Business Report for FY2007

Transcription

1 Business Report for FY2007 -From Apr.2007 to Sept SMK Corporation November,

2 <Consolidated> Midterm Net Sales, Operating Income, Ordinary Income, and Net Income 2/36 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Sales amount Unit:Million yen 39,300 39,774 3,834 3,313 2,356 3,300 2,335 1,853 1,358 41,000 4,100 FY2006 1H Result FY2006 2H Result FY2007 1H Revised Plan Net Sales 112.0% Operating Income Ordinary Income 107.4% 3,807 3,904 2,520 2,337 Profit Unit:Million yen 8,000 44,031 7,000 FY2007 1H Result Net Income 6,000 5,000 4,000 3,000 2,000 1,000 0

3 <Consolidated> Sales Expenses 3/36 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 FY2006 1H 20,851 FY2007 1H 35,987 40,224 (91.6%) (91.3%) 53.1% 22,801 3, % 3,893 6, % 7, % 3,686 4,077 1, % 2,029 Operating Income 3,313 3, % 8.8% 16.9% 9.2% 4.6% ( ): Ratio to Total Sales Material costs Expenses for external manufacturing processing Labor Costs Expenses Depreciation allowance Unit:Million yen (Material costs+expenses for external manufacturing processing) improved by 0.2% 60.8% 60.6% About 61 million yen Labor Costs increased by 588 million yen Average number of work force of overseas works 06/4-9 10,400 people 07/4-9 13,000 people Main works reporting increase :Hunan, China 2,300 people : Mexico 300 people Increased by 2600 people

4 4/36 <Consolidated Consolidated> Analysis of sales expenses Analysis of factors for increase & decrease of consolidated operating income [FY2006 1H vs. FY2007 1H] Unit:Million yen Net Total +494 million yen 2,500 Total -1,422 B. Factors for income decrease A. Factors for income increase ,000 Total 1,916 1,500 Increase in depreciation allowance Increase in expenses Increase in labor costs 1, Lower expenses for external manufacturing processing Material costs Increased sales amount (after price reduction) -1,000

5 /36 <Consolidated> Non-operating operating income and loss FY2006 1H FY2007 1H (1.3%) (0.2%) Revenues from and expenditure to fixed assets Others (Dividend income) Currency exchange profit Financial account balance (Unit: Million yen) ( ): Ratio to total sales Comparison to the previous midterm -424 million yen Exchange Gain Exchange Loss 501 million yen Previous midterm -Yen depreciated by 0.43 yen (as of Sept. 30, 2006) (Mar. 06) (Sept. 06) Current Midterm Yen appreciated by 2.62 yen (as of Sept. 30, 2007) (Mar. 07) (Sept. 07) Ordinary income 3,834 3,904

6 Unit: Million yen 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Reference: <Consolidated> Net Sales and Operating Income by Product Division (FY2006 1H, FY2007 1H) Net Sales 39,300 2,381 16,753 20,166 FY2006 1H Result 6.1% 42.6% 51.3% 44,031 2,282 %: Composition ratio 5.2% 4,500 15, % 4,000 3,500 3,000 2,500 2,000 25,775 1,500 1, % FY2007 1H Result -500 CS FC TP Operating Income 3, , FY2006 1H Result 3, , /36 FY2007 1H Result

7 Unit: Million yen Net Sales by Market FY2005~FY2007(1H Result) 7/36 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, , ,198 5,869 11, % 89.4% 136.2% 39, ,448 5,245 15,063 3,483 3, % 134.1% 83.6% 122.4% 102.1% 44, ,282 4,387 18,432 3,556 11, % 12, % 13,666 FY2005 1H Result FY2006 1H Result FY2007 1H Result Audio & Visual Car Electronics Telecom Computer Amusement & Appliance Others

8 <Consolidated> Full-term Result & Plan 8/36 Net Sales: Million yen 90,000 80,000 79, % +6.1% 82,500 87,500 Income:Million yen 14,000 12,000 70,000 60,000 50,000 5,166 6,190 3,693 6,200 5,500 4,000 6,800 7,100 4,600 10,000 8,000 6,000 4,000 2,000 40,000 FY2006 FY2007 Initial Plan FY2007 Revised Plan 0 Net sales Operating income Ordinary income Net income

9 Unit: Million yen 10,000 Business Trend of Individual Markets -1 <Net Sales> 13,666 9 Comparison to last year s performance 110.7% 8,652 TP 12,345 TP 4 FC 9,837 Audio / Visual (AV) Increased Sales Amounts for Remote Controls Increased sales amounts for digital home electronics 9/36 For Flat Panel Displays: Japanese/North American/ ASEAN markets For STBs: North American market For DVD Recorders: Japanese/ASEAN markets 5,000 Increased Sales Amounts for Connectors Enhanced sales amounts of new products 3,684 CS 3,825 For Flat Panel Display HDMI Connectors For Portable Audio Board-to Board Connectors 0 FY2006 1H FY2007 1H

