CMK CORPORATION
2002 Annual Report
Year ended March 31, 2002In

CMK CORPORATION
43F Shinjuku I-LAND TOWER Bldg.
6-5-1, Nishishinjuku, Shinjuku-ku, Tokyo 163-1388, Japan
Tel: +81-3-5323-0231
http://www.cmk-corp.com

Printed in Japan on recycled paper

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Profile

CMK is keeping up the demand for miniaturization andgreater functionality in PWBs. As a major concern in
the PWB sector, CMK is highly involved in technologicalresearch & development.
As a leading manufacturer of PWBs, CMK has
established an efficient base of operations. Our
customers in the world are satisfied with CMK quality
services.
CMK maintains continuous business success in thefierce market competition. At the same time, CMK
cares environmental issues and promotes the production
shift to the offshore while electronics manufacturers has
expanded the market for PWBs. We have beendeveloping our overseas production facilities in these
decades.

CMK—Invisible, but everywhere.

Managements

Corporate Data

(As of June 27, 2002)(As of March 31, 2002)

AV equipment

Directors

Our single-sided, double-sided, silver
through-hole PWBs and more are used in
CD players, MD players, VCRs and DVD
players.

ChairmanNoboru Nakayama

President and Chief Executive Officer

Eiji Watanabe

Director and Executive Vice President

Kameharu Seki

Director and Executive Senior Managing Officer Norimasa Sato
Director and Executive Managing Officer

Kuniaki Kanemoto

Director and Executive Managing Officer

Shigeyuki Seki

Mobile communications

Director and Executive Managing Officer

Takahiro Nakayama

We provide primarily multi-layered IVH(4~10 layers) and ALIVH ® boards for
products such as mobile phones, PDA, etc.

Director and Executive Officer

Kunio Nishi

Director and Executive Officer

Mikihiko Hattori

Director and Executive Officer

Mamoru Manaka

Director

Ichiyo Kotani

Auditors

Information devices
Our 4 ~12 layered through-hole PWBs,
4~10 layered IVH PWBs and Flex-Rigid(RF) build-up PWBs (RF-1, RF-3) can befound in a range of PCs and peripheraldevices.

Standing Auditor

Mitsuo Honjo

Standing Auditor

Takashi Watanabe

Auditor

Hideaki Takahashi

Auditor

Tatsunao Matsuta

01 Financial Highlights
02 Message from the Management
02 Management Issues

Displays
We produce double-sided PWBs, 4~12
layered through-hole PWBs, 4~10 layered
IVH PWBs for LCDs, PDP displays andmore.

03 The Top Interview
04 CMK Topics
05 Products Information
06 CMK Group
08 Environmental Protection
09 Financial Section
24 Group Companies

Substrates for semi-conductor
packages(Rigid type, Tape type)

Business Activities
Research and Development, production and sales of PWBs andelectronic devices.
Major Shareholders
Number ofshares held(Thousands)

Shareholders

Nippon Trustee Service Bank, Ltd. (Trustee account)
Noboru Nakayama
Sumitomo Mitsui Banking Corporation
The Dai-ichi Mutual Life Insurance Company
The Industrial Bank of Japan, Limited
Matsushita Electric Works, Ltd.
UFJ Trust Bank Limited (Trustee account)
The Mitsubishi Trust and Banking Corporation /Retirement Benefit for Hitachi Chemical Co., Ltd.
Naohiko Seki
The Tokyo Tomin Bank, Limited

Percentage
(%)

5,540
3,821
2,513
2,345
2,258
1,860
1,824

10.4
7.1
4.7
4.4
4.2
3.4
3.4

1,822
1,631
1,545

3.4
3.0
2.9

Correspondent Banks(As of June 27, 2002)

Executive officers

CONTENTS

EstablishedFebruary 1961

Executive Vice President

Shigeo Araki

Executive officer

Takeo Takai

Executive officer

Iwao Tachikawa

Mizuho Corporate Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Daiwa Bank, Ltd.
The Tokyo Tomin Bank, Ltd.
Principal Customers
Matsushita Electric Industrial Co., Ltd.
Sony Corporation
Toshiba Corporation
Pioneer Corporation
Seiko Epson Corporation
Casio Computer Co., Ltd.

Our PWBs accommodate main components such as CPUs, DSPs, DRAM,
SRAM, flash memory and more.

25 Management
25 Corporate Data

Cautionary Statement with
Respect to Forward-Looking Statements

Car electronics
Our PWBs are installed in automotive
electronic equipment like engine control
systems, ABS, SRS air bags, instrument
panels, car navigation systems, etc.

Statements made in this annual report with respect to CMK’s plans, strategies
and beliefs and other statements that are not historical facts are forward-looking
statements about the future performance of CMK, which are based on
management’s assumptions and beliefs in light of the information currently
available to it, and involve risks and unpredictability. Potential risks andunpredictability include, without limitation, general economic conditions in
CMK’s markets; industrial market conditions; exchange rates in which CMK
makes significant sales or in which CMK’s assets and liabilities are denominated;
and CMK’s ability to continue to win acceptance of its products and services,which are offered in highly competitive markets characterized by the continual
introduction of new products, rapid developments in technology, and changing
customer requirements.
CMK CORPORATION 2002 Annual Report 25

Financial
Highlights
CMK CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2002, 2001 and 2000

Yen
(Millions)(except per share amounts)

Operating Results:
For the year
Net sales
Income (loss) before income taxes
Net income (loss)
At year-end
Total shareholders’ equity
Total assets
Per share
Net income (loss)··· Basic··· Diluted
Shareholders’ equity

U.S. Dollars(Thousands)(except per share amounts)

2000

2001

2002

2002

¥121,246
4,071
1,147

¥122,293
7,220
4,182

¥104,540(3,507)(2,871)$ 784,540(26,319)(21,546)¥ 48,407
152,087¥ 52,822
144,749¥ 49,716
149,477$ 373,103
1,121,779¥¥¥ (54.66)—
946.43

$

22.21
19.74
966.4280.36
69.75
1,005.62(0.41)—
7.10

Note: U.S. Dollars amounts have been translated from Yen, for convenience only, at the rate of ¥133.25 = $1, the Tokyo foreign exchange market rate as of March 31, 2002.

Net Sales

Income (loss) before Income Taxes
and Net Income (loss)

Yen (Millions)

Net Income (loss) per Shareof Common StockYen (Millions)

Yen

8,000

150,000

90

6,000
120,000
60
4,000
90,00030

2,000
60,0000030,000-2,000-60-4,000

0

1998

1999

2000

2001

2002

1998

1999

2000

2001

2002

1998

1999

2000

Yen (Millions)

Multi-Layerd PWBs
Double-Sided PWBs
Single-Sided PWBs
Others
18,335(17.5%)

44,333(36.3%)
18,003(14.7%)
34,008(27.8%)

25,947(21.2%)

2001

2002

39,484(37.8%)
21,398(20.5%)Japan
Asia
EuropeSales by Region
Yen (Millions)

1,705(1.6%)

1,740(1.4%)
18,763(15.4%)
101,788(83.2%)

2002
Basic
DilutedIncome before income taxes
Net Income

Sales by Type of PWB

2001

16,511(15.8%)
2001

2002
86,323(82.6%)

25,322(24.2%)CMK CORPORATION 2002 Annual Report 1

Message from
the Management

Management
Issues
The world of electronics will be expanded with
development of high information technologies. We
are involved in the advanced research & development
technologies that are required to fulfill the highperformance products. We continuously make thebest effort to compete with volatile economic conditions
and to penetrate customer-oriented and profit-consciousness managements.
In addition, based on “the Corporate Officer
System” started in April 2002, we have been

During this fiscal year, due to the economical downturn inpromoting to fulfill the mid-term management plan.

the U.S.A. and the worldwide production adjustment in

Outline of the plan is as the followings:

information technology (IT) sector, exports and investment
in equipment were decreased as same as personal consumption
slow-down.

