Creating the future2021

CMK CORPORATION
Securities Cord No : 6958

Business Report
Year Ended March 31, 2021

Message from the President

I would like to express our sincere gratitude to shareholders for their continued
support of our operations.
During the fiscal year under review, the Japanese economy showed signs of a gradual
recovery amid restrictions on economic activity due to the COVID-19 pandemic, butwith the resurgence of infections there is no clear end in sight and the situation remains
uncertain.
Similarly, in the global economy, despite seeing signs of recovery due to the gradualresumption of economic activity, in addition to infections starting to rise once again,
prolonged trade friction between the US and China has also contributed to theuncertain outlook.
Under these conditions, in the CMK Group's main operating field of products forautomotive use, automobile sales recovered early on in China and are on the recovery
track in Japan, but are still sluggish worldwide.
The CMK Group saw a decrease in sales of products designed for automotive use,resulting in consolidated net sales of ¥69,967 million (down 15.3% year on year).
On the profit front, despite driving down fixed costs and other expenses, due to factors include the fall in net sales, we recorded anoperating loss of ¥1,676 million (compared with operating income of ¥1,601 million in the previous fiscal year).
Additionally, in connection with the fall in operating income, we recorded an ordinary loss of ¥1,511 million (compared with ordinary
income of ¥792 million the previous fiscal year) and loss attributable to owners of parent of ¥1,868 million (compared with a loss of¥1,128 million the previous fiscal year).
We regard the uncertainty and harsh economic conditions brought about by the COVID-19 pandemic as an opportunity to initiateinternal reforms, and we appreciate the continued understanding and support of shareholders as we strive to enhance our corporate
value going forward.
June 2021

Isao Osawa

President and CEO▌Net sales(Millions Yen)
100,000
80,000▌Operating income (loss) (△) ▌Net assets／Equity ratio

HDI PWBs
Double-sided PWBs

90,23026,246

82,61921,37520,000069,967
18,46360,00040,000Multilayered PWBs
Others41,78414,861
7,339

FY 2019

42,401

13,094
5,747
FY 2020

36,391

Net assets(Millions Yen)
4,000
3,767

(Millions Yen)
60,00055,84954,932

3,000

1,601

49.9

1,000（%）
60

51,51953.6

40,0002,000

Equity ratio

50

49.8

20,000

40

0

9,759
5,352
FY 2021△4,000△1,676
FY 2019

FY 2020

FY 20210

FY 2019

FY 2020

FY 202130

and develop new business fields through sales reforms.

Future Outlook

Additionally, at the Niigata Factory we have pursued
technological innovation through investment in development

With the resurgence of COVID-19 infections and prolonged
trade friction between the US and China, we expect the outlook
for the Japanese and global economies to remain uncertain.
However, in the CMK Group's main operating field of products
for automotive use, despite concerns over the impact of global
semiconductor shortages, demand is expected to expand aselectrification advances against a backdrop of structuralchanges driven by the new "CASE" trend of connected cars,
autonomous driving, electric vehicles, and so on.
To achieve sustainable growth under these circumstances, theCMK Group will continue to prioritize promoting structuralreforms and improvement in the quality of Group companies
adopted in the Medium-Term Management Plan, and will work
to enhance both productivity and profitability.
In terms of structural reforms, we will streamline productionand enhance cost competitiveness through production reforms,

facilities and aim to establish new areas of business in
5G-related markets and elsewhere.
In terms of improvement in the quality of Group companies,
we will enhance product quality through quality reforms
predicated on a compliance emphasis. We will also work to
improve the quality of business operations through the new
personnel system introduced in April 2020, which is designed
to revitalize communication and develop a vibrant workplace
based on an environment in which every employee can flourish,
regardless of age, gender, nationality or other factors.
Additionally, we will drive ESG (environment, society,governance) management initiatives in order to become acompany that is trusted by all stakeholders.
We will be making every effort to further enhance ourcorporate value, and sincerely appreciate the understanding
and ongoing support of our valued shareholders.

TOPICSlaunch of CMK Innovation Center
CMK consolidated its development center inside theNiigata Factory and launched the CMK Innovation
Center. This was an effort to strengthen development
functions and make capital investments in R&D
incorporating medium-to-long-term perspectives.
In response to the ever-accelerating development ofautomobile electrification and autonomous driving, CMK
will increase the supply of printed wiring boards (PWBs)

Niigata Factory

18-layer high aspect substrategoing forward. At the same time, we expect that development of the basic technologies of PWBs (thinner wiring, multi-stage, etc.) will
become increasingly important due to the advance of integrated ECUs.
Developing new fields of business and continuing with research and development to stay one step ahead of market demands will
also be important for stable business continuity, further development potential and creativity over the medium and long terms.
To that end, the CMK Innovation Center will not only employ cutting-edge technologies in manufacturing PWBs, but will also
introduce eco-friendly manufacturing technologies and establish model lines that incorporate high-mix low-volume production concepts
to acquire the flexibility that will be needed to respond to the post-COVID economic recovery and changes in the market economy.

