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/

SEMI ANNUAL REPORT 2010
For the six months ended September 30, 2010

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

2010

2009

2010

2010

Year ended March 31¥ 32,280¥ 33,002$ 393,725¥ 64,371

1,643

2,284

27,252

2,479

940

1,159

13,8301,862¥ 56,930¥ 54,420$ 649,256¥ 56,113

29,70330,497363,842

31,127Six months ended September 30

Operating Results
Net sales
Operating income
Net income
Financial Position
Total assets
Total net assets
Per Share Data

Yen

U.S. dollars

Yen

Net income
Basic¥ 12.72¥ 15.71

Diluted

—

—

$

0.19

¥ 25.19——

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥83.82 = U.S.$1.00.

Millions of yen

Millions of yen

Net sales
Full year
First half

Full year
First half

100,000

6,000
87,65975,00079,074

Full year
First half

5,000

5,654
5,166

72,7424,000

64,371

3,693
2,500

3,807

2,335 2,337

3,313

50,00039,3002,094

44,031 44,600
32,280 33,002

1,996

2,000

25,0000Mar.

2,479 2,284
1,643

238

0

2007 2008 2009 2010 2010
Sep.

Yen
Full year
First half2007 2008 2009 2010 2010

Sep.

Mar.

Millions of yen

Total net assets
Full year
First half

75,00040,00065,575 66,737

47.48

34,564
58,168 56,113

27.32

50,00025.19

54,420

15.71
0

Sep.

Millions of yen

Total assets
Full year
First half

60

(1,620)(2,500)Mar.

1,710 1,862
940 1,159

02007 2008 2009 2010 2010

Basic net income (loss) per share

30

Millions of yen

Net income (loss)

Operating income

30,00032,38629,079 31,127 30,497

20,00025,00010,000(30)

0(21.68)2007 2008 2009 2010 2010
Mar.

1

Sep.

0

2007 2008 2009 2010 2010
Mar.

Sep.

2007 2008 2009 2010 2010
Mar.

Sep.

Performance Overview
During the interim term under review, the global economy
entered a moderate recovery process, supported by thestimulus measures taken by major countries and demand
expansion in emerging and other nations. However, thefuture of the global economy remained uncertain, as suggested
by developments, such as signs of a slowdown that appearedin Japan and major countries in North America and Europe.
In Japan, the economy continued to recover, partly
because of the effects of stimulus measures taken by thegovernment. However, many unstable factors were present,
including the rapid appreciation of the yen, stock pricedeclines, and concerns about China-related risks. These
factors caused the risk of a business downturn to rise during
the term under review.
In the electronics industry, a modest recovery continued,
led by products such as digital appliance and automotive
components. Operating conditions, however, grew moredifficult due to factors including the stronger yen andconcerns about economic stagnation.
In the interim term under review, the SMK Group
achieved year-on-year sales and profit increases. These results
were made possible by factors such as the strong demand forsmartphone components and the favorable performance ofdigital appliance and automotive components, as well as
the benefits of cost structure reviews, which compensatedfor the poor performance of cellular phone components.
Going forward, we will work to enhance our market
competitiveness so as to respond flexibly to changing market
demands. At the same time, our manufacturing and sales
divisions will pursue initiatives aimed at further growththrough continuing to offer new products and technology
to markets and customers where we can take advantage of
our strengths.