1. Focus on Group Management
We have a consciousness of cash-flow as all theMoreover, The Terrorism on 9/11 in the U.S.A. have

CMK group.

made world economy worse. The PWBs market has
depressed considerably owing to the decrease of personal
consumption, the continuous deflationary economy and the

2. Restructuring of Domestic Production
and Overseas Production

decrease in demand for mobile phones and personal computers.

We improve domestic production systems. We

Under business situation outlined above, we have got

accelerate overseas production while reviewing thesystems ready for worldwide high volume production linesof various PWBs. However the decrease of market demand
and the decline of sales price affect negative impact for ourJapan's market synthetically.
3. Enhancement of High-Value-Added
Productions

operational revenue.
CMK is making a concerted effort to reward ourinvestors with increasing profits. We thank you all for yourunderstanding and continuous supports for our operations.

We pursue the worldwide business efficiency andinject management resources into high value-added
products.
4. Environmental Protection and Information
Disclosure

June 2002

CMK promotes CO2 minimization and energy saveand develops environment-friendly products. Also
Eiji Watanabe
President and Chief Executive Officer

2 CMK CORPORATION 2002 Annual Report

CMK releases periodical environmental reports.

The TopInterview
Q: What do you think about the financial status
in this term?

production order. So, we forecast the sales will be upturnsoon.
In terms of CMKC (DONG-GUAN) LTD.: double-

Watanabe: In the beginning of this term, the global IT

sided and multi-layered PWB plant, the sales revenue hasrecession has began. Until the beginning of 2002, the world

been going up since the second half of last year. They will

wide sluggish economy was compounded with The

move into the black during the next term.

Terrorism on 9/11 in the U.S.A. CMK has made every

Regarding to CMK ELECTRONICS (WUXI) CO.,effort to pare down fixed expenses by restructuring ofLTD.: build-up PWBs production site, high volume production

productivity. However, build-up PWBs and package

system is almost ready. A small volume production has

substrates have been hard hit by the depression and thealready been available. In 2003, they forecast to move into

foreign demand also has been in slump.

black.

Q: Please tell us your one-year sales forecast

Q: What is the influence from the business alliancein each electronics devices sector.

with Photocircuits Corporation?

Watanabe: The global IT recession and the deflation

Watanabe: Photocircuits Corporation (PC) maintains

resulted in the sales downturn in mobile phones, personal

significant sales account with “Big 3 automobile companies

computers, and audiovisual equipment. However, the: GM, Chrysler, and Ford”. CMK and PC establish a world-

demand of automotives and TV games kept the positivewide sales network, especially, for automotive market sales

growth. During the next term, CMK forecasts that the market

channels in the U.S.A. and Europe.

demand will increase in the digital electronics device arena:mobile phones with camera, digital still cameras, andDVDs.

This alliance results in our great opportunity to improvethe market share in automotive application PWBs.
PC’s sales network in the U.S.A. is a very crucial businessstrategy for our operations in China. CMK China factories

Q: Please let us know the progressof three operations in China.

supply reasonably priced PWBs to the US customers.
This alliance is also important not only CMK China but
also for the CMK global sales strategy because, in the

Watanabe: In terms of CMKS (CHINA) FACTORY:

future, CMK considers a capital alliance with PC.

single sided PWBs and silver paste through holes production,an additional production line of silver paste through holes
raises its sales revenues more. On the other hand, demand
for single sided PWBs business is still low.
However, CMK keeps promoting the sales of single
sided PWBs business and customers placed a high volume

CMK CORPORATION 2002 Annual Report 3

CMK Topics

Alliance with
Photocircuits
CORPORATION

Completion of
Development of
Future-Oriented
Package Substrates
PWB

Commencement ofMass Production of the
PWB for Lead-free
SolderBuild-Up PWB Plant
in China Starts on
Operation

In May 2002, CMK agreed thestrategic business contract with
Photocircuits CORPORATION,
a major PWB manufacturer
established in 1951 in the
U.S.A. Last year, PC’s sales
were $300 millions and thesales of automotive electronicequipment accounted for 60%
of it. Photocircuits has a large
share for “Big 3 automobile
companies”.
By this alliance, CMK and
PC aim to increase the share of
US/Europe PWB market andthe productions operate in
China, Japan, and the U.S.A.
CMK especially forecasts toincrease the world share ofautomotive application PWBs.
The goal is 30% from 15% thepresent share.

CMK has already concluded
the basic agreement oftechnological cooperation
with Simm Tech Co., Ltd., amajor semiconductor package
manufacturer, and collaborated
the tip semiconductor package
substrates PWB.
This time, we finished thecollaboration and we will startbuilding up the manufacturing
technology for getting anorder.
CMK completes thedivision of trial manufacturein the Technical Center Plant,
therefore we’ll consider thechangeover to mass production
according to the expansion of
the order.

CMK and Sumitomo BakeliteCo., Ltd. had accomplishedthe PWB that is made fromphenolic paper, excellent inheat-resistant and enables touse lead-free solder. We
started mass production fromFebruary 2002.
In consideration for theenvironment, major household appliance manufacturers
eliminate to use lead, therefore the use of lead-freesolder is promoted. Hereafter,
it is expected that the demandof the high heat-resistant
PWB will increase rapidly.

The Build-up PWB Plant“CMK ELECTRONICS(WUXI)
Co.,Ltd.”,
constructed since July 2001
as the third stronghold in
China, accomplished theconstruction in May 2002
and started to ship the part ofsamples. We have alreadyreceived many orders and wewill start on mass productionin this autumn.

Photocircuits
CORPORATIONThe Agreement Ceremony
with Simm Tech Co., Ltd.

CMK ELECTRONICS(WUXI) Co., Ltd.

4 CMK CORPORATION 2002 Annual ReportProducts
Information
Package Substrate

Rigid Substrate
Rigid substrate is a package substrate, and the advanced technology to fulfill therequirement of miniaturization and thin substrate as the same as semiconductor
devices.



Tape Substrate
Tape substrate is a flex-type package substrate, and the features are thin andsuper fine conductors.
Applications: Mobile Phones, TV games, and PCs

E-Spec

E-SpecThe “E-spec”, the CMK original environment PWB specifications,has fulfilled the ecological requirements in the market. CMK
continuously minimizes hazardous chemicals to our neighbors andeliminates negative impact to our children.

“E-Spec” mark*“E-Spec” is a registered trademark of CMK CORPORATION.

