2023 CMK ReportCompany Motto

Development and Lasting Prosperity
Basic Philosophy
We in the CMK Group pursue the mental and material happiness of employees, and manufacture andsell safe and secure products with awareness and responsibility to increase our value to society andcontribute to the latter’s development.

Management Policy
1. We will implement open and aboveboard manufacturing.
2. We will create dynamic workplaces where employees can anticipate environmental changes andrespond flexibly.
3. We will respect each other, think carefully and talk often to deepen understanding, and cooperate to
make profits regardless of individual attributes such as base, division, position or nationality.
4. We will strive to improve yields and strengthen the quality assurance system by making quality
improvement a daily task.
5. We will increase the operating rates of production plants.
6. We will use resources efficiently and promote environmental protection.
7. We will continue to develop, manufacture and sell printed circuit boards into the future to be of use tocustomers and society.
CONTENTS
01. Company Motto, Basic Philosophy andManagement Policy
02. Message from the President
03. The Reliability Standards and Technology
Behind Printed Circuit Boards
05. Sustainability Promotion Structure
06. Activity Themes and Status of Initiatives in
FY202207. Corporate Governance & Management
12. Information Security
13. Environment Protection
19. Fair Trade
20. Human Rights and Labor
23. Health and Safety
25. Quality and Safety

26. Response to Customer Needs
27. Social Contribution
28. CMK Group Business Bases
29. Performance and Financial Highlights
31. Corporate Data
32. Stock Information

Abbreviation of names of CMK Group Companies in this report: CMK Products Corporation = CMK Products: CMK Corporation (Thailand) Co., Ltd. = CMK Thailand: CMK Electronics (Wuxi) Co., Ltd. = CMK (Wuxi): CMKC (HK) Limited = CMKC (HK): CMKC (Dong Guan) Ltd. = CMKC (Dong Guan)
Other information regarding business locations- In July 2022, the SE Center in Miyoshi, one of our sales and administration bases, was relocated to the Kawagoe Office in Kawagoe City.

01

Message from the President

The CMK Group is committed to therealization of a safe and comfortable society
attaching great importance to sustainability.

Isao Osawa President and CEO
More than one year has passed since Russia started the invasion into Ukraine. Yet no sign of ending has been
seen. The geopolitical risk is increasing because the US-China confrontation constantly stays. Such conditions aremaking the world economy more divided and uncertain. The environment around us is changing greatly according
to the age. Our initiatives toward the realization of a sustainable society should be carried out rapidly and definitely.
When the social problems regarding human rights and the environmental problems are arousing concerns, recently
sustainability is focused on.
We have serious environmental problems of extreme weather with record-breaking temperatures and heavy rainfall
across the world and its seriousness starting with global warming is impacting the society and the economy,
CMK Corporation, since its foundation in 1961, has been incorporating technology and creativity into our printed
circuit board business, expanded our business globally based on our management philosophy symbolized by thecompany motto, “Development and Lasting Prosperity”, and striving enthusiastically to enhance our corporate value
by committing to the social requirements and the environmental problems.
The primary medium-term management plan which started in FY2022, focuses on productivity and quality
improvement, and aims at establishing the growth cycle involving the CASE demand after accomplishing thesecondary medium-term management plan starting in FY2025.
Regarding the climate change issue, we approved TCFD (Task force on Climate-related Financial Disclosures) anddeveloped the slogan “Smart e-changes30 plus” raised to accomplish the medium-term target by 2030. Under the
new slogan “Smart e-changes NetZero”, we aim at carbon neutral zero and proceed. In order to survive in this ageof drastic changes and address the social challenges, we established the basic sustainability policy and the CMK
group human rights policy in FY2022 which are the milestones to carry out human rights due diligence.
The CMK Group will continue to address various social issues through our business activities. We strive to enhance
our corporate value and contribute to the society based on our reliable technological capability we have cultivated.
We prioritize the comprehension of many stakeholders, i.e., the stock holders, the clients and the local communities
when operating our activities because their support is essential. We aim at a safer and more comfortable society bysupplying stably the printed circuit boards that meet social needs.

02

The Reliability Standards and Technology Behind
Printed Circuit Boards.
Car Electronics

Information andcommunication systems
Navigation
Infotainment
V2V, V2X Communication
Modules
Back monitor

Body electronics / climate control Body Product
Body Control Module (BCM Body ECU)
Dashboard
Air Condition
Lighting

Driving control and safety systems
Electric Power Steering
Brake control
ADAS millimeter-wave radar
ABS air bag system
VSC sensing camera
LKAS driver monitor

Powertrain
Integrated ECU
Ev motor Control ECU
DC/AC Inverter
DC/DC ConverterIntelligent Power Module

Approaches to CASE

C

Connected

Multi-layered HDI PCBs arebeing used in the evolution of
the connected car.

