2009
SEMI ANNUAL REPORTFor the six months ended September 30, 2009
5-5, Togoshi 6-chome, Shinagawa-ku, Tokyo 142-8511, JAPAN
Telephone: 81-3-3785-1111 Fax: 81-3-3785-1878

http://www.smk.co.jp/

Printed in Japan

Financial Highlights

To Our Shareholders and Investors

Corporation and Consolidated Subsidiaries

Millions of yen

Thousands of
U.S. dollars

Millions of yen

2009

2008

2009

2009

Year ended March 31¥ 44,600¥ 32,280$ 357,833¥ 72,742

Operating income

1,996

1,643

18,224238

Net income

1,710

940

10,432(1,620)¥ 68,892¥ 56,930$ 631,091¥ 58,168

33,34529,703329,270

29,079Six months ended September 30

Operating Results
Net sales

Financial Position
Total assets
Total net assets
Per Share Data

Yen

U.S. dollars

Yen

Net income
Basic¥ 22.76¥ 12.72

Diluted

22.76

—

$

0.14

¥ (21.68)——

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥90.21 = U.S.$1.00.

Millions of yen

Millions of yen

Net sales
Full year
First half

Full year
First half

90,0004,000

60,00030,00034,89739,300

5,000

5,654
5,166

72,742

71,860

Full year
First half

6,000

87,65979,074

Millions of yen

Net income (loss)

Operating income

3,473 3,693

4,290

2,500

3,807

32,280

0

2,000

2,349

2,094
1,996

238

0

2006 2007 2008 2009 2009
Mar.

1,643

Sep.

Yen

940

(1,620)(2,500)

Mar.

1,710

0

2006 2007 2008 2009 20092006 2007 2008 2009 2009

Sep.

Mar.

Millions of yen

Basic net income (loss) per share

Sep.

Millions of yen

Total assets

Total net assets

Full year
First half

60

75,00044.33 47.48

30

40,00061,34465,575 66,737
58,168 56,930

30,00032,73634,56432,38629,079 29,703

50,00027.32

20,00012.72
025,00010,000(30)

0(21.68)2006 2007 2008 2009 2009
Mar.

1

Sep.

0

2006 2007 2008 2009 2009
Mar.

Sep.

During the interim term under review, although theglobal economy generally began to show signs ofbottoming out, helped along by major countries
introducing economic stimulus packages aimed at ending
the ongoing worldwide recession, lingering uncertainty
regarding the future means that there is still little cause
for optimism.
The Japanese economy is similarly struggling to dispel
uncertainty regarding the future, not the least due to thecontinuing threat that declining consumer confidence
and the appreciation of the yen against the dollar could
still harm the economy.
The electronics industry is starting to see an end to
sharply declining demand and production cutbacks dueto the global recession and is undergoing a slightrecovery on the whole. Even so, it is likely to take aconsiderable amount of time to establish any serious
upward momentum.
In this environment, the SMK Group posted a decline ininterim sales and profits compared to the same period in
the previous year. Thanks to efforts such as actively
launching new products, enhancing pricecompetitiveness and reducing fixed costs, however, net
sales recovered to around 70% compared to the same
period in the previous year, with operating income
recovering to 80%. In the future, we intend to adapt
flexibly to increasingly rapid changes in market
requirements, enhance our overall market
competitiveness focusing on both manufacturing andsales, reinforce the Company’s foundations and secure asteady profit.

2,335 2,337
1,839

3,313

44,031 44,600

Performance Overview

2006 2007 2008 2009 2009
Mar.

Sep.

Initiatives to Meet Our Management Objectives
During the fiscal year ending March 2010, we are willingto continue to focus on the same three management
objectives of “enhancement of SMK brand power,”“quality improvement (Zero Defects)” and “anotherchallenge in product creation.” In terms of quality
improvement, we are committed to achieving “ZeroDefects” in all aspects of our operations, including
management, sales, development and administration as
well as our products. We are confident that this will give
us a stronger competitive edge as a company.
We have made it our basic policy to “establish a firmbusiness structure that will enable us to survive theglobal recession,” and are fundamentally reviewing ourcost structure in an effort to reinforce our sales,development, quality and production technology
capabilities in line with market requirements. We willcontinue to work towards eliminating loss in all its forms(waste, unevenness and unnecessary effort) and actively
invest in technology and product development as the“seeds of tomorrow.”

