Securities Cord NO : 6958

Creating
the future2 0 1 2 B u s i n e s s R e p o r t Year Ended March 31, 2012

CMK CORPORATION

Top Interview

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 theCompany’s 52nd Financial Report (from April 1, 2011 to March 31, 2012).
I hope that we will be able to continue to count on the support andunderstanding of our shareholders.
June 2012

Kuniaki Kanemoto
President and CEO

Summary of results for fiscal 2011
During fiscal 2011, the business environment
surrounding the Company remained severe, given
the impact of the Great East Japan Earthquake,the flooding in Thailand, and the challenging
global economic situation mainly reflected by theEuropean financial crisis, as well as the impact of
the continued appreciation of the yen, whichreached historic levels.
In this management environment, under its policyof quality-first management, the CMK Groupfocused across the board on improving the quality
management, bolstering productivity, thoroughly
streamlining production costs, and implementing
operational reform in an effort to improve its
performance.
On the sales front, sales of automobile-related
products were at almost the same level as theprevious fiscal year, after a recovery in the
1 CMK CORPORATION

second half of the fiscal year under review,despite a drop in sales in the wake of theearthquake. Meanwhile, orders for AV and digital
home appliances and telecommunications-related
products declined year on year, mainly reflecting
escalating competition. As a result, the Group
recorded net sales of 80,563 million yen (down
7.4% from the previous fiscal year).
Looking at profits, despite the effects of lower net
sales, operating income amounted to 757 million
yen (compared with an operating loss of 1,041
million yen in the previous fiscal year), and ordinary
income reached 346 million yen (compared with an
ordinary loss of 1,991 million yen).
Net loss amounted to 2,873 million yen(compared with a net loss of 5,726 million yen in
the previous fiscal year), chiefly reflecting therecording of temporary expenses, necessary forbusiness restructuring in Japan, as extraordinary
losses.

Outlook for fiscal 2012 and priorities
In fiscal 2012, the management environment islikely to remain difficult, due to concerns over thefinancial crisis in Europe and other negative factors.
Responding to this management environment,
under the policy of quality-first management, allemployees of the Company will fully focus on“conscientious manufacturing.” As “CMK, a quality
manufacturer,” and the leading manufacturer ofprinted wiring boards, the Company will also strive
to gain the absolute trust of its customers, business
partners, and society, and contribute to society
through its business activities. To achieve this, theCompany will make an effort to improve its resultsby carrying out the initiatives described below.
[(i) Improve the earnings structure]
The Company will aim to develop stable earnings
strength by improving the earnings structure of theoverall Group.
[(ii) Strengthen the ability to respond to changes in the
management environment]
The Company will respond to the severe
management environment by striving to improve its
competitiveness in terms of quality, technologies,
costs, and services.
[(iii) Review the business structure]
The Company will work to optimize its businessstructure and scale in Japan by taking steps such as
reviewing the direction of its high-value-added
business. Overseas, it will strive to strengthen the
production systems that are based in the optimal
locations to respond to demand in growing markets.

Message to shareholders
The basic policy of the CMK Group with respect toreturning profits to shareholders is to pay steady
dividends while maintaining a stable level of internal
reserves, which are to be effectively used to expand
operations and maintain and strengthen
competitiveness. During the fiscal year under review,
the Group was forced to record substantial losses.
However, because certain sectors showed an
economic upturn in the second half of the fiscal year
under review, the Company also improved its
performance, achieving ordinary income on a full-yearbasis. As a result, in line with its basic policy—to pay
the highest dividends possible to its shareholders—theCompany has determined that it will pay a year-end
dividend of 2.50 yen per share.
All Group employees are making their best efforts tosquarely address management issues, achieve income
on a full-year basis, and improve corporate value. We
ask for the continued support and understanding of ourshareholders.

