SEMI ANNUAL REPORT 2008
For the six months ended September 30, 2008

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

Performance Overview

Thousands of
U.S. dollars

Millions of yen

2008

2007

2008

2008

Year ended March 31¥ 44,031¥ 44,600$ 430,634¥ 87,659

Operating income

3,807

1,996

19,2785,654

Net income

2,337

1,710

16,516

2,094¥ 71,551¥ 68,892$ 665,175¥ 66,737

35,07533,345321,965

32,386Six 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¥ 30.44¥ 22.76

Diluted

30.41

22.76

$

0.22

¥ 27.32

0.22

27.30

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥103.57 = U.S.$1.00.

Millions of yen

Millions of yen

Net sales
Full year
First half

Full year
First half

90,000

Full year
First half

6,000

87,6594,000

60,00030,00033,309 34,897

Initiatives to Meet Our Management Objectives

5,166

71,86039,300

4,500

5,654

79,07466,438Millions of yen

Net income

Operating income

3,473

4,134 4,290

3,000

3,807

2,000

0

2,335 2,337

2,590 2,349

1,996

Mar.

1,500

2005 2006 2007 2008 2008

Sep.

1,783 1,839

2,094 1,710

002005 2006 2007 2008 2008

3,693

3,081

3,313

44,031 44,600

Mar.

Yen

2005 2006 2007 2008 2008

Sep.

Mar.

Millions of yen

Sep.

Millions of yen

Total assets

Basic net income per share

Total net assets

Full year
First half

75,000

60
44.33
40

47.48

57,95561,34465,575 66,737

68,89240,00030,00050,000

39.11
22.76

20

32,73634,56432,386 33,345

27,56820,00027.32
25,00010,000002005 2006 2007 2008 2008
Mar.

Sep.

During the interim term under review, uncertainty
emerged concerning the global economy, raising thespecter of a worldwide recession. The influence of theslowdown in the United States Economy, triggered by
the subprime loan crisis, has expanded into Europe andAsia. The financial crisis stemming from the series ofdifficulties suffered by major U.S. financial institutions
has expanded globally, and the economic outlook is now
quite gloomy. In the Japanese economy, inflation anduncertainty have led to an apparent slowdown in
consumer spending, and there has been growing concern
about the impact of the financial crisis on the real
economy. The electronics industry has been facing
increasingly severe conditions due to the wild
fluctuations in raw material costs, a decline in the pricesof end products, and other factors.
In this environment, the consolidated performance of
the SMK Group in this interim term posted growth insales and decrease in profits compared to the same term
last year. To improve profitability, we will continue totake the lead in the shift to overseas countries, increase
the ratio of internal manufacturing, and improve
productivity in all aspects from design to delivery. We
will also devote ourselves to differentiating our products
from those of other companies, so that we can market
attractive products, by utilizing our technologicalcapabilities.

In this term, we focused on three management
objectives: “enhancement of SMK brand power,”“quality improvement (Zero Defect),” and “anotherchallenge in product creation.” In particular, we havepromoted a variety of measures to master coretechnologies and pass them down to the next generation,and to enhance our technological ability, based on ourbelief of “scrupulous parts, scrupulous final products.”
We also held the SMK Technical Exposition
TEXPO2008 at the Hotel Pacific Tokyo over the threedays from June 4 until June 6. We hold this technology
exhibition, to which our customers are invited, every
four years. This year, all SMK employees promoted ourtechnological ability and the competitiveness of our
products in a positive and united manner under theslogan, “Vision to Creation, It’s Our Challenge.” We
will continue to implement various measures to enhance
the SMK brand and to expand our business.

02005 2006 2007 2008 2008
Mar.

Sep.

2005 2006 2007 2008 2008
Mar.

Sep.