Tetsuya Nakamura
President and Chief Operating Officer

Environmental Initiatives
We regard coexistence with the global environment as
one of our duties as a company and have therefore
positioned it as a key management objective. Bearing in
mind that preventing global warming is a universal issue
that we all need to face up to, we will continue to makeevery effort to reduce greenhouse gas emissions andreinforce compliance with the RoHS Directive and otherregulations.
We are also committed to promoting and implementing
environment-friendly design concepts and creating new
business opportunities within the environmental market
and are engaged in a wide range of environmental
preservation initiatives.
Although we expect the current harsh market conditions
to continue for the time being, we regard the current
situation as an opportunity for change and aredetermined to pull together and devote all of our efforts
to improving our corporate value and performance.
We hope that we can continue to count on theunderstanding and support of our shareholders as we
pursue these goals.
December 2009
Tetsuya Nakamura
President and Chief Operating Officer

2

Sales and Market Overview(April 1, 2009 to September 30, 2009)

Net Sales (Millions of yen)
2008

2009
Mar.

2009
Sep.

Full year
First half

Audio-Visual

30,00026,75532.3%

20,00022,04413,0898,949
10,42410,000

Audio-visual parts
10,424 million yen

HDMI Standard Type A receptacle

13,666

13,0950
Full year
First half

Car Electronics

8,000

7,424

9.8%

6,077

6,000

3,868
4,000

2,221
3,166

2,000
“Force-feedback” touch panels

Electronic instruments
3,166 million yen

3,556

3,856

0

40,00035,96939.9%30,20730,00017,53720,000Communications parts
12,860 million yen

Stereo earphone-microphone and Bluetooth unit

11,163
12,86010,00018,432

19,044

We have had a hard time in the cellular phone market, which reflected thesignificant scaling back of production by major overseas manufacturers
reacting to the current market conditions. On the other hand, we managed
to increase sales of switches, connectors, touch panels and other parts for
smart phones. We will continue to focus on proactive development of new
products, including parts for operating systems and internal parts that willcontribute to improving cellular phone capabilities.

0
Full year
First half

Information

10,000

8,897

11.5%

7,681

7,500

4,510
5,000

2,925
3,718

2,500
xD-4in1 card connectors

Information, office equipment parts
3,718 million yen

4,387

4,756

Despite receiving a boost from sales of connectors for products such as
touch panels for electronic dictionaries and data communication cards,
overall sales were sluggish year on year due to a decline in demand forparts for laptop PCs, photocopiers, projectors and other officeequipment. We will continue to actively develop new products in linewith emerging market trends in the future in an effort to make more of acontribution to overall sales.

0
Full year
First halfHome Electronics

10,000

8,611

6.5%

7,500

6,732
4,623
5,000

2,884

2,500

3

In the domestic market, sales of connectors made a substantial
contribution to our sales on the back of increased demand for in-vehicle
electronic toll collection (ETC) products, but sales of remote controls,
microphone units and other parts for car navigation and audio systems
remained slow due to a worldwide decline in vehicle sales. In an effort torespond to our customers’ latest needs as quickly as possible in the future,
we intend to focus on developing products such as touch panels forcontrol screens and vehicle-mounted connectors.

Full year
First halfCommunication

DS-SS modulation/demodulation engine for PLC

Although sales of remote controls and connectors made a substantial
contribution thanks to healthy domestic demand for flat panel televisions,
we continued to struggle overall due to a downturn in overseas sales of
products such as parts for set-top boxes and audio equipment. We intend
to concentrate on the development of new products in line with market
requirements in the future, including networked audio-visual equipment
and environmentally friendly products.