Multi-layered HDI PCB (cross-section)A

Autonomous

S

Shared

E

Electric

The receiver antenna in
Advanced Driver Assistance
Systems (ADAS) require PCBs
with Higher resolution circuits.

“From ownership to sharing.” As thevolume of information processed by
vehicles increases, hybrid-structured
PCBs with conventional and highfrequency materials are being adopted.

In the electrification of automobiles,
heavy-copper PCBs are used toaccommodate high voltage currents and highheat dissipation. We will strive to keep pacewith the further evolution of integrated ECUs.

High-resolution and fine-circuit MSAP (external view)

High-frequency hybrid PCB (cross-section)

Inner/outer layer of heavy-copper PCB (cross-section)03

Initiatives for Advanced Air Mobility

Advanced Air Mobility
Into Space
ReAMO “Realization of Advanced Air Mobility Project”
METI and NEDO (New Energy and Industrial Technology Development Organization) are promoting the 5-year plan starting from2022 named ReAMO “Realization of Advanced Air Mobility Project” in coordination with MLIT and the realization of advanced air
mobility such as drones and flying cars is proceeding.
Our company has already received customer inquiries related to VTOL (Electric Vertical Toke-Off and Landing aircraft) and has
already started testing and evaluating samples in the process of a joint development.
This year, as a stepping stone, our products were recognized as Jaxa’s qualified space parts. We contribute to Jaxa’s space
activities under the slogan “Launch our reliable technology cultivated in the car electronics into space”. We accelerate our new
business development into the aerospace field promoting our technological capability and product quality, and looking ahead totake part in private-sector space development.

CMK Products’ high multilayer technology
Cross section before
pack drill processing

Cross section after
pack drill processing

Manufactured by CMK Products
Cross section of high multilayered printed circuitboard, cross section of pack drill processing

Manufactured by CMK Products
Probe card circuit board for semiconductor testingThickness 4.5mm/ 32 layers
04

Sustainability Promotion Structure
Under the company motto, “Development and Lasting Prosperity,” in the pursuit of our goals of sustainable growth and the creation of medium-to longterm corporate value, we will actively promote CSR activities as part of our corporate purpose, by directly addressing social issues through business.

Basic Sustainability Policy
The CMK Group has had Development and Lasting Prosperity as its company motto since its
founding. We strive to realize a sustainable society and improve corporate value by fulfilling the
expectations of society and stakeholders by supplying “the world’s top-class safe and secure
printed circuit boards” that meet the new society and values.
1. We strive to reduce the environmental footprint of our business activities, aiming to achieve
decarbonization.
2. We provide safe and secure products to provide value to society and contribute to therealization of a sustainable society.
3. We recognize the importance of compliance and realize healthier and more transparent
management.

CMK Group Action Statement (excerpt)
Working with customers

By providing safe and secure products and services, the CMK Group strives to be agroup that customers can continue to rely on.

Working with shareholders and investors

The CMK Group will endeavor to gain the understanding of shareholders andinvestors through appropriate and proactive communication.

Working with business partners

The CMK Group will endeavor to build good partnerships with its business partners
through fair and equitable commercial transactions.

Working with employees

The CMK Group will endeavor to create environments in which each employee canwork confidently and energetically.

Working with society

The CMK Group will contribute to the realization of a sustainable society through its
corporate activities.

Sustainability Promotion Structure Chart
Directors Board
Sustainability Promotion Committee
Chairperson
Vice Chairperson

President
Executive Officer in charge of CSR

Committee member Internal Directors
Subcommittee onsocial issues

Subcommittee on
environmental issues‘Subcommittee on social issues’ and ‘Subcommittee on environmental issues’ are placed under ‘Sustainability
Promotion Committee and altogether the Committee is taking the initiative in realizing the sustainable society
and enhancing our corporate value through their activities.

