CMK CORPORATION
Securities Cord No : 6958

Creating the future2022

Business Report
Year Ended March 31, 2022

Message from the President

I would like to express our sincere gratitude to shareholders for their continued
support of our operations.
In the fiscal year ended March 31, 2022, the Japanese economy was beset by a
growing sense of uncertainty about the future, mainly due to the recurrent spread of
COVID-19 with no signs that that pandemic was nearing its end, as well as theworsening of the situation in Ukraine, in addition to global supply chain disruptions.
Under those conditions, in the CMK Group's main operating field of products forautomotive use, the number of automobiles sold recovered globally, resulting in an
increase in orders received for those products, in spite of the prolonged effects of theshortage of semiconductors and other components.
The CMK Group saw an increase in sales of products designed for automotive use,resulting in consolidated net sales of ¥81,486 million (up 16.5% year on year).
On the profit front, operating income amounted to ¥3,021 million (compared with anoperating loss of ¥1,676 million posted in the previous fiscal year), reflecting factors
such as production efficiency enhancements and the effects of the net sales growth,
despite the effects of rises in raw material expenses.
Ordinary income came to ¥3,305 million (compared with ordinary loss of ¥1,511 million posted in the previous fiscal year) and profit
attributable owners of parent was ¥2,785 million (compared with a loss attributable to owners of parent of ¥1,868 million posted in
the previous fiscal year), mainly attributable to the growth in operating income.
Economic conditions are expected to remain severe in the period ahead, with COVID-19 and the worsening of the internationalsituation. However, demand for products for automotive use, which represent a key market for the CMK Group, is anticipated toexpand over the medium to long term.
To capture this demand, the CMK Group will move forward with establishing its profit base, a key component of the 1st MediumTerm Management Plan the Group has been executing from the fiscal year ending March 31, 2023, and will make preparations for thenext stage of growth. We ask our shareholders for their continued understanding and support.
June 2022

Isao Osawa

President and CEO▌Net sales(Millions Yen)
100,000
80,00082,61921,37520,0000Multilayered PWBs
Others81,486
69,96721,084

18,46360,00040,000▌Operating income (loss) (△) ▌Net assets／Equity ratio

HDI PWBs
Double-sided PWBs

42,401

13,094
5,747
FY 2020

36,3919,759
5,352
FY 2021

Net assets(Millions Yen)
4,000

10,6065,699

FY 202254,932

3,021

3,000
2,000

44,096(Millions Yen)
60,00040,00051,51954,46653.6

1,601（%）
60

50

49.8

1,000Equity ratio

50.3

20,000400△4,000△1,676
FY 2020

FY 2021

FY 20220FY 2020

FY 2021

FY 202230

Future Outlook
The outlook for the global economy has become more
uncertain, given developments such as the worsening of thesituation in Ukraine and lockdowns imposed to deal with thespread of COVID-19.
In the CMK Group's key market for automotive products, theeffects of the global shortage of semiconductors and othercomponents are still unclear. However, demand for thoseproducts is expected to continue to expand in the medium andlong term, reflecting the progress of vehicle electrification thatwill accompany CASE reforms.
Under those conditions, the CMK Group adopted its newMedium-Term Management Plan in November 2011, divided
the period under the Plan into the first three years as the 1stMedium-Term Management Plan and the following two years
as the 2nd Medium-Term Management Plan, and launchedactivities accordingly.

Under the 1st Medium-Term Management Plan, the CMKGroup will work on (1) improving production efficiency throughbusiness structure reforms, (2) achieving an automotive productportfolio shift toward products with high added value, and (3)making preparations for new businesses and accelerating
commercialization.
In the area of production efficiency improvement in particular,
the CMK Group will further efforts to enhance productivity andimprove quality through investment in automation and facility
replacement, in addition to restructuring its production bases inJapan.
Moreover, the CMK Group will seek to establish the advanced
element technologies required for multilayer PWBs used in 5G
communications technologies, enter markets related to 5G
communications systems, and put new businesses on a firm
footing by improving its accumulated technological capabilities.
Under the following 2nd Medium-Term Management Plan, theCMK Group will work on establishing a growth cycle bycapturing CASE demand and accelerating its growth byincreasing net sales from new businesses.

