2013 Business Report
Year Ended March 31, 2013

C r e a t i n g

CMK CORPORATIONt h e

f u t u r e

Securities Cord No : 6958

Message from the President

On behalf of the Company, I would like to take this opportunity to express mygratitude to our shareholders for their support.
It is my pleasure to deliver the Company’s 53rd Financial Report (from April 1,2012 to March 31, 2013).
I hope that we will be able to continue to count on the support andunderstanding of our shareholders.
June 2013

Kuniaki Kanemoto

President and CEO

Results for fiscal 2012
During fiscal 2012, the business environment
surrounding the Company remained generally
severe, given the stagnant global economy andsluggish consumer spending, despite improvements
in certain areas, mainly due to the correction of thestrong yen and rising stock prices.
In this business environment, CMK Group’s sales ofautomobile-related products and products for digital
cameras increased year on year, reflecting a
recovery in orders. However, orders for products fortelecommunications-related equipment, amusement
equipment and visual home appliances remainedsluggish throughout the year. As a result, for the
fiscal year under review, the Group recorded net
sales of 72,677 million yen (down 9.8% year onyear) on a consolidated basis.

1 CMK CORPORATIONOn the profit front, operating income amounted to
434 million yen (down 42.7% year on year), mostly
affected by a decline in sales despite steadyprogress in the review of the domestic businessstructure, the improvement of productivity, cost
reduction, and the improvement of other earnings
structures.
Ordinary income stood at 567 million yen (up 63.5%
year on year), partly due to the recording of foreignexchange gains, as a result of the depreciation of
the yen in the foreign exchange market in the fourth
quarter.
The Group posted a net income of 712 million yen(compared with a net loss of 2,873 million yen in theprevious fiscal year), recording full-year profits forthe first time in five years, reflecting the effects of
the reversal of the loss on valuation of investments
in securities.

Interview with the President

Outlook and priorities
In the electronics industry in which the Company
operates, price competition and technologicalcompetition on a global scale are expected to
escalate, and thus the management environment islikely to remain challenging in fiscal 2013 andbeyond.
Responding to this management environment,
under the management policy of “Quality First,” allemployees of the CMK Group will focus fully on“Wholehearted Manufacturing.” As “CMK, a quality
manufacturer,” the Group will also strive to gain theabsolute trust of its customers, business partners,
and society, and be a company that contributes
continuously to society through its businessactivities. To achieve this, the Group will strive to
steadily improve its results by responding sincerely
to management issues, as described below.
[(i) Improve the earnings structure]
The Group will aim to develop stable earnings
strength by positioning the improvement of theearnings structure of the overall Group as the mostimportant issue.
[(ii) Strengthen the ability to respond to changes in the
management environment]
The Group will strive to strengthen the ability torespond to changes in the economic andmanagement environment by establishing superior
positions in quality, technologies, costs, andservices.

[(iii) Transform the business structure]
The Group will work to optimize its business structureand scale in its domestic operations by taking steps
such as focusing on the development of new businesssectors and new products. In its overseas operations, itwill seek to develop production systems that are basedin the optimal locations from a global viewpoint by
expanding its production ability to respond to growing
demand.

Message to shareholders
The basic policy of the CMK Group with respect toreturning profits to shareholders is to maximize its
enterprise value and the distribution of steady
dividends.
In the fiscal year under review, despite the severe
management environment, the Group managed tosecure profits on a full-year basis. Although the future
outlook remained uncertain, in accordance with its
commitment to paying as stable dividends as possible
to shareholders, the Group has determined that it will
pay a year-end dividend of 2.50 yen per share.
The Group is resolved to make its best effort to securesteady earnings and further improve its enterprisevalue in the future. As we pursue this course, we ask
for the continued support and understanding of ourshareholders.

CMK CORPORATION 2

Financial Highlights (Consolidated)
Millions of Yen
FY 2011

FY 2012

Thousands of U.S. Dollars
FY 2013

FY 2013

April 1, 2010 - March 31, 2011

April 1, 2011 - March 31, 2012

April 1, 2012 - March 31, 2013

April 1, 2012 - March 31, 2013

Net sales

87,02380,56372,677$773,241

Operating income(loss)(1,041)

757

434

4,617

Ordinary income(loss)(1,991)

346

567

6,032

Net income(loss)(5,726)(2,873)

712

7,575

Net assets

58,42355,82957,773$614,671

Total assets

113,433

99,201

95,434

1,015,363

Net income(loss) per share(97.48)(48.92)

12.13

$0.12

Net assets per share

945.68900.50927.18

9.86

Notes: 1. U.S. Dollars amounts have been translated from Yen,for convenience only,at the rate of ¥93.99=$1,
		 the Tokyo foreign exchange market rate as of March 29.2013.
2. All Millions Yen and Thousands U.S. Dollars amounts are rounded to the nearest figure.

