net Sales 21,357 23,243 44,6 42, 86,6 Compared to last fiscal term (%) Operating Income 1, ,996 1,64 3,6 Compared to last fiscal term (%) Ordinary Income 2,141 1,24 3,165 1,935 5,1 Compared to last fiscal term (%) Net Income 1, ,71 1,9 2,8 Compared to last fiscal term (%) 2. FY27 Result 2nd Half Term Total st Half Term 2nd Half Term Fiscal Term 1Q 2Q Total 3Q 4Q Total (Unit: Million yen) (Apr 7~June 7) (July 7~Sept 7) (Apr 7~Sept 7) (Oct 7~Dec 7) (Jan 8~Mar 8) (Oct 7~Mar 8) (Apr 7~Mar 8) 1 Net Sales 2,421 23,61 44,31 22,94 2,688 43,628 87,659 Compared to last fiscal term (%) Operating Income 1,719 2,88 3,87 1, ,847 5,654 Compared to last fiscal term (%) Ordinary Income 2,366 1,538 3,94 1,652-1, ,327 Compared to last fiscal term (%) Net Income 1, , , ,94 Compared to last fiscal term (%)

9 P-1/13 FY28 2Q Result and Prospect President and COO Tetsuya Nakamura

10 1, 9, Trends in Net Sales and Income by Fiscal Term (FY27~FY28) Net Sales: Million yen 94,5 87,659 86,6 8, 6,2 7, 5,654 5,6 5,1 6, 4,327 5, 3,8 3,6 4, 2,8 3, 2,94 2, 1, P-2/13 Income: Million yen Ratio to FY % Ratio to Prospect 91.6% 8, 7, 6, 5, 4, 3, 2, 1, FY27 Result FY28 Initial Plan FY28 Revised Plan Net Sales Operating Income Ordinary Income Net Income

11 Trends in Net Sales and Income by Half Term (FY27~FY28/2H) P-3/13 Net Sales: Million yen Income: Million yen 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, 44,31 43,628 3,87 2,337 3,94 1, ,3 3,4 2,3 2,2 1,996 44,6 3,165 1,71 42, 1,935 1,64 1,9-243 FY27 1H FY27 2H FY28 1H FY28 1H FY28 2H Result Result Revised Result Prospect Prospect Net Sales Operating Income Ordinary Income Net Income 8, 7, 6, 5, 4, 3, 2, 1,

12 P-4/13 1H Net Sales by Market (FY26 ~ FY28) 5, 45, 4, 35, Million yen 39, ,448 5, % -16.4% 44, % , % 2, % 44,6 4,387 4,756 3, 25, 2, 15, % +3.3% 18,432 19,44 15, 1, 5, 3, % +1.7% +8.4% 3,556 3, % 12,345 13,666 13,95 FY26 1H FY27 1H FY28 1H Audio & Visual Car electronics Telecom Computer Amusement & Appliance Others

13 Reference:Net Sales by Product Division 1H and 2H (FY26~FY28) FY28) P-5/13 5, 45, 4, 35, 3, 25, Million yen 1H 2H 44,31 44,6 43,628 39,3 2,282 2,799 39,774 2,974 2,381 2,349 15,974 16,543 16,968 16,753 16,781 42, 3,452 16,39 2, 15, 1, 2,166 25,775 25,258 2,644 23,686 22,59 5, FY26 FY27 FY28 FY26 FY27 FY28 CS FC TP

14 Reference:Operating Income by Product Division (FY26~ FY28) P-6/13 6, 5, Million yen 5, , , 3,6 3, 53 2, 4,495 4,815 3,171 1, -1, -16 FY26 Full Term Result -1 FY27 Full Term Result CS FC TP -74 FY28 Full Term Prospect

15 Unit: Million yen Business trends of major markets-1 Audio/Visual (AV) Comparison to last year s performance 95.8% <Sales> P-7/13 12,345 13,666 13,95 Increase in Remote Control Units 1, 5, 8,652 FC 9,837 1,14 Contribution to sales by remote control units for projectors and flat panel TVs Decrease in Connectors Decrease in connectors for AV amplifiers and flat panel TVs CS 3,684 3,825 3,66 FY26 1H FY27 1H FY28 1H

