CMK CORPORATION（Stock code: 6958）

1H FY2022 Financial Results(presentation material)
November 8, 2022
CMK CORPORATION

1Contents

1.

Consolidated financial results for 1H FY2022

2.

Consolidated financial forecast for FY2022

3.

Medium-Term Management Strategy

4.

Supplementary information2

１．Consolidated financial resultsfor 1H FY2022

3Consolidated financial results for 1H FY2022①Key points of 1H FY2022 Financial results(Billions of yen)

00

00

40.9

38.6
32.10000

0.300●Global automobile production
remained weak.
1.2
However, net sales increased due tostrong sales of Powertrain/ Driving
control and Safety.

00000-1.5
1H FY2020
ResultsSales

1H FY2021
Results●Operating income improved due toimproved productivity and exchange
1H FY2022
rate fluctuation, etc.
Results

Operating income4Consolidated financial results for 1H FY2022②Consolidated financial Results（Billions of yen）

1H FY2021

1H FY2022

YoYChange

YoY%

38.6

40.9+2.3

+6％

0.3

1.2

+0.8

+212%

1.0％

3.0％

+2.0%

-Ordinary income

0.1

1.5+1.4-

Profit attributable toowners of parent

0.0

1.0+1.0-108.47

124.54+16.07+15％

Net sales
Operating income
Operating margin

Exchange rate
（USD/JPY）

5

Consolidated financial results for 1H FY2022③Sales by product（Billions of yen）

1H
FY2022
Results

10.6

19.5

3.2 0.4

7.1

40.9

Car Electronics 33.4
1H
FY2021Results

17.4

Car Electronics
Powertrain/Driving control and Safety
Information and Communication
Others

10.1

3.8 0.4

6.7

38.6

31.4
Body Electronics/Climate Control
Mobile communications⚫ Sales of Powertrain/Driving control and Safety increased by 12% compared withthe 1H FY2021.

6Consolidated financial results for 1H FY2022④Analysis of changes in operating income（Billions of yen）

7.1
0.1

0.2

▲0.00.5

1.2

-15.6

0.3

1H FY2021
Operating income（Results）

Increased inprofit due to thesales increase

Improved
productivity

Exchange rate
fluctuation

Decreased
1H FY2022
sales prices
Operating incomeand（Results）
increasedprocurement cost etc.

7

2．Consolidated financial forecast

for FY2022

8

Consolidated financial forecast for FY2022①Consolidated financial Results and Forecast（Billions of yen）

1H FY2022
Results2H FY2022
Forecast

FY2022
Forecast

40.9

41.0

82.0

1.2

1.7

3.0

3.0％

4.3％

3.7％

Ordinary income

1.5

1.3

2.9

Profit attributable toowners of parent

1.0

1.0

2.1

124.54135.00133.00Net sales
Operating income
Operating margin

Exchange rate
（USD/JPY）

9

3．Medium-Term Management

Strategy

10Medium-Term Management Strategy

Outline of the Mid-Term Management Plan (Reposted)

7.1
1st Medium-Term Management Plan(From FY2022 to FY2024)

Establishment of the profit base and preparation
for the growth・Improving production efficiency through the businessstructure reform・Highly-added value shift in the automotive productportfolio (improvement of the product mix)
・Preparation for new businesses and acceleration ofcommercialization

2nd Medium-Term Management Plan
(From FY2025 to FY2026)

Accelerated of the growth・Establishment of the growth cycle
by increasing net sales from CASE
demand・Increasing of the net sales fromnew businesses

By shifting the highly-added value to the automotive product portfolio, Establish astable profit base.
⇒Based on a stable profit base, we establish a growth cycle by increasing netsales from CASE demand11Medium-Term Management Strategy

Shift to highly-added value (Reposted)

7.1

12

Medium-Term Management Strategy

Establishment of the growth cycle by increasing net sales from CASE demand(Reposted)13

Medium-Term Management Strategy

Construction of New Factory at CMK CORPORATION(THAILAND)CO.,LTD.
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 construction

Production 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
1F14Medium-Term Management Strategy

Image of contribution to sales

Net sales

Composition by type of PCBsUp 80%
compared to 2022
Increasing in HDI production ratio

Up 40%
compared to 2022
13%

21%

2022

2022

1stinvestment

2025

2027

2ndinvestment

34%
2027

2025

1stinvestment

2ndinvestment

15

Medium-Term Management Strategy

Sustainability Initiatives●As capital investment for production efficiency in the first medium-term management plan,
we raised funds by “Mizuho Positive Impact Finance” on September 30, 2022
●Establish KPIs for achievement of SDGs and promote activities.

