1/30

Medium-Term Business Plan FY2024-FY2026

SMK Next100—Challenge, Creativity, Solutions

SMK Corporation (6798)
May 23, 2024

2/30

Agenda1.

Review of the Previous
Medium-Term Business Plan FY2021-FY2023

p. 03 - 06

2.

New Medium-Term Business Plan
SMK Next100

p. 07 - 16

3.

Medium-Term Business Planby Product Division

p. 17 - 29

3/30

1. Review of the Previous
Medium-Term Business Plan FY2021-FY2023

4/30

1‐1 FY2021-FY2023 Results — 1
Over the first two years, benefiting from the weakening yen, sales and profits tracked closely to the plan.

In the final year, prolonged inventory adjustments among main customers and a reduction in stay-at-homedemand following COVID-19 resulted in significant underperformance in both sales and profits.
Unit: Billion yen

FY2021
Medium-Term
Plan

FY2022Medium-Term
Plan

ResultFY2023Medium-Term
Plan

ResultResult

CS

20.4

19.5

22.7

20.0

27.4

20.6

SCI

27.6

28.4

29.0

34.5

32.2

25.5

R&D

0.5

0.3

0.9

0.3

1.1

0.4

TOTAL incl. others

48.5

48.2

52.6

54.8

60.7

46.5

CS

0.67

1.04

1.1

0.89

2.2

1.10

SCI

0.05

△0.14

0.6

0.39

1.0

△2.15

R&D

△0.22

△0.20

△0.1

△0.16

△0.1

△0.18

TOTAL incl. others

0.50

0.70

1.6

1.13

3.1

△1.24

Margin

1.0%

1.5%

3.0%

2.1%

5.0%

△2.7%

Ordinary Profit

1.0

3.4

2.1

2.5

3.5

0.2

Net Profit

0.7

3.0

1.5

1.3

2.5

△0.5

ROE

2.5%

10.2%

5.0%

4.2%

8.0%

△1.5%

ROA

2.0%

6.5%

4.0%

4.5%

6.0%

0.4%

Exchange rate (1US$=)¥108¥112.55¥105¥135.53¥105¥144.56

Net
Sales

Operating
Profit5/30

1‐2 FY2021-FY2023 Results — 2Main Factors Behind Unmet Sales Target
MarketICT

FY2023MediumTerm Plan

14.9

Result7.9

Difference△7.0

Unit: Billion yen

Main Factors↘ RF connectors for 5G devices and base stations: Slow market expansionof real 5G smartphones.
↘ Connectors for tablets: Decreased demand due to inventory adjustments.
↘ Textile connectors for wearables: Market hasn't taken off yet.
↗ Remote controls for sanitary and air conditioners: Solid sales growth.

Home
Appliance

20.6

17.5

△3.1

↘ Remote controls and units for housing equipment: Decreased demand due
to inventory adjustments.
↘ Remote controls for STBs: Unable to secure new deals from major
customers.
↗ Connectors for automotive electrical devices: Sales expansion throughnew products.

Car
Electronics

19.7

16.6

△3.1

↘ Units for E-Bikes: Decreased demand due to inventory adjustments.

Industry/
Others

5.5

4.5

△1.0

↘ Struggling with new market cultivation using IoT wireless modules,
healthcare-related units.

TOTAL

60.7

46.5

△14.2

↘ Camera connectors for the Chinese market: Missed targets due to intense
price competition.

6/30

1‐3 FY2021-FY2023 Results — 3
Corporate Structure Enhancement

Certain results were achieved in quality improvement, personnel system reform, and environmental actions.


Key Initiatives
Initiatives

Details

Strengthen Organizational
Structure
Improve Quality
Increase Work Efficiency

Management restructuring in the U.S and Mexico
Downsizing of factories in Dongguan, China
Integration of Product Divisions/R&D Center and Sales DivisionEnhancement of prevention of quality complaints



Update of core system (Japan, Malaysia)
Introduction of RPA







Reform Personnel System
Promote Environmental
Actions

Toyama Works

Introduction of a new wage system (Japan)
Implementation of employee engagement surveys and engagement
improvement initiatives (Japan)
Promotion of the transition to renewable energy
Reduction of total CO2 emissions

Hitachi Works

Philippines Factory

Malaysia Factory

Mexico Factory7/30

2. New Medium-Term Business Plan
SMK Next100

8/30

2‐1 Positioning of the New Medium-Term Business Plan
SMK’s Vision—Challenge, Creativity, Solutions