Terutaka Ikeda

Tetsuya Nakamura

Chairman and Chief Executive Officer

President and Chief Operating Officer

as a key management objective. We will continue topromote green procurement in a positive manner andbolster our capabilities to comply with laws andregulations including the RoHS Directive. As we provide
for the unified deployment of measures to save energy
and resources at SMK sites around the world, it will bevital for us to see that each and every employee shares thesame ideals and to align their awareness of the issues. We
believe this is essential for improving the effectiveness of
our corporate activities. We will continue to makediligent, concerted efforts to preserve the global
environment.
The market environment surrounding our company has
been changing rapidly, and the situation has become
increasingly difficult. However, we are determined to
devote all our efforts to working toward improving ourcorporate value and expanding our profits by responding
flexibly to the changes in our business environment andcapitalizing on even the smallest opportunity. We hopethat we can continue to count on the understanding andsupport of our shareholders as we pursue these goals.
December 2008

Terutaka Ikeda

Tetsuya Nakamura

Chairman and Chief Executive Officer

President and Chief Operating Officer

Environmental Initiatives
We at SMK regard compatibility with the global
environment as a corporate duty and have positioned it

1

2

Sales and Market Overview
Net Sales(April 1, 2008 to September 30, 2008)

2007

Millions of yen

2008
Mar.

2008
Sep.

Full year
First half

Audio-Visual

30,00025,262

29.4%

20,00012,91726,755
13,08913,095

10,000

Audio-visual parts
13,095 million yen

HDMI Standard Type A receptacle

12,345

13,6660
Full year
First half

Car Electronics

8,000

7,424
6,815

8.6%

6,000

3,332

3,868

4,000

3,856

2,000
“Force-feedback” touch panels

Electronic instruments
3,856 million yen

3,483

3,556

40,00035,96942.7%

30,00030,32520,00015,262

17,537
19,04410,000Communications parts
19,044 million yen

Stereo earphone-microphone and Bluetooth unit

15,063

18,4320

Sales of connectors and switches contributed to overall sales due to theincreasing demand for smart phones, mainly in the North American
market. While the growth of demand for mobile phones has beenslowing, we will continue to respond to our customers’ latest needs byenhancing the user-friendliness of parts used in operating systems—
including switches and connectors of lighter weight, slimmer dimensions,and smaller size—and by developing products that are compatible with
the next generation of communication networks.

Full year
First half

Information

12,000

9,661

10.7%

8,000

4,416

8,897
4,510
4,756

4,000

xD-4in1 card connectors

Information, office equipment parts
4,756 million yen

5,245

4,387

Sales of ATM touch panels for overseas markets and remote controls
for the PC market remained robust. In information equipment,
demand has been growing for new parts used in operating systems andfor parts that are compatible with the next generation of highfrequency standards. We will strive to strengthen our initiatives for
products for markets that are expected to continue to grow, such as
mobile PCs and digital still cameras.

0
Full year
First halfHome Electronics

10,000

8,611

8.6%

7,500

7,009
4,623

5,000

3,847

3,848

2,500

3

Due to the widespread popularity of vehicle-on-board devices forreceiving terrestrial digital broadcasting, sales of antenna connectors for
digital tuners have started to contribute to our overall sales. Sales of partsfor rear-seat entertainment systems and car navigation systems also
remained robust. We will continue to focus on expanding our lineup ofvehicle-on-board connectors, parts for vehicle-on-board cameras, parts
used in operating systems, and others.

0
Full year
First halfCommunication

DS-SS Modulation/Demodulation Engine for PLC

Although sales of remote controls remained robust due to the expansionof the flat-panel television market, we had a difficult period because salesof remote controls for set-top boxes and of audio and visual parts
remained stagnant. By anticipating future market trends, we will actively
develop products including RF remote controls, products geared for theincreasingly popular wireless technologies used in audio and visualequipment, connectors for high-speed transmission, and so on.

Electronic toys, home electronics and other parts
3,848 million yen

3,162

3,988

Although sales of remote controls for air-conditioners remained robust,
backed up by demand both in Japan and overseas, we had a difficult
period because sales of parts for video game consoles remained stagnant.
We are currently entering the market for lighting equipment parts, which
is a new field. We will also actively promote our connectors and otherdevices in the solar battery market, which has been growing rapidly due
to the increasing awareness of environmental issues around the world.