Sales by application

Others17.4％

Mobilecommunications

1.5％

Car electronics

81.1％

Car electronics
Telecommunications
systems

Car electronics
Body andcomfort systems

11.6％

27.3％

FY2021

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

Meter panels
Air conditioners
Power windows
Headlights

AutomotiveTV 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

FY2020Car electronics
Powertrain /driving safetysystems

42.2％
Car electronics■ Powertrain / driving safety systems■ Body and comfort systems■ Telecommunications systems■ Mobile communications■ Others

FY2020
81.6%
37.9%
27.6%
16.1%
1.1%
17.3%

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

Powertrain systems
Hybrid ECU
Engine ECU

Achievements
Interstitial Via Hole (IVH)
PPBU wiring board

Change△0.5%4.3%
△0.2%
△4.6%
0.4%
0.1%

Achievements
Interstitial Via Hole (IVH)
PPBU wiring board

Corporate Data (As of March 31, 2021)
Name of listed company CMK CORPORATION(Securities code no.: 6958)
Date of establishment

February 25, 1961

Capital¥22,306,203,140

Number of employees

1,327 (Group total 4,960)

President and CEO

Isao Osawa

Vice-President andCCO

Akira Kurosawa

Director and Executive
Officer

Hiroshi Hanaoka

Director and Executive
Officer

Kunihiko Tedo

Director and Executive
Officer

Yoshihisa Yamaguchi

Director and Executive
Officer

Yoshiaki IshizakaDirector

Tsuyoshi Ukyo

▌Japan● CMK Products Corporation▌Overseas● CMK ASIA（PTE.）LTD.

Executives (as of June 25, 2021)
Board of Directors

Primary Consolidated Subsidiaries

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

Executive
Officer

Junichi Ishibashi

Executive
Officer

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

Executive
Officer

Takashi Okayasu● CMKC (HK) LIMITED

Executive
Officer

Kazuhiro Kawaguchi● CMKC (DONG GUAN) LTD.

Executive
Officer

Masanori Kawashima● CMKC (SHENZHEN). LTD.

ExecutiveOfficerMasaya Kuriyama● CMK EUROPE N.V.

Rika Sato

Executive
Officer

Satoru Takahashi● CMK AMERICA CORPORATION

Mitsuru Kaitoh

Executive
Officer

Yasuhiko Takahashi

Board of Corporate Auditors

Executive
Officer

Masayoshi Hagiwara

Executive
Officer

Toshikazu Fujino

Executive
Officer

Naoki Matsuo

Director
DirectorStanding Corporate
AuditorMasashi Koike

Standing Corporate
AuditorAkihiro Okabe

Corporate Auditor

Yuji Yamanashi

Corporate Auditor

Masaki Ashibe

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

We disclose detailed information on this website.

Our Website

Stock Information (As of March 31, 2021)
Total number of shares authorized
Total number of shares issued and outstanding

227,922,000

Major shareholders (10 largest)

63,060,164

Shareholders

6,703

Number of shareholders

100

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

15,575thousand shares（24.7%）

Financial

23,595thousand shares（37.4%）

Securities ﬁrms

1,185thousand shares（1.9%）Foreign companies and individuals

6,019thousand shares（9.5%）
Other ﬁrms

16,685thousand shares（26.5%）

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:

Kyoden Area Net KK

5,310

8.9

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

4,309

7.2

Takahiro Nakayama

2,975

5.0

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. (Trust account 9)

2,295

3.8

The Dai-ichi Life Insurance Company, Limited

1,8953.2

Akiharu Nakayama

1,891

3.1

Hiroshi Hashimoto

1,890

3.1

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

1,745

2.9

Note:1．
‌Although the Company holds 3,864,583 shares of treasury stock, it is notincluded in the above list of major shareholders.
‌Treasury shares were excluded in calculating the shareholding ratios.
2．

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

Transfer agent:Mizuho Trust & Banking Co., Ltd.
1-2-1, Yaesu, Chuo-ku, Tokyo, Japan
Stock Transfer Agency Bussiness
Planning Department

Contact address:

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

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

Number of shares held Percentage(thousands)(%)