CMK CORPORATION（Stock code：6958）

FY2022 Financial Results(presentation material)
May 16, 2023
CMK CORPORATION

1Contents

1.

Consolidated financial results for FY2022

2.

Consolidated financial forecast for FY2023

3.

Medium-Term Management Strategy

4.

Supplementary information
2１． Consolidated financial resultsfor FY2022

3

Consolidated financial results for FY2022①Key points of FY2022 Financial results(Billions of yen)

00

00

00

00

81.4

83.8

69.900

3.000

2.600

00

⚫ Despite the decline in orders,net sales increased due to the impactof foreign exchange and inventory
sales.

0000⚫ Operating income decreased due tolow operation rate of factories etc.

000

00

-1.6

FY2020Results

FY2021Results

Sales

FY2022
Results

Operating income4Consolidated financial results for FY2022➁ Consolidated Financial results（Billions of yen）

FY2021Results

FY2022
Results

YoY
Change

YoY%

81.4

83.8

+2.3

+3％

3.0

2.6

-0.4

-14％

3.7％

3.1％

-0.6％

-Ordinary income

3.3

2.6-0.6-21%

Profit attributable toowners of parent

2.7

1.5-1.1-43%

110.39132.09+21.70+20%

Net sales
Operating income
Operating margin

Exchange rate
（USD/JPY）

5

Consolidated financial results for FY2022➂ Sales by product（Billions of yen）

FY2022
Results

Car electronics sales ratio：60％：32％

：8％

40.6

22.1

5.4 0.9 14.5

83.8

Car Electronics 68.2

Car electronics sales ratio ：56％
FY2021Results

37.2：33％
21.9：11％
7.3 0.9

14.081.4

Car Electronics 66.5
Powertrain/Driving control and Safety
Information and Communication
OthersBody Electronics/Climate Control
Mobile communications⚫ The share of products for Powertrain/Driving control and Safety in total sales ofcar electronics increased from 56% in the previous fiscal year to 60%.

6

Consolidated financial results for FY2022➃ Analysis of changes in operating income（Billions of yen）

7.1
▲1.4
3.0

1.1

▲0.2

0.2

2.6

-15.6

Due toFY2021
Operating income increased/Decreased
sales（Results）

Improved
productivity

Exchange rate
fluctuation

sales prices,procurement costand others

FY2022
Operating income（Results）⚫ Our orders decreased, and operating income decreased due to low operation rate offactories etc.
7Consolidated financial results for FY2022➄Review

FY2016
Results

FY2017
Results

FY2018Results

FY2019Results

FY2020Results

FY2021Results

FY2022
Results

Net sales

75.3

86.8

90.2

82.6

69.9

81.4

83.8

Operating income

2.6

4.2

3.7

1.6

-1.6

3.0

2.6

3.5％

4.9％

4.2%

1.9%

-2.4%

3.7%

3.1%

（Billions of yen）

Operating margin

Exchange rate（USD/JPY）

109.28132.09（USD/RMB）

6.67

6.77

（USD/THB）

35.25

35.22

The index of production
100

FY2016FY2017FY2018FY2019＊The index of production is expressed as 100(FY2016)（Not an index of production capacity）

FY2020FY2021

FY202282．Consolidated financial forecast

for FY2023

9Consolidated financial forecast for FY2023① Consolidated Financial forecast and Annual Dividends（Billions of yen）

FY2022
Results

FY2023
Forecast

YoY
Change

YoY%

83.8

85.0

+1.1

+1％

2.6

2.7

+0.0

3.1％

3.2％

+0.1％

+4％
-Ordinary income

2.6

2.5

-0.1-5％

Profit attributable toowners of parent

1.5

1.9+0.3

+20％

8.50

10.00

31.7％

31.2％

Net sales
Operating income
Operating margin

Annual dividends
per share (yen)Dividend payout ratio※Exchange rate（USD/JPY）135.00

10

Consolidated financial forecast for FY2023② Consolidated Financial forecast (1H,2H)（Billions of yen）