Rigid-Flex Series



Rigid-Flex Series
The combination of flexible and rigid structure.
The Rigid-Flex is 3 dimensionally bendable and twistable.
Applications: Digital Still Cameras, Mobile Phones

Heat Sink PWB exclusively for AutomobilesMB • MC Series
Newly developed for excellent heat sink, high pressure resistance, and assembled high density circuitry under the severe automotive conditions.

CMK CORPORATION 2002 Annual Report 5

CMK GroupCMK is well known for its various products lineup
and production capacity.
We, moreover, are highly involved in the productdevelopment and the improvement of the worldwide
sales network that can respond to customers’
demand quickly.

1 NIIGATA SATELLITE PLANT
High performance double-sided & multilayer PWBs.
• CMK MULTI CORPORATION• CMK NIIGATA CORPORATIONCMK KANBARA ELECTRONICCORPORATION JAPAN
Automotive applications specified
double-sided & multi layer PWBs.
2

3 JT CMK CORPORATION
Joint-venture with Japan Tobacco Inc.
over production of double-sided andmulti-layered PWBs.

1
3 2
4.5.6

7
4 KIBAN Center Plant
Manufacture of single-sided and inner
layer of multi-layered PWBs.

Plant
Sales Office

CMK EUROPE N. V.
Manufacture and sales of single-sided,
double-sided and silver through-hole
PWBs.
1

1
2 CMKS (CHINA) FACTORY
Manufacture of single-sided, silver
through-hole PWBs.

6
2
3
5

4

Plant
Sales Office

6 CMK CORPORATION 2002 Annual Report

3 CMKS (MALAYSIA) SDN. BHD.
Manufacture and sales of single-sided,
double-sided and silver through-hole
PWBs.

5 G-Station Plant
Manufacture of double-sided and multilayered PWBs.

Other Offices, Plants andAssociated Companies in Japan
 SE Center

6 Technical Center Plant
Research & development facilities andmanufacture of PWBs for package
substrate.

 SE PRODUCTS CORPORATION CMK MECHANICS CORPORATION CMK HI-TECHS CORPORATION CMK DRILLING CORPORATION YAMANASHI SANKO CO., LTD.

CMK CIRCUIT TECHNOLOGYCENTER CORPORATION
The most advanced PWB design
services.
7

CMK SINGAPORE (PTE.) LTD.
Manufacture and sales of single-sided,
double- sided PWBs.

 JSIC CORPORATION WAKOH ELECTRONICS CORPORATION

4Other Companies Overseas
 CMKC (DONG GUAN) LTD.
 CMKS (MALAYSIA) SDN. BHD.

P. T. CMKS INDONESIA
Manufacture of single-sided PWBs.
5

PENANG SALES OFFICE CMKS (MALAYSIA) SDN. BHD.
KUALA LUMPUR OFFICE CMKS (HONG KONG) CO., LTD.
 CMKS (THAILAND) CO., LTD.

CMK ELECTRONICS (WUXI)CO., LTD.
Manufacture of build-up PWBs.
6

 CMKC (HONG KONG) LIMITED NIPPON CMK CORPORATION (U.S.A.)CMK CORPORATION 2002 Annual Report 7

Environmental
Protection
We practice environmental preservation activities such as
acquisition of ISO14001 Certificate and sales of “E-Spec”(environmental-friendly PWBs) production.
Recently, we accomplished to develop the industrial waste
recycled procedure during the PWB
manufacturing processes.
Schedule of Acquisition of ISO14001
We consider the environment management
systems as the foundation of the environmental activities. Therefore, we aim toacquire the ISO14001 Certificate in
FY2003 for all the CMK production site.

Environmental Policy
Based on one of our management policies,“fulfillment of the Company’s social
responsibility as a good corporate citizen”,
CMK CORPORATION makes the best
efforts to all the business operation inorder to protect the global environment.

History of ISO14001
Plants and Offices

Acquired Date

KIBAN Center Plant

Sep. 1998

NIIGATA SATELLITE PLANT

Aug. 1999

JSIC CORPORATION

Dec. 1999

CMK EUROPE N. V.

Oct. 2000

G-Station Plant

Oct. 2000

JT CMK CORPORATION

Dec. 2000

CMK SINGAPORE (PTE.) LTD.

Aug. 2001

WAKOH ELECTRONICS CORPORATION

Oct. 2001

P. T. CMKS INDONESIA

Dec. 2001

CMKS (MALAYSIA) SDN. BHD.

Dec. 2001

The Composition of Environment Management
The Factors of the Practice Plan
CMK aims to develop QCDE idea without
losing balance. We will make a sustainable
contribution to society by coexisting withour customers and communities.

Customers
Community

Continuous improvement
as the corporation’s liability.
Exploit the environmental tool
Environmental Partnership

Environmentconscious
products andservices

Continuous
Improvement
based on ISO 14001
Certificate

Plan
ActionGeneral Environmental Policy
As a member of society, CMK believes
that we are also responsible for harmony
with the global environment.
Our policies are as follows:

Q: Quality

E: Environment

Do
Check

C: Cost

D: Delivery

Th

ir
nv
eE

on

1. To develop how to deal with environmental problems, establish an environmental promotion system of the
CMK Group.
2. To abide by environmental laws and regulations and strictly control corporate activities.
3. To encourage energy- saving, recycling and the reduction of industrial waste with an aim to conserving limited
resources.
4. To perform environmental assessment as part of corporate activities to reduce the load on the environment andpromote the use of substitutes for toxic substances.
5. To perform environmental inspections to confirm and continuously improve environmental control activities.
6. To make every effort to protect natural areas and scenic sites, and coexist with the global environment.
7. To elevate awareness through environmental education and open to publicity measures.

8 CMK CORPORATION 2002 Annual Report

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Po

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lic

•T

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o
vir
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Environmental report2002Financial
Section

10
12
13
14
15
23

CONTENTS
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Shareholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditors’ ReportFive-Year Summary
CMK CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2002, 2001, 2000, 1999 and 1998

Yen
(Millions)

U.S. Dollars(Thousands)

2002

2001

2000

1999

1998

2002

For the year
Sales
Operating income (loss)
Net income (loss)¥104,540(1,139)(2,871)¥122,293
9,284
4,182

¥121,246
4,945
1,147

¥113,448
895(2,542)¥126,552
9,905
890$ 784,540(8,548)(21,546)

At year end
Shareholders’ equity
Total assets

49,716
149,477

52,822
144,749

48,407152,087

47,451
159,90250,992
156,271373,103
1,121,779

Yen

Per Share
Net income···Basic···Diluted
Price at Tokyo Stock Exchange
High
Low
Cash dividends, applicable to period

U.S. Dollars¥ (54.66)–¥80.3669.75¥22.2119.74¥(49.20)–¥17.21
–

1,480
735
12.00

2,390
1,130
10.00

1,600
1,005
10.00

1,810
980
10.00

1,790
1,090
10.00

$

(0.410)
–
11.11
5.52
0.090

%

RatiosEquity Ratio
Return on Equity
Price Earnings Ratio

33.3
–
–

36.5
8.3
16.8

31.8
2.4
54.9

29.7
–
–

32.6
1.7
76.7

Number of employees (Person)

6,780

6,180

6,103

–

–

Note: U.S. Dollars amounts have been translated from Yen, for convenience only, at the rate of ¥133.25= $1, the Tokyo foreign exchange market rate as of March 31, 2002.