Value Improvement and New Challenges— We have to change to remain the same —Information technology is continuing to evolve worldwide.
User needs are becoming increasingly diverse and changing
daily at an unprecedented speed. We aim to achieve further
development by promptly responding to these changes in ouroperating environment.
Accordingly, we are working to develop the marketing
capabilities needed to respond to market trends ahead of ourcompetitors, and the technological development capabilities
required for taking on new possibilities, and we seek toestablish a flexible production system unified with productdevelopment operations. At the same time, we are advancing
initiatives for going back to the basics and reviewing elemental
technology, which is the starting point for “manufacturing.”
Specifically, we are maintaining our focus on the“enhancement of SMK brand power,” “quality improvement(Zero Defects)” and “another challenge in product creation,”and continuing initiatives for raising our competitiveness inglobal markets and increasing customers’ trust in us based on
the synergy these focuses will generate.
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. As part of this objective,

Tetsuya Nakamura
President and Chief Operating Officer

we are continuing efforts to achieve our goal of zero defective
products. A loss produced by one defective product invites
not only a corporate profit loss, but also a waste of valuable
resources in all our channels, including material procurement,
manufacturing, distribution, and sales. Based on this view, we
will continue our commitment to the ultimate target of zero
defective products.
We are also pursuing comprehensive energy and resourcesavings through actions such as the development ofcomponents used in a broad range of cutting-edge, ecologyrelated equipment and the promotion of eco-friendly designs
that give consideration to issues ranging from choice ofmaterials to disposal of products.
Through these environmental conservation activities, we
make efforts to feel the dynamism that is emerging on a
global scale to foresee business opportunities and plan tokeep taking flexible and steady progress as a company,
thriving on change.
We anticipate ongoing unpredictability in our operating
environment. Under these conditions, we are resolved tomake united efforts to enhance our corporate value andincrease our profits further.
We look forward to the continuing support of ourshareholders as we pursue these goals.
November 2010
Tetsuya Nakamura
President and Chief Operating Officer2Overview of Consolidated Results by Division(April 1, 2010 to September 30, 2010)

Division profile

The many different electronic componentsthat SMK manufactures are widely used byelectronics manufacturers in Japan andoverseas. The markets for these components
are broadly classified as follows: the audiovisual market, where the spread of flat-panel
televisions and DVD recorders continues;
the car electronics market, where carnavigation systems are continuing theirevolution; the communications market
represented by cellular phones; theinformation market for products
indispensable to work and business, such as
personal computers and automatic teller
machines (ATMs); and the homeelectronics/industry market, which covers
components for digital appliances, industrial
machines, and the rapidly emerging
photovoltaic cell.
Three divisions, namely the Connection
System (CS) Division, the Functional
Components (FC) Division, and the Touch
Panel (TP) Division, and the Research &Development Center are responsible for
operations to develop products that
constantly meet market requirements in thefive markets outlined above. Such operations
range from product planning and design tomass production. The Research &Development Center is primarily in chargeof designing and developing products in new
and other fields.
In this section, we present an overview of
the results each of our three divisions
achieved in the interim term under review.

3

Connection
SystemDivision

Audio
VisualCar
Electronics

Main productsUÊ >Ý>ÊViVÌÀÃUÊ* ÊViVÌÀÃUÊ >À`ÌL>À`ÊÊÊÊÊÊÊViVÌÀÃ
UÊ>VÃ

Functional
Components
Division

Communication
Main products
UÊ-ÜÌV iÃUÊ ÕiÌÌ ®ÊÕÌÃUÊ,iÌiÊVÌÀÃ
UÊ >iÀ>Ê`ÕiÃThis Division develops and manufactures
products centering on connecting devices
including connectors, plugs, and jacks. In
the cellular phone market, where downsizing,weight reduction, multipolarization, multiple
functions, and high communication speed
are sought, the Division is winning the trustof the world’s leading manufacturers byoffering them one of the smallest FPC
connectors in the industry. The Division has
also made rapid progress in the digitalappliance and car electronics sectors. In afurther step, the Division is moving ahead
with projects to develop products for solar
power systems and LED lights so as toenter these new markets.

The Division’s main products include
remote controls, which lead the world in
both technical standards and sales,
switches, functional units, and modules.
The Division is meeting increasingly
sophisticated needs for these productsahead of competitors with its lineup of
cutting-edge components, including remotecontrols based on new concepts, thesmallest and thinnest switches in theindustry, and vehicle-mounted camera
modules that offer wide viewing angles.