CMK CORPORATION 2

Financial Highlights (Consolidated)
Yen (Millions)

U.S. Dollars (Thousands)

FY 2010

FY 2011

FY 2012FY 2012April 1, 2009 - March 31, 2010

April 1, 2010 - March 31, 2011

April 1, 2011 - March 31, 2012

April 1, 2011 - March 31, 2012

90,07087,02380,563$980,801

Operating income(loss)(395)(1,041)

757

9,216

Ordinary income(loss)(777)(1,991)

346

4,212

Net income(loss)(2,340)(5,726)(2,873)(34,977)

Net assets

65,98658,423

5,589$68,042

Total assets

124,140

113,433

99,201

1,207,706

Net income(loss) per share(39.84)(97.48)(48.92)($0.60)1,069.80

945.68900.5010.96

Net sales

Net assets per share

Notes: 1. U.S. Dollars amounts have been translated from Yen,for convenience only,at the rate of ¥82.14=$1,
		 the Tokyo foreign exchange market rate as of March 30.2012.
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

1,000

80,0000800-1,00060,000600-2,000400

40,000-3,000200-4,00020,0000-5,0000-6,000FY 2010

FY 2011

3 CMK CORPORATION

FY 2012FY 2010

FY 2011

FY 2012-200

FY 2010

FY 2011

FY 2012

Sales Information (Consolidated)
Sales by application

FY 2012FY 2011

OthersOthers

28.1%

32.5%

Car electronics

Information
devices

50.0%

2.6%

52.5%

Information
devices

AV equipment

8.2% Mobile
communications
11.1%

Car electronics

2.6%
AV
equipment

4.0%

Mobilecommunications

8.4%
Sales by type of PWB(Millions Yen)
100,000

90,07027,530

Build-up PWBs and Package Substrates
Multilayered PWBs
Double-sided PWBs
Others

28,07590,07028,23926,18965,58780,563
26,439Japan
ChinaSoutheast Asia
EU & USA(Millions Yen)
100,000

87,02380,00060,000

Sales by region

87,02362,35280,00080,56357,31560,00024,12540,00040,00017,751

18,974

16,88220,00020,000

16,54813,784

13,1170

0

FY 2010

FY 2011

FY 2012

15,482

14,50914,723

6,845
2,155

7,035
3,126

5,598
2,925

FY 2010

FY 2011

FY 2012CMK CORPORATION 4

Consolidated Financial Statements
Consolidated Balance Sheet
U.S. Dollars(Thousands)

Yen (Millions)

FY 2012FY 2011

FY 2012FY 2012And of
And of
And ofMarch 31, 2012 March 31, 2011 March 31, 2012

Cash and deposits
Notes and accounts receivable
Marketable securities
Merchandise and finished goods

FY 2011

FY 2012And of
And of
And ofMarch 31, 2012 March 31, 2011 March 31, 2012

(Liabilities)(Assets)
Current assets

U.S. Dollars(Thousands)

Yen (Millions)

55,06919,29562,328 $670,429
26,38331,317 $359,240

234,904

10,505

11,582

127,891

Short-term borrowings

4,517

10,85554,991

Trade payable

5,500

―

66,959Account payable

5,274

5,817

64,207

303

177

3,689
5,564

25,479323,789

34

36

414

4,238

29,508Notes and accounts payable

26,596

3,587

Current liabilities

43,669Work in process

2,988

3,070

36,377

Raw materials and supplies

1,458

1,696

17,750

Income taxes payable
Allowance for employee bonuses

457

681

Provision for loss on order received

192

248

2,337

1,865

726

22,705891

1,229

10,847

13,863

23,692

168,773

―

5,500

―

Deferred income taxes

200

376

2,435

Other current assets

955

1,059

11,626

Allowance for doubtful accounts

(49)

(11)

(597)

44,12451,087537,180

Bonds

Tangible fixed assets

38,00644,133

462,698

Long-term debt

10,666

14,352

129,851

Buildings and structures

15,954

17,654

194,229

Lease debt

2,193

2,753

26,698Fixed assets

Allowance for restructuring
Other current liabilities
Fixed liabilities

Machinery, equipment, and others

11,00915,270134,027

Deferred tax liabilities

475

482

5,783

Land

10,30910,336

125,505

Allowance for employee retirement benefits

291

305

3,543

Construction in process

138

261

1,680

Allowance for executive retirement benefits

63

181

767

Other tangible fixed assets

595

610

7,244

Other

174

118

2,118

43,37255,009528,025

55,42558,333674,763

Capital22,30622,306

271,561

Additional paid-in capital

22,06322,063

268,602

Retained earnings

14,55817,466

177,234

Treasury stock(3,502)(3,502)(42,635)

Accumulated other comprehensive income(2,525)(2,779)(30,740)