16 Business trends of major markets-2 Car electronics P-8/13 Comparison to last year s performance 18.4% Unit: Million yen 4, 3,483 1,733 3,556 TP 1,786 3,856 1,449 <Sales> Increase in Connectors Increased sales amounts of antenna connectors for terrestrial digital tuners for domestic markets Increase in Remote Controls and Units 2, 68 1,142 FC 643 CS 1, ,562 FY26 1H FY27 1H FY28 1H Increase in factory installation microphone units for domestic markets Increase in factory installation and retrofitting remote control units for domestic markets Decrease in Touch Panels Decreased sales amounts of factory installation touch panels for domestic and overseas markets

17 Business trends of major markets-3 Communication P-9/13 Comparison to last year s performance 13.3% Unit: Million yen 2, 15, 32 TP and others 15,63 2, ,432 FC 1, ,44 2,142 < Sales> Expansion of Products for Smart Phones Increased sales amounts of connectors and switches due to strong demand for smart phones in North America 1, 5, 12,122 CS 16,98 16,841 Steady Sales of Connectors Steady sales of connectors for leading European manufacturers FY26 1H FY27 1H FY28 1H

18 Business trends of major markets-4 Computer P-1/13 Unit: Million yen 6, 4, 2, 521 2,889 Comparison to last year s performance 18.4% 4,387 Others TP 948 FC 2,193 1,874 <Sales> 5,245 Increase in Touch Panels 4,756 Decrease in Units Increased sales amounts of optical touch panels due to strong demand for ATMS for foreign markets Cradles are less frequently included in digital camera sets, leading to decreased sales amounts of cradles Increase in Connectors 1,826 CS 1,896 1,754 FY26 1H FY27 1H FY28 1H Increase in battery connectors and card connectors for digital cameras

19 FY28 2H Management Policy P-11/13 Place the highest priority on the response towards the adverse market environment Sustain our policy to increase sales with fair profit, but temporarily halt our straightforwardly aggressive business attitude. Revise our transactions with low rate of return (Cost Reduction, Selection and Concentration) Emphasis on increasing/maintaining profit rather than increasing sales

20 Topics 1: 1 Renewal of SMK Website P-12/13 Major Renewal of our Website (as of November 28) 1. Our product database is enhanced 2. More search options (e.g. Google Search) 3. CSR page is newly created 4. Usability is improved

21 Topics2: Renewal of 1 st Floor entrance at SMK Headquarters *Completed in the end of August, 28 *Major renewal in 25 years <Objective> 1. To improve our brand image 2. For recruiting purposes 3.To change the attitude of employees Before After P-13/13

22 CS Division CS-1/8

23 CS Division CS= Connection System Major Products :Connector/Jack Connector JackJack CS-2/8 FPC Connectors Coaxial Connectors Pin Jacks Speaker Terminals Card Connectors I/O Connectors DC Power Supply Jacks Headphone Jacks

24 CS-3/8 CS Division Net Sales, Operating Income (Consolidated) Unit:Hundred Million Yen (97%) 478 Profit Rate 9.7% % Net Sales Operating Income % 5.8% FY27 FY28 FY28 1H FY28 2H Result Prospect Result Prospect

25 1% CS Division Transition of market-specific sales (Consolidated) 3% 3% 3% 4% Industry CS-4/8 Information Technology 72% 72% 72% 74% 5% % 4% 6% 6% 2% 19% 19% 7% 16% FY27 1H FY27 2H FY28 1H FY28 2H Result Result Result Prospect Car electronics Audio/Visual

26 CS Division Product Strategy Jack CS-5/8 *FY26 as 1 ( ):April IR 1 Sales Transition (356) Small Jacks FY26 FY27 FY28 Result Result Prospect Thin Space Effective Increased Resistance to Twisting Force Production in China/the Philippines, Automation Digital Still Cameras Notebook PCs Mobile phones Small Game Consoles Camcoders DC Power Supply Jacks

27 Sales Transition *FY26 as 1 ( ):April IR CS Division Product Strategy (536) PB-4A (h=.8mm タイフ ) Number of pins 1~8P PB Connector Various Usages CS-6/8 PB-4B (h=1.2mm タイフ ) Number of pins 12~ 6P 1 Expanded variation FY26 FY27 FY28 Result Result Prospect Shielding Higher contact reliability.4mm pitch h=.7mm PB-4D Low profile Narrow spacing.35mm pitch h=.7mm Industry s smallest mounting area PB-35