Ratio to total net sales

38.2%

12,615
million yen

49.2%

16,238million yen

Overview of results by division

In addition to components for digital appliancesand car electronics supported by the eco-point andsubsidies systems, components for smartphones andlaptop PCs also achieved favorable results. In
contrast, components for cellular phones and video
game consoles showed weaker results, influenced bysluggish set sales and weaker market conditions.
The Division is presently developing a lineup of
new products for the solar power system and LED
lighting markets. It is also advancing projects todevelop components for the new energy sector,
including electric vehicles, and medical equipment.
Going forward, the Division aims to expand
businesses in the environmental and medical sectors.

Vehicle-mounted and other electronic parts andcomponents for cellular phones and othercommunications equipment, particularly
smartphones, achieved solid results. Components
for air conditioners and home appliances also
contributed to net sales for the Division, thanks tothe effects of the eco-point system. In contrast,
components for game consoles and PCs performed
poorly. Going forward, the Division aims to expand
businesses in new segments, including the ecofriendly sector.

Information

Home
Electronics/Industry

Touch
Panel
Division

Main products
UÊ,iÃÃÌÛiÊÌÕV ÊÊÊÊÊÊÊ«>iÃUÊ >«>VÌÛiÊÌÕV ÊÊÊÊÊÊÊ«>iÃUÊ"«ÌV>ÊÌÕV Ê«>iÃ

The Division supplies touch panels to abroad array of markets, including the carnavigation market, where high thermal
resistance and low reflection are sought,
the cellular phone and PC markets, which
demand thinness, weight reduction, andmultiple operability, and the ATM and ticketvending machine markets, which require
high durability and reliability. As an industry
leader, the Division develops andmanufactures products that satisfy
anticipated market demands.

12.4%

4,074
million yen

In addition to touch panels for car navigation
systems, which posted favorable net sales due tofactors such as government initiatives in various
countries to support new car sales, touch panels for
smartphones achieved net sales that were close totarget. The Division will proceed with its efforts to
expand businesses further with the many new
products it introduced at CEATEC JAPAN 2010
in October.

In addition to net sales for the Divisions presented above, net sales of 75 million yen were earned by “other” businesses in the term under review.
Net sales for the Research & Development Center are included in net sales for “other” businesses.

4

SMK’s New Lineup

HDMI Standard type-D-compliant receptacle
developed

Automotive capacitive touch panel developed
and released

We have developed an “HDMI standard type-D receptacle”
compliant with the HDMI Standard type-D (Ver. 1.4)
established for small audio-visual devices.
Matching 100Ω differential impedance, this productsupports high-speed transmission.
A structure of our original design ensures stable coplanarityand prevents terminal from falling off. Inspection is also easy
because the structure permits visual inspection of solderedsections after the receptacle is mounted.
The receptacle uses a half-lock structure double-spring forthe contact between the plug shield and the shell to ensure thereliability of the shell contact.
We offer this receptacle in two variations: the on-board
type and the mid-mounting type. The on-board type measures
7.3 mm in length and the mid-mounting type 7.7 mm,
designed thus to reduce PWB-mounting space. The receptacle
is best suited for small audio-visual devices such as DVCs.

We have developed an automotive capacitive touch panel
and are now accepting orders.
Our compact capacitive touch panels for cellular
phones have been receiving a positive response from themarket since their release last year. The market is also
beginning to seek light, multi-touch operations in
automotive capacitive touch panels for car navigation andcentral control systems.
Drawing on our experience and track record of morethan ten years in resistive touch panels for genuine
automotive use, we developed a capacitive touch panelthat meets genuine automotive specifications (operating
temperature of -30ºC to +85ºC and storage temperatureof -40ºC to +95ºC) ahead of our competitors.
We released this user-friendly product in response toautomotive industry demands for capacitive touch panels,
which are set to increase further.