Valuation difference on available-for-sale securities

216

164

2,630

Deferred hedge gains and losses

(0)

0

0
(33,370)

Intangible fixed assets

596

635

7,256

Total liabilities

Goodwill

335

348

4,078

(Net assets)

Other intangible fixed assets

261

287

3,178

Investments and other assets

5,520

6,318

67,202

Investments in securities
Deferred income taxes

2,859

3,391

34,806

30

40

365

Other

2,839

2,920

34,563

Allowance for doubtful accounts

(210)

(34)

(2,557)

8

16

97

8

16

97

Deferred assets
Bond issue costs

Total assets

5 CMK CORPORATION

99,201

113,433 1,207,706

Shareholder's equity(2,741)(2,944)

Minority interests in subsidiaries

Foreign currency translation adjustment

2,929

2,868

35,659Total net assets

55,82958,423

679,681

Total liabilities and net assets

99,201

113,433 1,207,706

Consolidated Statement of Operations

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

Yen (Millions)

FY 2012FY 2011

FY 2012FY 2012For the year
For the year
For the year
ended
ended
ended
March 31, 2012 March 31, 2011 March 31, 2012

Net sales

80,56387,023 $980,801

Cost of sales

71,93980,098875,810Gross profit

8,624

6,925

104,991

Selling, general, and administrative expenses

7,866

7,966

95,763Operating income(loss)

757(1,041)

9,216

Non-operating income

971

857

11,821Non-operating expenses

1,381

1,807

16,813

Ordinary income(loss)

346(1,991)

4,212

Extraordinary income

772

146

9,399

Extraordinary losses

3,312

3,331

40,321

Net income (loss) before taxes and other adjustments(2,193)(5,175)(26,698)

Corporate, residence, and enterprise taxes

333

174

4,054

Corporate, taxes and other adjustments

284

361

3,458

(2,811)(5,711)(34,222)

62

15

755

(2,873)(5,726)(34,977)

Net income before minority interests
Gains on minority interests in subsidiaries
Net income (loss)

U.S. Dollars(Thousands)

Yen (Millions)

FY 2011

FY 2012For the year
For the year
For the year
ended
ended
ended
March 31, 2012 March 31, 2011 March 31, 2012

Cash flows from operating activities

3,132

5,215

$38,130

Cash flows from investing activities(855)(1,101)(10,409)

Cash flows from financing activities(9,301)(626) (113,234)

Effect of exchange-rate changes on cash and cash equivalents

(62)

(731)

(755)

Net increase (decrease) in cash and cash equivalents(7,087)2,756(86,280)

Cash and cash equivalents at beginning of year

26,36523,637

320,976

Cash according to change within the range of connection
and amount of increase and decrease of cash equivalent

―

(28)

―

Cash and cash equivalents at end of year

19,27826,365

234,697

CMK CORPORATION 6

Consolidated Financial Statements
Consolidated Statement of Shareholders' Equity

(FY 2012: April 1, 2011 - March 31, 2012) (Unit: Thousands of U.S. Dollars/Millions of yen)

Shareholder's equity

Balance at beginning of year

Common stock

Additional paid -in
capitalRetained earnings$271,561$268,602$212,637

17,466(34,977)(2,873)22,30622,063

Total shareholder'sequityTreasury stock$(42,635)(3,502)

0

(0)

0

0

$710,166

58,333(34,977)(2,873)0(0)Change during this consolidated fiscal year
Net loss
Purchase of treasury stock
Disposal of treasury stock
Change of range of connection

0

(0)

(414)

(34)

0

0

(414)

(34)

(0)

(35,403)(2,908)(3,502)

674,763

55,425(Net) change during this consolidated
fiscal year in accounts other thanshareholder's equity
Total change during this consolidated
fiscal year
Balance as of March 31, 2012

271,561――(35,403)(2,908)22,30622,063

177,234

14,558(42,635)

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

$1,997

164

Deferred hedge
gains and losses$0

Foreigncurrency translation
adjustment

0 $(35,841)

Total accumulated
other comprehensive
income(2,944) $(33,832)

Minorityshareholder'sinterests(2,779) $34,916

Total net assets

2,868 $711,261

58,423(34,977)(2,873)Purchase of treasury stock0(0)

Disposal of treasury stock

0

0

(414)

(34)

Change during this consolidated fiscal year
Net loss

Change of range of connection(Net) change during this consolidated
fiscal year in accounts other thanshareholder's equity

621

51

0

(0)

2,459

202

3,080

253

743

61

3,823

314

Total change during this consolidated
fiscal year

621

51

0

(0)

243

20

3,080

253

743

61

(31,568)(2,593)

2,630

216

0

(0)

(33,370)(2,741)(30,740)(2,525)35,6592,929

679,681

55,829Balance as of March 31, 2012

7 CMK CORPORATION

To improve performance and establish a steady earnings structure.

