Business Report for FY2006

Transcription

1 October,2006 Business Report for FY From Apr.2006 to Sep

2 <Consolidated> Performance for FY2005/1H to FY2006/1H 2/18 Unit:Million yen 40,000 35,000 34,897 36,963 37,000 39,300 5,000 4,500 30,000 3,834 4,000 3,500 25,000 20,000 15,000 10,000 2,349 2,945 1,839 1,941 2,567 1,634 2,400 2,700 1,750 3,313 2,335 3,000 2,500 2,000 1,500 1,000 5, FY2005 1H FY2005 2H FY2006 1H/Plan FY2006 1H Net Sales Operating Profit Ordinary Profit Net Profit 0

3 3/18 <Consolidated> FY2006 1H settlement-of of-accounts presentation 1. Sales Expense FY2005 FY2006 1H 1H 32,548 35,987 (93.3%) (91.6%) ( ):Percentage to sales amount Unit:Million yen 40,000 30,000 20,000 10, % 8.4% 18.0% 9.1% 4.1% Operating profit 2, % 7.7% 17.4% 9.4% 4.0% 3,313 Material costs Expenses for external manufacturing processing Labor costs Expenses Depreciation allowances [(Material costs + expenses for external manufacturing processing)improvement by 1.3%] 62.1%->60.8% About 511 million yen [Labor costs decreased by 0.6%]

4 2. Analysis of sales expenses Analysis of profit increase/decrease factors for FY2006 1H 4/18 Comparison of consolidated operating profits in 2 fiscal terms [FY2005 1H vs. FY2006 1H] A.Factors for profit increases B.Factors for profit decrease 2,179 total Total -1,215 Depreciation allowance increase Expense increase Labor cost increase (Unit:Million yen) Net Total 964 Increase in sales amounts (to include price reduction) Material cost reduction

5 3. Non-operating profits and losses FY2005 FY2006 1H 1H (1.7%) (1.3%) ( ):Percentage to sales amount (Unit:Million yen) 5/ Revenues from and expenditure to fixed assets Misc. revenues Ordinary profit 2,945 3,834 Financial account balance Foreign currency exchange gain or loss Comparison with the previous mid-term performance: -75 million yen [Decrease in foreign currency exchange gain: 172 million yen] Previous mid-term Yen depreciated by 5.8 yen (as of Sept.30,2005) Current mid-term Yen depreciated by 0.43 yen (as of Sept.30,2006) [117.47(06/3) (06/9) ]

6 Net sales / Operating Profit by Product Division (FY2005 1H, FY2006 1H) 6/18 Unit:Million yen 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, ,897 2,643 16,132 16,122 FY2005 1H Net Sales 39,300 2,381 16,753 20,166 FY2006 1H Million yen 4,000 3,500 3,000 2,500 2,000 1,500 1, Operating Profit 2, ,908 CS FC TP 3, , FY2005 1H FY2006 1H

7 1H H Net Sales by Market(FY2004 -FY2006) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Million yen 33, ,959 6,776 8, % 112.2% 86.6% 126.2% 34, ,198 5,869 11, % 100.4% 111.3% 89.4% 136.2% 39, ,448 5,245 15,063 3, % 3, % 3,483 11,964 11, % 12, % FY2004 1H FY2005 1H FY2006 1H 7/18

8 Net Sales / Operating Profit / Ordinary profit / Net Profit (FY2005-FY2006) FY2006) Profit : Million yen Net Sales : Million yen 77,300 80,000 75,000 10,000 71,860 9,000 70,000 8,000 60,000 6,400 7,000 50,000 5,512 5,600 5,500 6,000 5,000 40,000 5,000 4,290 3,900 3,473 3,600 4,000 30,000 3,000 20,000 2,000 10,000 1,000 9/18 0 FY2005 FY2006 Original plan FY2006 Plan (modified) Net Sales Operating Profit Ordinary Profit Net Profit 0

9 Business trend of individual markets-1 Comparison to last year performance 106.7% Unit:Million yen 0, ,575 8,110 TP 9 12,345 FC 8,652 Audio & Visual [Net Sales] Remote control unit TN sales increase For thin TVs:European and ASEAN markets 10/18 For STBs:North American market New conecctters contribution to sales increase For thin TVs 5,000 Flip structure FPC connector HDMI connector CS For audio system applications 3,461 3,684 0 FY2005 1H FY2006 1H Plug cords/sockets

10 Business trend of individual markets-2 4,000 2,000 Unit:Million yen 3,483 2, Comparison to last year performance 100.0% Car Electronics [Net Sales] 3,483 TP 1,733 FC 608 Temporary decline in Touch panels 11/18 Sales decline due to change of product models Increase in Connectors Sales increase of jacks for car audio equipment for market installation(for connection of silicon audio devices) FY2005 1H CS 1,142 FY2006 1H For digital radios in the North American market Sales increase of coaxial connectors

