CMK CORPORATION（Stock code：6958）

FY2023 Financial Results(presentation material)
May 15, 2024
CMK CORPORATION

1Contents

1.

Consolidated financial results for FY2023

2.

Consolidated financial forecast for FY2024

3.

In-vehicle growth strategy

4.

Others5.

Supplementary information2

１．Consolidated financial resultsfor FY2023

3Consolidated financial results for FY2023➀ Consolidated Financial results■ Key points of FY2023 Financial results
・The amount of sales, lead by the power train and driving safety systems we focused on,increased (＋31% YoY).
・The operating profit has increased mainly due to the recovery of production factories' operations.
（Billions of yen）

FY2022
Results

FY2023Results

YoYChange

YoY%

83.8

90.5+6.7+8％

2.6

3.5+0.9+36％

3.1％

3.9％

+0.8％

-Ordinary income

2.6

4.7+2.1+83％

Profit attributable toowners of parent

1.5

3.8+2.2+143％

132.09141.20+9.11+7％

Net sales

Operating income
Operating margin

Exchange rate
（USD/JPY）

4Consolidated financial results for FY2023➁Changes in quarterly sales, operating income and operating margin（Billions of yen）
Sales

Operating income
21.2

23.7

Operating margin

21.5

21.2

21.1

23.5

22.0

19.7

1.5
6.5%

1.4
6.0%

4.1%
3.0%
0.5

3.0%

0.8
2.3%

2.2%

0.6

0.4

0.5
0.3%

0.0
1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

5

Consolidated financial results for FY2023➂Analysis of changes in operating income（Billions of yen）

0.1

0.5

▲0.5

0.7
3.5
-15.6

2.6

FY2022
Operating income(Results)

Due toincreased/Decreasesales

Improved
productivity

Exchange rate
fluctuationSales prices,
procurement cost andothers

FY2023Operating income(Results)

6

2．Consolidated financial forecast

for FY2024

7Consolidated financial forecast for FY2024➀ Consolidated Financial forecast＜Reference＞（Billions of yen）

FY2023Results

FY2024
Forecast

YoY
ChangeYoY%

FY2024

Medium-term
management plan

90.5

94.0+3.4+4％

94.0

3.5

5.0+1.4

5.0

3.9％

5.3％

+1.4％

+42％
-Ordinary income

4.7

4.2-0.5-12％

Profit attributable toowners of parent

3.8

3.5-0.3-9％

19.00

15.00

29.6

30.5

Net sales
Operating income
Operating margin

Annual dividends
per share (yen)Dividend payout ratio※Exchange rate（USD/JPY）145.00-8

Consolidated financial forecast for FY2024➁ Consolidated Financial forecast (1H,2H)＜Reference＞

2H
FY2023Results

43.2

47.3

45.0

49.0+4.0+9％

0.5

2.9

1.5

3.5+2.0+133％

1.3％

6.2％

3.3％

7.1％

+3.8％

-Ordinary income

1.6

3.1

1.1

3.1+2.0+182％

Profit attributable toowners of parent

0.7

3.0

0.7

2.7+2.0+267％（Billions of yen）

Net sales
Operating incomeOperating margin

1HFY2024
Forecast

2HFY2024
Forecast＜FY2024 HoH＞
HoH
HoH
Change%1H
FY2023Results※Exchange rate（USD/JPY）145.00

9

Consolidated financial forecast for FY2024➂Image of the order trends＜Sales(Half-year)＞（Billions of yen）

49.0

＜FY2024 1H 2H Image of the order trends＞

47.3

45.0
42.8

43.2

40.9

Existing parts inproduction
1H FY2024

2H FY2024

New foreign customers
New items for Japanese customers
1H FY2022 2H FY2022 1H FY2023 2H FY2023 1H FY2024 2H FY2024（Results） （Results） （Results） （Results） （Forecast）（Forecast）

New items for foreign customers
10Consolidated financial forecast for FY2024➃ Analysis of changes in operating income（Billions of yen）