Operating income (loss)
Ordinary income (loss)
Net income (loss)

Net sales

Net income (loss) per share
Net assets per share(Millions Yen)

(Millions Yen)

(Yen)

100,000

2,000

1,200

1,000
80,000

1,000

0

800

-1,00060,000600-2,00040,000400-3,000200-4,00020,0000-5,0000

FY 2011

3 CMK CORPORATION

FY 2012FY 2013-6,000FY 2011

FY 2012FY 2013-200

FY 2011

FY 2012FY 2013

Sales Information (Consolidated)
Sales by application

FY 2013

FY 2012
OthersAVequipment

Others2.8%

23.5%
AV equipment

18.8%
Car electronics

Car electronics

4.0%

52.5%

Amusement

Amusement

61.5%

3.7%

5.4%

Mobilecommunications

Mobilecommunications

5.4%

8.4% Digital still camera
6.2%

Digital still camera

7.8%
Sales by type of PWB(Millions Yen)
100,000

Build-up PWBs and Package Substrates
Multilayered PWBs
Double-sided PWBs
OthersSales by region(Millions Yen)
100,000

87,02380,00028,075Japan
China
Southeast Asia
EU & USA

87,02380,563
26,43972,67780,00062,35280,56357,31523,20860,00026,18949,48060,00024,12524,45240,00040,00018,974

16,882
15,79820,00013,784072,677FY 2011

13,117FY 201220,0009,219

FY 20130

14,50914,723

12,822

7,035
3,126

5,598
2,925

7,264
3,109

FY 2011

FY 2012FY 2013

CMK CORPORATION 4

Consolidated Financial Statements
Consolidated Balance Sheet
Thousands of
U.S. Dollars

Millions of Yen

FY 2013

FY 2012FY 2013

FY 2013

As of
As of
As of
March 31, 2013 March 31, 2012 March 31, 2013

Cash and deposits
Notes and accounts receivable

49,44420,90630,156

29,508 $320,842

222,427

8,611

19,295

10,50591,616

Short-term borrowings

15,084

4,517

160,485

26,596

210,767

44

34

468

Merchandise and finished goods

3,010

3,587

32,024Work in process

2,421

2,988

25,758Raw materials and supplies

1,301

1,458

13,841

Deferred income taxes

193

200

2,053

Other current assets

1,799

955

19,140Allowance for doubtful accounts

FY 2013

Notes and accounts payable

55,069 $526,055

19,810Marketable securities

FY 2012

As of
As of
As of
March 31, 2013 March 31, 2012 March 31, 2013

(Liabilities)(Assets)
Current assets

Thousands of
U.S. Dollars

Millions of Yen

Current liabilities

Current portion of bonds

―

5,500

―

4,669

5,274

49,675

Income taxes payable

170

303

1,808

Allowance for employee bonuses

210

457

2,234

Provision for loss on order received

97

192

1,032

Trade payable

Allowance for restructuring
Other current liabilities

308

1,865

3,276

1,002

891

10,660

(43)

(49)

(457)

Fixed liabilities

7,504

13,86379,83845,94644,124

488,839

Bonds

4,500

―

47,877

Tangible fixed assets

39,17038,006

416,746

Long-term debt―

10,666―

Buildings and structures

15,593

15,954

165,900

Lease debt

2,162

2,193

23,002

Fixed assets

Machinery, equipment, and others

12,097

11,009128,705

Deferred tax liabilities

494

475

5,255

Land

10,262

10,309109,181

Allowance for employee retirement benefits

248

291

2,638

Construction in process

439

138

4,670

Allowance for executive retirement benefits

6

63

63

Other tangible fixed assets

775

595

8,245

Other

91

174

968

37,66043,372400,680

55,991

55,425595,712

Capital22,30622,306237,323

Additional paid-in capital

22,06322,063

234,737

Retained earnings

15,123

14,558160,900

Intangible fixed assets

587

596

6,245

Total liabilities

Goodwill

327

335

3,479

(Net assets)

Other intangible fixed assets

259

261

2,755

Investments and other assets

6,189

5,520

65,847

Investments in securities

2,873

2,859

30,567

Deferred income taxes

28

30

297

3,346

2,839

35,599

(58)

(210)

(617)

42

8

446

42

8

446

Other
Allowance for doubtful accounts
Deferred assets
Bond issue costs

Total assets

5 CMK CORPORATION

95,434

99,201 1,015,363

Shareholder's equity(3,502)(3,502)(37,259)

Accumulated other comprehensive income

Treasury stock(1,523)(2,525)(16,203)

Valuation difference on available-for-sale securities

224

216

2,383

Deferred hedge gains and losses

(0)