28 CS Division Strategic markets/products CS-7/8 Car electronics Antenna connector compatible with reception of terrestrial digital broadcasts VR-1 Series Domestic Market 6% Market Share To Chinese and Taiwanese Markets Photovoltaic power generation systems Connectors for photovoltaic modules Water-proofing and advantage in workability Strengthened approach to growing markets Approach to foreign markets Ultra Small Low profile products Compatible with wireless communication EF-5D Telecommunications.5mm pitch shielded FPC connector Co-axial Connector TC-7 (H=1.mm) TS-11 (H=.95mm) Audio & visual HDMI Connector Type A EN-42 Type C.4mm pitch shielded FPC connector (H=.6mm)

29 CS Division FY28 Policy CS-8/8 1.Promotion of development of technologies, products, and production technologies Timeliness and speeding up Patents and added value 2.Pursuit of optimal means (production and sales) More effective investment (general/conversion facilities) 3.Enhancement of overall capability Implementation of business units and product model-specific strategy

30 FC Division FC-1/7

31 FC Division FC=Functional Components Main products : Switch/Keyboard/Control Panel/Bluetooth/Microphone Remote Control Unit/Camera Module FC-2/7 SW (Switch) UN (Unit) Various types of switches RC (Remote Control) Bluetooth Electret Condenser Microphone (ECM) MD (Module) Remote Control Unit Color Intelligent Remote Control Unit Camera module

32 FC-3/7 FC Division Net Sales, Operating Income (Consolidated) Net Sales 4 3 Unit:Hundred Million yen Net Sales Operating Income Operating Income FY27 FY28 FY28 1H FY28 2H Result Prospect Result Prospect 2 1

33 FC Division FC-4/7 Transition of Market-Specific Sales (Consolidated) 1% 15% 15% 13% 14% Industry 5% 16% 4% 21% 4% 23% 5% 24% 4% Information Technology Car electronics 65% 6% 59% 58% Audio/Visual Audio/Visual % FY27 1H FY27 2H FY28 1H FY28 2H Result Result Result Prospect

34 FC Division Product Strategy:1SW SW FC-5/7 3 % 2 Keyword for Growth: Slide SW, MT SW, Detector SW, others Thin, Small, Long life Peel Off Strength Good Feeling FY26 1H Result FY26 2H Result FY27 1H Result FY27 2H Result FY28 1H Result

35 FC-6/7 FC Division Product Strategy:2 :2Concept RC RF module Easy to operate eggshaped remote control unit Stationary LCD Remote Control Unit

36 FC Division Policy for FY28 FC-7/7 Realize the growth with Profit Offense:Create differential products Increase Number of Engineers Defense:Establishment of Global Purchasing Organization Improve productivity by manufacturing innovation

37 TP Division TP-1/6

38 TP Division TP-2/6 Main Items Touch Panel Resistance Sensitive Touch Panel Film/Glass Type Glass/Glass Type SMK Touch Panels Capacitive Touch Panel Optical Touch Panel Film/Film Type Force-feedback LCD Module Unit Glass Panel Acrylic Panel LCD Module Unit

39 TP-3/6 TP Division Net Sales, Operating Profit (Consolidated) Unit: Hundred Million yen Net Sales Operating Profit (.1) (.7) (.8) FY27 FY28 FY28 1H FY28 2H Result Prospect Result Prospect

40 % TP Division TP-4/6 Transition of Market-Specific Sales (Consolidated) 19% 3% 37% 43% 35% Industry 5% 3% 5% 17% Information Technology 78% 6% 52% 48% Car electronics % FY27 1H FY27 2H FY28 1H FY28 2H Result Result Result Prospect

41 TP Division Strategic Markets and Product Strategy TP-5/6 Mobile Equipment Market DSC, DVC, Mobile Phone, Smart Phone, UMPC, PND, Mobile Media Player, etc. Mobile Phone with Touch Panel Projected Demand Capacitive TP Resistance Sensitive Touch Panel 2% Small Size Touch Panel Capacitive TP Force Feedback TP Film/Film Type TP (Per our own projection method) Gesture/Multi-touch Input Various Tactile feelings Thin and Light

42 TP Division Objective for FY28 Expansion of Sales TP-6/6 Overseas Market Europe Asia Domestic Market Mobile Phone Smart Phone KEYWORD

43 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 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,