CMK CORPORATION 2002 Annual Report 9

Consolidated Balance Sheets
CMK CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2002, and 2001

ASSETS
Current assets:
Cash and time deposits (Note 5)
Marketable securities (Note 3 & 5)
Trade receivable:
Accounts and notes (Note 6 & 13)
Allowance for doubtful accounts
Inventories (Note 4)
Deferred income taxes (Note 9)
Other current assets (Note 6)
Total current assets

Property, plant and equipment (Note 7 & 10):Land
Buildings and structures
Machinery and equipment
Construction in progress
Less accumulated depreciation

Investments and other assets:
Investments in securities (Note 3 & 6)
Long-term loans (Note 6)
Deferred income taxes (Note 9)
Others

The accompanying notes are an integral part of these statements.

10 CMK CORPORATION 2002 Annual Report

Yen(Millions)

U.S.Dollars(Thousands)

March 31

March 31

2002

2001

2002

¥ 17,873
392¥ 13,968
376$ 134,131
2,942

26,826(85)
10,2881,077
2,380
58,751

33,599
(147)
9,917
537
1,160
59,410201,321(638)
77,208
8,083
17,861
440,908

14,12556,883103,234
2,965
177,207
106,808
70,39914,15254,524
98,858480
168,01499,43068,584106,004
426,889774,739
22,252
1,329,884
801,561
528,323

8,709
257
1,687
9,674
20,327¥149,477

9,893
569
1,088
5,205
16,755¥144,749

65,3582,222
12,66072,308
152,548$1,121,779

LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilities:
Short-term borrowings
Current portion of long-term debt (Note 7)
Trade payables:
Accounts and notes (Note 6)
Income taxes payables (Note 9)
Other current liabilities (Note 6 & 9)
Total current liabilities

Yen(Millions)

U.S.Dollars(Thousands)

March 31

March 31

2002
¥

6,835
6,781

2001
¥

5,632
11,647

2002$

51,29550,88912,226493
11,57337,90812,423
1,911
12,49644,10991,7523,700
86,852
284,488

Long-term liabilities:
Long-term debt (Note 7)
Accrued pension and severance costs (Note 12)
Provision for retirement and severance benefits for directors and statutory auditors
Others (Note 9)
Total long-term liabilities

54,345
141
689
1,641
56,816

41,718115643
869
43,345

407,843
1,058
5,171
12,315426,387

Minority interests in subsidiaries

5,037

4,473

37,801

Contingent liabilities (Note 13):

—

—

—

Shareholders’ equity (Note 8):
Common stock
Authorized : 199,871,000 Shares
Issued:March 31, 2002; 53,205,124 Shares
March 31, 2001; 53,205,124 Shares
Additional paid-in capital
Retained earnings
Unrealized gains on securities
Foreign currency translation adjustments
Treasury stock, at cost
Total shareholders’ equity

16,117
15,875
20,39832(1,353)(1,353)49,716¥149,477

120,953
16,117
15,87524,038222(2,060)(1,370)52,822¥144,749

119,137
153,081240(10,154)(10,154)
373,103$1,121,779

CMK CORPORATION 2002 Annual Report 11

Consolidated Statements of Income
CMK CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2002, 2001 and 2000

Net sales (Note 14)
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating income (loss) (Note 14)
Other income (expenses):
Interest and dividend income
Interest expenses
Other, net
Income (loss) before income taxes
Income taxes (Note 9)
Income (loss) before minority interests
Minority interests in subsidiaries
Net income (loss)

Yen(Millions)

U.S.Dollars(Thousands)

Year ended March 31

Year ended March 31

2002

2001

2000

2002

¥104,540
94,625
9,915¥122,293
101,878
20,415¥121,246
104,608
16,638$784,540
710,131
74,40911,054(1,139)

11,131
9,284

11,693
4,945

82,957(8,548)144(1,239)(1,273)(3,507)(380)(3,127)256¥ (2,871)

349(1,484)
(929)
7,220
2,562
4,658
(476)
¥ 4,182

228(1,795)
693
4,071
2,611
1,460
(313)
¥ 1,147

1,081(9,298)(9,554)(26,319)(2,852)(23,467)
1,921$ (21,546)

Yen

Per share of common stock:
Net income (loss) – Basic
Net income (loss) – Diluted
Cash dividends, applicable to period
The accompanying notes are an integral part of these statements.

12 CMK CORPORATION 2002 Annual Report¥ (54.66)
–
12.00

¥

80.36
69.75
10.00

U.S.Dollars

¥

22.21
19.74
10.00

$ (0.410)–
0.090

Consolidated Statements of Shareholders’ Equity
CMK CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2002, 2001 and 2000

Yen
(Millions)

Balance at March 31, 1999
Net income
Cash dividends
Bonuses to directors and statutory auditors
Increase due to consolidation of subsidiaries
not consolidated in the previous year
Increase due to retroactive effect ofaccounting for deferred income taxes
Translation adjustment
Purchase of treasury stock
Reissuance of treasury stock
Retirement of treasury stock (Note 8)
Balance at March 31, 2000
Conversion of convertible bonds
Net income
Cash dividends
Bonuses to directors and statutory auditors
Unrealized holding gains arising during the period
Translation adjustment
Purchase of treasury stock
Reissuance of treasury stock
Balance at March 31, 2001
Net income (loss)
Cash dividends
Increase due to consolidation of subsidiaries
not consolidated in the previous year
Bonuses to directors and statutory auditors
Unrealized holding loss arising during the period
Translation adjustment
Purchase of treasury stock
Sale of treasury stock
Balance at March 31, 2002

Unrealized
gains onsecurities

Foreigncurrencytranslation
adjustment

Treasurystock, at cost¥¥

Commonstock

Additional
paid-in capital

Retainedearnings¥ 14,821–––¥ 14,578–––¥ 18,770
1,147
(528)
(53)

–

–

266

–

–

–

–
–
–
–
–
¥ 14,821
1,296
–
–
–
–
–
–
–
¥ 16,117
–
–

–
–
–
–
–
¥ 14,578
1,297
–
–
–
–
–
–
–
¥ 15,875
–
–

932
–
–
–
(112)
¥ 20,422
–
4,182
(515)
(51)
–
–
–
–
¥ 24,038(2,871)
(631)

–
–
–
–
–
¥
–
–
–
–
–
222
–
–
–
¥ 222
–
–

–
(698)
–
–
–
¥ (1,413)
–
–
–
–
–
(647)
–
–
¥ (2,060)
–
–

–
–
(182)
72
112
¥
(1)
–
–
–
–
–
–
(1,536)167¥ (1,370)
–
–

–
–
–
–
–
–
¥ 16,117

–
–
–
–
–
–
¥ 15,875

(67)
(71)
–
–
–
–
¥ 20,398

–
–
–
–
(191)
–
–
707
–
–
–
–
¥ 32 ¥ (1,353)

–
–
–
–
(22)
39
¥ (1,353)

¥

–
–
–
–

(715)
–
–
–

(3)
–
–
–

U.S.Dollars(Thousands)
Commonstock

Additional
paid-in capital

Retainedearnings

Unrealized
gains(losses) on
securities

Foreigncurrencytranslation
adjustment

Treasurystock, at cost

Balance at March 31, 2001
$120,953
Net income (loss)–
Cash dividends–
Increase due to consolidation of subsidiaries
not consolidated in the previous year–
Bonuses to directors and statutory auditors–
Unrealized holding loss arising during the period–
Translation adjustment–
Purchase of treasury stock–
Sales of treasury stock–
Balance at March 31, 2002
$120,953
The accompanying notes are an integral part of these statements.