(Note1)For this indicator, we are currently developing a system to capture
actual performance. After the establishment of the system, we monitor
actual results and evaluate the progress of efforts during the period until
the goal is set(Note2)

At the time of monitoring related to these items, we evaluate CMK‘sefforts to communicate through dialogue to achieve appropriate EHS
management at the target companies.

＊ Please refer to our website about “Mizuho Positive Impact Finance”
https://www.cmk-corp.com/topics/topics000487.html

16

３．Supplementary information17

Supplementary information➀Sales by product（Billions of yen）

YoY%

FY2022
Forecast

1H FY202231.4

33.4+1.9+6％

69.7

Powertrain/Driving control and Safety

17.4

19.5

+2.0+12％

41.5

Body Electronics/Climate Control

10.1

10.6+0.4

+5％

22.8

Information and Communication

3.8

3.2

-0.6

-16％

5.4

Mobile communications

0.4

0.4

-0.0

-11％

1.3

Others

6.7

7.1

+0.4

+6％

11.0

Total

38.6

40.9+2.3

+6％

82.0

Car Electronics
Breakdown

YoY
Change1H FY2021※AV equipment, Digital still camera, Amusement include “Others”

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

YoY
ChangeYoY%

FY2022Forecast

1H FY2021

1H FY2022

9.8

9.9+0.0+1％

22.5

Multilayered PCBs

20.8

23.2+2.3

+11％

44.5

Double-sided PCBs

5.3

5.0-0.3-6％

10.0

Others

2.6

2.8+0.2+8％

5.0

Total

38.6

40.9+2.3+6％

82.0

HDI PCBs

19

Supplementary information➂Financial results by region
1H FY2021

1H FY2022

YoY
Change

23.4

23.5

+0.1

+1％

48.0

0.8

0.3

-0.5

-61％

0.8

Sales

13.9

16.7

+2.8

+20％

32.5

Operating income-0.1

0.7+0.9-706％

1.6

Sales

11.5

14.4+2.8+24％

27.9

Operating income

0.00.8+0.7-1.5

Sales

2.0

1.9-0.0-2％

3.6

Operating income

0.00.0-0.0-1％0.1▲12.2▲15.6-3.4+28％▲30.0

Operating income▲0.4▲0.7-0.3+75％

▲1.0

Sales

38.6

40.9+2.3+6％

82.0

0.3

1.2+0.8+212％（Billions of yen）

Japan
China
Southeast Asia
Europe &North America
Adjustment
Consolidated

Sales
Operating income

Sales

Operating income

YoY%

FY2022
Forecast

3.020

Supplementary information➃Capital investment（Billions of yen）

1H FY2021

1H FY2022

YoY
ChangeFY2022Forecast

Japan

2.3

0.9

-1.4

3.0

Overseas

1.2

1.5

+0.3

3.3

Consolidated

3.5

2.5

-1.0

6.3

Depreciation cost

2.0

2.3

+0.2

4.6
21

Supplementary information➄-1 CASE and New businesses roadmap
Automotive roadmap

C

Connected

A
Autonomous

2022

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 obstacles

S2040

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）22

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

Autonomous

Millimeter wave Radar
Sensing camera

Stable accuracy of antenna
circuit,
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 copper
core, 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 ratio23Supplementary information⑥Technology roadmap
Our technological innovation

FY2021

FY2022

FY2023Highdensity

AHighfunction

SHighfrequency

Highheatdissipation

E5GHighlayer

FY2024FY2025

FY2026Mass-produced

Multiple stacked BVH HDIC

2nd Medium-Term
Management Plan

1st Medium-Term
Management Plan

Mass-production

Trial

AnyLayer HDI

Mass-production

Trial

Fine circuit MSAP

Development

High-definition circuit MSAP

Trial

High thickness Rigid-Flex

Development

Trial

Mass-production

Low loss

Development

Trial

Mass-production

Mass-production

characteristic impedance control±10％(actual measurementcontrol)±10％(processguarantee)

simulation control

Heavy copper＋Signal circuit

Development

Trial

Mass-production

High heat conduction
High aspect Ratio
Subtract-Process fine circuit

Development

AR21

AR12Development

Mass-production

Trial

Trial

AR24
Mass-production2024

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.)

END25