TOPICSNEPCON JAPAN 2022 held at the Tokyo Big Sight
CMK Corporation (the "Company") exhibited its products at the NEPCON JAPAN 2022 trade
fair held at the Tokyo Big Sight from January 19, 2022 to January 21, 2022. At the show, theCompany proposed various PWBs designed for new business fields to customers, in addition tointroducing the following two initiatives.
The Company welcomed customers by complying with exhaustive measures against COVID-19
required by organizers and asking participating employees to take sufficient precautions.
CMK booth at the NEPCON A coil substrate 1.0
1. Introduction of New ProductsJAPAN 2022
millimeter thick
The Company's Innovation Center is developing heavy copper coil substrates to meet demandfor heavy copper products.
The Company proposed products compatible with high withstand voltage applications by forming
unprecedented circuits using heavy copper that is 0.5 millimeters or 1.0 millimeter thick.
To address customer demand, the Company also exhibited many new technologies to meetincreasingly sophisticated market demand for technologies geared to the CASE trend for automobiles,
such as high-density HDI technologies for substrates for millimeter wave radars for ADAS and Substrate exhibition offering Live broadcast from thehands-on experiencebooth
integrated ECUs, as well as high frequency substrates for V2X for automotive 5G communications.
2. New Exhibition and Public Relations Methods
Substrates are displayed in ways to keep bare hands away at regular exhibitions to prevent the adhesion of foreign matter and the oxidationof circuit conductors. As a new experiment, The Company set up a section for touching substrates at its booth at the NEPCON JAPAN 2022.
The booth section became popular with customers by offering them a chance to feel with their hands the bendability of rigid flex
substrates, the solidity of substrates made with 3D printers, and the heaviness of copper substrates.
The latest NEPCON JAPAN was held amid the growing sixth wave of COVID-19 infection. Nonetheless, the Company's boothwelcomed more than twice as many customers as it did at the previous fair in January 2021.
The Company also took part in a multilingual live broadcast from the NEPCON JAPAN 2022, sponsored by its organizers once again
under circumstances that prevented many overseas customers from attending in person.
During the broadcast, which featured simultaneous Chinese and Korean interpretation, the Company publicized its products andtechnologies from its booth.

Sales by application

Others17.2％

Mobilecommunications

1.2％

Car electronics

81.6％

Car electronics
Telecommunications
systems

Car electronics
Body andcomfort systems

9.0％

27.0％

FY2022

Telecommunications
systems
AchievementsAchievements
Body andVia Hole (IVH)
comfort systems InterstitialHigh heat dissipation wiring board

Meter panels
Air conditioners
Power windows
Headlights

Automotive
TV monitor

Interstitial Via Hole (IVH)
PPBU wiring board
Rigid-flex wiring board

PPBU wiring board

driving safety systems
ABS, electric power steering
VSC, air bag system

FY2021Car electronics
Powertrain /driving safetysystems

45.6％
Car electronics■ Powertrain / driving safety systems■ Body and comfort systems■ Telecommunications systems■ Mobile communications■ Others

FY2021
81.1％
42.2％
27.3％
11.6％
1.5％
17.4％

FY2022
81.6％
45.6％
27.0％
9.0％
1.2％
17.2％

Powertrain systems
Hybrid ECU
Engine ECU

Achievements
Interstitial Via Hole (IVH)
PPBU wiring board

Change
0.5％
3.4％
△0.3％
△2.6％
△0.3％
△0.2％

Achievements
Interstitial Via Hole (IVH)
PPBU wiring board

Corporate Data (As of March 31, 2022)
Name of listed company CMK CORPORATION(Securities code no.: 6958)
Date of establishment

February 25, 1961

Capital¥22,306,203,140

Number of employees

1,309 (Group total 4,854)▌Japan● CMK Products Corporation▌Overseas● CMK ASIA
（PTE.）
LTD.