HDMI Standard type-D-compliant receptacle
Applications:
Small audio-visual devices,
including DVCs and DSCs, cellular phones,
smartphones, etc.

Automotive capacitive touch panel
Applications:
Car navigation systems andautomotive central control systems

Note:
HDMI (High-Definition Multimedia Interface): HDMI is a trademark of HDMI Licensing, LLC.
On-board type: a receptacle in which connectors are mounted on the PWB surface
Mid-mounting type: a receptacle in which connectors are mounted in a recess notched in the PWB

Remote control with motion control sensor
developed
Graphical user interface (GUI) operations on a TV screen arelikely to become more complex with the spread of Internet
protocol television (IPTV).
To meet the demand this change is anticipated to create,
we have developed a motion capture command remote control
unit that can control mouse operations remotely. We havealready begun taking orders for this product, manufactured asa custom item. To make on-screen operations easier, weinstalled a new motion control sensor on the remote control.
For motion control, we adopted the Freespace® motion
technology developed by the US company Hillcrest Labs. This
remote control enables all users to choose Internet
applications, select and record programs, and execute otheroperations easily on a TV screen as if using a wireless mouse,
instead of performing the traditional operation of moving
cursors from keyboards.
This product adopts a wireless 2.4GHz frequency range
communication system. For that reason, it has no directionality.
Users need not point the remote control at the main unit tooperate it. The product is also compliant with Zigbee/RF4CE
communication specifications, based on industry standards.
We are currently developing a USB dongle on the receiver side.
5

Remote control with motion control sensor
Applications:
Televisions, PCs, set-top boxes, etc.

Bluetooth®/Wireless LAN Combo Module
developed
We have developed a combo module that houses bothBluetooth ® and Wireless LAN functions.
This product combines two different communication
systems, Bluetooth ® and Wireless LAN, in a single moduleand also offers design environment with a high degree of
flexibility by being housed in a downsized module. We
thus believe it will be applicable to lots of equipment
including various types of mobile terminals.
Compliance with the latest Version 2.1+EDR ofBluetooth ® standard characterizes this newly developed
Bluetooth ®/Wireless LAN Combo Module, and its
Wireless LAN system is compliant with IEEE802.11b/g.
These features enable the product to be used in a range offields.
We aim to expand business of communication modules
by simultaneously advancing for its productization andreinforcing our product lineup.

Bluetooth®/Wireless LAN Combo Module
Applications:
Various type of mobile information terminals,
etc.

Note: Bluetooth® is a logo and trademark registered or owned by Bluetooth
SIG, Inc. SMK is awarded permission to apply the trademark.

6

Topics

Global Network

SMK exhibit at CEATEC JAPAN 2010
We exhibited at the comprehensive IT and electronics
trade fair CEATEC JAPAN 2010 held at Makuhari Messe(Chiba) from October 5 to 9.
With “comfortable experience and ecological
proposals” as a concept, we allowed visitors to the SMK
booth to try out our touch panels, remote controls,
switches, and other products in person and experience
their operability.
In particular, the touch panel corner at the booth
attracted many visitors, who were interested in our lineupof reference exhibits that included resistive touch panels
and automotive capacitive touch panels. We also
demonstrated to the wide range of people who visited ourbooth new technologies for products such as capacitive
switches and egg-shaped air mice, as well as SMK-Link
products marketed under the SMK brand.
In the ecology zone, we displayed products such as
connectors for LED lights and connectors for photovoltaic
modules, and introduced our ecological initiatives.
Our booth drew about 5,400 people in five days. By
encountering our products, visitors were able to learn
more about SMK’s technical capabilities.