Previous Medium-TermBusiness Plan
FY2021-FY2023

New Medium-Term Business Plan
FY2024-FY2026

SMK 100th Anniversary in April 2025

TowardNew Growth
Confidence & Transformation

Long-Term Vision
FY2035What SMK should be

Accelerating structural reforms
for sustainable growth

We will contribute to the next
100 years with our

Looking toward the next 100 years,
we aim to maximize corporate value by
pursuing sustainable growth in sales
and profits, and by improving thesophistication of our management base,capital and financial strategies.

that realize all kinds of needs.

Manufacturing Capabilities— We provide products and services
that solve the challenges faced bycustomers who use electronics,
contributing to the creation of aprosperous society. —SMK Next100

FY2026 Target

FY2035 Target

46.5 billion yen

60.0 billion yen

150.0 billion yen

Operating
Profit Margin△2.7 %

3.5 %

10.0 %

ROE△1.5 ％

5.0 ％

10.0 ％FY2023 Result
Net Sales(Final year of the Medium-Term Business Plan)(Long-Term Vision)

9/30

2‐2 Basic PolicyIn preparation for great progress in the next 100 years, we will accelerate structural reforms forsustainable growth.

Based on the promotion of sustainable management, we will work to achieve sustainable growth in sales andprofits, advance the sophistication of our management base, capital and financial strategies, all aimed at
maximizing corporate value.

Improving
Corporate Value

Achieving sustainablegrowth in sales and profit

Strengthening managementbase that supports business

Sophisticating capitaland financial strategies

Promoting ESG & sustainability management10/302‐3 Strengthening of the Management Base

Reorganized and integrated Sales Division, Product Divisions, and R&D Center, transitioning to an integrated
production and sales organizational structure.



Unify policies from sales to production to accelerate strategy formulation and execution for profit maximization,
aiming to expand existing businesses and create new businesses.
Archive
operational excellence

Unify sales and profit
responsibility

Before FY2023
Market Depts.

After FY2024

Sales by market

Sales, new customer acquisition

CS

Marketing Sales promotion
Dept.
New business creation

Design, production, production engineering,
quality

Domestic/overseas sales offices

CS Div.

Technical sales, design, production,
production engineering, quality

SCI Div.

Technical sales, design, production,
production engineering, quality

Product planning, market cultivation

Sales, new customer acquisition

SCI

Product planning, market cultivation
Design, production, production engineering,
quality
Sales, new customer acquisition

R&D Center New business creation, design
Domestic /overseas works

CentralizedIC*

New business creation, design(In-house development & Open Innovation)*IC: Innovation Center

Domestic /overseas
sales offices and works

Sales
Div.

Improve salespersons’product professional skills

2‐4 Growth Strategy

11/30

Achieving sustainable growth in sales and profitCS Division
Expand sales and improve profitability in focus markets
Focus Markets: Car electronics & E-Bike, renewable energy, wearable
For improving profit margins: Promote automation and smart factories.



SCI Division
Enhance profitability and return to a growth path
For improving profitability: Create high-value-added products (sensing + existing technologies),
promote automation and smart factories, optimize production systems.
Focus Markets: Home appliance & housing equipment, car electronics & E-Bike

Innovation Center
Create new businesses through in-house technologies and Open Innovation
Develop solution businesses by combining communication modules, sensors, and algorithms
Focus Market: Healthcare12/30

2‐5 Medium-Term Sales Plan and Key Products by Market

Unit: Billion yen*Growth Rate: FY2026 over FY2023

MarketICT
Home
Appliance

Car
Electronics

FY2023Result

7.9

17.5

16.6

FY2024
Forecast

9.0

18.0

17.5

FY2025
Target

10.1

18.6

18.2

FY2026
Target

10.9

21.4

20.8

Growth
Rate*

138%

122%

125%

Focus Areas

Key Products

TabletConnectors

Wearable

Connectors, switches

Air Conditioner

Remote controls, units

Housing
Equipment

Remote controls, units,
sensors

EV

Connectors, units

E-BikeConnectors, units, switches

ECU

Connectors
Biometric sensors

Industry/
Others

4.5

5.5

5.1

7.0

156%

Healthcare

Monitoring sensors
Renewable
Energy

TOTAL

46.5

50.0

52.0

60.0

129%

Dementia diagnosis algorithm

Connectors, units

2‐6 Toward Management Conscious of Cost of Capital and Stock Price 13/30
Analysis of current situation to improve corporate value
The current PBR is 0.5.
Reasons (1) Weak sales and profit and uncertainty in growth potential(2) High profit volatility(3) Low ROE and operating profit margin

Achieve a growth path through steady execution of the Medium-term Business Plan
Medium- to long-term ROE target: 10％ ⇔ Cost of equity: 9% (estimated)
 Implement measures to improve capital efficiency through the gradual introduction of ROIC.


