2018 Business Report
Year Ended March 31, 2018

CMK CORPORATION
Securities Cord No : 6958

Creating the future

Financial Highlights

POINT

Orders for products for automotive use,
our mainstay products, increased
significantly.

▌Net sales▌Operating income

HDI PWBs

Multilayered PWBs

Double-sided PWBs

Others(Millions Yen)
90,00086,89473,09860,00020,70529,613(Millions Yen)
4,500

4,266

▌Cash dividends

10.0

(Yen)
10.0

75,37026,941

8.0

21,8666.5

3,000

31,9242,652

6.0

37,0444.0
1,500

30,00014,1360

POINT

We also achieved improved profitability as a resultof the simultaneous promotion of measures forincreasing the production capacity of our plants aswell as initiatives for improving their productivity.

14,291

2.0

15,270

8,643

7,287

7,637

FY 2016

FY 2017

FY 2018381
0

FY 2016

FY 2017

FY 2018

00
FY 2016

FY 2017

FY 2018

The CMK Group has continued to enjoy rising orders, particularly orders for products for automotive use. The Group is taking
steps to bolster productivity at the same time as making capital investments to expand its production capacity. As a result of
these efforts, consolidated net sales increased 15.3% from the previous fiscal year, to ¥86,894 million.
Operating income was ¥4,266 million, up 60.9% from the previous fiscal year, despite the impact of a rise in material prices,
thanks to the steady improvement in profitability that resulted from the simultaneous pursuit of initiatives for both production
capacity and productivity.
In the fiscal year under review, we have decided to pay year-end dividends of ¥10 per share, given that operating income,ordinary income, and profit attributable to owners of parent all increased as a result of sales expansion and improved costs
through management rationalization, among other factors.

1Message from the President

I would like to take this opportunity to express my gratitude to

our shareholders for the consistent support they have shown us
over the years. I was appointed president and CEO on April 1
this year. I am committed to the continued development of the

CMK Group. It is my pleasure to present the operating results
for the 58th fiscal year (from April 1, 2017 to March 31, 2018).

I ask for your continued understanding and further support in
the years to come.
June 2018

Isao Osawa

President and Chief Executive Officer

shift to PHV and EV that resulted from tighter environmental

Financial Results for the Fiscal Year Ended
March 31, 2018

regulations, in addition to the increasing proportion of gasoline

During the fiscal year under review, the Japanese economy

increase the production capacity at its main plant in Thailand by

vehicles that are reliant on electronics.
In this environment, the CMK Group made capital investment tocontinued to stay on the path to moderate recovery, partly

30%. The Group also invested in more production capacity at two

reflecting further improvements in employment and income

plants in China, partly reflecting the increase in sales of build-up

conditions. In addition, the United States has seen continued

PWBs for automotive use and products for foreign companies.

economic growth due to the strong performance of the corporate

In addition, we focused on improving productivity at our plants

sector, while Europe also enjoyed an economic recovery,in Niigata and other areas, thereby taking steps to increase

including a moderate rebound in consumer spending. The Chinese

production volume and improve profitability.

economy has maintained a high rate of growth. Nonetheless,

As a result of these efforts, consolidated net sales increased

uncertainties remained in the world economy due in part to the

15.3% from the previous fiscal year, to ¥86,894 million while

intensified trade friction between the United States and China.

operating income was ¥4,266 million, up 60.9% year on year.

The automotive PWB market, which is the key market for the

In addition, thanks to the increase in operating income, ordinary

CMK Group, is continuing to see rising demand, partly reflecting

income amounted to ¥3,917 million, up 49.0% year on year, andthe spread of advanced driver assistance systems (ADAS)

profit attributable to owners of parent came to ¥3,638 million, up

attributable to the growing safety awareness and the accelerated

69.0% from the previous fiscal year.
2

■Trends of Automotive PWBs

■Trends of Automotive PWB market
Automotive industry

Economic growth of
emerging countries

Increase of global production volume

Strengthening of fueleﬃciency regulation

Strong demand for
comfortability

Advanced driver assistance system (ADAS)

Increasing
demand forelectric
components

Body electronics・
Climate Control※Headlamp, mater panel,
Mirror Control, Power seat etc.