Sales Office
Works
Works & Office

Head Office(Tokyo)Malaysia SMK Electronics (Malaysia) Sdn. Bhd.
Founded 21 years ago, SMK Electronics(Malaysia) Sdn. Bhd. operates in a rich naturalenvironment about 45 kilometers south of thecapital city of Kuala Lumpur.
Currently, the company manufactures
remote controls and connecting devices for
products such as televisions, DVD recorders,and air conditioners. Workers from six ethnic
GAN TENG YEWGeneral Manager, SalesFirst SMK exhibit at Yokohama Human & Technoland 2010
We exhibited our products for the first time at“Yokohama Human & Technoland 2010,” acomprehensive fair for people and technologies
supporting welfare, held at Pacifico Yokohama(Kanagawa) on July 30 and 31. We displayed products
easy to operate for disabled and senior users, such as force
feedback touch panels, foot-switch remote controls, anduniversal-design remote controls, and gave visitors the
chance to try them at our booth. We will continue tofocus on developing products that prove useful in thewelfare sector as part of activities to fulfill our corporatesocial responsibilities (CSRs).

7

or national backgrounds—Malay, Indian,Chinese, Japanese, Myanmese, and
Nepalese—cooperate in production activities
at this busy and vibrant plant.

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 (Shenzhen) Co., Ltd. Futian Office
SMK Electronics Technology Development (Shenzhen) Co., Ltd.
SMK Electronics Trading (Shanghai) Co., Ltd.
SMK Electronics Int’l Trading (Shanghai) Co., Ltd.
SMK Electronics Int’l Trading (Shanghai) Co., Ltd. Beijing Office
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.

NORTH AMERICASMK Electronics Corporation U.S.A.
SMK Electronics Corporation U.S.A., San Jose Office
SMK Electronics Corporation U.S.A., East 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 Electronics Corporation U.S.A., Detroit Office
SMK-Link Electronics Corporation
SMK Manufacturing, Inc.
SMK Electronica S.A. de C.V.
SMK Mexicana S.R.L. de C.V.
SMK Mexicana S.R.L. de C.V., Mexico City Office8

Consolidated Balance Sheets
Corporation and Consolidated Subsidiaries
As of September 30

Thousands of
U.S. dollars

Millions of yen

Assets

2009

2010

2010

Millions of
yen
As of March 31

2010¥ 9,004¥ 7,335$ 87,511¥ 8,749

8

71

843

9

16,415

16,289194,328

16,337

(72)

(52)

(623)

(61)

5,627

5,615

66,9995,241

Deferred tax assets

905

1,108

13,2191,303

Other current assets

2,421

2,831

33,781

2,402

34,30833,197

396,058

33,980Time deposits
Notes and accounts receivable, trade
Allowance for doubtful accounts
Inventories

Liabilities and net assets

2009

2010

2010

Millions of
yen
As of March 31

2010

Current liabilities

Current assets
Cash and cash equivalents

Thousands of
U.S. dollars

Millions of yen

Short-term loans payable

¥

3,067

$ 36,584

3,830

3,607

43,035

3,402

Accrued income taxes

77

283

3,379

197

Accrued bonus

723

778

9,282

828

Accounts payable, non trade

7,292

7,894

94,177

7,440

Other current liabilities

1,476

1,202

14,336

1,360

20,102

16,831200,793

17,633

6,464

6,370

75,995

6,560

Accrued employees’ retirement benefits

14

17

209

16

Accrued directors’ and officers’ retirement benefits

132

108

1,287

153

Other long-term liabilities

515

597

7,130

624

7,125

7,092

84,621

7,353

7,996

7,996

95,404

7,996

Capital surplus

12,354

12,353

147,377

12,353Retained earnings

14,85816,366

195,251

15,798Treasury stock(2,913)(3,039)(36,253)(2,953)32,29533,676

401,779

33,194

Notes and accounts payable, trade

6,704

¥

¥

4,406

Long-term liabilities
Long-term debt

Investments and long-term loans
Investment securities

2,566

2,301

27,457

2,863

198

247

2,952

247

Other investments

1,791

1,587

18,935

1,659

Allowance for doubtful accounts

(263)

(211)

(2,527)

(232)