Shareholder Return Policy
During this Medium-Term Business Plan period, we aim for shareholder returns by combining dividends
targeting a DOE of approx. 2% and flexible share buybacks based on business performance,with the premise of maintaining financial soundness in response to changes in the business environment.

200

Unit: Yen

100
0

DOE

70

100

100

100

50

40

50

FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024
Forecast

1.1%

1.0%

1.2%

1.5%

2.0%

2.0%

Approx. 2.0%

The forecast for dividends in FY2024 is 100 yen.

14/302‐7 Cash Allocation

Allocate around 80% of the 11-billion-yen operating cash flow generated during the Medium-Term Business
Plan period to growth investments.

Compress working capital and optimize asset efficiency of cross-shareholdings to strengthen the financial position.



Actively distribute dividends to shareholders in line with the aforementioned dividend policy.

Cash Allocation Outlook during FY2024-FY2026
Asset streamlining

Debt compression
Shareholder return(2 billion yen)

Operating cash flow
(11 billion yen)•

Automation & labor-saving
Smart factory

Capital investment(9 billion yen)•Cash-out

New product development

Molds and jigs
production/inspection equipment•

Cash-in

Productivity enhancement

Infrastructure strengthening

DX
Facility upgrades/building repairs

2‐8 Promotion of ESG & Sustainability Management

15/30

Environment

Society

GovernanceAchieve carbon neutrality
in FY2045

Strengthen human capital

Enhance corporate governanceMedium-term target for reducing
total CO2 emissions (vs. FY2020)
FY2026 24％ reduction
FY2030 40％ reduction

Measures• Update to energy-efficientfacilities• Introduce solar power
generation systems• Procure low-carbon electricity

Reform personnel system

Enhance crisis management

Secure and develop humanresources
Promote diversity and genderequality• Review performance evaluation
system• Enhance training programs(reskilling, overseas training, etc.)• Increase the proportion of female
managers• Adapt to the Tokyo Stock Exchange’s
Corporate Governance Code• Strengthen information management
and information security• Improve business continuity
capability (strengthen IT-BCP)

Enhance IT Systems•

Visualize management indicators and improve data utilization• Optimize business processes of design and development

16/30

2‐9 Medium-Term Sales and Profit Plan by Product Division

Unit: Billion yen

FY2023

FY2024

ResultNet
Sales

Operating
ProfitFY2025

Forecast

FY2026

TargetTarget

CS

20.6

23.4

24.0

27.8

SCI

25.5

26.3

27.4

31.0

IC

0.4

0.3

0.6

1.2

TOTAL

46.5

50.0

52.0

60.0

CS

1.10

0.97

1.00

1.50

SCI

△2.15

△0.71

0

0.70

IC

△0.18

△0.46

△0.30

△0.10

TOTAL

△1.24

△0.20

0.70

2.10

Margin

△2.7%

△0.4%

1.3%

3.5%

ROE

△1.5%

Exchange rate (1US$=)¥144.56

5.0% in the final year (FY2026)
¥150

¥130

¥130

17/303. Medium-Term Business Planby Product Division18/303‐1 CS Division

Connection System

Major Products: Connectors

Information &Communication Technology

Car Electronics

High frequency
board to board
connectors

High-current
small board to board
connectors

FPC/FFC connectors
with locking structure

Coaxial FAKRA
connectors

USB Type-C®
receptacles

φ3.5mm mini jacks

High performance pogopin Type terminals

Automotive
camera connectors

Home Appliance &Industry/Others

Connectors forphotovoltaic module

0.5mm pitch one action
FPC/FFC connectors

3‐1-1 CS | FY2021-FY2023 Results
Sales■ Sales ■ Operating Profit
Sales: Million yen

30,000

Despite efforts to expand sales in the car electronics and ICTProfit: Million yen

4,000

27,4003,500

25,00020,58720,000

3,000
2,500

2,200
15,00010,0001,095

0Medium-Term
Plan

ResultFY2023markets, targets were not met due to:• Sluggish global economic growth due to COVID-19.
• Decreased demand in the car electronics market due todifficulties in material sourcing such as semiconductor shortages.
• Immaturity of millimeter-wave 5G and wearable markets.
• Intensified price competition in the car electronics market in
China.
• Inventory adjustments by main customers (tablets).