$119,137––$180,398(21,546)(4,735)$ 1,673––$(15,460)––$(10,281)
–
–

–
–
–
–
–
–
$119,137

(503)
(533)
–
–
–
–
$153,081––––$(1,433)
–
–
5,306
–
–
–
–
$ 240 $(10,154)

–
–
–
–
(165)
292
$(10,154)

CMK CORPORATION 2002 Annual Report 13

Consolidated Statements of Cash Flows
CMK CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2002, 2001 and 2000

Cash flows from operating activities:
Net income (loss)
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization
Loss on disposal of fixed assets
Provision for directors and statutory auditors’ retirement benefit
Deferred income taxes (Note 9)
Other, net
Changes in assets and liabilities:(Increase) decrease in trade accounts and notes receivable(Increase) decrease in inventories
Increase (decrease) in trade payable
Increase (decrease) in income taxes payable
Changes in other current assets and liabilities
Net cash provided by operating activities
Cash flows from investing activities:
Decrease (increase) in investments and advances
Payment for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term debt
Repayment of long-term debt
Proceeds from long-term debt
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 5)
Supplemental data:
Cash paid (refund) during the year forIncome taxes
Interest

14 CMK CORPORATION 2002 Annual Report

Yen(Millions)

U.S.Dollars(Thousands)

Year ended March 31

Year ended March 31

2002

2001

2000

2002

¥ (2,871)¥ 4,182¥ 1,147$(21,546)

10,062331
46(1,023)366

10,344
189
140
(508)
791

12,561
219
(36)
(345)
(223)

75,512
2,484
345(7,677)
2,747

7,216
63
(116)
(2,474)(844)
10,756520
773(4,586)(749)
3,376
14,472(1,334)(2,191)
1,117
2,974
2,057
15,94654,154473(871)(18,567)(6,334)80,720(3,681)(11,447)547(1,053)(15,634)(492)(7,455)1,119(240)(7,068)1,080(12,028)653
3,404(6,891)(27,625)(85,906)
4,105(7,902)(117,328)

41,687(54,864)
21,300
(631)
967
8,459
8
3,589
14,134¥17,723(1,372)(10,290)
2,150
(515)
(773)
(10,800)(975)(4,371)
18,505¥14,134(4,065)(11,436)
6,000
(523)
(521)
(10,545)(538)(2,028)20,533¥18,505

312,848(411,737)
159,849(4,735)
7,257
63,482
60
26,934106,071$133,005¥ 3,116
1,192¥ 3,819
1,495¥$ 23,385
8,946

(19)
1,801

Notes to Consolidated Financial Statements
CMK CORPORATION and Consolidated Subsidiaries

1. Summary of significant accounting policies(a) Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of CMKCORPORATION (the “Company”) and its consolidated subsidiaries have been prepared from the consolidated financial
statements filed with the Ministry of Finance as required by
the Securities and Exchange Law of Japan, in conformity withgenerally accepted accounting principles in Japan.
Certain reclassifications have been made to present theaccompanying consolidated financial statements in a format
which is familiar to readers outside Japan.

gains and losses which are determined on the moving average
cost method are reflected in income.

(b) Principle of consolidation
The Company had 25 and 24 subsidiaries as of March 31, 2002
and 2001, respectively. The consolidated financial statements
included the accounts of the Company and its 20 and 18 significant subsidiaries as of March 31, 2002 and 2001, respectively.
Intercompany accounts and significant intercompany transactions have been eliminated on consolidation.
The investments in (20% to 50% owned) affiliates, except
some of them, are accounted for by the equity method.
Non-consolidated subsidiaries and a part of investments inaffiliates are stated at cost because of their immateriality.
Earnings of these companies are recorded in the Company’sbooks only to the extent that cash dividends are received.
The difference between the cost of investments in consolidated subsidiaries and the equity in their net assets at dates ofacquisition is amortized, on a straight-line basis, over five years
for subsidiaries in Japan, twenty-years for subsidiaries outside
Japan.

(f) Property, plant and equipment
Property, plant and equipment are stated at cost. In the company and Subsidiaries inside Japan, depreciation is computed by
the declining-balance method at rates based on estimated useful lives of the respective assets according to general class,type of construction and use. For subsidiaries outside Japan,
depreciations are computed by straight-line method.
Significant renewals and additions are capitalized at cost.
Maintenance, repairs and minor renewals and betterments arecharged to income as incurred.

(c) Cash and cash equivalents
The cash and cash equivalents included certificates of deposit,
bank deposits with a maturity of three months or less which can
be withdrawn without any restriction, and highly liquid debt
instruments with a original maturity of three months or less.
(d) Marketable securities and investment securities
Debt and equity securities are classified in one of three categories: available-for-sale, trading, or held-to-maturity. Debt
securities that are classified as “held-to-maturity” securities arereported at amortized cost. Debt and equity securities that areclassified as “trading” securities are reported at fair value, withunrealized gains and losses included in earnings. Other debt
and equity securities are classified as “available-for-sale” securities and are reported at fair value at the closing date, withunrealized gains or losses net of deferred taxes, included inunrealized gains (losses) on securities in the stockholders’equity section of the consolidated balance sheet. Realized(e) Inventories
Merchandise except for molds, raw materials, finished goods
and work in process are stated at cost determined by the average method. Molds are stated at cost determined by the
specific identification method. Subsidiary outside of Japan,
inventories are valued at lower of cost or market, which are
determined by moving-average method.

(g) Accounting for leases
Finance leases other than those which are deemed to transfer
the ownership of the leased assets to lessees, are accounted forby the method similar to that applicable to ordinary rental
transactions.
(h) Income taxes
The assets and liability approach is used to recognize deferred
tax assets and liabilities.
(i) Retirement and pension plans
The Company and its subsidiaries in Japan have various
defined benefit pension plans and severance indemnity plans.
The Company provided for retirement allowance to directors
and statutory auditors determined based on their pertinent rulesthat calculate the estimated amount to be paid if all directors
and statutory auditors retired at the balance sheet date.
(j) Research and development costs
Research and development costs are charged to income as
incurred.
(k) Foreign currency translation
All asset and liability accounts of foreign subsidiaries andaffiliates are translated into Japanese Yen at appropriate yearend current rates, and the shareholders’ equity accounts except

CMK CORPORATION 2002 Annual Report 15

for retained earnings are translated at historical rates. All
income and expense accounts of foreign subsidiaries and affiliates are translated into Japanese Yen at the average rate during
the fiscal year. The resulting translation adjustments are presented as “foreign currency translation adjustments” in theaccompanying consolidated financial statements.
The monetary assets and liabilities in foreign currencies aretranslated into Japanese Yen at applicable current year-end
rates, and other assets and liabilities are translated at historicalrates, and differences due to translation are credited or charged
to income as incurred.

period, and diluted net income per share assumes the dilutionthat could occur if convertible bonds or similar securities wereconverted into common stock or exercised to result in theissuance of common stock.
Cash dividends per share reflect cash dividends applicableto the respective periods.
(m) Reclassifications
Certain reclassifications of the financial statements and related
footnote amounts in the years ended March 31, 2001 and 2000
have been made to conform to the presentation in the year
ended March 31, 2002.