7.1

0.3

0.1

1.1
5.0
-15.6

3.5

FY2023Operating income(Results)▲0.0

Due toincreased/Decrease
sales

Improved
productivity

Business structurereformSales prices,procurement cost andothers

FY2024
Operating income(Forecast)11

3．In-vehicle growth strategy

12In-vehicle growth strategy➀ In-vehicle growth strategy✓Sales growth by capturing CASE demands✓Shift to portfolio of in-vehicle products
where we have competitive advantage✓

Customer portfolio is diversified✓

Shift to high-value added business13

In-vehicle growth strategy➁Transition of automotive parts portfolio
To build up a strong product portfolio by shifting to the power train and driving
safety systems where we have competitive superiority（Billions of yen）

Powertrain
Driving control and Safety
Body Electronics/Climate Control

77.5
66.5
7.3
（11％）
21.9
（33％）

17.6

68.2
（8％）

（29％）
FY2021

FY2022（Results）（Results）

20.8（26％）

（19％）

78％

（27％）

（32％）

（34％）

（2％）
18.0

1.8（5％）

22.1

（26％）
（27％） 60％
56％
22.8
19.5

2.0

82.6
（2％）
21.3

3.6

5.4

17.8

94.0

Sales by product(Car Electronics)

22.0
68％

（28％）

25.7
72％ （31％）30.9

33.8（40％）（41％）

FY2023（Results）

FY2024（Forecast）

VS FY2021+8.1

VS FY2021

38.0

（40％）

+20.4
billion yen

billion yen+14.3
billion yen

36.0

+16.5

（38％）

billion yen

FY2026（Medium-term management plan）

14In-vehicle growth strategy➂ Target itemsImage of start-up of accepting orders
1

1

New items for Japanesecustomers

2

New items for foreign
customers

3

Items for new foreign
customers

・ Integrated ECU for ADAS
・ Millimeter wave
・ Image sensor
・ Integrated ECU for HPC

2

Zone architecture
Integrated ECU

Domain architecture
Integrated ECU

・In-vehicle camera
・Driver support systems
・Radar・Integrated ECU for HPC

self-driving level2
Volume of sensors,cameras, etc.

FY2023

列1

FY2024

3・Inverter
・Power Control unit

列2FY2025

列5FY2026

列3列415

In-vehicle growth strategy➃ Customer portfolio is diversified/Shift to high-value added businessBusiness with the foreign customers has smoothly expanded and shifting to thehighly-value-added products has proceeded.
Sales ratio of foreigncustomers

FY2021（Results）

5%

FY2022（Results）

FY2023（Results）

FY2024（Forecast）

FY2022（Results）

FY2023（Results）

FY2024（Forecast）

8%

9%

12%

FY2026（Mid-term management plan）

20%

Sales ratio of HDI PCBs

FY2021（Results）

27%

26%

31%

34%

FY2026（Mid-term management plan）

39%

16

In-vehicle growth strategy➄ Toward expansion of foreign customers
To establish an office in Germany. Our global strategy, to expand our automotive
product market, targets at Germany where major Tier1 manufacturers have theirhead offices.
CMK(Germany) GmbH
Stuttgart, Germany

To grasp customers'
needs starting in thedevelopment stage

×To make technicalproposals foradvanced productdevelopment=To aim at expanding
business
opportunities withforeign customers
17In-vehicle growth strategy➅The latest progress report on the new factory in Thailand

It is planned to start operating in August, 2024.

2024/05/09
18

In-vehicle growth strategy➆Growth investment(Increase capacity)
The timing for the second investment on the new factory in Thailand is being
examined. (The new factory in Thailand has room for capital investment, whichcorresponds to 40% of its gross floor area)
After the first
After theCapacity of Thailand factoryNowphase investment
second phasein the new factory
investment

Schedule

Investment amount
Capacity/Monthーー

2024
Approximately
25.0 billion yen

Under review

130k㎡

160k㎡

200k㎡

Double-sided Multilayered

113k㎡

126k㎡

132k㎡HDI

17k㎡

34k㎡

68k㎡ 19（Existing Factory+New Factory）

4．Others

20Others➀The capital increase through a public offering has been implemented.
The capital increase through a public offering was resolved on Feb.16th, 2024. Its conditions were decided on Feb.26th, 2024.