4,292

3,924

46,817

4,537

Long-term loans receivable

Net assets
Shareholders’ equity
Property, plant and equipment

Common stock

Land

4,456

4,422

52,7504,432

Buildings

17,12016,660198,759

16,906

Machinery and vehicles

17,882

17,888

213,412

18,627

Tooling and office furnitures

24,96924,734

295,087

25,116

6

258

3,076

10

64,43363,962763,084

65,091(46,911)(47,410)(565,617)(48,158)

Valuation, translation adjustments and other

17,522

16,552

197,467

16,933Net unrealized gains on other securities

309

160

1,906

499

Foreign currency translation adjustments(2,987)(3,469)(41,395)(2,687)(2,678)(3,309)(39,489)(2,188)Construction in progress

Less—Accumulated depreciation

Authorized:

195,961,274 shares

Issued and outstanding: 79,000,000 shares

Other assets
Deferred tax assets

172

324

3,865

111

Subscription rights to shares

86

124

1,479

117

Intangible assets

636

423

5,049

552

Minority interests

—

6

73

4

808

747

8,914

663

29,70330,497363,842

31,127¥ 56,930¥ 54,420$ 649,256¥ 56,113¥ 56,930¥ 54,420$ 649,256¥ 56,113

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 ¥83.82 = 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

2009

2010

2010

¥ 32,280¥ 33,002$ 393,725¥ 64,371

Cost of sales

26,772

26,775

319,437

54,010

Selling, general and administrative expenses

3,865

3,943

47,036

7,882

Operating income

1,643

2,284

27,252

2,479Interest and dividend income

39

38

453

72

Rent income

479

471

5,620

960

Gain on sales of fixed assets

59

6

65

91

Other

244

91

1,089

365

Total other income

821

606

7,227

1,488

Net sales

2010

Other income

Other expenses
Interest expenses

121

84

997

214

Rent expense

152

147

1,759

306

Foreign exchange loss, net

746

846

10,090595

Loss on disposal of fixed assets

107

68

816

152

Other

85

39

463

626

1,211

1,184

14,125

1,893

1,253

1,706

20,354

2,074

Current

251

402

4,799

561

Deferred

62

142

1,695

(349)

—

3

30

—

940

¥ 1,159$ 13,830¥ 1,862

U.S. dollars

Yen

Total other expenses

Income before income taxes and minority interests
Income taxes

Minority interests
Net income¥

Yen

Per share data
Net income
Basic¥ 12.72¥ 15.71

Diluted

—

—

$

0.19

¥ 25.19——

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥83.82 = U.S.$1.00.

11

Thousands of
U.S. dollars

Millions of yen

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in accrued employees’ retirement benefits
Increase (decrease) in prepaid pension costs
Increase (decrease) in accrued directors’ retirement benefits
Interest and dividend income
Interest expense
Loss on disposal of fixed assets(Increase) decrease in notes and accounts receivable, trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable, trade
Increase (decrease) in accounts payable, non-trade
Other
Subtotal
Receipts for interest and dividend income
Payments of Interest expenses
Payments of income taxes
Refunds of income taxes
Other
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from time deposits
Purchases of fixed assets
Proceeds from sale of fixed assets
Proceeds from sale of investment securities
Payment on loans receivable
Proceeds from loans receivable
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Payments of long-term debt
Purchases of treasury stock
Proceeds from sale of treasury stock
Dividends paid
Other
Net cash provided by (used in) financing 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 the year
Increase in cash and cash equivalents arising from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of six months and the year

Millions ofyenYear ended March 31

2009

2010

2010

¥ 1,253
1,859
82
1
102
(258)
(39)
121
107
(2,248)
366
2,097
1,436
120

¥ 1,706
1,659
76
3
45
(45)
(38)
84
68
(995)
(718)
1,386
697
(855)

