Business Report for FY2005

Transcription

1 June,2006 Business Report for FY From Apr.2005 to Mar

2 Contents Page 1. Financial Section Market Forecast and Our Strategies Managerial Goals /31

3 Financial Section 2/31

4 Performance for 2004/2005/2006(Consolidated) Unit: Million Yen 80,000 60,000 40,000 20, ,000 5,000 4,000 3,000 2,000 1, ,438 4,965 Net Sales 8% 71,860 75,000 FY2004 FY2005 FY2006E Ordinary Income 11% 4% 5,512 5,600 2% FY2004 FY2005 FY2006E 3/31 5,000 4,000 3,000 2,000 1, ,000 4,000 3,000 2,000 1,000 Operating Income 0 4,134 4,290 4% 3,081 5,000 FY2004 FY2005 FY2006E Net Income 13% 17% 3,473 3,600 4% FY2004 FY2005 FY2006E

5 Analysis of Sales Expense Comparison of consolidated operating profits in 2 fiscal terms;fy05/fy04-3,000-2,000-1, ,000 2,000 3,000 Million Yen Increase in sales amount (including decreasing prices) Decrease in material cost 155 2,039 Factors for profit increase 2,194 1, Increase in labor cost Increase in expenses Increase in depreciation allowance Net Total 156 Factors for profit decrease -2,038 4/31

6 Net Sales/Operating Income by Product Division Million Yen 80,000 70,000 60,000 50,000 40,000 30,000 66,438 4,609 30,382 71,860 4,798 33,743 (Consolidated) 75,000 5,162 34,474 Million Yen 4,134 4, ,000 1,070 20,000 10,000 31,447 33,319 35,365 3,900 3,657 4,080 0 FY2004 FY2005 FY2006E CS Div. FC Div. TP Div. Connector, Jack Switch, RC, Unit, Module Touch Panel 5/31

7 Capital Investment&Depreciation (Consolidated) Million Yen Capital Investment Depreciation 6/31

8 Net Sales by Market FY2003 FY2004 FY % Audio&Visual 33% 34% 10% 7% 29% 21% 2% Car Electronics 9% 7% Amusement 29% Telecom. 20% Computer 2% 9% 7% 32% 16% 2% 0% 20% 40% 60% 80% 100% Audio & Visual Car Electronics Amusement&Appliance Telecom. Computer Others 7/31

9 Net Sales/Production by Region Net Sales by Region FY2003 FY % 24% Japan Asia Europe America 57% 22% 13% 4% 17% 4% FY % 26% 3% 18% 0% 20% 40% 60% 80% 100% Net Production by Region FY2003 FY % 34% Japan Asia Europe America 53% 35% 1% 1% 9% 11% FY % 40% 12% 1% 0% 20% 40% 60% 80% 100% 8/31

10 Market Forecast and Our Strategies 9/31

11 Market forecast of each market Market Audio-Visual CY2005 CY2006FCT Car Electronics Cellular Phone PC Office Equipment Home Appliance 10/31

12 W/W Production 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, ,340 1,189 2,141 1,827 4,238 Flat Panel TV LCD (10 inches and over) and PDP TVs Thousand units Annual rate of growth 79% 11,735 23,416 4,915 2,715 5,727 4,301 37,687 8,515 4,445 10,222 7,495 5,758 7,010 CY2004 CY2005E CY2006FCT source JEITA 11/31 SMK s measures Augmented marketing activities in European & Chinese regions Further expansion of remote control business Marketing of internal connectors and promotion of new product development ~FPC connectors& card edge connectors Thoroughgoing marketing efforts for sales expansion of I/F connectors ~HDMI connectors and thin pin jacks

13 Audio Visual Market Production Forecast for FY Unit :Million sets LCD Monitor Market&Video Game STB HDD/Silicon AD 3. Camcorder/DSC Market DSC Video Game Market Price of Flat TV LCD TV From '05 to '07: 50% Minus AV Receiver DVD Recorder Camcorder 39.1 (Digital) 15.5 Projector PDP TV % MD Rear Projection 20% Plus Growth 40% CAGR: /31 0 Growth Rate from 2005 to 2007 LCD Monitor SMK s s target in 2006 Production LCD/PDP TV &Silicon AD Market in 2007 CAGR:Compound Annual Growth Rate Source:JEITA & others

14 Cellular Phone World Wide Potential Unit: Million sets % % 47.6% 43.2% Camera Installed Rate % % Coaxial Connector FPC Connector Earphone Microphone Camera Connector 0 Source JEITA CY2004 CY2005 CY2006E CY2007E 13/31 0

15 900, , , , , , , , ,000 Unit:Thousand sets 0 Cellular Phone production by class Production TOTAL Low end Middle class(japan) Middle class (Overseas) High end 525, , , ,360 CY2003 CY2004 CY2005 CY2006E Source:JEITA, Nomura International Over 900M Unit? 14/31

16 Car Navigation Production by Region Unit: Thousand sets 10,000 9,000 8,000 6,810 7, ,000 1,830 5, ,000 3,000 2,000 4,620 1,000 0 Source JEITA 8,890 7, ,200 1, ,240 5,850 CY2004 CY2005 CY2006E Car Navigation Market trend Others EU US Japan W-02 9/17 Silicon Audio corresponding model increases Demand for 3.5Jack and USB CN increase. Navigation for OEM Data communication in car. Navigation for After MKT Multimedia,Entertainment Personal Navi Main market: EU. The demand for TP 3.5inch increases. with USB, SD, HDD, Flash etc. 15/31