2,000• Downturn in Japanese smartphone manufacturers.

1,500

Operating Profit

1,000
5,000

19/30

• Increased costs due to geopolitical issues such as the Ukraine
crisis and U.S.-China trade tensions (material and logistics
costs).

500• Currency fluctuations (yen depreciations)0

Key Initiatives• Strengthening Manufacturing Capabilities through promotionof automation to enhance productivity.

3‐1-2 CS | FY2024-FY2026 Environment and Growth Strategy
Environment•

Growth Strategy

Simultaneous progress of xEV and
ADAS.
⇒ Increasing demand for electronic
components in the car electronics
market, including new categories
such as personal mobility.

•

Expansion of the renewable energy
market.

•Rising demand for transitioning togreen energy, including within supply
chains.

Basic Policy••

Expand orders by making proposals leveraging synergies between existing
resources and DX that meet customer needs.
Practice manufacturing though front-loading product development.

Focus Market••

Car electronics:
ｘEV/ADAS, E-Bike
Consumer, industrial: Smartphone, tablet, wearable, amusement,
renewable energy

Manufacturing Strategy••

Unit: Billion yen

20/30

Achieve early establishment of product design quality by advancing
simulation technologies.
Promote smart factories and smart manufacturing processes (DX,automation).

FY2023 Result

FY2024 Forecast

FY2025 Target

FY2026 Target

Net Sales

20.6

23.4

24.0

27.8

Operating Profit

1.1

0.97

1.0

1.5

5.3%

4.1%

4.2%

5.4%

1.0

1.5

1.5

1.8

Operating Profit Margin
Capital Expenditure3‐1-3 CS | Topics

21/30

Car Electronics Market
Lightweight and Thin Design for BMS of xEV•Expand sales and product lineup of FPC connectors for EV batteries.

ADAS, Infotainment•

Develop high-speed transmission connectors for higherresolution automotive cameras.

•

Expand sales of 1Gbps Ethernet connectors with the industry’s
smallest width.

FV-1 Series

ICT Market•

Develop small, high-speed, high-current connectors for high-performance smartphones and tablets.

•

Actively develop connectors for wearables.

Renewable Energy-related Market•

Strengthen development of small, high-current connectors.

Strengthening of BCP

22/303‐2 SCI Division

Sensing, Communication & Interface

Major Products: Switches, automotive cameras, wireless modules, remote controls, touch sensors

Main Applications▶ Control switches

SW - Switch -CU - Composite Unit -▶ Switches for smartphones▶ Automotive cameras▶ Wireless modules

HCF▶ Remote controls

Mini 1-Dome switches▶ Automotive touch sensors▶ Touch sensors for industrial

and consumer applications

Rubber push
Switches

Top pushswitches

RC - Remote Control -Standard voice
remote controls

SMK standard remotecontrols for Android TV™

Automotive
camera modules

Sensing Units(Milweb)

TS - Touch Sensor -Remote controls
for sanitary

Resistive
touch sensors

Capacitive
touch sensors

23/303‐2-1 SCI | FY2021-FY2023 Results
FY2021-FY2023 Three-Year Performance Trends■ Sales ■ Operating Profit
Sales: Million yen

35,00030,00025,000

Profit: Million yen

7,000

32,20025,536

6,000
5,000

20,0004,000

15,0003,000

10,000

2,000

5,000

1,000

1,000
0

0
(5,000)△ 1,000(10,000)△ 2,000(15,000)△ 2,145
Medium-Term
Plan

ResultFY2023△ 3,000

Sales: Billion yen[Medium-Term Plan]

40
30
20
10
0
(10)
(20)
(30)

[27.6]
28.4[29.0]
34.5[32.2]
0.39

Profit: Billion yen

25.5△ 0.14FY2021 Result

FY2022 Result△ 2.15

FY2023 Result

4
3
2
1
0
△1
△2
△3

Sales

FY2021/FY2022: Progressed solidly, surpassing plan.
FY2023: Significantly decreased due to market downturn and inventory
adjustments by main customers (Car electronics, air conditioning related)

Operating Profit

FY2021/FY2022: Profitability improved due to increased sales.
FY2023: Significantly deteriorated due to decreased sales and high COGS.
Recorded inventory write-down for assets with no expected recovery.