(l) Net income and dividends per share
Basic net income per share is computed based on theweighted average number of shares outstanding during each
2. Translation into U.S. Dollars
The consolidated financial statements presented herein are
expressed in Japanese Yen and, solely for the convenience ofthe reader, have been translated into U.S. Dollars at the rate of¥133.25 = U.S. $1, the exchange rate on March 31, 2002. The

translations should not be construed as representation that theJapanese Yen amounts actually represent, or have been or
could be converted into U.S. Dollars.

3. Marketable securities and investments
The cost and fair value of marketable securities and investments as of March 31, 2002 are shown below:
Yen(Millions)

U.S. Dollars(Thousands)

2002

2002

¥2,761399(345)¥2,815$20,7212,994(2,589)$21,126

Debt and equity securities – available-for-sale:
Cost
Gross unrealized gains
Gross unrealized losses
Amount in balance sheet
Non-marketable securities are not included in the above cost and fair value.
4. Inventories
Inventories at March 31, 2002 and 2001 comprise the following:
Yen(Millions)

Merchandise
Finished goods
Work in process
Raw materials and supplies

16 CMK CORPORATION 2002 Annual Report2002¥ 1,487
2,325
3,976
2,500
¥10,288

U.S. Dollars(Thousands)

2001¥2,013
2,405
3,447
2,052
¥9,917

2002$11,159
17,44929,83918,761$77,208

5. Cash and cash equivalents
Cash and cash equivalents included in the consolidated statement of cash flows comprise the following balance sheet amounts at
March 31, 2002 and 2001:
Yen(Millions)

Cash and time deposits
Marketable securities
Deposits with a maturity of three months or more
Cash and cash equivalents

2002¥17,873
392(542)¥17,723

U.S. Dollars(Thousands)

2001¥13,968376(210)¥14,134

2002$134,131
2,942(4,068)$133,005

6. Accounts with Related Parties
Accounts with the non-consolidated subsidiaries and affiliates are shown below:
Yen(Millions)

Investment in securities of the non-consolidated:
Subsidiaries and affiliates
Long-term loans
Trade receivable–Accounts and notes
Other current assets
Trade payable–Accounts and notes
Other current liabilities

U.S. Dollars(Thousands)

2002

2001

2002

¥ 3,044
1,822
2,266
1,411
4,212
280

¥ 2,704
232
25
45
385
23

$ 22,844
13,67417,006
10,58931,6102,101

CMK CORPORATION 2002 Annual Report 17

7. Long-term debt
Long-term debt at March 31, 2002 and 2001 is as follows:
Yen(Millions)

Unsecured bonds:
1st series, due 2003, interest 2.25%
Unsecured convertible bonds:
3rd series, due 2005, interest 0.7%
Loans, principally from banks and insurance company:
Secured, due 20022008 interest 1.875%5.5%
Secured, due 20012008 interest 1.875%8.1%
Unsecured, due 20022008 interest 1.85%8.5%
Unsecured, due 20012008 interest 1.5%7.35%
Less current portion

As of March 31, 2002 and 2001, long-term debt is secured byproperty, plant and equipment with a net value of ¥12,904 million ($96,841 thousand) and ¥13,920 million, respectively.
As is customary in Japan, short-term and long-term bank

U.S. Dollars(Thousands)

2002

2001

2002

¥20,000¥20,000$150,094

12,40812,408

93,1184,534

34,026
3,658

24,184
61,126
6,781¥54,345

181,494
17,29953,365
11,647¥41,718

458,732
50,889$407,843

loans are made under general agreements, which provide that
security, and guarantees for future and present indebtedness
will be given upon request of the bank.

The aggregate annual maturities of long-term debt are as follows:Year ending March 31

2002
2003
2004
2005
2006
2007 and thereafter

Yen(Millions)

U.S. Dollars(Thousands)¥ 6,781
4,506
35,3334,040
10,059407¥61,126$ 50,889
33,816265,163
30,31975,4903,055$458,732

8. Shareholders’ equity
The Japanese Commercial Code provides that the amount notexceeding one-half of the issue share prices may not be credited
to the stated capital.

18 CMK CORPORATION 2002 Annual Report

The Company set a provision that the Company may acquire
its own shares within the maximum limit of three million sharesand three billion yen of the acquisition cost.

9. Income taxes
The Company and its domestic subsidiaries are subject to anumber of taxes based on income, which in the aggregate

resulted in normal tax rates of approximately 42% for the year
ended March 31, 2002 and 2001.

Income tax expenses comprise the following:
Yen(Millions)

Income taxes:
Current
Deferred

U.S. Dollars(Thousands)

2002

2001

2002

¥ 642
(1,022)¥ (380)¥3,070(508)¥2,562$ 4,818(7,670)$ (2,852)

The significant components of deferred tax assets and liabilities are as follows:
Yen(Millions)Deferred tax assets:
Provision for employee’s bonuses
Provision for retirement and severance benefit of directors and statutory auditors
Provision for enterprises tax
Depreciation
Fix assets - intercompany profits
Inventory - intercompany profits
Securities evaluation loss
Tax loss
OthersGross deferred tax assets
Deferred tax liabilities:
Allowance for doubtful receivables - intercompany losses
Reserve for special depreciation
OthersGross deferred tax liabilities

U.S. Dollars(Thousands)

2002

2001

2002

¥ 188
353
–
346
92
57
712
774
242
2,764

¥ 246
269
134
370
96
40
318
–
150
1,625

$ 1,411
2,649
–
2,597
690
428
5,343
5,809
1,816
20,743

(31)
(10)
(16)
(57)
¥2,707

(12)
(11)
(54)
(77)
¥1,548

(233)
(75)
(120)
(428)
$20,315

2002
42.0%

2001
42.0%

(29.4%)(1.1%)
1.2%(1.4%)(0.4%)
10.9%(2.6%)
0.8%(1.1%)(2.6%)(1.0%)
35.5%

Reconciliation of the differences between the statutory tax rate and the effective tax rate is as follows:

Statutory tax rate
Increase (reduction) in taxes resulting from:Tax loss carry forward
Non-deductible entertainment expenses
Non- taxable dividend income
Difference in normal tax rates of subsidiaries
Others
Effective income tax rate
Net deferred tax assets are included in the consolidated balance sheets as follows:

Yen(Millions)

Current assets - Deferred income taxes
Investments and other assets - Deferred income taxes
Current liabilities - other current liabilities
Long-term liabilities - other
Net deferred tax assets

2002¥1,077
1,687
(5)
(52)
¥2,707

U.S. Dollars(Thousands)

2001
¥ 537
1,088
–
(77)
¥1,5482002$ 8,083
12,660(38)(390)$20,315

CMK CORPORATION 2002 Annual Report 19

10. Leased assets
Under Japanese accounting standards for leases, finance leases
that do not transfer ownership of the leased assets to thelessees are permitted to be accounted for as rental transactions
if certain “as if capitalized” information is disclosed in notes tolessee’s financial statements. For the years ended March 31,

2002, 2001 and 2000, the Company and its domestic subsidiaries made payments of ¥634 million ($4,758 thousand),¥818 million and ¥810 million, respectively, on these financeleases.