Number of shares forsubscription

12,000,000shares

The amount raised

Approx. 6.6billion yen＜Background, objectives and use of the capital increase through a public offering ＞

Strong demand for
CASE×

Customers' needs
coming to the Thailand
factory as a result ofthe flow to avoid
geopolitical risk＝

The new factory inThailand is underconstruction.

The amount will be applied to the fund for the new Thailand factory planned
to start operation in August, 2024.
In order to strengthen the financial basis by this capital increase
through a public offering

This capital increase will complete the preparation
for the investment in further growth.
21

Others➁Improvement of corporate value (to increase PBR)

To increase PBROperatingmargin

ROE(EPS)Net income
Equity capital

PBR
Marketcapitalization
Equity capital

PER

Net income
Sales

Totalasset
turnoverrate

Changes in ROE
Over9.0％・ Expansion of investment in highgrowth businesses
・ Shift to high-value added
business in the automotive
product portfolio(To increase HDI sales ratio )

6.0%
6.0％

5.5%
・ Effective usage of assets suchas reduction of working capital

Sales
Total assets

2.9%

Marketcapitalization
Net income

Financialleverage
Total assets
Equity capital

FY2021(Results)

FY2022(Results)

FY2023(Results)

FY2026＊Mid-term
management plan22

Others➂Sustainability
Our company endorsed TCFD (The Task Force on Climate-related Financial Disclosure) in July, 2022
to address the climate change problems, is aiming at Carbon Neutral in 2050, symbolized as "Smarte-changes NetZero" and is promoting the activities to mitigate climate change.
We received a "B" score in the "Climate Change
Report 2023" published by CDP.
They grade the corporate initiatives toward environmental issues onan eight-point scale (A, A-, B, B-, C, C-, D, D-). Our current gradeof "B" signifies that we are "aware of our company's environmental
risks and impacts, and are acting accordingly."ABC

https://www.cmk-corp.com/en/csr/doc/2023CMKreport.pdf*For your information:
The average of global/electronic parts industries is "C".

CDP is a non-profit -organization for global environment that runs information disclosure and evaluation of strategies and actions toward climate change andreduction of greenhouse gas emissions conducted by companies and municipalities.

23

5． Supplementary information24

Breakdown

Supplementary information➀Sales by product（Billions of yen）

FY2022
Results

FY2023Results

YoY
ChangeYoY%

FY2024
Forecast

68.2

77.5

+9.2

+14％

82.6

Powertrain

22.8

30.9+8.1

+36％

33.8

Driving control and Safety

17.8

22.0+4.2

+24％

25.7

Body Electronics/Climate Control

22.1

20.8

-1.2-6％

21.3

Information and Communication

5.4

3.6-1.8

-33％

1.8

0.9

0.8

-0.1

-17％

1.2

Others

14.5

12.1

-2.3

-16％

10.2

Total

83.8

90.5

+6.7+8％94.0

Car Electronics

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

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

FY2022
Results

FY2023Results

YoY
ChangeYoY%

FY2024
Forecast

HDI PCBs

20.5

26.0+5.5+27％

31.0

Multilayered PCBs

47.6

49.8+2.2+5％

50.3

Double-sided PCBs

10.0

10.0-0.0-0％

7.9

Others5.5

4.5-1.0-18％

4.8

Total

83.8

90.5+6.7+8％

94.026

Supplementary information➂Financial results by region
FY2022
Results（Billions of yen）

