CMK CORPORATION（Stock code：6958）

1H FY2018 Financial Results(presentation material)
Nov 13, 2018
CMK CORPORATION

1Contents

１．Consolidated financial results for 1H FY2018
２．Trends of Automotive market andOur business overview
３． Supplementary material2１．Consolidated financial resultsfor 1H FY20183

Consolidated financial results for 1H FY2018①Key points of 1H FY2018 Financial results（Billions of yen）
50

 Orders of our key products, PWBs forautomotive use remained strong by40
the progress of automotive electrification
 Profitability improved steadily, as a result30
of reflecting the impact of production
capacity enhancements and productivity 20
improvements implemented in parallel infactories
10 However, operating income decreased
due to the strong Chinese Yuan
and Thai Baht against US dollar

44.7

41.9
35.7

3,000

2.1
1.7

2,000

1,000

0.8

00

1H

1H

1H

FY2016FY2017FY2018

Sales

Operating income4Consolidated financial results for 1H FY2018②Consolidated Income statement（Billions of yen）

1H FY2017
Results

1H FY2018
Results

YoY
Change%41.9

44.7+2.7+6.6%

2.1

1.7-0.3-16.2%

5.1%

4.0%

-1.1%

Ordinary income

1.9

1.8

-0.1

-9.0%

Profit attributableto owners of parent

1.6

1.1-0.4-27.6%

112.12108.52

-3.60

-3.2%

Net sales
Operating income
Operating margin

Exchange rate
(USD/JPY)

5

Consolidated financial results for 1H FY2018③ Sales by application（Billions of yen）

Car electronics
1H FY2018

Car electronics
1H FY20170.0



AV equipment
Mobile communications

5.0

10.0

15.0

0.4 1.4

20.0

25.0

30.0

35.0

Others44.7

7.6

Digital still camera
Amusement

1.4 1.129.8(Results)

Digital still camera
Amusement

0.8
1.3
0.5 1.0

33.4(Results)AV equipment
Mobile communications

Others

41.9

7.6

40.0

45.0

Sales of products for automotive use increased steadily by 11.8% compared with the previous fiscal year,
exceeding the overall sales growth rate, driven by the progress of automotive electrification
The share of products for automotive use in total sales increased from 71.2% in the previous fiscal year to74.6%

6

Consolidated financial results for 1H FY2018④Analysis of changes in operating income

Profit increase dueto sales growth

0.8

Increased
productivity

0.3（Billions of yen）

Exchangefluctuation▲0.7

Decreased sales prices
and increased
procurement cost etc.

▲0.8

2.1

1.8

0.0

1H FY2018

1H FY2018

Operating income

Operating income(Results)(Results)

7

Consolidated financial results for 1H FY2018⑤Changes in exchange rate
7
Weak RMB(Operating income increase)

6.9

34.5

USD/RMB（Left-axis）

6.8
6.7

34
33.5

USD/THB（Right-axis）

6.6

FY2018Exchange rate(plan)

33
32.5

6.4

32

6.3

31.5

6.231
2017
1-3

4-6

7-910-122018

4-6Strong THB(Operating income decrease)

Strong RMB(Operating income decrease)

6.5

35
Weak THB(Operating income increase)

Overseas 3Q
Consolidated
fiscal year

7-91-38

Consolidated financial results for 1H FY2018⑥Changes in quarterly operating income（Billions of yen）
Japan：Downsizing of production sites
Overseas：Enhancement of production
capacity in the factory of Thailand

Japan：Productivity enhancement
Overseas：Enhancement of production capacity inthe factory of Thailand and Wuxi