04

’s New Lineup

Development of the Industry’s Smallest Mounting Area,
the 0.35mm Pitch Board-to-board PB-35 Series

Force Feedback (FFB) Type Touch Panel for
Small Portable Equipment Developed

We previously developed the 0.4mm narrow pitch and low
profile board-to-board PB-4 series connectors for portableequipment, gaining a solid market reputation. We have now
developed and commenced shipment of samples of the 0.35mm
pitch PB-35 series, board-to-board connector, which has theindustry’s smallest mounting area.
With the trend in recent years toward designing portableequipment such as mobile phones and PDAs to be smaller andmore functional, there have been increased requirements forinternal connectors with narrower pitch, smaller size, lower
profile, and higher density mountability.
This new series of connectors has been developed to respondto such market requirements, with the industry’s smallest
mounting area, a narrow 0.35mm pitch and a low 0.7mm profile
when mated. This has been made possible by taking advantageof the technologies cultivated during our previous successful
development of the PB-4 series connector. The mounting area
is reduced by about 40% from that of the 60P version of thePB-4 series. A narrow 0.35mm pitch makes possible higher
density mounting and reduction of the PWB mounting areafor further downsized equipment design.

We have developed and commenced marketing of force
feedback (FFB) type touch panels for mobile equipment.
Having started production in 2004 of force feedback touch
panels that provide the sensation of pressing buttons whentouching the screen, we have enjoyed excellent market
acceptance, mainly from the automotive industry.
In recent years, mobile devices that operate by users touching
the touch-panel screen have rapidly won popularity, especiallyin the mobile phone and smart phone market. For mobile use,
input by touching the touch panel screen enhances userfriendliness, permitting quick and intuitive operation. On
another front, however, market demand remains strong for thesensation of pressing buttons, which many equipment users
have been accustomed to.
Low consumption current, slim dimensions, and a wide variety
of designs are required for mobile devices. The new products
we have developed employ a low-voltage driving circuit toreduce the current consumption to one-third of our previous
equivalent products.
We have also succeeded in downsizing the circuit. Additionally,a decorative printable sheet is allocated to the operating
surface, and making the surface fully flat provides resistance todust and drips and allows for a fashionable, bezel-free design.
We will continue to promote the sale of this new panel so that
it will enjoy a wider scope of application.

0.35mm pitch board-to-board connector,
PB-35 series

New-concept Remote Control Units Developed
to Expand the Remote Control BusinessWe have developed new products for the remote control
market, of which we have the greatest share. These products
are new-concept remote control units featuring futuristic
designs—our suggestions for how remote controls in the future
should look. We made the new remote control units public at
the SMK Technical Exposition TEXPO2008, and customers
who visited the event were highly impressed with the units.
Home electronics have been rapidly moving in the direction ofhigher performance, computerization, networking capabilities,
and personalization. We are moving ahead of these changes inelectronics and striving to expand our remote control businesswith new-concept remote controls which incorporate newdevices and unprecedented operating methods.
[Left]

Stationary LCD type remote control unit.
This unit permits control of multiple units
with a small number of keys and key
operations.
[Right] Easy to operate egg-shaped remotecontrol unit. This unit features a cutedesign and easy “shaking” operation.

[Right] Palm remote control unit. It features a rotating
operation and a design intended for personal use.
[Left] Crystal-key remote control unit. This unit features
touch-and-trace operation with illuminated keys.

5

for mobile equipment
The force feedback (FFB) touch panel

Bluetooth® Audio Module BT505A Developed

Twelve types of new-concept
remote controls

We have developed and commenced marketing of theBluetooth® Audio Module BT505A. It is a recent market trend
for more and more cellular phones or portable digital audio
players to be loaded with Bluetooth® A2DP (Advanced Audio
Distribution Profile) for supporting wireless music soundtransmission.
To meet this trend, audio equipment manufacturers arefocusing their attention upon wireless transmission as a newmusic source, but they still market very few speakers or audio
devices equipped with Bluetooth® audio reception functions.
Consequently, there is increasing demand amongst end users
for speakers and audio devices that support these functions.
The BT505A for audio equipment is a product of our accurate
understanding of such market requirements, and responds tosuch requests from end users.
This product is a wireless communication module that realizes
short-distance wireless transmission of stereo audio signals.
Embedded into speakers or stereo equipment, the BT505A will
receive and reproduce audio signals transmitted by cellular
phones via Bluetooth®.