Japan
China
Southeast Asia
Europe &North America
Adjustment
Consolidated

FY2023Results

YoY
ChangeYoY%

FY2024
Forecast

49.0

57.0

+7.9

+16％

60.2

0.5

1.5+1.0+219％

3.2

32.6

34.2

+1.5+5％33.0

1.6

1.8+0.2

+12％

1.1

28.4

30.1+1.7+6％36.0

Operating income

1.2

0.7-0.5

-40％

1.6

Sales

4.0

4.4+0.3+9％

4.8

Operating income

0.1

0.3+0.1+71％0.2▲30.4▲35.3-4.9-▲40.0

Operating income▲1.0▲1.0+0.0-▲1.1

Sales

83.8

90.5+6.7

+8％

94.0

2.6

3.5+0.9+36％

5.0 27

Sales
Operating income
Sales

Operating income
Sales

Sales

Operating income

Supplementary information➃Capital investment（Billions of yen）

FY2022
Results

FY2023Results

YoY
ChangeFY2024
ForecastJapan

1.8

1.6-0.2

2.7

Overseas

4.9

14.3

+9.4

16.8

Consolidated6.7

15.9+9.2

19.5

Depreciation cost

4.7

5.2

+0.5

6.028

Supplementary information➄-1 CASE and New businesses roadmap
Automotive roadmap

2024

CProbe information
applicable NAVI

ConnectedA
Autonomous

2030

Wirelesscommunication
systemOTA over Wi-Fi
Cellular V2X

Autonomous
optimal AI route guidancehigh-speed wireless communication
systemShared

E

ElectricConnecting with the cloud server

Level 3

Level 4

Level 5Autopilot driving on the freeway

Autopilot driving on specified area

Fully Autonomous

Collision damage reduction control for pedestrians
and obstacles

S2040

Car-sharingxEV penetration rate
16%

Optimal collision avoidance control for autonomous
driving

Ride-sharing
Robot-taxi

On-demand + AI transportation servicexEV penetration rate80%xEV penetration rate
51%

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

Advanced Air Mobility
eVTOL / eCTOL

Test flight
Cargo delivery

Transport persons as commercial flights
Expansion of the cargo transport network※Prepared in our company with reference to the Ministry of Economy “Roadmap for the Moving Sky Revolution (Revised)"Transport persons as private flightadvanced flight/commercial expansion29

Supplementary information➄-2 CASE and New businesses roadmap
Market needs

CASEProducts

PCB requirement

Our technologicalinnovation
Low dielectric material,
characteristic impedance control
Multiple stacked vias HDI,
Subtract-process fine circuit

Connected

5G,V2X, V2H
Infotainment IVI

Low loss
SoC processors

Autonomous

ADAS system
Auto Pilot ECU

Improved high resolution
for the antenna circuit
Zone ECU

SharedAI-equipped
Unit for infrastructure

AI processors
High layer count,
Small Diameter VIA

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

ElectricIntegrated ECUPower module

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

Combination of thin & thick copper circuit ,High heat radiation material
Highly insulating resist, Heat Dissipation
simulation

high-power motor
high-capacity battery
Radar Systemultra-high current circuit
high voltage
sensor mounted

copper core copper basebusbar alternative
Combination of thin & thick copper circuit
Guaranteed withstand high voltage

eVTOL / eCTOL

High-definition circuit pattern MSAP
Multiple stacked vias HDI,High reliable Stacked VIA

30

Supplementary information⑥Technology roadmap
当社の革新技術C

FY2023HighdensitySEHighfunction

AnyLayer HDIHigh
frequency

Low losscharacteristic impedance control

FY2026Mass-production

Trial
Development

Mass-production

Trial

High-definition circuit MSAP
High thickness Rigid-Flex

FY2025Mass-produced

Multiple stacked BVH HDI

Subtract-process fine circuit

A

FY2024Mass-produced
Mass-production

Trial
Trial

Mass-production±10％(actualmeasurement )DevelopmentHighheatdissipationHeavy copper＋Signal circuitlarge
current
highVoltage

Large current circuit

Trial

Electrical resistance guarantee

Inspection±10％(process guarantee)
Trial

Trial

High heat conduction

simulation control
Mass-production

Mass-production
FM Trial

Mass-production
process guarantee

31

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.)

END32