Automated driving
Connected car

Powertrain/Driving control and Safety※Engine Management System, Inverter, Brake Control System,
Electric Stability Control, ADAS(millimeter wave radar･car camera) etc.

Single-sided

Double-sided

Navigation・
IVI System

Multilayered※IVI System(In-Vehicle Infotainment System)

HDI

Value-added Products

Aging society

Next-generation automobiles (xEV)
Technology innovation

Shortage of workers

Scope of our businessElectric components industry
Required reliability

Social Environment

Future Outlook
the number of PWBs used per vehicle is expected to increase
The automotive PWB market, which is the key market of theWith regard to trends in automotive PWBs, demand for HDI

electronic components attributable to changes in the social

PWBs as high value-added products has been growing due toenvironment and technological innovations.

the higher functionality of automotive electronic components. It

Specifically, the market has seen rapid changes in theenvironment, including a tightening of fuel efficiency regulations

is therefore expected that an even higher level of reliability will
be required of PWBs.

in Europe and other regions, growing social issues such as

In this environment, we believe that a much higher level oflabor shortages and the aging of the population faced mainly

quality, reliability, and cost competitiveness than before will be

by developed countries, and growing consumer demand forrequired to maintain and strengthen our competitive edge in

comfort.

the areas of high value-added products and high reliability.

In response, automotive manufacturers are stepping up theGiven the above trends, the CMK Group is planning todevelopment of next-generation vehicles, such as EV and PHV,

respond to the global demand growth by expanding its key

and advanced driver assistance systems (ADAS), including

plant in Thailand to increase production capacity. In addition,

automatic brakes. In addition, self-driving cars are expected toto improve our competitiveness, we will undertake a zero-enter the mainstream in the future. We believe that connectedbased review of the status quo and work to reform ourcars, which are connected with devices outside the vehicles via

manufacturing and business processes. We will advance these

the internet, will be a majority in the future.

initiatives promptly in an effort to improve profitability further.

Given the increasing reliance of automobiles on electronics,
3

further.

CMK Group, is continuing to benefit from rising demand forConsolidated Financial Statements

Consolidated Balance Sheet

Thousands of
U.S.Dollars

Millions of Yen

FY2018FY2017

Consolidated Statement of Income

FY2018FY2018FY2017FY2018For the year
For the year
For the year
ended
ended
ended
March31,2018 March31,2017 March31,2018

As of
As of
As of
March, 2018 March, 2017 March, 2018

AssetsThousands of
U.S.Dollars

Millions of Yen

Net sales

86,89475,370 $775,562

Cost of sales

74,03664,998660,799

Gross profit

12,857

10,372

114,753

Selling, general, andadministrative expenses

8,591

7,720

76,677

Operating income

4,266

2,652

38,075Non-operating income

438

621

3,909

Non-operating expenses

787

644

7,024

78,382

Ordinary income (loss)

3,917

2,628

34,96042,199349,696

Extraordinary income

62

388

553

48,82845,575435,808

Extraordinary losses

260

390

2,320

Capital stock

22,30622,306

199,089

3,718

2,627

33,184

Capital surplus

16,628

16,628148,411

Income taxes - current

541

331

4,828

Retained earnings

13,027

9,773

116,270

Treasury shares(3,134)(3,133)(27,972)

Income taxes - deferred

(478)

4

(4,266)

Accumulated othercomprehensive income

3,670

2,679

32,756

Profit (loss)

3,656

2,291

32,631

Non-controlling interests

3,393

3,294

30,283

Total net assets

55,892

51,549498,857

Profit attributable to noncontrolling interests

17

137

151

Total liabilities and net assets

95,072

93,748

848,554

Profit (loss) attributable toowners of parent

3,638

2,153

32,470Current assets

52,73754,672 $470,697

Non-current assets

42,28338,984377,392

Property, plant and equipment

34,78832,096

310,496

371

421

3,311

7,123

6,466

63,575

50

91

446

95,072

93,748

848,554

Current liabilities

30,397

24,990271,304

Non-current liabilities

8,782

17,208

Total liabilities

39,180Shareholder's equity

Intangible assets
Investments and other assets
Deferred assets
Total assets
Liabilities