Bluetooth® Audio Module BT505A

Note: Bluetooth® is a trademark owned by Bluetooth SIG, Inc. SMK has
been given permission to apply this trademark.

6

Topics

Global Network

SMK Technical Exposition TEXPO2008
We held the SMK Technical Exposition TEXPO2008 at the
Hotel Pacific Tokyo for three days from June 4 until June 6.
Under the slogan “Vision to Creation, It’s Our Challenge,” wedisplayed and demonstrated approximately 350 items
representing our new products and new technologies, which are
the fruit of our research and development efforts, as well as
near-future technologies and evaluation technologies forvarious analyses. This event attracted approximately 3,000
people.
The exhibits were separated into zones according to category,and our creative ideas were reflected throughout the venue inthe way we provided visitors with the information they
desired. At the automotive electronics booth, a dummy
vehicle with three rows of seats were set up at the center ofthe booth, and visitors were able to experience the force
feedback touch panel and curved-surface touch panel. In thedigital entertainment zone, we conducted demonstrations of
the new concept remote controls, including our egg-shaped
RF remote control, the Shake-an-Egg, which attracted theattention of many visitors.
During the 3-day TEXPO period we also held seminars,
inviting prominent lecturers from various fields. The lectures
were given on distinct topics, which allowed us to review
manufacturing activities from various points of view, andwere favorably received by the visitors.

Exhibiting at CEATEC JAPAN 2008
We exhibited at CEATEC JAPAN 2008, one of Asia’s largest
comprehensive IT and electronics exhibitions, held at
Makuhari Messe in Chiba from September 30 to October 4.
At the SMK booth, we demonstrated the Bluetooth® wirelessaudio signal transmissions and high-speed transmissions using
the FPC connector. We actively promoted our technologicalabilities to the large number of visitors to enhance the SMK
brand and to expand our future businesses.

7

Sales Office
Works
Works & Office

Head Office(Tokyo)Beranang, Malaysia
SMK Electronics (Malaysia) Sdn. Bhd.

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.
SMK Korea Co., Ltd. Seoul Office

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., Guadalajara Office
SMK Electronics Corporation U.S.A., Chicago Office
SMK Mexicana S.R.L. de C.V.
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

AssetsMillions of
yen
As of March 31

2007

2008

2008

2008

Current assets¥ 8,185$ 79,029¥ 7,073

762

431

4,164

145

23,82022,946

221,548

20,830

(63)

(71)

(685)

(66)

8,533

8,123

78,434

8,207

Deferred tax assets

815

883

8,528

849

Other current assets

1,854

1,617

15,614

2,495

44,207

42,114

406,632

39,533Time deposits
Notes and accounts receivable, trade
Allowance for doubtful accounts
Inventories

Liabilities and net assets

Millions of
yen
As of March 31

2007

2008

2008

2008

¥ 13,791¥ 13,557$ 130,897¥ 13,638

Notes and accounts payable, trade

6,404

5,121

49,444

4,864

Accrued income taxes

1,122

796

7,683

283

881

1,018

9,826

977

Accounts payable, non trade

7,128

6,400

61,796

6,922

Other current liabilities

1,238

1,230

11,8791,466

30,564

28,122

271,525

28,150

Corporate bond

300

300

2,897

300

Long-term debt

4,787

6,313

60,958

5,042

Accrued employees’ retirement benefits

31

14

135

13

Accrued directors’ and officers’ retirement benefits

366

359

3,460

388

Other long-term liabilities

428

439

4,235

458

5,912

7,425

71,685

6,201

7,996

7,996

77,211

7,996

Capital surplus

12,382

12,366

119,394

12,370Retained earnings

17,521

17,743

171,310

16,741

Treasury stock(1,743)(2,635)(25,442)(2,264)36,15635,470342,473

34,84387(324)(3,130)(161)(1,176)(1,844)(17,806)(2,304)(1,089)(2,168)(20,936)(2,465)Current liabilities¥ 8,486