11 Business trend of individual markets-3 Unit:Million yen 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, ,059 2,571 8,479 FY2005 1H Comparison to last year performance 136.2% Others TP Communication 15,063 FC 2,909 CS 12,122 FY2006 1H [Net Sales] Increase in units Increase in sales of Bluetooth TM units due to rising domestic demand for music 12/18 Expansion of connector sales Sales increase of camera connectors,system connectors and coaxial connectors due to respectable overseas mobile phone markets

12 Business trend of individual markets-4 Unit:Million yen 6,000 5, Comparison to last year performance 89.4% Others TP 12 [Net Sales] 5, Computer Cradle Decrease in cradle sales due to continually decreasing digital camera prices 13/18 4,000 3,442 FC 2,887 FPC Connector Decrease in FPC connector sales for optical disc 2,000 CS 1,889 1,825 Power connectors Increase in sales of power connectors due to application with more notebook PC models 0 FY2005 1H FY2006 1H

13 SMK s s 3 major management challenges 14/18 1.Three Challenges Enhancement of SMK s brand power. Promotion of TN wide activity for ZD (Zero Defect) to improve quality. Another try for product creation Start for SMILE activity (For 3 years) SMK Manufacturing Innovation Leads to ZD 2.Turning red-ink businesses into black at an earliest opportunity 3.Undertaking to Medium term business plan Higher than 10% ROE Continued payment of an annual dividend of 12 yen or more 4. Environmental business Compliance with the RoHS Directive (effected in July 2006) Publication of an environmental report (July 2006) 5.CSR management Establishment of the SMK Group s Code of Conduct (proclaimed in April 2006 Compliance with the Japanese version of the SOX law

14 Topics-1 1 Opening / expansion of 4 overseas sales offices (Sept. to Oct. 2006) 15/18 Opening: Chicago,Dortmund and Beijing Expansion: Seoul

15 Mexico Shenzhen 16/18 Topics-2 2 Enhancement of production bases 1.China Dongguan : Addition of production floors(consolidation of factories 1 and 2, plus construction of a new building) Production capacity ->A 50% increase over the 2005 capacity (effective from Oct. 2006) Shenzhen: A 50% increase by addition of production floors (effective from July 2006) 2.Mexico Increase of production floors (addition of SMT lines,molding machines and painting facilities) A 20% increase of production capacity (effective from Sept. 2006)

16 The 7th medium term business plan (for 2007 through 2009) being laid down Slogan 17/18 CREATING AN EXCITING FUTURE Target 2010 Sales billion yen, Operating Profit - 10% Earliest achievement of becoming a 100 billion yen selling company maintaining reasonable profits

17 18/18 Innovation and creation -Practicing speedy company management

18 CS-1/10 CS Division 1. Transition of sales and profits 2. Market-specific sales 3. Product strategy and Division policy CS Div. IR 06.10

19 CS= Connection System CS-2/10 Main productsconnector/jack Connector JackJack FPC connector Speaker terminal I/O connector Card connector DC power supply jack, Headphone jack CS Div. IR 06.10

20 <Consolidated>Net sales,operating profits Unit:100 million (118%) Percentage of profits 11.0% % 46.1 Net sales Operating profits (95%) % 18.6 CS-3/10 9.7% CS Div. IR 06.10

21 Transition of consolidated market-wg WG-specific sales Living 1% 1% 1% 5% 4% 3% 4% 1% 5% 6% 6% 5% Industrial Car electronics Audio/visual 32% 29% 26% 27% CS-4/10 Information technologies 57% 60% 64% 63% 1H Result 2H Result 1H Result 2H Prospect CS Div. IR 06.10

22 Sale transition *With FY2004 as 100 Interface connectors Connectors for mobile phones Multi-functionality and addition of high value,good business records with small and compound items CS-5/10 Connectors for notebook PCs Optimization of items compatible with fast transmission and standard specification Micro USB connector HDMI Connector For AV and PC equipment For mobile phones and portable audio devices CS Div. IR 06.10

23 Sale transition *With FY2004 as 100 Sales strategy B to B Connectors 0.4mm Pitch B to B connectors PB-4B :H=1.2mm PB-4A:H=0.8mm H=0.7mm High speed transmission EMC Enrichment of shielded products Deployment for general applicability to portable equipment DSCs,camcorders,portable AD devices,notebook PCs,etc. CS-6/10 Strategic products Successful approach to industry smallest product levels 0.3mm pitch CS Div. IR 06.10