1.40

1.08

1.20
1.00

0.71

0.80

1.18

1.13
1.01

0.95
0.49

0.51

0.59

0.340.400.23■Japan0.20

0.33

0.310.33▲ 0.20▲ 0.15■Adjustment
0.00

Productivity enhancement
Product mix improvement

1.03

0.45

0.37

0.520.60■Overseas

Overseas：
Exchange
fluctuation

0.76

0.42

0.16
0.60
0.65

0.63

0.65

▲ 0.08▲ 0.09▲ 0.09

0.76

0.65

0.68

▲ 0.07▲ 0.070.75

0.25▲ 0.13▲ 0.08▲ 0.14-0.20

FY20161Q

FY2017
2Q

3Q

4Q

1Q

FY2018
2Q

3Q

4Q

1Q

2Q

3Q

4Q

9Consolidated financial results for 1H FY2018⑦Consolidated Income Statement（Billions of yen）

FY2017
ResultsYoY

FY2018
Forecast

Change%Net sales

86.8

90.0+3.1+3.6%

Operating income

4.2

4.0-0.2

-6.2%

4.9%

4.4%

-0.5%

Ordinary income

3.9

3.7-0.2-5.5%

Profit attributable toowners of parent

3.6

3.0

-0.6

-17.5%

112.04110.00

-2.04

-1.8%

Operating margin

Exchange rate(USD/JPY)

10

２．Trends of Automotive market andOur business overview

11Trends of Automotive market and Our business overview①Automotive market：Growing needs for HDI PWBs
Progress of automotive electrification
・ ADAS(Advanced Driving Control System), Autonomous driving
・ Electric motorization(HV/PHV/EV)
・ Connected car
・ Climate control system【”High density” images】
HDI(8 layers)

Highfunctionality

High functional semiconductor・ High integration(New function /Integration /Standardization)
・ Multi-core
・ Low power
・ Expansion of program capacity

Multilayered(6 layers)

Down-sizedunit

Narrowpitch

Size of PWB
about 1/2

Scale of wiring
increase by
about 20%

PWBs are required high density（Use of HDI PWBs expanding）
12

Trends of Automotive market and Our business overview② Automotive market ：High-spec Powertrain and Driving control and Safety

Technologyinnovation

Technologyinnovation

Electricmotorization(xEV)
Fuel efficiency
improvement

ADAS
Autonomous driving

High power
Large capacity
Increased devices

Real time processing
Automatic control
Collaboration control

Heat-resistant・Heat dissipation
Large current
Compact sizing

High-speed
processing
High-speed
communication

・Powertrain
Driving control and Safety
Powertrain
Engine Management
SystemHV/EV ECU
Power Control Unit
Battery etc.

Driving control and Safety
Image sensor
Millimeter- wave Radar
Driver Support System
Brake etc.

BodyElectronics
Climate Control

InformationandCommunication

Single-sided Double-sided Multilayered HDI

Value-added Products

Safety measure

Market growth

Strengthening of fuelefficiency regulation

reliability

Driving control
and safety

Required quality

Powertrain

13

Trends of Automotive market and Our business overview③Our business overview：Enhancing production capacity in overseas factories

CMK electronics(Wuxi)co., ltd.
（HDI）
Capital investment is in progress to enhance
production capacity by 20% compared with theexisting capacity, responding to a growing demandfor HDI PWBs for automotive use(Due to complete in March 2019)

CMK electronics(Wuxi)co., ltd.
Belgium Geel
North America Atlanta

CMK Corporation(THAILAND) co., ltd.
（Double-sided, Multilayered, HDI）

CMKC (SHENZHEN), LTD.

China Wuxi

China Shenzhen／Wuxi／Dong Guan

CMKC(Dong Guan)ltd.

CMKC (HK) LIMITED.