Net assets

Profit (loss) before income
taxes

4

Sales by application

AV equipment

1.1％

Others

17.9％

Digital still camera

2.5％

FY 2018

Mobilecommunications

2.9％

Amusement

3.6％

FY 20175

Car electronics

72.0％

FY 2017

FY 2018

Change■ Car electronics

70.6%

72.0%

1.4％

■ Amusement

2.7%

3.6%

0.9％

■ Mobile communications

4.0%

2.9%

△1.1％

■ Digital still camera

3.3%

2.5%

△0.8％

■ AV equipment

1.0%

1.1%

0.1％

■ Others

18.4%

17.9%

△0.5％

TOPICS

Expansion of the Plant of our Subsidiary in Thailand
The automotive PWB market, the key market of the CMK Group,

continues to expand thanks to the spread of advanced driverassistance systems (ADAS) linked to the growing demand forpreventive safety and driver assistance, the emergence of nextgeneration vehicles reflecting tightened environmental regulations,among other factors, in addition to the global increase in new car
sales.

The CMK Group has been striving to increase production
capacity and improve productivity to respond to the increase inorders. It is expected that demand for automotive PWBs willcontinue to rise in the future, given the increasing reliance ofautomobiles on electronics.
To respond to these trends, the Company has decided toincrease production capacity by expanding the plant of CMKCORPORATION (THAILAND) CO., LTD., which is its subsidiary. By
expanding the plant in Thailand, we will be able to capture theglobally growing demand for automotive PWBs and achieve further
gains in earnings.

【Outline of the plant expansion】

Production lines will be added by building an extension to the plant building on
the premises in Thailand.
Location

Prachinburi Province (304 Industrial Park), Thailand

Production items

Double-sided PWBs, multilayered PWBs,
and HDI PWBs

Amount of investment Approx. ¥5,000 million
Start of operation

Scheduled for December 2018. (plan)

Production capacity
after the expansion

To be increased by approx. 25% from the current
level

Running a Booth at a Trade ShowThe Company runs a booth at the INTERNEPCON JAPAN eachyear to collect information about customer needs.
At the INTERNEPCON JAPAN 2018 held this year, we exhibited
products including PWBs for millimeter wave radar and PWBs forsensing cameras, which are used for external sensors. Thesesensors will be especially important for the future of theautonomous driving, the evolution of which has been acceleratingwith the progress of ADAS technologies.
We also suggested PWBs in 3D structures that can beembedded in units, as a technology for sensors and advanced
devices with higher performance, increased functions, andsmaller dimensions.

PWBs in 3D structures

PWBs for millimeter wave radar(high density and small dimensions)(collision avoidance sensor compatible with 79GHz)

6Operating Results by Region■Sales by region
Europe & North America
China

20%
Southeast Asia

Japan

8%

58%

14%
Global TOPICS
Production capacity increased at plants in China in addition to one in Thailand

7

CMK electronics(WUXI) co., ltd. (HDI PWBs）

CMKC (Dong Guan) ltd. (Double-sided PWBs, Multilayered PWBs）

・‌H DI PWBs adopted in
products for automotive
use increased・‌In the end of June, enhanced
production capacity by 30%
compared with the previous
fiscal year

・‌T he factory manufacturing
products for automotive use
being operated continuously
at full capacity・‌I n v e s t m e n t s w e r e m a d e
in automation, quality
improvement, etc.

Sales 
Japan

China

Southeast
Asia

Europe&North
America

¥50,443million(Up 8.3% year on year)¥2,694million

Operating
income(Up 76.1% year on year)

Sales

¥17,136million(Up 26.4% year on year)

Operating
income(Up 21.6% year on year)

Sales¥12,683million

¥1,211million(Up 28.2% year on year)

Operating¥280million
income(Down 35.4% year on year)

Sales





Operating
income¥6,630million(Up 24.3% year on year)¥412million(Up 70.9% year on year)

Overview of the fiscal year

Automotive production in Japan remained higher
than the previous year due in part to the strong
sales of new mini vehicles and other new cars andexpansion of exports to North America. In addition,
the growing reliance of automobiles on electronics,
including the spread of ADAS, also contributed tothe increase in orders received by the Company.