CMK Begins Its Medium-Term Management Plan
The CMK Group has established a medium-term management plan toward the fiscal year ending March 2015. Under thisplan, the Group will strive to improve its earnings capabilities and establish a steady earnings structure by changing its
business structure in Japan and strengthening its overseas production and sales bases.

Management Targets ► Target figures for the fiscal year ending March 2015
Consolidated net sales:

85billion yen

Consolidated operating income:

4.5

Consolidated operating income margin:

billion yen

5.3%

Business Continuity Plan (BCP) Initiative
In preparation for major earthquakes and other risks,
the CMK Group has taken the initiative to improve its
Business Continuity Plan (BCP). The Group has
established the basic policies of (i) prioritizing theprotection of the lives and health of its employees andtheir family members, while paying close attention to
the status of neighboring companies; and (ii) retaining
customers’ trust by establishing an early production
restoration structure in consideration of logistics and

BCP - Damage confirmation and reporting exercise (Niigata district)procurement operations. Under these policies, theGroup has established a cooperative relationship withalternative production companies, has transferred
servers to its data center, and has been holding a
range of training sessions and exercises.
By reconfirming the CMK Group’s position as an
institution that is embedded in supply chain
management, the Group will strive to maintain thetrust of its customers and other stakeholders.

BCP - Evacuation and safety confirmation exercise (Gunma district)

CMK CORPORATION 8

Corporate Data
(As of March 31, 2012)

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, Japan
944 (Group total 5,590)

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

Management
Directors and Auditors (as of June 28, 2012)

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

CMKC (Hong Kong) Ltd.

Director Vice President
and Executive Officer

Shigeo Araki

CMKC (Dong Guan) Ltd.

Managing Director andExecutive Officer

Sadanobu Kondo

CMK Electronics (Wuxi) Co., Ltd.

Director and Executive
Officer

Akiharu Nakayama

CMK EUROPE N.V.

Director and Executive
Officer

Takaya Oguchi

CMK ASIA (PTE.) LTD.

Standing Auditor

Yutaka Ishii

CMK CORPORATION (THAILAND) CO.,LTD.

Auditor

Hiroo Wakabayashi

CMK AMERICA CORPORATION

Auditor

Shigeo Ichikawa

Overseas

Executive Officers (as of July 1, 2012)Managing Executive officer

Hiroshi Nakano

Executive Officer

Kazuhiro Ito

Executive Officer

Takashi Ogasawara

Executive Officer

Masashi Koike

Executive Officer

Hiroshi Hanaoka

9 CMK CORPORATIONCMK Kanbara Electronic Corporation Japan

Stock Information

Stockholder's Memo

(As of March 31, 2012)

Total number of shares authorized
227,922,000
Total number of shares issued and outstanding 63,060,164
Number of shareholders
7,258
Share trading unit
100
Major shareholders (10 largest)

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,
8-18 Shiohama 2-chome, Koto-ku,
Tokyo 137-8650
ふ 0120-707-843

Investment in CMK

Shareholders

Number of shares held Percentage(thousands)(%)

Japan Trustee Services Bank, Ltd. (Trust account)

5,488

8.7

Takahiro Nakayama

2,941

4.7

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)

2,404

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 4,313 thousand shares of treasury stock, it is notincluded in the above list of major shareholders.

Shareholder Breakdown
Other firms

Individuals and others

13,195 thousand shares (20.9%)

16,274 thousand shares (25.8%)

Foreign companies and individuals
7,461 thousand shares (11.9%)

Total
63,060,164 shares

Securities firms
695 thousand shares (1.1%)

Financial institutions
25,432 thousand shares (40.3%)

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