10 4,000 2,000 0 Business Trend of Individual Markets -2 Unit: Million yen 3,483 1, ,142 FY2006 1H Comparison to last year s performance 102.1% <Net Sales> Increased sales amounts of 3,556 touch panels TP 1,784 1,786 FC 643 CS 1,126 1,127 FY2007 1H Car Electronics Increase in units 10/36 Increased sales amounts of factory installation touch panels for Japan and overseas markets Increased sales amounts of factory installation microphone units for Japanese markets Declined connector sales Decreased sales amounts of digital radio coaxial connectors for the North American market

11 Unit: Million yen 18,000 16,000 14,000 12,000 10,000 Business Trend of Individual Markets -3 15,063 Comparison to last year s performance 122.4% 2,909 Others TP <Net Sales> 18,432 1,515 CS FC Communication Expansion of connector sales Increased sales amounts of connectors due to steady production of cell phones for overseas markets Board-to-Board Camera Connectors Connectors 11/36 8,000 6,000 4,000 2,000 12,122 16,908 Card Connectors Others I/O Connectors, etc. 0 FY2006 1H FY2007 1H

12 6,000 4,000 2,000 0 Business Trend of Individual Markets -4 Unit: Million yen 9 5, ,889 1,826 FY2006 1H Comparison to last year s performance 83.6% Others 10 4, FC 2,193 CS 1,754 TP FY2007 1H <Net Sales> Computer Increased sales amounts of units Increased sales amounts of cradles due to steady demand of digital still cameras Decreased sales amounts of keyboards and touch panels 12/36 Decreased sales amounts of keyboard and touch panels due to declining ECR/POS markets Decreased sales amounts of remote control units Decreased sales amounts of remote control units and optical receivers due to declining demand of AV computers

13 SMK s s Management Goals 13/36 1. Three challenges *Enhancement of SMK s s brand recognition *Quality improvement by TN (transnational) ZD activities General (Absolute) Quality *Another try for creation of better quality products Only conscientious parts can build good equipment 2. Turn-around of red-ink business into black at our earliest opportunity 3. Efforts for achievement of our middle term business plan *ROA 13% ROE 15% *Annual dividend of 25% to 30% payout ratio 4. Environmental corporate management *RoHS Directive and Chinese regulation in respect to its own RoHS European REACH Regulation *Publication of environmental reports 5. CSR management *Compliance with the Japanese version of the SOX Act Establishment of Internal Audit Department (as of Oct.1)

14 Acquisition of remote control business segments of Interlink Electronics, USA 14/36 Overview:Acquisition of two remote control business segments of Interlink Electronics Date of signing:august 15 Acquisition Value: US$ 11.5 million (1.32 billion yen) 1) Branded Business :Retail sales in the US market Establishment of SMK-LINK by SMK-America 2) OEM Business: OEM for computers and projectors Expected effect: Annual Sales increase by the two business segments listed above: 2 billion yen

15 CS Division 15/36

16 CS Division CS= Connection System Main products :Connector/Jack Connector JackJack 16/36 FPC connector Speaker terminal I/O connector Card connector DC power supply jack, Headphone jack

17 CS Division <Consolidated> Net sales, Operating income 17/36 Unit: Hundred million yen Sales Net sales Operating income Income FY2006 Result FY2007 Prospect FY2007 1H Result FY2007 2H Prospect

18 CS Division <Consolidated> Transition of market-specific sales 100% 5% 5% 3% 4% Industry 18/36 Information Technology 63% 68% 68% 65% 50% 0% 6% 26% 5% 22% 5% 24% 6% 25% FY2006 1H FY2006 2H FY2007 1H FY2007 2H Result Result Result Prospect Car electronics Audio/Visual

19 CS Division Product strategy Card connectors & semi-conductor sockets 19/36 Sales transition *FY2005 as Small card connectors for mobile phones microsd/transflash TM card connectors 100 MemoryStick MicroTM card connectors Optimization of product variations Downsizing space saving effectiveness FY2005 FY2006 FY2007 Combination multi-functionality Result Result Prospect Camera connectors SIM card connectors Low-profile types Automatic focusing applications Lower profile and higher resolution products

20 CS Division Product strategy Sales 売上推移 Transition *FY2005 as PB connectors PB-4A (h=0.8mm type) PB-4B (h=1.2mm type) 20/ FY2005 FY2006 FY2007 Result Result Prospect Digital still cameras Shielded design available Extended applicability Expansion of product variations Numbers of lined-up poles PB-4A:10, 16, 22, 24, 26, 28, 30P, 40, 42, 50, 60, 70, 80P PB-4B:12,20,26,30,36,40,50,60P SmartPhone Wireless LAN modules Mobile phones Camcorders