Electronic toys, home electronics and other parts
2,109 million yen

3,988

3,848

2,109

A slump in demand in Japan, the U.S. and Europe resulted in poor salesof connectors for video game consoles and remote controls for home
appliances and household equipment such as air conditioners, showers
and toilets. We intend to step up development of new products in the
new energy and eco-friendly sectors, such as solar cells and LED lighting,and focus more on marketing to valued customers in the future.

04

SMK’s New Lineup
Expansion of our range of 2-pin (pole)wire-to-board connectors

Launch of genuine-specification film/glass
touch panel

We have developed and launched the ID-01 and ID-02 series
2-pin (pole) wire-to-board connectors for cellular phones andother small portable devices.
With cellular phones and other small portable devices
becoming increasingly small and slimline and being equippedwith increasingly advanced functions in recent years, there is
growing demand for compact, low-profile connectors for use
inside such devices. Main board connectors for devices such as
microphones, speakers and vibrators need to be cableconnectors that have a small footprint on the board whilst also
being flexible in order to adapt to changes in wire specification.
In response to requirements such as these, we have developed
the ID-01 and ID-02 series cable connectors for a pressureconnecting system. Both products boast industry-leading
receptacle and plug mating heights, coming in at 0.9mm for
the ID-02 series and 1.2mm for the ID-01 series. They areboth low profile and small connectors that will contribute to thedevelopment of even more compact and slimline mobile phones.
Thanks to their superior vibration- and shock-resistant
structure, the ID-01 and ID-02 series ensure high levelcontact reliability, the primary requirement of any connector.
Despite their low profile and compact size, both products offer
outstanding capabilities.

We have started accepting orders for high transparency, lowreflectance film/glass touch panels compliant with genuine
automotive specifications.
Glass/glass touch panels are used in the automotive industry
due to demanding heat resistance requirements, especially for
genuine specification items. As a result, there has always beenstrong market demand for a commercial film/glass touch
panels combining economical pricing with outstanding heat
resistance.
With improved levels of heat resistance thanks to structuralmodifications, this new product can be used for genuine production
line applications without any alteration to its film/glass structure.
Whereas displays have previously been fitted with polarizedplates to minimize glare from outside light, such modifications
are no longer necessary with this new product because the film
and glass themselves offer improved levels of transparency andreflectance without using polarized plates. The level ofreflectance in particular has been improved to 7%, the samelevel as products using polarized plates.
At 87%, transparency has been improved by over 10% compared
to glass/glass touch panels with polarized plates (75%).
As the practice of fitting economical film/glass touch panels to
vehicles with genuine factory-installed touch-screen navigation
systems is expected to become widespread in the future, there
is likely to be a surge in demand for such products. We
therefore plan to manufacture 100,000 units a month at ourplant in the Philippines.

ID-02 series 2-pin (pole) wire-to-board
connectors
Applications:
Cellular phones and other compact small
portable devices

Development of Windows® 7 compatible
IR remote control transmission/reception units
We have developed an infrared (IR) remote control
transmission/reception unit, consisting of an IR remotecontrol (transmitter), USB transceiver (transmitter/receiver),USB receiver and an IR blaster (extension cable withtransmitter), for use in PCs running on Microsoft’s new
operating system Windows® 7. We began accepting orders
from PC and peripheral manufacturers in August 2009.
The key features of the IR remote control (transmitter)
include the quick-launch button for Windows® 7 Media
Center, one of the most frequently used items on the startmenu, as specified by Microsoft. We have also made it possible
for users to switch easily between TV, video, DVD and othermodes.
In addition to RC6, as used previously, this new remotecontrol makes it possible to use the Quatro Pulse IR protocol
developed by SMK and approved by Microsoft.
The USB transceiver has learning functions that enable theuser’s PC to memorize signals for remote controls already inuse in the home. This means that the users can call up signals
when necessary, and control devices around the home, such as
set-top boxes for instance, using their Windows® 7 PC via theunit’s IR blaster.