24 ETC Coaxial connectors,tc- 15 series Car electronics Multi-pole external connectors NK-10:Connector In-vehicle for camera connector market FOMA-USB signal Monitor camera connectors CS-7/10 Coaxial connectors for digital broadcast Coaxial connector,smb series Front North America:Xm broadcast Under development Coaxial connectors for glass antennas Back Business experience with antenna manufacturers Water-resistance technology Business experience with camera module manufacturers Japan:For terrestrial digital broadcasting CS Div. IR 06.10

25 Enhancement of SMK-SZ s production capacity CS-8/10 CS Div. IR 06.10

26 Enhancement of domestic production capacity using automatic machines CS-9/10 CS Div. IR 06.10

27 Div. s policy for FY2006 CS-10/10 1.Promotion of development of technologies and products 2.Pursuit of optimal means 3.Elevation of total strength CS Div. IR 06.10

28 FC Division FC Achievement for the 1st half of FY2006 and projection for the 2nd half 1.<Consolidated> Sales and operating profits 2.<Consolidated> Market-specific sales 3.Introduction of key strategic products

29 FC=Functional Components [Main products]:switch/keyboard/control panel/earphone microphone/cradle/microphone/remote Control Unit/Camera module SW (Sw( Switch) UN (Un( Unit) Various type of switches Earphone microphone RC (Remote( Control) Cradle Electret Condenser Microphone (ECM) MD (Module)( Remote Control Unit Color Intelligent Remote Control Unit Camera Module

30 [Net sales] 1.<Consolidated> Net sales,operating profit Unit:100 million yen [Profit] Net sales Operating profit FY2005 Result Net sales Operating profit FY2006 Projection Net sales Operating profit FY2006 1H Result Net sales Operating profit FY2006 2H Projection

31 2.<Consolidated> Market-specific sales %(Composition ratio) FY2005 Result FY2006 Projection FY2006 1H Result FY2006 2H Projection

32 3. FC Division s s key strategic products -1 FC-5/7 Mobile phone application market Bluetooth TM pendants Earphone microphone Remote controls for Windows Vista 1-Seg. Broadcast antennas PC market Remote controls for large flat-screen TVs AV equipment application market

33 3.FC Division s s key strategic products -2 Car electronics parts market Mobile phone parts market Rubber single key switch Small horizontal switches Thin slide switches Detector switches(dsi/dsj) Multi function switches AV equipment application market

34 FY2006 : Seeding for the medium term business plan (for FY2007 through through FY2009) Product development Human resources Cost reduction

35 TP Division Contents 1.Introduction of TP Division and its products 2.Achievement and projection of consolidated sales amounts and profits 3.Market specific-ratio of sales 4.TP Div s major activity points

36 TP Division Touch Panel Main products Glass+Glass+polarization plate type (Low reflectance type) Linear polarization type Circular polarization type Resistance sensitive system Optical system Analog type Digital type Force feedback function featuring type Film+Glass type General use type Low reflectance type Contamination-resistant type Glass type Sealed-in liquid type High transparency low reflectance type Acrylic resin type

37 <Consolidate>Net sales and Operating profit Unit:100 million yen Net sales Operating profit Domestic Overseas 3.5 FY2005 Result 1.5 FY2006 Projection 1.1 FY2006 1H Result 0.4 FY2006 2H Projection

38 TP Div s <Consolidated> market-specific ratio of sales Others PC ATM 21% 19% 21% POS Ratio of sales per market:% 75% 75% 70% Car electronics FY2004 Result FY2005 Result FY2006 Projection

39 FY2006 key activity points Achievement of planned sales(for improved profits) Marketing 1 of differentiation products Touch panels of Glass+Glass,high transparency and low reflectance Film+Glass,force feedback,and integrated optical types 2 Marketing in the overseas markets Glass+Glass:Europe and USA Film+Glass:USA Optical system:usa and China 3 Expansion of overseas production Improvement of production yields in the Philippines Production of integrated optical types in China(SMK-DG)

40 Markets under an intense focus (by size) 50,000> Mobile Smart phone Game Business achieved Target 10,000> Portable nav. PDA 5,000> DVC MFP Car Navi PPC 3,000> PC 2,000> POS 1,000> 500> Interphone Arcade game 300> Portable terminal FA ATM KIOSK 100> <Qty> Unit:K set/y Medical <Size> Small Medium Large

41 Force feedback touch panel Optical touch panels Car nav. PDA/PC Shinkansen s cockpit seats Household elec.appliances Portable terminals PPC/MFP POS Optical touch panels & LCD module ATM Terminal Resistance sensitive system &LCD module User side Bank clerk side