CMK CORPORATION
Securities Cord No : 6958

Creating the future2024

Business Report
Year Ended March 31, 2024

Message from the President
I would like to express our sincere gratitude to our shareholders for their continued
support for our operations.
After our last general shareholders meeting, I was appointed as the president andCEO. I will do my very best to develop the CMK Group further.
In the fiscal year ended March 31, 2024, the Japanese economy showed some signsof gradual recovery but still remained uncertain reflecting continuous rising prices andmonetary tightening worldwide. The world economy also remained uncertain due tothe geopolitical risks associated with Ukraine and the Middle East situation, and theChinese economic slowdown.
Under such circumstances, in the CMK Group’s main business of in-vehicle products,
impacts by semiconductor shortages and supply chain disruptions were mitigated andorders were slowly recovered. We could reach consolidated net sales of ¥90,568
million (up 8.0% year on year) led by the sales of products for powertrains and driving
safety which we focused on.
On the profit front, the operating income amounted to ¥3,529 million (up 35.5% yearon year) mainly reflecting an increase in capacity utilization at production factories. Theordinary income came to ¥4,795 million (up 82.8% year on year) due to the increase inoperating income and ¥1,040 million of foreign exchange gains brought by the depreciation of the yen against the dollar and the Thaibaht. The profit attributable to owners of parent was ¥3,855 million (up 142.7% year on year) after deduction of ¥649 million assignedto deferred income tax.
Demand in the in-vehicle parts market, a key market for the CMK Group, is anticipated to expand over medium to long term. By
capturing CASE demand at the new factory in Thailand, we will establish a growth cycle and strive for enhancement of our corporate
value. We ask our shareholders for their continued understanding and support.
June 2024

Yoshiaki Ishizaka
President

Future Outlook
The outlook for the world economy is expected to remain
uncertain, chiefly due to the slowdown of the Chinese
economy, heightened geopolitical risks and continuousmonetary tightening worldwide.
Even under such circumstances, the Group will realize sales
growth by capturing CASE demand according to the in-vehicle
growth strategy announced in November 2023, will strengthen
our revenue base and management base aiming at
enhancement of our corporate value. Especially as our invehicle growth strategy, we challenge to shift to high valueadded products by building up a product portfolio focusing on
the power train and driving safety systems where we havecompetitive superiority, and at the same time, we realize

diversity of our customer portfolio by strengthening relationshipwith foreign customers through CMK(Germany)GmbH which
newly opened in April 2024.
In May 2024, we celebrated the completion of our newfactory in Thailand, the construction of which started in
December 2022. This reflects that the medium-and-long-term
demand is very vigorous when the restructuring of supply chain
is taking place mainly due to the enhancement of CASE
demand and geopolitical risks. Along with the new factory in
preparation for full operations starting in August 2024, theGroup will make sure to capture CASE demand and strive toestablish a growth cycle.

▌Net sales(Millions Yen)
100,000
80,000HDI PCBs
Double-sided PCBs

83,84081,486

Multilayered PCBs
Others90,568▌Operating income▌Net assets／Equity ratio(Millions Yen)
4,000

(Millions Yen)
80,000Net assets

26,071

21,08420,50344,09647,65649,86010,606
5,699

10,091
5,588

10,054
4,582

3,000

3,529
3,021

60,0002,605

60,0002,000
40,00020,0000

FY 2023

72,91358,77954,46653.8

50.3

FY 2024

0FY 2023

FY 202450

49.6

20,000FY 2022（%）
7060

40,0001,000

FY 2022Equity ratio

400

FY 2022

FY 2023

FY 2024

30

Sales by application
Others13.5％

Mobilecommunications

0.9％

Car electronics

85.6％

Meter panels
Air conditioners
Power windows
Headlights

Car electronics
Driving safetysystems

Car electronics■ Powertrain systems■ Driving safety systems■ Body and comfort systems■ Telecommunications systems■ Mobile communications■ Others

FY2023
81.4％
27.2％
21.2％
26.4％
6.5％
1.2％
17.4％

4.0％

23.1％

Body andcomfort systems

FY2024Car electronics
Telecommunicationssystems

Car electronics
Body andcomfort systems

24.3％

FY2024
85.6％
34.2％
24.3％
23.1％
4.0％
0.9％
13.5％

Change
4.2％
7.0％
3.1％
△3.4％
△2.5％
△0.3％
△3.9％

Telecommunications
Achievements
systems
Achievements
Interstitial Via Hole (IVH)
High heat dissipation wiring board
PPBU wiring board

Automotive Interstitial Via Hole (IVH)
TV monitor PPBU wiring board
Rigid-flex wiring board

Car electronics
Powertrain systems

Driving safety systems
ABS, electric power steering
VSC, air bag system
Achievements
Interstitial Via Hole (IVH)
PPBU wiring board

34.2％Achievements
Interstitial Via Hole (IVH)
PPBU wiring board

Powertrain systems
Hybrid ECU
Engine ECUTOPICS
Medium-term management plan
In November 2023, we revised the medium-term management plan established in November 2021. As for the final fiscal
year ending March 2027, upward revisions of ¥110 billion for net sales, ¥9.5 billion for operating income and 8.6% foroperating income margin were made.
At present, the vital point of the plan, which is‘In-vehicle growth strategy’(①Shifting to an in-vehicle product portfolio, i.e.,
power train/driving safety systems where we have competitive superiority ②Diversifying the customer portfolio ③Shifting tohigh-value-added products), is smoothly proceeding. To expand sales, we started building a new factory on the site of ourconsolidated subsidiary, CMK Corporation (Thailand) Co., Ltd and could celebrate its completion on May 20 this year.
In-vehicle sales ratio (power train/driving safety systems)
FY2021（Results）