Genuine-specification film/glass touch panel
Applications:
Car navigation systems

Development of Bluetooth® serial port adapter BT304 series
compliant to Bluetooth® version 2.1 + EDRWindows® 7 compatible IR remote control
transmission/reception units
Applications:Windows® 7 PCs and peripheral devices

We have developed Bluetooth® Serial Port Adapter BT304
Series as optimized module solution for wireless serial
communication and dial-up connection.
Bluetooth® wireless technology is a standard of short-range
wireless communication that can be globally used among
various devices. We have so far been developing and supplying
serial port adapter modules utilizing Bluetooth® wirelesstechnology and specialized for serial cable replacement. In
recent years, there has been growing demand to equip suchproduct also with dial-up connection capabilities via acellular phone.
In response to such demand, we have developed Bluetooth®
Serial Port Adapter BT304 Series. This series is compliant to
Bluetooth Version 2.1 + EDR and supports Secure Simple
Pairing (SSP), which simplifies the connecting process with
Bluetooth®.
We are committed to developing Bluetooth® modules for arange of applications and will continue to expand our businessin the future.

BT304 series Bluetooth® serial port adaptor
Applications:
Handheld terminals
Barcode readers
Measuring equipment
Automotive equipment

Note: Bluetooth® is a registered trademark owned by Bluetooth SIG, Inc. and SMK is awarded license to apply it.

56Topics

Global Network

SMK exhibit at CEATEC JAPAN 2009
At Makuhari Messe (Chiba) from October 6 to 10, we
exhibited at the comprehensive cutting-edge IT andelectronics trade fair CEATEC JAPAN 2009.
Based on the concept “look, touch, experience,” wecame up with various different ways to enable visitors
to the SMK booth to get a real feel for our products,
including demonstrations and exhibitions of a range of
products, mainly touch panels, remote controls andother products.
Visitors were particularly interested in demonstrations
showcasing our two-step force feedback touch panels,
which were being exhibited for the first time at thisyear’s event. As such products enable users to selectkeys based on vibrations through their fingers, without
having to look at the screen, demand is expected tosoar for applications such as control screens for car
navigation systems in the future. We also showcased
the Presienne stopwatch presenter, which was unveiled
for the first time at the event, and a range of other
SMK-brand presentation remote controls currently onsale to the general public.
Our booth attracted roughly 4,000 visitors over thecourse of the five days, enabling a great many people
to experience SMK’s technical capabilities via our
products.

Sales Office
Works
Works & Office

Head Office(Tokyo)Two-step force
feedback touch panel
exhibitA presentation
remote control
demonstration

Philippines SMK Electronics (Phils.) Corporation
SMK Electronics (Phils.) operates outof the town of Clark (Freeport Zone),an area of natural beauty locatedroughly 100 km northwest of thePhilippine capital of Manila.
We are currently expanding our touch
panel production facilities in line with
Senior Finance Manager:
Polintan Ma Victoria

increased production, whilst also
focusing on environmentally friendly
initiatives.

SMK exhibit at COMPUTEX TAIPEI 2009
In the Taiwanese city of Taipei from June 2 to 6 thisyear, we exhibited at COMPUTEX TAIPEI 2009,
Asia’s biggest specialist computer trade fair.
Our booth revolved around hands-on demonstrationsof our touch panels, remote controls and otherproducts and featured a range of products tailored toindividual markets, including flat panel televisions, carelectronics, smart phones and PCs, enabling us toeffectively showcase SMK’s products to visitors
attending the event.
7

ASIA
SMK High-Tech Taiwan Trading Co., Ltd.
SMK Electronics (H.K.) Ltd.
SMK Trading (H.K.) Ltd.
SMK Dongguan Gaobu Factory
SMK Electronics (Shenzhen) Co., Ltd.
SMK Electronics Trading (H.K.) Ltd. Shenzhen Office
SMK Electronics Trading (Shanghai) Co., Ltd.
SMK Electronics Trading (Shanghai) Co., Ltd. Beijing Office
SMK Electronics Int’l Trading (Shanghai) Co., Ltd.
SMK Electronics Singapore Pte. Ltd.
SMK Electronics (Malaysia) Sdn. Bhd.
SMK Electronics (Phils.) Corporation
SMK Korea Co., Ltd.