21 Automotive electronics Projected demand Unit: Million units Coaxial connectors TC-15 CS Division Strategic markets/products Automobile use camera connectors FPC connectors EC-05/10 Solar cell systems Safe driving systems (such as sensors, etc.), ETC, etc Telecommunications Coaxial connectors TC-7 Shortest in the industry (H=1.0mm) Coaxial connectors TS-9 High speed transmission Photovoltaic module connectors Large current water proofing Audio & visual Operability HDMI connectors 21/36 16P interface connectors low-profile (2.0 mm high when joined) Contact reliability FPC connectors EF-51

22 CS Division Objective for FY /36 1.Promotion of development of technologies and products Timing and speeding up Patent and quality 2.Pursuit of optimal means (production and sales) More financial efficiency (General/Conversion facilities) Promote support for overseas divisions 3.Elevation of total strength Execution of strategy by business unit and model Strong start (7th medium term business plan)

23 FC Division 23/36

24 FC Division FC=Functional Components Main products :Switch/Keyboard/Control panel/earphone microphone/bluetooth/microphone/remote control unit/camera module 24/36 SW (Switch) UN (Unit) Various types of switches Earphone microphone RC (Remote Control) Bluetooth Electret Condenser Microphone (ECM) MD (Module) Remote Control Unit Color Intelligent Remote Control Unit Camera module

25 FC Division 25/36 <Consolidated>Net Sales, Operating income Sales Unit: Hundred million yen Net Sales Income Income FY2006 Result FY2007 Prospect FY2007 1H Result FY2007 2H Prospect 0

26 100% FC Division <Consolidated> Transition of Market-Specific Sales 17% 17% 15% 15% Industry 26/36 50% 25% 4% 16% 4% 15% 4% 25% 4% Information Technology Car electronics 55% 64% 66% 56% Audio/Visual 0% FY2006 1H FY2006 2H FY2007 1H FY2007 2H Result Result Result Prospect

27 FC Division Product 27/36 SW UN RC MD Up to 2007: Breed improvement (product development) and sowing (marketing) 2008 and on: Reaping (production/sales increase) Marketing activity for BT units, AC chargers and antennas Development of products differentiating us from competing RC manufacturers RF and sensor technologies Product development focusing primarily on automotive camera modules Image processing technology & weatherability

28 FC Division Major markets AV equipment application market Mobile phone parts market 28/36 Multi-function switches Thin slide switches 2-dome switches RF modules best suited for remote control applications Car electronics parts market Small horizontal switches Detector switches (DSI/DSJ) Rubber single key switches In-vehicle Remote Wide-angle camera modules Control Units CarNavigation/AD/RSE Bluetooth Earphones AC Adapters applicable worldwide

29 FC Division Objective for FY /36 Active Product Development Advancement of Technical Capabilities Reformation of Product Development Sector Custom Products Custom Products Strengthen Ability for Price Competition

30 TP Division 30/36

31 Main items SMK Touch panels TP Division Touch Panel Resistance sensitive system Film/Glass structure Standard type Anti-smudge type Anti-bacterial type Reinforced glass type High transparency type Low reflectance type Glass/Glass structure Linear polarization type Circular polarization type Ultra-low reflectance type Polarized sunglass type Film/Film structure 31/36 Standard type Linear polarization type Circular polarization type Force-feedback Optical system Glass panel Acrylic panel

32 TP Division <Consolidated> Net Sales, Operating Profit 32/36 Sales Unit: Hundred Million yen Income Net sales Operating Income FY2006 FY2007 FY2007 1H FY2007 2H Result Prospect Result Prospect

33 TP Division <Consolidated> Transition of Market-Specific Sales 33/36 100% 25% 21% 19% 2% 5% 3% 33% 3% Industry Information Technology 50% 73% 74% 78% 64% Car electronics 0% FY2006 1H FY2006 2H FY2007 1H FY2007 2H Result Result Result Prospect Audio/Visual

34 Cost and Production Capacity Efforts / FY2007 FY2008 FY2009 Use of overseas resources Chinese market FY2007 FY2008 FY2009 Investment for semi-automatic facilities High value added goods Development of differentiated products 3D Instruction Manual FY2007 FY2008 FY2009 Expansion of MP Production Capacity Expansion of Clean Room Investment for Mechanical Installation Transition of Small Model/Large Model

35 TP Division Objective for FY /36 FY2007 Key activity points Expansion of Sales Marketing of differentiation products Touch panels of Glass+Glass, in-vehicle high transparency and low reflectance Film+Glass, force feedback, and integrated optical types Marketing in the overseas market Glass+Glass: Europe and USA Film+Glass: USA, China, ASEAN Optical system: USA and China Expansion of overseas production Improvement of labor-saving/ greater production yields in the Philippines Production of integrated optical touch panel LCD module units in China (SMK-DG)

36 Notice 36/36 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,