Key Initiatives to Expand Sales• Expansion of E-Bike business: Secured orders for new products fromJapanese manufacturers.
• Camera modules: Proposing value-added products with sensing technologies.
• Sensing devices: Expanding sales in Japan and U.S. Market.

Profitability Improvement• Strengthening domestic production capacity (reshoring demand, respond to
yen depreciation).
• Promoting labor-saving for improved productivity (partial automation,
generalization of production facilities).
• Optimizing personnel in overseas production sites.
(△21% in Philippines, Mexico, and China)

3‐2-2 SCI | FY2024-FY2026 Environment and Growth Strategy
Environment

Growth Strategy

Market•••Accelerating shift toward eco-friendly
products.
Rapid spread of products utilizing AI.
Growing awareness of safety, health,and monitoring.

Supply Chain•••

Recovery from semiconductor andelectronic component shortages.
Growing influence of component
manufacturers.
Increase in intermediate inventory
due to market downturn (imbalanceof supply and demand).

Unit: Billion yen

Net Sales

24/30

1. Maintenance and expansion of existing markets••

Car electronics: Expand E-Bike business (from domestic to overseas).
Home appliance and housing equipment: Deepen relationships with main
customers.

2. New market cultivation

Commercialize high-value-added sensors and sensing products.
•
Develop products by integrating with existing technologies.
•
Develop high-value-added products with sensing and camera modules.

3. Organizational structure enhancement•••

Establish a dedicated team for new markets and customer cultivation tostrengthen sales expansion.
Review production systems to meet BCP and reshoring demand. (Respondto yen depreciation)
Improve productivity through partial automation and labor-saving measures.

FY2023 Result

FY2024 Forecast

FY2025 Target

FY2026 Target

25.5

26.3

27.4

31.0

Operating Profit

△2.15

△0.71

0

0.70

Operating Profit Margin

△8.4%

△2.7%

0.0%

2.3%

1.1

0.5

0.4

0.5

Capital Expenditure25/303‐2-3 SCI | Topics
Basic Policy

Breakthrough to the Next StageKey Product

Milweb• Millimeter-wave sensor equipped with algorithms.
• Detects heart rate, respiratory rate, position, number of people, distance,
speed, etc.
• Received numerous inquiries from various fields.

Number of people and occupancy

Next

Vital signs

Movement

Milweb Application Kit “MAK”

Distance and speed

Toward the generation and commercializationof next main products・Integration with existing technologies
・Integration with AI

Production System Enhancement• Promote automation and optimization of production lines.
Labor-saving: Expand human-robot collaborative production lines globally.
Generalization of production facilities: Promote efficiency in capital investment.
→ Secure personnel, improve production efficiency.
• Strengthen domestic production.
Expand production space in Showa Denshi Co., Ltd. Hitachi Works.

Showa Denshi Co., Ltd. Hitachi Works
After expansion and renovation

26/303‐3 Innovation Center

In April 2024, Innovation Center was established by integrating former R&D Center and the teamcreating new businesses through open innovation activities in the former Marketing Department in theSales Division. This reorganization aims to centralize and strengthen new business creation resources
to enhance efficiency and speed.

Innovation Center’s Mission:
1. Create the next pillars of revenue through unique, high-value-added technologies and products.
2. Develop new business models combining hardware, software (algorithms), and services.
3. Create solution businesses addressing social challenges.

Innovation Center actively integrates internal R&D with external
cutting-edge technologies through open innovation, with the aimof addressing social, industry, and customer challenges.

Challenges
of...

Society

The themes of innovation activities••••

Healthcare
ADAS
IoT
AI

Industry

Customers

3‐3-1 IC | FY2021-FY2023 Results
Sales■ Sales ■ Operating Profit
Sales: Million yen

Profit: Million yen

1,500
1,250

Communication Modules: Missed targets due to weak sales<Bluetooth® modules>- No new orders due to intensified price competition.
- Decrease in sales due to reduced demand from existingcustomers.
<Sub-GHz modules>- Started mass production for system lighting, but missed
targets.