EUROPESMK Europe N.V.
SMK Europe N.V., U.K. Branch
SMK Europe N.V., France Branch
SMK Europe N.V., Munich Office
SMK Europe N.V., Dortmund Office
SMK (U.K.) Ltd.
SMK Hungary Kft.
SMK Corporation Helsinki Office

NORTH AMERICASMK Electronics Corporation U.S.A.
SMK-Link Electronics Corporation
SMK Electronics Corporation U.S.A., East Office
SMK Electronics Corporation U.S.A., San Jose Office
SMK Electronics Corporation U.S.A., Los Angeles Office
SMK Electronics Corporation U.S.A., Seattle Office
SMK Electronics Corporation U.S.A., Chicago Office
SMK Mexicana S.R.L. de C.V.
SMK Mexicana S.R.L. de C.V., Mexico City Office
SMK Manufacturing, Inc.
SMK Electronica S.A. de C.V.

8

Consolidated Balance Sheets
Corporation and Consolidated Subsidiaries
As of September 30

Thousands of
U.S. dollars

Millions of yen

Assets

2008

2009

2009

Millions of
yen
As of March 31

2009¥ 8,185¥ 9,004$ 99,822¥ 9,072

431

8

93

9

22,946

16,415

181,966

14,864

(71)

(72)

(798)

(77)

8,123

5,627

62,3696,235

Deferred tax assets

883

905

10,029555

Other current assets

1,617

2,421

26,835

3,645

42,11434,308380,316

34,303Time deposits
Notes and accounts receivable, trade
Allowance for doubtful accounts
Inventories

Investments and long-term loans
Investment securities

2,958

2,566

28,445

1,947

856

198

2,191

876

Other investments

1,553

1,791

19,863

1,880

Allowance for doubtful accounts

(268)

(263)

(2,915)

(259)

5,099

4,292

47,5844,444Long-term loans receivable

Liabilities and net assets

2008

2009

Millions of
yen
As of March 31

2009

2009

Current liabilities

Current assets
Cash and cash equivalents

Thousands of
U.S. dollars

Millions of yen

Short-term loans payable¥ 13,557

6,704$ 74,318¥ 10,528

5,121

3,830

42,460

2,689

796

77

856

49

Accrued bonuses

1,018

723

8,020

592

Accounts payable, non trade

6,400

7,292

80,829

6,502

Other current liabilities

1,230

1,476

16,3631,450

28,122

20,102

222,846

21,810

Corporate bond

300

—

—

—

Long-term debt

6,313

6,464

71,654

6,366

Accrued employees’ retirement benefits

14

14

152

13

Accrued directors’ and officers’ retirement benefits

359

132

1,465

391

Other long-term liabilities

439

515

5,704

509

7,425

7,125

78,975

7,279

7,996

7,996

88,646

7,996

Capital surplus

12,366

12,354

136,946

12,348Retained earnings

17,743

14,858

164,707

13,961

Treasury stock(2,635)(2,913)(32,294)(2,873)35,47032,295358,005

31,432

(324)

309

3,430

(29)

(1,844)(2,987)(33,120)(2,393)(2,168)(2,678)(29,690)(2,422)

Notes and accounts payable, trade
Accrued income taxes¥

Long-term liabilities

Net assets
Shareholders’ equity

Property, plant and equipment
Land

4,460

4,456

49,3984,437

Common stock

Buildings

16,97017,120189,779

16,512

Authorized:

Machinery and vehicles

18,25017,882

198,230

18,032

Issued and outstanding: 79,000,000 shares

Tooling and office furnitures

24,562

24,969276,785

24,794

6

6

68

6

64,24864,433

714,260

63,781(44,155)(46,911)(520,024)(45,760)

20,093

17,522

194,236

18,021

Construction in progressLess-Accumulated depreciation

195,961,274 shares

Valuation, translation adjustments and otherNet unrealized gains (losses) on other securities
Foreign currency translation adjustments

Other assets
Deferred tax assets

670

172

1,905

619

Subscription rights to shares

25

86

955

56

Intangible assets

916

636

7,050

781

Minority interests

18

—

—

13

1,586

808

8,955

1,400

33,34529,703329,270

29,079¥ 68,892¥ 56,930$ 631,091¥ 58,168¥ 68,892¥ 56,930$ 631,091¥ 58,168

Total assets

Total liabilities and net assets

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥90.21 = U.S.$1.00.