Cash and cash equivalents

Thousands of
U.S. dollars

Millions of yen

Investments and long-term loans
Investment securities

3,694

2,958

28,565

3,906Long-term loans receivable

1,179

856

8,262

852

Other investments

1,526

1,553

14,996

1,779

Allowance for doubtful accounts

(295)

(268)

(2,592)

(269)

6,104

5,099

49,231

6,268

Short-term loans payable

Accrued bonuses

Long-term liabilities

Net assets
Shareholders’ equity

Property, plant and equipment
Land

4,373

4,460

43,0594,365

Common stock

Buildings

16,206

16,970163,849

16,274

Authorized:

Machinery and vehicles

17,052

18,250176,212

16,815

Issued and outstanding: 79,000,000 shares

Tooling and office furnitures

24,11824,562

237,153

23,677

39

6

61

28

61,78864,248620,334

61,159(42,593)(44,155)(426,334)(41,959)

19,19520,093

194,000

19,200Construction 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

1,036

670

6,472

827

Subscription rights to shares

—

25

245

—

Intangible assets

1,009

916

8,840

909

Minority interests

8

18

183

8

2,045

1,586

15,312

1,736

35,07533,345321,965

32,386¥ 71,551¥ 68,892$ 665,175¥ 66,737¥ 71,551¥ 68,892$ 665,175¥ 66,737

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 ¥103.57 = 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 ofyen

Thousands of
U.S. dollars

Millions of yen

Year ended March 31

2007

2008

2008

2008

¥ 44,031¥ 44,600$ 430,634¥ 87,659

Cost of sales

35,89437,680363,81073,002

Selling, general and administrative expenses

4,330

4,924

47,546

9,003

Operating income

3,807

1,996

19,2785,654Interest and dividend income

205

104

1,005

317

Rent income

440

446

4,303

889

Foreign exchange gain, net

—

859

8,295

—

Gain on sales of fixed assets

76

37

354

92

Other

128

160

1,539

350

Total other income

849

1,606

15,496

1,648Interest expenses

135

158

1,529

285

Foreign exchange loss, net

345

—

—

2,148

Loss on disposal of fixed assets

28

29

278

229

Impairment loss

125

—

—

179

Other

189

389

3,755

456

Total other expenses

822

576

5,562

3,297

3,834

3,026

29,212

4,005

Net sales

Other income

Other expenses

Income before income taxes and minority interests
Income taxes
Current

1,147

1,108

10,693

1,256

Deferred

349

207

1,998

654

1

1

5

1

¥ 2,337¥ 1,710$ 16,516¥ 2,094

U.S. dollars

Yen

Minority interests
Net income

Yen

Per share data
Net income
Basic¥ 30.44¥ 22.76

Diluted

30.41

22.76

$

0.22

¥ 27.32

0.22

27.30

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥103.57 = U.S.$1.00.

11

Millions ofyenYear ended March 31

2007

2008

2008

2008

¥ 3,834
2,081
(95)
(414)
—
21
(205)
135
28
125
(2,227)(1,812)
1,567
1,666
4,704
200
(135)
(1,264)
3,505¥ 3,026
2,670
(83)
2
(424)
(30)
(104)
158
29
—
(1,943)
261
(101)
(4)
3,457
111
(169)
(129)
3,270

$ 29,212
25,779(801)
17(4,097)(287)(1,005)
1,529
278—(18,762)
2,521
(974)
(35)
33,375
1,079(1,629)(1,248)31,577¥ 4,005
5,048
(12)
(430)
(377)
44
(317)
285
229
179
(657)
(2,199)
1,751
1,128
8,677
317
(276)
(2,648)
6,070