•

Open Innovation: Positioned the previous Medium-TermBusiness Plan period as a phase for development and PoC.

2,500

1,000

2,000

750

1,500

500

387

1,000

250

500

0

0

-250

•

3,000

1,180

△ 100
Medium-Term
Plan

△ 184
ResultFY2023

27/30

△ 500

Key Initiatives•

Sub-GHz Modules: Secured mass production orders after PoC
for logistics.
⇒ Mass production start in FY2024.

•

Open Innovation: Conducted development and PoC of radar
based monitoring sensors through capital and businessalliance with EchoCare.
⇒ Targeting mass production start in FY2025.

28/303‐3-2 IC | FY2024-FY2026 Environment and Growth Strategy
Environment

Growth Strategy

Further Growth of the IoT Market

1.

Market size forecast:
US$4,062.34 billion by 2030, CAGR 24.3%

2.

<Leading markets>•
Digital healthcare•
Smart home appliance•
Car electronics•
Industrial applications

3.

<Cultivating Markets>
Car electronics, logistics, and DX market such as retail
1.

Growth of Biometric Healthcare Market••

SMK has established partnership with startups
with advantages, butintense competition requires maintenance ofdifferentiation and swift business expansion.

Market size forecast:
US$ 802 billion by 2030, CAGR 27.5%

Unit: Million yen

Net Sales
Operating Profit
Operating Profit Margin
Capital Expenditure

Promote development by combining original communication
technologies, sensors, and algorithm.
Increase profit margins through in-house development of corealgorithms.
Leverage open innovation.

2.

Launch healthcare businesses through business and capitalalliances.
Pursue high-profit-margin subscription service businesses.

<Cultivating Markets>• Brain-related diseases screening via speech analysis⇒Japan and Asia with exclusive rights• Monitoring sensors ⇒elderly facilities, hospitals, etc.

FY2023 Result

FY2024 Forecast

FY2025 Target

FY2026 Target

387

297

600

1,200

△184

△456

△300

△100

△47.5％△153.6％

△50%

△8.3%

9

30

30

30

3‐3-3 IC | Topics —Key Items for Achieving the Medium-Term Business Plan
Sub-GHz Communication System

29/30

Speech Analysis Technology• Uses original 920MHz Protocol.
• Communication specifications are customizable to suit
applications.
• Enables to built systems by combining various sensors.

• Technology to analyze underlying brain-related diseases andemotions from the speech rhythm and spectrum.
• Utilizes advanced machine learning algorithms developed incollaboration with linguists.

Applications⁃ Equipment monitoring in stores⁃ Temperature management in logistics

Applications
Screening for dementia in the elderly
Features: Allows for easier and simpler
screening compared to conventional
interviews or imaging tests.
Analysis Items: Cognitive function (MCI),
depression, fatigue, vitality, stress, etc.

Our system enables communication
through small gaps even in situations
where metal enclosure makes
Bluetooth® low energy/Wi-Fi®
connectivity challenging.

NFC Antenna

Radar Based Monitoring Sensor• Coil type with metal wire wound around
ferrite core.
• Small and thin, allowing for flexible placement.

A high-functioning monitoring system capable of detecting falls,
water submersion in bathrooms, and analyzing the daily activities
of seniors using radar technology, without the need for cameras.

Applications
Embedding NFC antennas in car door handles, pillars, and house
doorknobs, enabling the use of smartphones or cards as keys.

Applications⁃ In the room
Detection of position, falls, gettingout of bed, and monitoring ofheart rate/breathing, etc.

⁃ In the bathroom
Detection of water submersion,
falls, prolonged inactivity, etc.

Notice30/30

All information in this material concerning the forecast of business achievements, projections of generalbusiness 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 frombusiness projections, stated or implied, due to situations which are unforeseeable under normal conditions, orof 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 ourcompany, 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.

About Trademarks• Android TV is a trademark of Google LLC.
• The Bluetooth® word mark and logos are registered trademarks owned by Bluetooth SIG, Inc.
and any use of such marks by SMK Corporation is under license.
• USB Type-C® is a registered trademark of USB Implementers Forum.
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• Products and company names listed in this material are the registered trademarks or trademarks of their respective holders.