910

Consolidated Statements of Income

Consolidated Statements of Cash Flows

Corporation and Consolidated Subsidiaries

Corporation and Consolidated Subsidiaries

Six months ended September 30

Six months ended September 30

Thousands of
U.S. dollars

Millions of yen

Millions ofyenYear ended March 31

2008

2009

2009

¥ 44,600¥ 32,280$ 357,833¥ 72,742

Cost of sales

37,68026,772296,765

63,651

Selling, general and administrative expenses

4,924

3,865

42,844

8,853

Operating income

1,996

1,643

18,224

238

Interest and dividend income

104

39

429

170

Rent income

446

479

5,309

903

Foreign exchange gain, net

859

—

—

249

Gain on sales of fixed assets

37

59

656

69

Other

160

244

2,694

234

1,606

821

9,088

1,625

Net sales

Total other income

Other expenses
Interest expenses

158

121

1,337

311

Rent expense

140

152

1,688

280

Foreign exchange loss, net

—

746

8,268

—

Loss on disposal of fixed assets

29

107

1,183

75

Impairment loss of fixed assets

—

—

—

692

Other

249

85

939

1,847

Total other expenses

576

1,211

13,415

3,205

3,026

1,253

13,897(1,342)Current

1,108

251

2,782

(67)

Deferred

207

62

683

350

1

—

—

(5)

940

$ 10,432¥ (1,620)

U.S. dollars

Yen

Income before income taxes and minority interests
Income taxes

Minority interests
Net income¥ 1,710¥Yen

Per share data
Net income
Basic¥ 22.76¥ 12.72

Diluted

22.76

—

$

0.14

¥ (21.68)——

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥90.21 = U.S.$1.00.

11

Millions ofyenYear ended March 31

2008

2009

2009

¥ 3,026
2,670
(83)
2
(424)
(30)
(104)
158
29
—
(1,943)
261
(101)
(4)
3,457
111
(169)
(129)
—
3,270

¥ 1,253
1,941
—
1
102
(258)
(39)
121
107
—
(2,248)
366
2,097
1,556
39
(124)
(195)
775
5,494

$ 13,897
21,512—5
1,141(2,864)
(429)
1,337
1,183
—
(24,923)
4,053
23,253
17,26055,425436(1,377)(2,165)
8,591
60,910¥ (1,342)
5,611
(83)
3
(852)
2
(170)
311
75
692
5,523
1,886
(1,686)244
10,214179(324)(1,248)429
9,249

Cash flows from investing activities
Proceeds from time deposits
Purchases of fixed assets
Proceeds from sales of fixed assets
Purchases of investment securities
Proceeds from sales of investment securities
Payment on loans receivable
Proceeds from loans receivable
Other
Net cash used in investing activities

20(3,180)
51
(13)
505
(28)
27
(96)
(2,714)—(1,389)
160
—
21
(40)
83
5
(1,160)—(15,407)
1,777
—
231
(443)
923
56
(12,863)435(4,970)
74
(13)
506
(136)
202
(118)
(4,020)Cash flows from financing activities
Increase (decrease) in short-term loans payable
Proceeds from long-term debt
Payments of long-term debt
Purchases of treasury stock
Proceeds from sales of treasury stock
Dividends paid
Net cash provided by (used in) financing activities

1,429
1,500
(1,738)
(400)
13
(519)
285

(3,699)
—
(228)
(19)
2
(247)
(4,191)(41,008)—(2,531)(206)
25(2,747)(46,467)(1,585)
1,790(1,990)
(667)
13
(980)
(3,419)