1H FY2023
Forecast

2H FY2023
Forecast

YoY
ChangeYoY%

41.0

44.0+3.0+7.3％

0.2

2.5+2.3

0.5％

5.7%

+5.2％

-

Ordinary income

0.2

2.2+2.0+800％

Profit attributable toowners of parent

0.1

1.7+1.6-

Net sales
Operating income
Operating margin※Exchange rate（USD/JPY）135.00

11

Consolidated financial forecast for FY2023➂Order trends and Merchandise and finished goods＊Apr, 2023:Results After May, 2023: Our company calculation based on customer FC

Order trends'21
4-6'21
7-9'21
10-12'22
1-3'22
4-6'227-9

The impact on operations'22
10-12'23
1-3'23
4-6'23
7-9

Japan

3Q

4Q

1Q

2Q

Overseas

4Q

1Q

2Q

3Q

Merchandiseand finishedgoods（Billions of yen）

9.6

11.4

11.6

11.7

9.6

8.0
Proper inventory

6.5
'21/9

'21/12

'22/3

'22/6

'22/9

'22/12'23/3

12

Consolidated financial forecast for FY2023④ Sales by product（Billions of yen）

Car electronics sales ratio：67％
FY2023
Forecast

48.8

Car Electronics 72.8：30％：3％

21.5

2.5 1.0 11.0

Car Electronics sales ratio ：60％：32％：8％

40.6

22.1

5.4 0.9

FY2022
Results

14.5

85.0

83.8

Car Electronics 68.2
Powertrain/Driving control and Safety

Body Electronics/Climate Control

Information and Communication

Mobile communications

Others⚫ The share of products for Powertrain/Driving control and Safety in total sales ofcar electronics will be expected to increase from 60% in the previous fiscal year to 67%.13

Consolidated financial forecast for FY2023⑤ Analysis of changes in operating income（Billions of yen）

7.1
0.00.2▲0.1-15.6 2.72.6

FY2022
Operating income（Results）▲0.0

Due toincreased/Decreased
sales

Improved
productivity

Exchange rate
fluctuation

sales prices,
FY2023
procurement cost Operating income
and others（Forecast）⚫ Operating income is expected to slightly increased.
1H：Negative impact of low operation rate. 2H：Improvement of operation rate.
14

3．Medium-Term Management

Strategy

15Medium-Term Management Strategy① Changes from the medium-term management plan（Nov, 2021）■Our orders declined caused by vehicle production decline due tothe global semiconductor shortage and the supply chain
disruptions.

■Medium-and long-term demand from our main customers isvery strong due to the progress in electrification andthe launch of new products for autonomous car.
(Inquiries from new customers are also strong)■Customers avoid the supply chain geopolitical risks.
Our Thailand factory has a huge advantage.
16

Medium-Term Management Strategy② Changes from the medium-term management plan （ Medium- and long-term demand for Thailand factory ）Mid-termmanagement
plan(Nov,2021)

Latest demandMid-term
management
plan(Nov,2021)

Latest demand+40%+15％

FY2025

FY2025

FY2026FY2026⚫ Medium- and long-term demand at Thailand factory will be expected to increased byapproximately 40% in volume terms in the FY2026 compared to the Medium-Term
Management Plan (Nov, 2021)

17

Medium-Term Management Strategy➂Construction of New Factory at CMK CORPORATION(THAILAND)CO.,LTD. (Reposted)
In order to realize the establishment of a growth cycle by increasing net sales from CASE demand, We made thedecision to construct a new factory in Thailand

Outline of constructionProduction concept

・Highly-added value shift in the automotive product portfolio
Location：Prachinburi Province, Thailand（Increasing in HDI production ratio）
Total floor area
：Approximately 102,000㎡
・Productivity improvement by large format and Manpower savings
Production items ：HDI PCBs and Multilayered PCBs
and yield improvement through automatization
Investment amount：Approximately 25 billion yen⇒Improving cost competitiveness(1st investment)
Start of operations ：Sequential launch from August 2024(planned) ・By eliminating the film manufacturing process, we aim forsustainable manufacturing