56%

FY2022（Results）

60%

FY2023（Results）

68%

FY2024（Forecast）

FY2026（Mid-term management plan）

FY2024（Forecast）

FY2026（Mid-term management plan）

FY2024（Forecast）

FY2026（Mid-term management plan）

72%

78%

In-vehicle sales ratio (foreign customers)
FY2021（Results）

5%

FY2022（Results）

8%

FY2023（Results）

9%

12%

The new factory in Thailand

20%

In-vehicle sales ratio (HDI PCBs)
FY2021（Results）

27%

FY2022（Results）

26%

FY2023（Results）

31%

34%

39%

FYI: The average score gained by the global electronicparts industry is a C score.

To respond to climate change problems, the CMK Group endorsed the Task Force on Climate—related FinancialDisclosure (TCFD) in July 2022 and is committed to achieving carbon neutrality by 2050 under the banner of-changes
NetZero’. In the‘Climate Change Report 2023’released by CDP, our activities were assessed to receive a‘B score’,
which indicates our acknowledgment of environmental risks and their impacts, along with our corresponding actions.
We work hard to realize our medium-term management plan and will continue to strive for further reducing CO2
emissions and environmental burdens.

Corporate Data (As of March 31, 2024)
Name of listed company

CMK CORPORATION(Securities code no.: 6958)

Date of establishment

February 25, 1961

Capital24，
096.3million yen

Number of employees

1,156 (Group total 4,580)

Primary Consolidated Subsidiaries (as of June 26, 2024)▌Japan● CMK Products Corporation▌Overseas● CMK ASIA
（PTE.）
LTD.

Executives(as of June 26, 2024)● CMKM SDN.BHD.

Board of Directors● CMK CORPORATION（THAILAND）
CO.,LTD.

ChairmanIsao Osawa

Director

Rika Sato

President

Yoshiaki Ishizaka

Director

Mitsuru Kaitoh

Director andExecutive
Officer

Kunihiko Tedo

Director

Shoshiro Taneichi

Director andExecutive
Officer

Yoshihisa Yamaguchi

StandingCorporate
AuditorAkihiro Okabe● CMKC (DONG GUAN) LTD.

Director andExecutive
Officer

Kazuto Ono

Corporate
Auditor

Masaki Ashibe● CMKC (SHENZHEN). LTD.

Director andExecutive
Officer

Satoru Takahashi

Corporate
AuditorKiyotaka Yokokoji● CMK EUROPE N.V.

● CMKC (HK) LIMITED● CMK AMERICA CORPORATION

Executive Officers
SeniorExecutive
Officer● CMK ELECTRONICS（WUXI) CO., LTD.

Toshikazu Fujino

Executive
Officer

Tatsuya Koizumi

Our Website■ PRODUCT■ IR INFO■ COMPANY■ CSR■ RECRUIT■ TOPICSWe disclose detailed information on this website.

● CMK（Germany）
GmbHStock Information (As of March 31, 2024)
227,922,000

Total number of sharesauthorized
Total number of shares issued andoutstanding

71,234,316
9,500

Number of shareholders
Shareholder Breakdown【Total 71,234,316shares】

Individuals and others
13,801thousand shares（19.4%）

Financial
28,297thousand shares（39.7%）

Securities ﬁrms
4,059thousand shares（5.7%）Foreign companies and individuals

17,682thousand shares（24.8%）
Other ﬁrms
7,394thousand shares（10.4%）

Major shareholders (10 largest)
Number of shares held(thousands)

Percentage(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

9,592

13.4

Custody Bank of Japan, Ltd. (Trust Account)

6,797

9.5

Mizuho Bank, Ltd.

2,576

3.6

The Foundation for Technology Promotion of Electronic Circuit Board

2,500

3.5

The Dai-ichi Life Insurance Company, Limited

1,895

2.6

Kiraboshi Bank, Ltd.

1,745

2.4

Sumitomo Mitsui Banking Corporation

1,613

2.2

BNP PARIBAS NEW YORK BRANCH - PRIMEBROKERAGE CLEARANCE ACCOUNT

1,450

2.0

JP Morgan Securities Japan Co., Ltd.

1,324

1.8

BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT
ACCOUNTS M LSCB RD

1,253

1.7

Shareholders

Note: 1．
‌Although the Company holds 3,729 shares of treasury stock.		 2．
‌Treasury shares were excluded in calculating the shareholding ratios.

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:

43rd Floor, Shinjuku I-Land Tower Bldg., 6-5-1
Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-1388, JapanTel.: +81-3-5323-0231 (main)
https://www.cmk-corp.com

Notification
method:Electronic notification(company website athttps://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.
1-3-3 Marunouchi, Chiyoda-ku, Tokyo

Contact address:

Mizuho Trust & Banking Co., Ltd.
8-4 Izumi 2-chome, Suginami-ku,
Tokyo 168-8507
0120-288-324