Overview of the fiscal year

While growth of new car sales in China has beenslow due to the lasting impact of the curtailed tax
breaks for small-engine cars, production by
Japanese automakers in China remained strong,resulting in an increase in sales of products forautomotive use.

Overview of the fiscal year

The Southeast Asian economy has continued to growat a high rate due to strong exports. New car sales inThailand and other countries have also remained
strong. In this market environment, we advanced ameasure to expand production capacity of our plantin Thailand to respond to the increasing orders for
products for automotive use and other products.

Overview of the fiscal year

The economies of Europe and the United States
continued to expand, mainly reflecting the strong
corporate sector performance and recovery of
consumer spending. This resulted in rising sales ofour products for automotive use.

8

Corporate Data (As of March 31, 2018)

Name of listed company CMK CORPORATION(Securities code no.: 6958)
Date of establishment

February 25, 1961

Capital¥22,306,203,140

Number of employees

1,189 (Group total 4,601)▌Japan● CMK Products Corporation● CMK Finance Corporation▌Overseas

Executives (as of August 1, 2018)
Board of Directors

Executive Officers● CMK ASIA (PTE.) LTD.

Chairman and
Representative Director

Takeo Takai

Executive
Officers

Yoshiaki Ishizaka● CMK CORPORATION (THAILAND) CO.,LTD.

Isao Osawa

Executive
Officers

Masanori Kawashima● CMKC (HK) LIMITED

Akira Kurosawa

Executive
Officers

Hiroyuki Sato

● CMKC (SHENZHEN). LTD.

Akiharu Nakayama● CMKC (DONG GUAN) LTD.

President and Chief
Executive Officer
Director and Executive
Managing Officers

Eizo Shibata

Executive
Officers

Director and Executive
Officers

Hiroshi Hanaoka

Executive
Officers

Masayoshi Hagiwara

Director

Tsuyoshi Ukyo

Executive
Officers

Tomonori Matsuo

Director

Rika Sato

Executive
Officers

Naoki Matsuo

Executive
Officers

Tomoyoshi Wada

Director and Executive
Managing Officers

Board of Corporate Auditors
Standing Corporate
AuditorTakashi Ogasawara

Corporate Auditor

Fumio Haraguchi

Corporate Auditor

Yukio Otaka

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

We disclose detailed information on this website.

9

Primary Consolidated Subsidiaries● CMK ELECTRONICS (WUXI) CO., LTD.
● CMK EUROPE N.V.
● CMK AMERICA CORPORATION

Stock Information (As of March 31, 2018)

Total number of shares authorized

227,922,000

Major shareholders (10 largest)

63,060,164

Shareholders

Total number of shares issued and outstanding

8,774

Number of shareholders

100

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

Individuals and others

17,797thousand shares（28.2%）

Financial

20,771thousand shares（32.9%）

Securities ﬁrms

1,740thousand shares（2.8%） Foreign companies and individuals

9,978thousand shares（15.8%）
Other ﬁrms

12,772thousand shares（20.3%）

The Master Trust Bank of Japan, Ltd. (Trust account)
Takahiro Nakayama
Mizuho Bank, LTD.
The Foundation for Technology Promotion of Electronic Circuit Board
The Dai-ichi Life Insurance Company, Limited
Akiharu Nakayama
Trust & Custody Services Bank, Ltd. as trustee for Tokyo
Tomin Bank, Ltd.; retirement benefit trust accountre-entrusted by Mizuho Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Takashi Narata
Satoshoji Corporation

Number of shares held Percentage(thousands)
(%)

3,235
2,836
2,576
2,500
1,895
1,886

5.4
4.7
4.3
4.2
3.2
3.1

1,745

2.9

1,613
1,362
1,216

2.7
2.3
2.0

Note:1．
‌Although the Company holds 3,862,573 shares of treasury stock, it is notincluded in the above list of major shareholders.
‌Treasury shares were excluded in calculating the shareholding ratios.
2．
‌The Tokyo Tomin Bank, Limited was renamed as Kiraboshi Bank, Ltd. as
3．
of May 1, 2018.

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:

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.

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

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