Existing factory

New factory

3F
2F
1F
18

Medium-Term Management Strategy④Construction of New Factory at CMK CORPORATION(THAILAND)CO.,LTD.（Construction progress）
May, 2023

March, 2023

Schedule

‘22
4Q

‘23
1Q

2Q

‘24
3Q

4Q

1Q

2Q

‘25
3Q

4Q

1Q

Construction of new factory completed(End of June, 2024)
Installation of equipment, assessment and start-up
completed (End of August, 2024)
Start of operations●Construction of new factory started in December, 2022 (ongoing)● Sequential launch from August, 2024
19

Medium-Term Management Strategy⑤Numerical Management targets
Results/ForecastFY2022

FY2023（Billions of yen）

（Results）

FY2024（Forecast）

（1H）

（2H）

Net sales

83.8

85.0

41.0

44.0

Operating income

2.6

2.70.2

2.5

Operating margin

3.1％

3.2％

0.5％

5.7％

1.5

1.9

0.1

1.7

2.9％

3.3％

Ordinary income
ROE

FY2025

FY2026

Under review

Mid-term managementplan（Nov,2021）

FY2022

FY2023

FY2024FY2025

FY2026（Billions of yen）

（Mid-term
management plan）（Mid-term
management plan）（Mid-term
management plan）（Mid-term
management plan）（Mid-term
management plan）

Net sales

79.0

81.0

84.0

90.0

100.0

Operating income

4.0

4.5

5.5

6.5

8.0

Operating margin

5.1％

5.6％

6.5％

7.2％

8.0％

2.8

3.1

3.8

4.5

5.6

5.6％

6.0％

7.0％

7.7％

9.0％

Ordinary income
ROE
Our action toimprove PBR

We are pursuing to deepen the consciousness for cost of capital and stock price. Once finalized, we will
disclose our concrete visions and actions.

20

4．Supplementary information21

Supplementary information➀Sales by product（Billions of yen）

FY2022
Results

YoY
ChangeYoY%

FY2023
Forecast

66.5

68.2

+1.7

+3％

72.8Powertrain/Driving control and Safety

37.2

40.6+3.4+9％

48.8

Body Electronics/Climate Control

21.9

22.1+0.1+1%

21.5

Information and Communication

7.3

5.4-1.8-25％

2.5

0.9

0.9+0.0+5%

1.0

Others14.0

14.5+0.5+4％

11.0

Total

81.4

83.8

+2.3+3％85.0

Car Electronics
Breakdown

FY2021Results

Mobile communications※AV equipment, Digital still camera, Amusement include “Others”

22Supplementary information➁Sales by type of PCBs
（Billions of yen）

FY2021Results

FY2022
Results

YoY
ChangeYoY%

FY2023
Forecast

HDI PCBs21.0

20.5-0.5

-3%

25.7

Multilayered PCBs

44.0

47.6

+3.5+8％45.4

Double-sided PCBs

10.6

10.0-0.5-5%

8.7

Others

5.6

5.5-0.1

-2％

5.1

Total

81.4

83.8

+2.3

+3％

85.0
23

Supplementary information➂Financial results by region
FY2021Results（Billions of yen）