4,999

3,073

39
(124)
(195)
775
—
5,494

26
(84)
(271)
39
—
2,783

$ 20,353
19,796
906
32
532
(535)
(453)
997
816
(11,869)(8,570)16,535
8,320(10,198)
36,662319(1,005)(3,234)464—
33,206¥ 2,074
4,021
159
(3)
210
(238)
(72)
214
152
(1,776)
863
1,337
1,162
748
8,851
73
(219)
(165)
578
(114)
9,004

—
—
(1,389)
160
21
(40)
83
5
(1,160)(52)
10(1,819)
14
0
(30)
94
(8)
(1,791)(624)
127(21,704)
168
0
(363)
1,123
(99)
(21,372)——(2,843)
325
56
(204)
135
50
(2,481)(3,699)
(228)
(19)
2
(247)
—
(4,191)
(258)
(115)
9,072

(1,327)
(202)
(85)
0
(590)
—
(2,204)(202)(1,414)
8,749(15,832)(2,413)(1,016)
5(7,033)—(26,289)(2,413)(16,868)
104,381(6,268)
(466)
(65)
8
(251)
300
(6,742)
(182)
(401)
9,073

47
¥ 9,004—¥ 7,335—$ 87,513

77¥ 8,7492010

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥83.82 = U.S.$1.00.

12

Board of Directors and Corporate Auditors(As of September 30, 2010)

DIRECTORSC O RPO RAT E EXEC UT I VE O F F I C ER S

Yasumitsu Ikeda

Yoshiyuki Kaku

Paul Evans

Hideo Matsumoto

Akira Utazaki

Mikio Wakabayashi

Director, Executive Deputy President
Sales Division

Executive Vice President
Connection System
Division

Executive Vice President
Sales Division, Americas

Vice President
Sales Division, Europe

Vice President
Deputy Division Directorof Sales Division

Vice President
Functional Components
Division

Tetsuya Nakamura

Tsutomu Isoda

Hiroshi Miyakawa

Shigechika Yanagi

Takemi Ishibashi

Kohei Ohgaki

President and COO

Vice President
Research and Development

Vice President
Sales Division

Vice President
Touch Panel Division

Vice President
Production Management

Vice President
Corporate Planning andGeneral Affairs

Corporate Data
(As of September 30, 2010)

Yoshio Sakurai

Hajime Yamada

Yuji Tanahashi

Director, Executive Vice President,
Chief Technology Officer

Director, Executive Vice President,
Chief Financial Officer

DirectorName:

SMK Corporation

Shares and Shareholders

Established:

January 15, 1929

Authorized shares:

195,961,274

Primary business:

Manufacture and sale of various partsfor electro-communication device andelectronic equipment

Issued shares:

79,000,000

Capital:7,996,828,021 yen

Major Shareholders (top ten)

Stock exchange listing:Tokyo Stock Exchange

Shares Owned(1,000 shares)

Percentageof Shares (%)

Nippon Life Insurance Company

4,001

5.43

Mizuho Corporate Bank, Ltd.

3,663

4.97

Dai Nippon Printing Co., Ltd.

3,200

4.34

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,134

4.25

Mitsubishi UFJ Trust and Banking Corporation

1,937

2.63

Employees (SMK-Group): 12,594

SMK Cooperating Company Share Holding Association

1,846

2.50

Head office:Terutaka Ikeda

1,537

2.08

The Showa Ikeda Memorial Foundation

1,500

2.03

Japan Trustee Services Bank, Ltd. (Trust Account)

1,464

1.99

SMK Employees Share Holding Association

1,427

1.94

Administrator of shareholders register:
Mitsubishi UFJ Trust and Banking
Corporation

AUDITORS

Independent auditors:

Terutaka Ikeda

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

11,372

Number of shareholders:- 5 companies- 2 companies- 22 companies

Note: SMK holds 5,268 thousand shares of treasury stock, but is excluded fromthe above list. Figures for percentage of shares are calculated excluding
treasury stock.

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

14