Cash flows from investing activities
Payments into time deposits
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
Payment for business transfer
Other
Net cash used in investing activities

(764)
1,002
(3,093)
257
(109)
—
(119)
71
(1,327)(9)(4,091)—20(3,180)
51
(13)
505
(28)
27
—
(96)
(2,714)—
193(30,707)
493
(128)
4,879
(272)
258
—
(923)
(26,207)

(953)
1,791
(5,940)
202
(740)
195
(299)
343
(1,317)(101)(6,819)Cash flows from financing activities
Increase 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 financing activities

791
3,350
(1,266)
(772)
13
(604)
1,512

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

13,795
14,483(16,784)(3,857)124(5,013)
2,748

609
3,890
(1,520)(1,328)37(1,155)533

Effect of exchange rate changes on cash and cash equivalents
2
Increase (decrease) in cash and cash equivalents
928
Cash and cash equivalents at beginning of year
7,562
Increase in cash and cash equivalents arising from
inclusion of subsidiaries in consolidation—
Decrease in cash and cash equivalents due to(4)
exclusion of subsidiaries from consolidation
Cash and cash equivalents at end of six months and year ¥ 8,486

136
977
7,073

1,313
9,431
68,296

(269)
(485)
7,562

135

1,302

—

—
¥ 8,185—$ 79,029(4)¥ 7,073

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Decrease in accrued directors’ bonuses
Increase (decrease) in accrued employees’ retirement benefits
Increase 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
Increase in notes and accounts receivable, trade
Increase (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
Net cash provided by operating activities

Note: The U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥103.57 = U.S.$1.00.

12

Board of Directors and Corporate Auditors(As of September 30, 2008)

DIRECTORSCORPORATE EXECUTIVE OFFICERS

Yasumitsu Ikeda

Makoto Irisawa

Yoshiyuki Kaku

Yoshio Sakurai

Hirozumi Kawabata

Hideo Matsumoto

Executive Deputy President
Sales Division

Executive Vice President
Human Resourcesand General Affairs

Executive Vice President
Connection System
Division

Executive Vice President
Production Engineering andEnvironmental Protection

Vice President
Secretarial Department

Vice President
Sales Division, Europe

Tetsuya Nakamura

Terutaka Ikeda

Akira Utazaki

Mikio Wakabayashi

Paul Evans

Tsutomu Isoda

Hiroshi Miyakawa

President and COO

Chairman and CEO

Vice President
Deputy Division Directorof Sales Division

Vice President
Functional Components
Division

Vice President
Sales Division, Americas

Vice President
Research and Development

Vice President
Sales DivisionCorporate Data
(As of September 30, 2008)

Hajime Yamada

Tadashi Yamoto

Yuji Tanahashi

Director, Executive Vice President
Chief Financial Officer

Director, Senior Executive Vice President
Chief Technology Officer

Director

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.

6,700

8.48

Nippon Life Insurance Company

4,036

5.11

Mizuho Corporate Bank, Ltd.

3,722

4.71

Dai Nippon Printing Co., Ltd.

3,200

4.05

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

3,134

3.97

SMK Cooperating Company Share Holding Association

2,245

2.84

Employees (SMK-Group): 15,410

Mitsubishi UFJ Trust and Banking Corporation

1,951

2.47

Head office:Terutaka Ikeda

1,938

2.45

Goldman Sachs International

1,661

2.10

Meiji Yasuda Life Insurance Company

1,601

2.03

Independent auditors:

Jun Sugimoto

Shigenobu Oyashiki

Kenji Kobayashi

Auditor

Auditor

AuditorHidefumi Kobayashi Kouichiro Sugihara
Auditor

AuditorNaru Nakashima
AuditorErnst & Young ShinNihon
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

11,026

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

Administrator of shareholders register:
Mitsubishi UFJ Trust and Banking
Corporation

AUDITORS• Shares and ShareholdersName:- 6 companies- 3 companies- 21 companies

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. :6,700 thousand shares
Mitsubishi UFJ Trust and Banking Corporation :14 thousand

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

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