Executives (as of June 28, 2022)
Board of Directors

Primary Consolidated Subsidiaries

Executive Officers

President and CEOIsao Osawa

Director and Executive
Officer

Kunihiko Tedo

Director and Executive
Officer

Yoshihisa Yamaguchi Executive

Director and Executive
Officer

Yoshiaki Ishizaka

Director and Executive
Officer

Kazuto Ono

Director

Tsuyoshi Ukyo

● CMKM SDN.BHD.
● CMK CORPORATION（THAILAND）
CO.,LTD.

Executive
Officer

Junichi Ishibashi

Executive
Officer

Takashi Izumisawa● CMK ELECTRONICS (WUXI) CO., LTD.

Officer

Takashi Okayasu● CMKC (HK) LIMITED

Executive
Officer

Kazuhiro Kawaguchi● CMKC (DONG GUAN) LTD.

Executive
Officer

Masanori Kawashima● CMKC (SHENZHEN). LTD.

Executive
Officer

Masaya Kuriyama● CMK EUROPE N.V.

Mitsuru Kaitoh

Executive
Officer

Tatsuya Koizumi● CMK AMERICA CORPORATION

Board of Corporate Auditors

Executive
Officer

Satoru Takahashi

Standing Corporate
AuditorMasashi Koike

Standing Corporate
AuditorAkihiro Okabe

Executive
Officer

Yasuhiko Takahashi

Yuji Yamanashi

Masayoshi Hagiwara

Corporate Auditor

Executive
Officer

Corporate Auditor

Masaki Ashibe

Executive
OfficerToshikazu Fujino

ExecutiveOfficer

Naoki Matsuo

Director
DirectorRika Sato

Our Website■ PRODUCT■ IR INFO■ COMPANY■ CSR■ RECRUIT■ TOPICS

We disclose detailed information on this website.

Our Website

Stock Information (As of March 31, 2022)
Total number of shares authorized

227,922,000

Major shareholders (10 largest)

63,060,164

Shareholders

Total number of shares issued and outstanding

7,246

Number of shareholders

100

Share trading unit
Shareholder Breakdown【Total 63,060,164shares】
Individuals and others

12,539thousand shares（19.9%）

Financial

29,298thousand shares（46.5%）

Securities ﬁrms

757thousand shares（1.2%） Foreign companies and individuals

9,236thousand shares（14.6%）
Other ﬁrms

11,228thousand shares（17.8%）

Number of shares held Percentage(thousands)(%)

The Master Trust Bank of Japan, Ltd. (Trust account)

9,588

16.1

Custody Bank of Japan, Ltd. (Trust Account)

5,657

9.5

Mizuho Bank, Ltd.

2,576

4.3

The Foundation for Technology Promotion of Electronic Circuit Board

2,500

4.2

Custody Bank of Japan, Ltd. (securities investment trust account)

2,404

4.0

Takahiro Nakayama

1,975

3.3

The Dai-ichi Life Insurance Company, Limited

1,895

3.2

Mizuho Trust & Banking Co., Ltd., Retirement
Benefit Trust, Kiraboshi Bank AccountRe-Trustee: Custody Bank of Japan, Ltd.

1,745

2.9

Akiharu Nakayama

1,668

2.8

Sumitomo Mitsui Banking Corporation

1,613

2.7

Note:1．
‌Although the Company holds 3,865,040 shares of treasury stock, it is notincluded in the above list of major shareholders.
‌Treasury shares were excluded in calculating the shareholding ratios.
2．

Shareholders Memo
Fiscal year:

April 1 through March 31of the following year

Regular general
meeting ofshareholders:

Held in June each year

Date of record for March 31
end-of-year
dividends:
Date of record for September 30
mid-yeardividends:

43rd Floor, Shinjuku I-Land Tower Bldg., 6-5-1
Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1388, Japan
Tel.: +81-3-5323-0231 (main)
https://www.cmk-corp.com

Notification
method:Electronic notification(company website athttps://www.cmk-corp.com).
If notification cannot be madeelectronically, it will be made using
the Nihon Keizai Shimbun.

Transfer agent:Mizuho Trust & Banking Co., Ltd.
1-3-3 Marunouchi, Chiyoda-ku, Tokyo

Contact address:

Mizuho Trust & Banking Co., Ltd.
8-4 Izumi 2-chome, Suginami-ku,
Tokyo 168-8507
0120-288-324