(0)

(0)
(18,587)(1,747)(2,741)

Minority interests in subsidiaries

Foreign currency translation adjustment

3,306

2,929

35,173

Total net assets

57,77355,829614,671

Total liabilities and net assets

95,434

99,201 1,015,363

Consolidated Statement of Operations

Consolidated Statement of Cash Flows
Thousands of
U.S. Dollars

Millions of Yen

FY 2013

FY 2012FY 2013

FY 2013

FY 2012FY 2013

Cash flows from operating activities

8,871

3,132

$94,382

Cash flows from investing activities(4,046)(855)(43,047)

Cash flows from financing activities(3,964)(9,301)(42,174)

Effect of exchange-rate changes on cash and cash equivalents

750

(62)

7,979

Net increase (decrease) in cash and cash equivalents

1,610(7,087)

17,129Cash and cash equivalents at beginning of year

19,27826,365205,106

Cash and cash equivalents at end of year

20,88819,278222,236

For the year
For the year
For the year
ended
ended
ended
March 31, 2013 March 31, 2012 March 31, 2013

Net sales

72,67780,563 $773,241

Cost of sales

64,66871,939688,030

Gross profit

8,008

8,624

85,200

Selling, general, and administrative expenses

7,574

7,866

80,583

434

757

4,617

Non-operating income

1,184

971

12,597

Non-operating expenses

1,050

1,381

11,171

Ordinary income

567

346

6,032

Extraordinary income

743

772

7,905

Extraordinary losses

192

3,312

2,042

Net income (loss) before taxes and other adjustments

1,117(2,193)

11,884

Corporate, residence, and enterprise taxes

299

333

3,181

Corporate, taxes and other adjustments

10

284

106

Net income (loss) before minority interests807(2,811)

8,586

Gains on minority interests in subsidiaries

94

62

1,000

Net income (loss)

712(2,873)

7,575

Operating income

Thousands of
U.S. Dollars

Millions of Yen

For the year
For the year
For the year
ended
ended
ended
March 31, 2013 March 31, 2012 March 31, 2013

CMK CORPORATION 6

Consolidated Financial Statements
Consolidated Statement of Shareholders' Equity(FY 2013: April 1, 2012 - March 31, 2013) (Unit: Thousands of U.S. Dollars/Millions of Yen)

Shareholder's equity
Common stock

Additional paid -in
capitalRetained earnings

Treasury stock

Total shareholder'sequity$237,323$234,737$154,888

14,558($37,259)$589,690

55,425

Dividend of surplus(1,553)(146)(1,553)(146)

Net income

7,575

712

7,575

712

Balance at beginning of year

22,30622,063(3,502)

Change during this year

Purchase of treasury stock

(0)

(0)

(0)

(0)

(Net)change during this year in accounts
other than shareholder's equity
Total change during this year
Balance at end of year

―

―

―

―

6,011

565

(0)

(0)

6,011

565

237,323

22,306

234,737

22,063160,900

15,123(37,259)(3,502)595,71255,991

Accumulated other comprehensive income
Valuation difference on
available-for salesecurities
Balance at beginning of year

$2,298216

Deferred hedge
gains and losses($0)

Foreigncurrency translation
adjustment(0) ($29,162)

Total accumulated
other comprehensive
income(2,741) ($26,864)

Minorityshareholder'sinterests(2,525) $31,162

Total net assets

2,929 $593,988

55,829Dividend of surplus(1,553)(146)

Net income

7,575

712

(0)

(0)

Change during this year

Purchase of treasury stock(Net)change during this year in accounts
other than shareholder's equity
Total change during this year
Balance at end of year

7 CMK CORPORATION

74

7

0

0

10,564993

10,650

1,001

4,000

376

14,661

1,378

74

7

0

0

10,564993

10,650

1,001

4,000

376

20,683

1,944

2,383

224

(0)

(0)

(18,587)(1,747)(16,203)(1,523)35,173

3,306

614,671

57,773

CMK’s Website Has Been Renewed
The Company comprehensively renewed its website in
February 2013 to enhance its corporate image andimprove IR information and product information.
The design of the website has been fully revised, andimages of messages for “Quality First,” “Wholehearted
Manufacturing,” and “Global Operations” automaticallyappear on the top page in turn.
The new website has also adopted new presentation
methods so that both domestic and overseas customers
can conveniently access product and technologicalinformation.
On the IR information page, “IR Library” and “IRCalendar” have been included to ensure thatshareholders and investors can easily obtain thenecessary information.
Please make the most of our new website. We will strive
to improve the website by reflecting requests to make it
an easy and convenient website.
Websitehttp://www.cmk-corp.com

Initiatives for Environmental
Conservation Activities
Under the management policy of “Quality First,” theCMK Group is also actively taking initiatives related toenvironmental conservation activities to be a company
that contributes continuously to society through its
business activities.
CMK Multi Corporation (Seirou-machi, Niigata
Prefecture), a Group company, has been making efforts
to reduce the discharge of industrial waste through theinitiatives of saving resources and recycling. It received
the 2012 Superior Recycle Operator Award of the
Niigata Environmental Conference, because its
promotion for the internal processing of waste liquidfrom production, the thorough segregation of waste,
and recycling was rated highly.

