NEXT 100

Since our founding, SMK has been committed to enriching lives through electronic components. As digital transformation accelerates, the demand for solutions leveraging electronics—such as optimizing operations with ICT and enhancing services with cutting-edge technology—is growing.
Guided by our long-term vision, we provide high-value-added products and services that solve diverse challenges, based on our Manufacturing Capabilities. By doing so, we continue to evolve for the next 100 years as a company that stays ahead of expectations.

We Will Contribute to the Next 100 Years with Our Manufacturing Capabilities That Realize All Kinds of Needs

Looking ahead to the next 100 years, SMK has set its long-term vision, defining what SMK should be in 2035 as: “We will contribute to the next 100 years with our Manufacturing Capabilities that realize all kinds of needs.” This long-term vision is based on the SMK Vision, “CREATIVE CONNECTIVITY—Challenge, Creativity, Solutions.” This phrase embodies our desire to contribute to creating a better society and future by solving social and customer challenges through connecting people to people, people to products, and products to products creatively.

Direction of SMK’s Long-Term Vision

  • Contribute to a better society by solving customer challenges across various fields through advanced technologies and high-value-added products and services, built on our Manufacturing Capabilities.
  • Over the next 100 years, focus not on cost competition, but on differentiation through advanced technologies and high-value-added products.
  • Aim to achieve ¥150 billion in sales, a 10% operating profit margin, and a 10% ROE in FY2035.

Medium-Term Business Plan “SMK Next100” for Achieving the Long-Term Vision

SMK has launched the new medium-term business plan "SMK Next100" in FY2024 as the first step toward achieving its long-term vision. This plan serves as a foundation for SMK’s growth and improvement in corporate value over the next 100 years.

Basic Policy of SMK Next100

1. Achieve sustainable growth in sales and profits.

CS Division (Connectors)

  • Strengthen the development of connectors for xEV/ADAS.
  • Actively develop connectors for wearable devices by pursuing miniaturization, thinness, and high-speed transmission.

SCI Division (Remote controls, units, etc.)

  • Commercialize high-value-added products by integrating existing technologies with sensor/sensing technology and AI.
  • Expand existing businesses in key markets such as home appliances, housing equipment, car electronics, and e-bikes.

Innovation Center

  • Promote high-value-added businesses by combining core technology (communication technology) with sensors and in-house developed algorithms.
  • Create new businesses through open innovation.

2. Provide high-quality services through strengthening the management base.

We enhanced our sales capabilities by reorganizing the Sales Division into two product divisions and an Innovation Center. At the same time, we revised our administrative structure to strengthen stock market-oriented planning functions by integrating financial strategy and investor relations.

3. Enhance Capital and Financial Strategy.

We will improve cost management and the profit and loss management to enhance profitability visibility and drive revenue growth. Additionally, we will gradually introduce ROIC as a new metric to improve capital efficiency.

4. Promote ESG & Sustainability Management.

E

Advance further initiatives following the installation of solar power generation systems at major production sites, with the goal of achieving carbon neutrality by 2045.

S

Strengthen human capital by focusing on creating challenging and rewarding workplaces and developing self-directed employees.

G

Enhance corporate governance based on our Corporate Philosophy and Action Guidelines to continuously improve corporate value and build trust with all stakeholders.

Strengthen Sales Capabilities through Organizational Restructuring to Propose “One Step Ahead of Customer Expectations”

To achieve our long-term vision, we have abolished the previous “Sales Division” and integrated sales functions into two product divisions (CS Division and SCI Division) and the Innovation Center.

Enhance Proposal Capabilities through Strengthened Marketing Activities

With the organizational restructuring, sales functions have been integrated into the product divisions and the Innovation Center, enabling more specialized sales activities. Additionally, by strengthening marketing activities, we will advance sales efforts that anticipate customer demands and future needs.

Consolidate Responsibility to Provide High-Quality Services

Previously, the sales team focused on sales while the product divisions prioritized profit. In the new structure, we have unified responsibility across sales, production, and delivery. This new approach allows for smoother communication with customers and ensures we provide high-quality services with appropriate pricing and quality.

Innovation Center Creates New Value

The Innovation Center is an organization that integrates the open innovation promotion team from the Marketing Department into the former Research & Development Center. It aims to create new business models by combining traditional hardware with software and services such as algorithms, as well as launching new businesses through open innovation.

Step by Step, Moving Forward Toward Our Future Vision

SMK will continue to connect the world through electronics and create a better future. Guided by this mission, we will propose products and services that exceed customer expectations, strengthen our Manufacturing Capabilities, and integrate sustainability into our management.

In an era of rapid change, SMK aims to remain a company that responds to customer needs by leveraging the advanced technology and flexible thinking we have cultivated over the years. We ask for your continued support.

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