136
977
7,073

(258)
(115)
9,072

(2,859)(1,279)100,574

55
1,865
7,073

135
¥ 8,18547¥ 9,004527$ 99,822134¥ 9,072

2009

Other income

Thousands of
U.S. dollars

Millions of yen

Cash flows from operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Decrease in accrued directors’ bonuses
Increase in accrued employees’ retirement benefits
Increase (decrease) in prepaid pension costs
Increase (decrease) in accrued directors’ retirement benefits
Interest and dividend income
Interest expenses
Loss on disposal of fixed assets
Impairment loss of fixed assets
Increase (decrease) in notes and accounts receivable, trade
Decrease in inventories
Increase (decrease) in notes and accounts payable, trade
Other
Subtotal
Receipts for interest and dividend income
Payments of interest expenses
Payments of income taxes
Refunds of income taxes
Net cash provided by operating activities

Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents arising from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of six months and year

4,999

2009

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥90.21 = U.S.$1.00.

12

Board of Directors and Corporate Auditors(As of September 30, 2009)

D I R E C TO R S

COR P OR AT E EXECUT I V E OF F I CER S

Yasumitsu Ikeda

Makoto Irisawa

Yoshiyuki Kaku

Yoshio Sakurai

Hideo Matsumoto

Akira Utazaki

Executive Deputy President
Sales Division

Executive Vice President
Human Resourcesand General Affairs

Executive Vice President
Connection System
Division

Executive Vice President
Production Engineering,
Environmental Protection andFunctional Components Division

Vice President
Sales Division, Europe

Vice President
Deputy Division Directorof Sales Division

Tetsuya Nakamura

Mikio Wakabayashi

Paul Evans

Tsutomu Isoda

Hiroshi Miyakawa

President and COO

Vice President
Division Director of Functional
Components Division

Vice President
Sales Division, Americas

Vice President
Research and Development

Vice President
Sales DivisionCorporate Data
(As of September 30, 2009)

Hajime Yamada

Tadashi Yamoto

Yuji Tanahashi

Director, Executive Vice President,
Chief Financial Officer

Director, Senior Executive Vice President,
Chief Technology Officer

Director

AU D I TO R SName:

SMK Corporation

Established:

January 15, 1929

Authorized shares:

195,961,274

Primary business:

Manufacture and sale of various
electronic machinery and parts used in
power, communications and electronicequipment, other industrial machinery,information equipment,
etc.

Issued shares:

79,000,000

Capital:7,996,828,021 yen

Stock exchange listing:Tokyo Stock Exchange

Percentageof Shares (%)

Japan Trustee Services Bank, Ltd.

7,294

9.23

Nippon Life Insurance Company

4,001

5.06

Administrator of shareholders register:
Mitsubishi UFJ Trust and Banking
Corporation

Mizuho Corporate Bank, Ltd.

3,663

4.64

Dai Nippon Printing Co., Ltd.

3,200

4.05

Independent auditors:

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,134

3.97

Mitsubishi UFJ Trust and Banking Corporation

2,049

2.59

The Master Trust Bank of Japan, Ltd.

1,965

2.49

State Street Bank and Trust Company

1,811

2.29

Terutaka Ikeda

1,714

2.17

SMK Cooperating Company Share Holding Association

1,700

2.15

Head office:Kenji Kobayashi

Hidefumi Kobayashi

Kouichiro Sugihara

Naru Nakashima

Auditor andChairman of Auditors
Meeting

Auditor

Auditor

Auditor

AuditorErnst & Young ShinNihon LLC
Tokyo, Japan5-5, Togoshi 6-chome, Shinagawa-ku,
Tokyo 142-8511, JapanTEL 81-3-3785-1111
FAX 81-3-3785-1878

Subsidiaries & affiliates:
Domestic: Subsidiaries
Affiliates
Overseas: Subsidiaries
Website:13

10,606

Number of shareholders:Shares Owned(1,000 shares)

Employees (SMK-Group): 13,248

Terutaka Ikeda

Shares and Shareholders- 6 companies- 2 companies- 21 companies

http://www.smk.co.jp/

Major Shareholders (top ten)

Note: Of the above shares owned by major shareholders, the following number ofshares are held in trust operations:Japan Trustee Services Bank, Ltd.:7,294 thousand shares
The Master Trust Bank of Japan, Ltd.:1,965 thousand
Mitsubishi UFJ Trust and Banking Corporation:
112 thousand

14