CMK CORPORATION 8

Corporate Data
(As of March 31, 2013)

Name of listed company
Date of establishment
CapitalAddress of head office
Number of employees

CMK CORPORATION(Securities code no.: 6958)
February 25, 1961
¥22,306,203,140
5-1 Nishishinjuku 6-chome,
Shinjuku-ku, Tokyo, Japan769 (Group total 5,127)

Primary Consolidated SubsidiariesJapan
CMK Mechanics Corporation
CMK Multi Corporation
CMK Finance Corporation

Executives (as of June 25, 2013)

CMK Products Corporation

Board of Directors

Yamanashi Sanko Co., Ltd.

Chairman and
Representative Director

Noboru Nakayama

President and Chief
Executive Officer

Kuniaki Kanemoto

Representative Director Vice
President and Executive Officer

Takeo Takai

CMK ASIA (PTE.) LTD.

Managing Director andExecutive Officer

Sadanobu Kondo

CMKS (MALAYSIA) SDN. BHD.

Director and Executive
Officer

Akiharu Nakayama

CMK CORPORATION (THAILAND) CO.,LTD.

Director and Executive
Officer

Takaya Oguchi

CMKC (Hong Kong) Ltd.

Board of Corporate Auditors

Overseas

CMKC (Dong Guan) Ltd.

Standing Corporate
AuditorYutaka Ishii

Corporate Auditor

Hiroo Wakabayashi

CMK EUROPE N.V.

Corporate Auditor

Shigeo Ichikawa

CMK AMERICA CORPORATION

Executive Officer

Kazuhiro Ito

Executive Officer

Takashi Ogasawara

Executive Officer

Eizo Shibata

Executive Officer

Hiroshi Hanaoka

Executive Officers

9 CMK CORPORATIONCMK Kanbara Electronic Corporation JapanCMK Electronics (Wuxi) Co., Ltd.

Stock Information

Stockholder's Memo

(As of March 31, 2013)

Total number of shares authorized
227,922,000
Total number of shares issued and outstanding 63,060,164
Number of shareholders
7,515
Share trading unit
100
Major shareholders (10 largest)
Shareholders

Investment in CMK
Number of shares held Percentage(thousands)(%)

Japan Trustee Services Bank, Ltd. (Trust account)

2,875

4.6

Takahiro Nakayama

2,835

4.5

Mizuho Corporate Bank, Ltd.

2,576

4.1

The Foundation for Technology Promotion of Electronic Circuit Board

2,500

4.0

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

2,417

3.8

The Dai-ichi Mutual Life Insurance Company

1,895

3.0

Akiharu Nakayama

1,886

3.0

Panasonic Electric Works Co., Ltd.

1,860

3.0

Trust & Custody Services Bank, Ltd. as trustee for Hitachi
Chemical Co., Ltd.; retirement benefit trust accountre-entrusted by Mizuho Trust and Banking Co., Ltd.

1,822

2.9

Trust & Custody Services Bank, Ltd. as trustee for Tokyo
Tomin Bank, Ltd.; retirement benefit trust accountre-entrusted by Mizuho Trust and Banking Co., Ltd.

1,745

2.8

Note: Although the Company holds 4,315 thousand shares of treasury stock, it is notincluded in the above list of major shareholders.

Fiscal year:

April 1 through March 31of the following year

Regular general
meeting ofshareholders:

Held in June each year

Date of record for
end-of-year
dividends:

March 31

Date of record for
mid-yeardividends:

September 30

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

Stock transfer
agent:

Japan Securities Agents, Ltd.
2-4 Kayabacho 1-chome,
Nihonbashi,
Chuo-ku, Tokyo, Japan

Contact address:

Japan Securities Agents, Ltd.,
Agent Division,
8-4 Izumi 2-chome, Suginami-ku,
Tokyo 168-8620
ふ 0120-707-843

Shareholder Breakdown
Individuals and others

Other firms

17,511 thousand shares (27.8%)

13,141 thousand shares (20.8%)
Foreign companies and individuals
8,434 thousand shares (13.4%)

Securities firms
1,348 thousand shares (2.1%)

Total
63,060,164 shares

Financial institutions
22,624 thousand shares (35.9%)

CMK CORPORATION 10

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

http://www.cmk-corp.com