China Dong Guan

CMK Corporation(THAILAND) co., ltd.
Thailand Purachin Buri

Capital investment is in progress to enhance production
capacity by 25% compared with the existing capacity,
CMK ASIA(PTE.)LTD.
responding to a growing demand for products for Powertrain
Singapore
Malaysia Penang／Kuala Lumpurand Driving control and Safety
Indonesia Jakarta(Due to start phased operation from December 2018)
Vietnam Hanoi
Thailand Bangkok

14

Trends of Automotive market and Our business overview④Our business overview： Technology roadmaps
We will progress our developments in the fields high quality and high reliability required.
Application forautomotive use

Powertrain

Main products

PWB
requirement

InverterDownsizingHeavy
copperMillimeterwave Radar
Driving
controland Safety
ADAS

Information
andcommunica
tion

HDI20192020

After 2021

Mass-production
Mass-production
Under Mass-production
Mass-production

MSAPTrialThick RFPWBDevelopment
開発

MassproductionCamera,
Communication
module, Othersensors

Thin PWB

Trial
開発

Massproduction

CameracontrolFinepattern

Trial
開発

Mass-production

LED Lamp

Copperbased

Communication
module forautomotive

Finepattern※RF means Rigid flexible PWB

Under Mass-production
Mass-production

Market needs
・Down-sized unit
・Reliability of high withstand voltage（ EV has higher voltage
than 10x voltage for gasoline vehicle ）・High heat-resistance performance（More than 1.5x conductive
reliabilities of consumer products）
・High current PWB for PHV or EV

・Requests of more down-sizing and more accuracy
improvement・Thick RF PWB for higher stiffness
・Higher reliability of thin PWB for automotive use

・PWB combined higher density and hgiher stiffness

・Requests of higher heat radiation

・Requests of more down-sizing and more accuracy
improvement

15

３．Supplementary material

16Supplementary material①Sales by application（Billions of yen）

1H FY2017
Results

1H FY2018
Results

YoY
ChangeFY2018
Forecast

Car electronics

29.8

33.4

+3.5

67.7

Mobilecommunications

1.4

1.3

-0.1

2.4

AV equipment

0.4

0.5

+0.1

1.2

Digital still camera

1.1

0.8

-0.2

1.9

Amusement1.4

1.0-0.3

3.5

Others

7.6

7.6-0

13.0

41.9

44.7

+2.7

90.0

Total

17Supplementary material② Sales by type of PWBs
（Billions of yen）

1H FY2017
Results

1H FY2018
Results

YoY
ChangeFY2018
Forecast

HDI PWBs

12.9

13.8

+0.8

30.4

Multilayered PWBs

17.7

19.5

+1.8

39.2

Double-sided PWBs

7.6

7.5

-0

14.9

Others

3.6

3.8

+0.1

5.3

41.9

44.7

+2.7

90.0

Total

18

Supplementary material③Financial results by region（Billions of yen）

1H FY2017
Results
Sales

Operatingincome

1H FY2018
Results
Sales

OperatingincomeYoY
ChangeSales

FY2018
Forecast

OperatingincomeSales

Operatingincome

Japan

26.0

1.2

26.9

1.4+0.8+0.1

50.7

1.9

China

14.1

0.6

14.3

0.1+0.2

-0.4

30.7

1.4

Southeast Asia

9.9

0.2

11.3

0.1

+1.3

-0

22.9

0.6

Europe &North America

2.9

0.1

3.6

0.2

+0.6

+0

8.0

0.3

Total

53.1

2.3

56.2

2.0

+3.1

+0.3

112.5

4.4

Adjustment

▲11.1

▲0.1

▲11.5

▲0.2-0.3-0▲22.5▲0.4

Consolidated

41.9

2.1

44.7

1.7

+2.7

-0.3

90.04.019

Supplementary material④Capital investment（Billions of yen）

1H FY2017
Results

1H FY2018
Results

YoY
ChangeFY2018
Forecast

Japan

0.7

0.5

-0.1

2.8

Overseas

3.3

1.7

-1.6

7.1

Consolidated

4.0

2.2

-1.8

10.0

Depreciation cost

1.9

2.1

+0.1

4.6
20

Future-related information and descriptions in this material are just forward-looking
statements and not guarantees for future achievements(Amounts are rounded, and % is rounded to one decimal place.)

END21