Japan
China
Southeast Asia
Europe &North America
Adjustment
Consolidated

FY2022
Results

YoY
ChangeYoY%

FY2023
Forecast49.4

49.0

-0.3

-1％

50.5

2.2

0.5

-1.7

-78％

0.7

29.9

32.6

+2.7

+9％

32.0

0.7

1.6+0.9+137%

1.2

25.2

28.4+3.1+13％

29.0

Operating income

1.0

1.2+0.2

+20%

1.0

Sales

3.7

4.0+0.3+9%

5.5

Operating income

0.1

0.1+0.0

+32%

0.3

▲26.9

▲30.4-3.4-▲32.0

Operating income▲1.1▲1.0+0.1-▲0.5

Sales

81.4

83.8

+2.3

+3％

85.0

3.0

2.6-0.4-14％

2.7 24

Sales
Operating income
Sales

Operating income
Sales

Sales

Operating income

Supplementary information➃Capital investment（Billions of yen）

FY2021Results

FY2022
Results

YoY
ChangeFY2023
ForecastJapan

4.0

1.8-2.1

2.0

Overseas2.2

4.9+2.6

5.6

Consolidated

6.2

6.7

+0.5

7.6

Depreciation cost

4.2

4.7+0.5

4.825

Supplementary information➄-1 CASE and New businesses roadmap
Automotive roadmap

CConnected

AAutonomous

2023

2030

Probe information
applicable NAVI
Wirelesscommunication
system

V2V communication
ACC・ISA

Shared

E

Electric

Autonomous
optimal route guidancehigh-speed wireless communication
systemFusion of AI and wireless communications.

Level 3

Level 4

Level 5Autopilot driving on the freeway

High Driving Automation (freeway)

Fully Autonomous

Collision damage reduction control for pedestrians
and obstaclesS2040

Car-sharingxEV penetration rate
16%

Ride-sharing
Self-driving taxi

Optimal collision avoidance control for autonomous
driving
On-demand + AI transportation servicexEV penetration rate51%

xEV penetration rate80%

※Prepared in our company with reference to the Society of Automotive Engineers of Japan “Technology Roadmap“ of "Future vision : 2050 Challenge"

New businesses
Communication
infrastructure

Initial 5G

5G Evolution※Prepared in our company with reference to the Ministry of Internal Affairs and Communications " Beyond 5G Promotion Strategy -6G Roadmap."

Beyond 5G（６G）26Supplementary information➄-2 CASE and New businesses roadmap
Products

PCB requirement

Our technologicalinnovation

Connected

Data communication module
5G,V2X
Infotainment IVI

Low loss
SoC processors

Low dielectric material,
characteristic impedance control
Multiple stacked vias HDI, Fine circuit MSAP

AutonomousMillimeter wave Radar
Sensing camera

Stable accuracy of antennacircuit,
Downsized unit, 3D

High-definition circuit pattern MSAP
Multiple stacked vias HDI, High-thickness
Rigid-Flex

SharedAI-equippedUnit for infrastructure

AI processors
High layer count,
Small Diameter VIA

Electric

Integrated ECUPower module

Signal circuit and Power mix
High withstand voltage, Highcurrent PCB and Heat
resistance

Heavy copper circuit, Inner layer coppercore, High heat radiation material
Highly insulating resist, Heat Dissipation
simulation

５G
Base station small cellHigh layer count, low loss
High density, Fine circuit

Low dielectric material, High layer count,
High aspect ratio
Subtract-process fine circuit, Back Drill

Market needs

CAS

E

5G

New businesses
Communication
infrastructure

Low dielectric material ,characteristic impedance control
Multiple stacked vias HDI , High aspect ratio

27Supplementary information⑥Technology roadmap
Our technological innovation

FY2022

FY2023Highdensity

AHighfunctionSHighfrequency

High
heat
dissipation

E5GHigh
layer

Development

Mass-production
Mass-producedHigh thickness Rigid-Flex

Development

Low loss

Trial

Heavy copper＋Signal circuit

FY2026Mass-production

Trial

High-definition circuit MSAP

characteristic impedance control

FY2025Trial

AnyLayer HDI
Fine circuit MSAP

FY2024Mass-produced

Multiple stacked BVH HDIC

2nd Medium-Term
Management Plan

1st Medium-Term
Management Plan

Mass-production±10％(processguarantee)±10％(actual measurementcontrol)
DevelopmentHigh heat conduction

Mass-production

Trial

Trial

Mass-production
Mass-production

Trial

High aspect Ratio

AR12

Subtract-Process fine circuit

Development

simulation control

AR21
Trial

AR24
Mass-production

28

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

END29