Yen(Millions)

2002

U.S. Dollars(Thousands)

2001

2002

Class of property (inclusive of interest)
Machinery and equipment
Others
Accumulated depreciation¥ 2,244¥ 4,306
1,014
809(1,716)(3,297)¥ 1,542¥ 1,818
Depreciation expenses are computed using straight-line method over lease terms assuming no residual value.

$ 16,840
7,610(12,878)$ 11,572

Future minimum lease payments, inclusive of interest, as of March 31, 2002 and 2001 are:
Yen
(Millions)Year ending March 31

2003
2004 and the after
Total future minimum lease payment

2002
539
1,003
¥ 1,542¥

U.S. Dollars(Thousands)

2001
586
1,232
¥ 1,818
¥

2002
4,045
7,527
$ 11,572$

11. Derivative financial instruments
Foreign exchange forward contracts are used to hedge the riskof changes in foreign currency exchange rates substantiallyassociated with accounts receivable denominated in foreign
currencies. As foreign exchange forward contracts are utilized
for hedging purposes, such resulting gains or losses are effectively offset against foreign exchange gains or losses on theunderlying hedged assets by recognizing them in the same

period. The purpose of the Company’s foreign currency hedging activities is to protect the Company from the risk thateventual Yen net cash inflows resulting from the sale of products to foreign customers will be adversely affected by changes
in exchange rates. The contracted amounts outstanding at
March 31, 2002 and 2001 are shown below.

Yen(Millions)2002
Forward exchange contracts:
To sell foreign currencies
To buy foreign currencies¥¥

20 CMK CORPORATION 2002 Annual Report

U.S. Dollars(Thousands)

2001
–
–
–

¥
¥

2002
6
–
6

$
$

–
–
–

12. Pension and severance plans
The Company and its domestic subsidiaries have various defined benefit pension plans and severance indemnity plans.

Accrued pension and severance costs at March 31, 2002

Benefit obligation
Plan assets
Funded status
Unrecognized actuarial loss
Net amount recognizedPrepaid benefit costAccrued pension and severance costs

Yen(Millions)

U.S. Dollars(Thousands)

2002¥ (3,814)
3,130
(684)
575
(109)
32
¥ (141)2002$ (28,623)
23,490(5,133)
4,315
(818)
240
$ (1,058)

Yen(Millions)

U.S. Dollars(Thousands)

2002
314
101
(84)
15
¥ 346

Detail of net periodic benefit cost at March 31, 2002

Service cost
Interest cost
Expected return on plan assets
Amortization of net transition obligation
Net periodic benefit cost

¥

2002
2,356
758
(630)
113
$ 2,597
$

2002
3.0%
3.0%

Assumptions used at March 31, 2002

Discount rate
Expected return on plan assets

13. Contingent liabilities
Contingent liabilities at March 31, 2002 and 2001 are as follows:
Yen(Millions)

Notes receivable discounted with banks
Endorsed notes

2002
¥ 101
945
¥ 1,046

2001
¥ 374
3,348
¥ 3,722

U.S. Dollars(Thousands)

2002
$ 758
7,092
$ 7,850

CMK CORPORATION 2002 Annual Report 21

14. Segment information
The following segment information has been prepared according to a Ministerial Ordinance under the Securities andExchange Law of Japan.

The printed wiring board sector, for each of the years in thethree-year period ended March 31, 2002, is more than 90%.

Geographic areas:
Yen(Millions)

U.S.Dollars(Thousands)

Year ended March 31

Year ended March 31

2002

2001

2000

2002

¥ 86,323
2,645
88,968¥101,788
2,920
104,708¥103,146
3,303
106,449$ 647,827
19,850667,677¥ 16,512
1,318
17,830¥ 18,764
558
19,322¥ 16,160
303
16,463$ 123,917
9,891
133,808

¥

1,706
–
1,706
(3,964)¥104,540

¥

1,741
20
1,761
(3,498)¥122,293

¥

1,940
–
1,940
(3,606)¥121,246$

12,803–12,803(29,748)$ 784,540

¥

438
(465)
(267)
(845)
¥ (1,139)

¥

9,111
1,287
(182)
(932)
¥ 9,284

¥

5,193
605
(105)
(748)
¥ 4,945$

Identifiable assets:
Japan
Asia
EuropeCorporate and elimination
Consolidated¥107,058
17,492
2,034
22,893¥149,477¥115,709
17,465
2,057
9,518¥144,749¥129,735
15,303
2,899
4,150¥152,087$ 803,437
131,272
15,265
171,805$1,121,779

Export sales:
To Asia
To Europe
To Others
Total¥ 18,413
1,753
2,135
¥ 22,301¥ 20,193
1,783
1,509
¥ 23,485¥ 17,153
2,452
1,201
¥ 20,806$ 138,184
13,156
16,022$ 167,362

Sales and operating revenue:
Japan
Customers
Intersegment
Total
Asia
Customers
Intersegment
Total
EuropeCustomers
Intersegment
Total
Elimination
Consolidated
Operating income:
Japan
Asia
EuropeCorporate and elimination
Consolidated

General corporate expenses of ¥1,221 million ($9,163 thousand), ¥1,366 million and ¥1,134 million in 2002, 2001 and
2000, respectively, are included in “Corporate and elimination”.

22 CMK CORPORATION 2002 Annual Report

$

3,287
(3,490)(2,004)(6,341)(8,548)

Corporate assets of ¥30,390 million ($228,068 thousand),¥17,679 million and ¥11,804 million in 2002, 2001 and 2000,
respectively, which mainly consists of investment securities andcorporate properties, are included in “Corporate and elimination”.