17 PC (Desktops & Notebooks) W/W Production Thousand units 04-06Annual rate of growth 11% 183, ,000 2, ,180 3,355 18,362 2, ,391 19, , ,000 20, ,824 3, SMK s measures Sales promotion of remote controls for PCs with TV functions and Windows Media Center Edition PCs 100, , , ,402 Development efforts of connectors for notebook PCs 50,000 Marketing of RF parts ~Coaxial connectors and antennas 0 4,560 4,841 5,112 CY2004 CY2005E CY2006FCT source JEITA 16/31

18 7,000 CS Division-Camera Connector Sales Growth 6,000 Sales of FY2002=100 5,370 5,760 5,000 4,000 3,000 3,286 2,000 1,370 1, FY2002 FY2003 FY2004 FY2005 FY2006E FY2007E 17/31

19 CS Division-Card Connector Card connecter for cellular phone Micro SD CN 0.4mm PB Connector PB-4 M2 card connector Mega-SIM for GSM Cellular, DSC, i-pod 18/31

20 CS Division-Coaxial Connector VC connector Micro coaxial connector Mobile phone for Car-navigation Car-audio Micro USB CN I/O connector 10P I/F connector USB-ready HDMI CN for camcorder 19/31

21 FC Division - Strategic Markets/Products 1. Switches Digital Still Camera Digital Audio, Cellular Phone market Lever Push Switch Super Thin type Slide Switch Small Horizontal Switch Double Action Switch Small Detector Switch 2. Cellular Phone market Head Set (Microphone+Earphone+Antenna) Talk Music TV Electret Condenser Microphone Camera Module 3. Digital Home Appliance market Intelligent RC (Home Theater) Win-XP-MCE,Windows Vista RC IR Blaster, others 20/31

22 FC Division - Position of Major RC Suppliers Ranking of Top10 RC Suppliers (Qty) 1 Rank FY2002 FY2003 FY2004E Production QTY (FY2004 FY2004 Estimation) Chinese Company SMK European A Japanese A Japanese B Japanese C Japanese D Korean Company European B Japanese E Source:Estimated by SMK Million units/month /31

23 TP Division - Touch Panel Vol. and Size by Application Unit: thousand sets/year 50,000> Mobile 45,000> 10,000> 5,000> 4,000> 3,000> 2,000> 1,000> 500> 300> 200> DSC PDA DVC Game Interphone Handy terminal Car Navigation MFP PC POS : SMK having business : Target Medical KIOSK 100> Q ty Size (inch) FA ATM Arcade game Small Medium Large 19 22/31

24 TP Division - Customer List of Car Market 23/31

25 Research & Development Center - Bluetooth Modules Bluetooth Serial Port Adapter BT201 BT201 Thermal Printer Bluetooth PDA Bluetooth Headset Engine BT202 BT202 Headset Unit Bluetooth PDA 24/31

26 Research & Development Center Infrared Transmission & Power Line communication Infrared Transmission FM Modulation / Demodulation Modules AT100 for NTSC / PAL Video Transmission AT100 Security Camera Transceiver Infrared Receiver Monitor 40kHz / 60kHz (Radio Time Signal) Power Line Communication DS-SS Engine PD PD PD Radio Clock PLC Unit Power Line 100V AC 25/31 PLC Unit

27 Collaborative Sales of Research & Development Center 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Unit:Million Yen RF Module Bluetooth IR PLC&Others 4,377 4,241 4,322 4,157 14(Bluetooth) 76 (IR) 39 2(PLC) 5 3,676 2, ,610 3, FY2004 FY2005 FY2006E FY2007E 26/31 5,779 8,900 10

28 Managerial Goals 27/31

29 Corporate Social Responsibility P S R reflects on C S R Personal Social Responsibility Corporate Social Responsibility <Reference> SMK Philosophy SMK Action Guidelines SMK-Group Charter for Corporate Behavior SMK Environmental Charter Company Creed 28/31

30 Environmental Management 1.ISO14001 Certification Sept. 05 Acquired at Head Quarter,Japan. SMK has acquired at all of its manufacturing works in Japan and other countries. 2.Compliance with Laws and Regulations 1)Environmental compliance RoHS directive being put into enforcement in July 06) 2)Compliance with supplier code of conduct 3)Establishment of SMK Group Code of Conduct (Proclaimed in Apr.2006 ) 3.Annual Environmental Report Launched since /31

31 The Objectives and The Medium Term Targets The Objectives for FY Enhancement of SMK Brand power 2 Promotion of TN Trans National wide activity in order to achieve ZD Zero Defect 3 Another challenge in product creation The Medium Term Targets 1. Become a 100 billion yen sales enterprise by the end of March ROE 10% or More 3. Stock Dividend 10~20/Stock 30/31 Challenge to Unlimited Possibilities

32 100% Distribution ratio of shareholders 82,630 thousand shares 79,000 79,000 80% 46.6% 37.8% 40.3% 60% 40% 11.3% 8.3% 11.2% 10.6% 5.5% 12.7% 20% 0% 33.8% % % End of March '00 End of March '05 End of March '06 Directors,Auditors, Corporate Executive Officers Japanese individuals & others Japanese corporations 31/31 Foreign institutions & individuals Japanese financial institutions