Independent Auditors’ Report
CMK CORPORATION and Consolidated Subsidiaries

To the Board of Directors of
CMK CORPORATION

We have audited the accompanying consolidated balance sheets of CMK CORPORATION and subsidiaries
as of March 31, 2002 and 2001, and the related consolidated statements of income, shareholders’ equity andcash flows for each of the years in the three-year period ended March 31, 2002, all expressed in Yen. These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility is
to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the financial position of CMK CORPORATION and subsidiaries as of March 31, 2002 and 2001, and theresults of their operations and their cash flows for each of the years in the three-year period ended March 31,
2002, in conformity with accounting principles generally accepted in Japan.
The accompanying consolidated financial statements as of and for the year ended March 31, 2002 have beentranslated into U.S. Dollars solely for the convenience of the reader. We have reviewed the translation and, in
our opinion, the consolidated financial statements expressed in Yen have been translated into U.S. Dollars on
the basis set forth in Note 2 to consolidated financial statements.
Tokyo, Japan
June 27, 2002

CMK CORPORATION 2002 Annual Report 23

Group Companies(As of March 31, 2002)

Company Name

Equity heldby the Company (%)

Principal BusinessSubsidiaries
CMK MECHANICS CORPORATIONCMK HI-TECHS CORPORATIONCMK DRILLING CORPORATIONCMK MULTI CORPORATIONCMK CIRCUIT TECHNOLOGY CENTER CORPORATIONSE PRODUCTS CORPORATIONCMK NIIGATA CORPORATIONCMK FINANCE CORPORATIONCMKC (HONG KONG) LIMITEDYAMANASHI SANKO CO., LTD.
CMK EUROPE N. V.
CMK KANBARA ELECTRONIC CORPORATION JAPANJT CMK CORPORATIONCMK ELECTRONICS (WUXI) CO., LTD.
WAKOH ELECTRONICS CORPORATIONCMK SINGAPORE (PTE.) LTD.
JSIC CORPORATIONCMKS (MALAYSIA) SDN. BHD.
P. T. CMKS INDONESIACMKS (HONG KONG) CO., LIMITEDCMKC (DONG GUAN) LTD.
CMKS (THAILAND) CO., LTD.

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
90.0
80.0
75.5
66.6
65.0
52.6
51.0
50.2
64.1 (26.8)
100.0 (100.0)
100.0 (100.0)
94.4 (94.4)
49.0 (49.0)

Manufacturing and sales of PWBs and molds
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Designing circuit of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Credit and loan to subsidiaries
Sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Manufacturing and sales of PWBs
Sales of PWBs

Affiliate
SNC INDUSTRIAL LAMINATES SDN. BHD.

49.0

Manufacturing and sales of copper-clad laminates

Note: Equity held by the Company equals the total of direct and indirect holdings. Figures in parentheses are indirect holdings.

24 CMK CORPORATION 2002 Annual ReportProfile

CMK is keeping up the demand for miniaturization andgreater functionality in PWBs. As a major concern in
the PWB sector, CMK is highly involved in technologicalresearch & development.
As a leading manufacturer of PWBs, CMK has
established an efficient base of operations. Our
customers in the world are satisfied with CMK quality
services.
CMK maintains continuous business success in thefierce market competition. At the same time, CMK
cares environmental issues and promotes the production
shift to the offshore while electronics manufacturers has
expanded the market for PWBs. We have beendeveloping our overseas production facilities in these
decades.

CMK—Invisible, but everywhere.

Managements

Corporate Data

(As of June 27, 2002)(As of March 31, 2002)

AV equipment

Directors

Our single-sided, double-sided, silver
through-hole PWBs and more are used in
CD players, MD players, VCRs and DVD
players.

ChairmanNoboru Nakayama

President and Chief Executive Officer

Eiji Watanabe

Director and Executive Vice President

Kameharu Seki

Director and Executive Senior Managing Officer Norimasa Sato
Director and Executive Managing Officer

Kuniaki Kanemoto

Director and Executive Managing Officer

Shigeyuki Seki

Mobile communications

Director and Executive Managing Officer

Takahiro Nakayama

We provide primarily multi-layered IVH(4~10 layers) and ALIVH ® boards for
products such as mobile phones, PDA, etc.

Director and Executive Officer

Kunio Nishi

Director and Executive Officer

Mikihiko Hattori

Director and Executive Officer

Mamoru Manaka

Director

Ichiyo Kotani

Auditors

Information devices
Our 4 ~12 layered through-hole PWBs,
4~10 layered IVH PWBs and Flex-Rigid(RF) build-up PWBs (RF-1, RF-3) can befound in a range of PCs and peripheraldevices.

Standing Auditor

Mitsuo Honjo

Standing Auditor

Takashi Watanabe

Auditor

Hideaki Takahashi

Auditor

Tatsunao Matsuta

01 Financial Highlights
02 Message from the Management
02 Management Issues

Displays
We produce double-sided PWBs, 4~12
layered through-hole PWBs, 4~10 layered
IVH PWBs for LCDs, PDP displays andmore.

03 The Top Interview
04 CMK Topics
05 Products Information
06 CMK Group
08 Environmental Protection
09 Financial Section
24 Group Companies

Substrates for semi-conductor
packages(Rigid type, Tape type)

Business Activities
Research and Development, production and sales of PWBs andelectronic devices.
Major Shareholders
Number ofshares held(Thousands)

Shareholders

Nippon Trustee Service Bank, Ltd. (Trustee account)
Noboru Nakayama
Sumitomo Mitsui Banking Corporation
The Dai-ichi Mutual Life Insurance Company
The Industrial Bank of Japan, Limited
Matsushita Electric Works, Ltd.
UFJ Trust Bank Limited (Trustee account)
The Mitsubishi Trust and Banking Corporation /Retirement Benefit for Hitachi Chemical Co., Ltd.
Naohiko Seki
The Tokyo Tomin Bank, Limited

Percentage
(%)

5,540
3,821
2,513
2,345
2,258
1,860
1,824

10.4
7.1
4.7
4.4
4.2
3.4
3.4

1,822
1,631
1,545

3.4
3.0
2.9

Correspondent Banks(As of June 27, 2002)

Executive officers

CONTENTS

EstablishedFebruary 1961

Executive Vice President

Shigeo Araki

Executive officer

Takeo Takai

Executive officer

Iwao Tachikawa

Mizuho Corporate Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Daiwa Bank, Ltd.
The Tokyo Tomin Bank, Ltd.
Principal Customers
Matsushita Electric Industrial Co., Ltd.
Sony Corporation
Toshiba Corporation
Pioneer Corporation
Seiko Epson Corporation
Casio Computer Co., Ltd.

Our PWBs accommodate main components such as CPUs, DSPs, DRAM,
SRAM, flash memory and more.

25 Management
25 Corporate Data

Cautionary Statement with
Respect to Forward-Looking Statements

Car electronics
Our PWBs are installed in automotive
electronic equipment like engine control
systems, ABS, SRS air bags, instrument
panels, car navigation systems, etc.

Statements made in this annual report with respect to CMK’s plans, strategies
and beliefs and other statements that are not historical facts are forward-looking
statements about the future performance of CMK, which are based on
management’s assumptions and beliefs in light of the information currently
available to it, and involve risks and unpredictability. Potential risks andunpredictability include, without limitation, general economic conditions in
CMK’s markets; industrial market conditions; exchange rates in which CMK
makes significant sales or in which CMK’s assets and liabilities are denominated;
and CMK’s ability to continue to win acceptance of its products and services,which are offered in highly competitive markets characterized by the continual
introduction of new products, rapid developments in technology, and changing
customer requirements.
CMK CORPORATION 2002 Annual Report 25

CMK CORPORATION
2002 Annual Report
Year ended March 31, 2002In

CMK CORPORATION
43F Shinjuku I-LAND TOWER Bldg.
6-5-1, Nishishinjuku, Shinjuku-ku, Tokyo 163-1388, Japan
Tel: +81-3-5323-0231
http://www.cmk-corp.com

Printed in Japan on recycled paper

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