05

Activity Themes and Status of Initiatives in FY2022
We have announced the following activity themes and are pursuing initiatives based on these themes.
Details of some of the activities undertaken in FY2022 are provided on individual pages.
ESG

G

ISO26000
Core Subjects

Organizational
governance

Activity ThemeFY2022
Evaluation

Details of Major Activities (Issues)

Enhancement of corporate
value

IR Activities, communication with stockholders and investors

Maintenance and raising of
information security level

Initiatives to mitigate risks of confidential information leaks

Promotion of Human Rights
Enlightenment Activities

SDGs

Strengthen risk management and BCP systems
Activities for improvement through self-evaluation
Promotion of Human Rights Due Diligence
Promote recruitment of foreign nationals

Promotion of diversity

Promote employment of people with disabilities
Promote career development for female employees

Human rights/
Labor practices

Employees’ health andsafetyDevelopment of global
human resourcesWork-life balance

S

Fair operating
practices

Ensure and improve workplace safety environment
Initiatives for mental health issues
Promote study abroad program
Promote use of various leave programs
Initiatives for shorter working hours
Conduct CSR survey

Fair trade
Conduct training on Anti-Monopoly Act and Subcontractor Payment Act
Technological innovation

Innovation in response to needs, such as AI, use of robots, andlabor-saving
Conduct CS survey

ConsumerissuesCommunity
involvement
anddevelopment

Response to customer
needs

Continue to exhibit at trade shows
Product development tomatch customer needs

Promote new product development

Improvement of productquality/ensuring safety

Build and embed integrated management system

Contribution to local
communities

CO2 reduction activities

E

The
environment

Improve customer evaluation and satisfaction

Promote activities for contributions to local communities
Promote involvement in local communities
Action on Scope 3
Activities in line with energy conservation promotion plan

Management of substancesof concern

Chemical management in response to regulations and customer
requirements

Biodiversity conservation
activities

Promote community-based environmental protection activities

Waste reduction

Promote zero-emission activities*Icons in each category indicate the connection between the SDGs and the CMK Group’s action themes

Approach to the Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs), which were adopted at
the UN Summit in September 2015, consist of 17 goals and 169
targets covering areas such as poverty, environment, education andemployment. They are common goals for the world to achieve by2030. CMK Corporation will strive to contribute to realizing asustainable society through its business activities.

06

Governance

Environment

SocialCorporate Governance & Management
Corporate Governance Structure
CMK Corporation employs the corporate auditor
system. The Board of Directors consists of nine
directors, three of whom are outside directors, and theBoard of Company Auditors consists of four corporate
auditors, two of whom are outside auditors. In
addition, we have established an executive officer
structure that enables us to make importantmanagement decisions and execute business
operations quickly and rationally. This structure also
clarifies the authority and responsibilities of officers.
Outside directors monitor the decision-making of theBoard of Directors and supervise business operations
from an objective and neutral viewpoint.
In addition to attendance at the Board of Directors
meetings, outside corporate auditors receive
explanations of important management matters fromthe directors and express their opinions on thosematters, as well as auditing the directors’ execution of
their duties. The supervisory function of the outside
directors and the auditing function of the outside
corporate auditors ensure the objectivity and neutralityof the management monitoring function.
We have also established a Nomination andRemuneration Advisory Committee as an advisoryorganization for the Board of Directors, with the aim ofenhancing the fairness, transparency, and objectivityof processes concerning the nomination andremuneration of directors. The committee iscomposed of two internal directors and three
independent outside directors, with one of the
independent outside directors serving as chair.

Corporate Governance Structures
General Meeting of Stockholders
Election/Dismissal

Election/Dismissal

Coordination

Accounting Auditor

Board ofCompany Auditors
Auditing

Election/Dismissal

Auditing

Advisory/Report

Nomination andRemuneration
Advisory Committee

Accounting
Audit

Coordination

Coordination

Board ofDirectors

Internal Control
Management
Committee

Instruction/
ReportReportElection/Dismissal/
Supervision

President
and CEO
Instruction

Coordination

Audit Instruction
ReportAudit OfficeInternal Audit

Executive
Officers
Instruction

Operating Divisions and Group Companies

Internal Control System
Pursuant to the Basic Policy on Internal Control
determined by the Board of Directors, the Group
works to make continuous improvements to its
internal control system. The Internal Control
Management Committee, a standing committee
composed of internal directors, plays a leading role in
the framework and overall design of internal control
system promotion. Two working groups under theCommittee, the Compliance Promotion Working
Group and the Financial Reporting Working Group,
handle their respective areas, with executive officers
playing a central role. The Internal Control
Management Committee checks and evaluates thestatus of establishment and operation of initiatives ineach area and reports to the Board of Directors on aregular basis.
07

Governance

Environment

Social(Internal Control Management Structure)
Board of Directors
Internal Control Management Committee
Chair: President

Deputy Chair : Director in charge of internal control management
		Internal Director

Internal Control Management Sub-committee (Chair: Director in charge of internal control management)(Companies Act area)
Compliance Promotion Working Group(Financial Instruments and Exchange Act area)
Financial Reporting Working Group

Risk Management Structure
To deal with risks surrounding the Company, we haveestablished a company-wide, cross-departmental risk
management framework and are working to enhance
our risk management in accordance with companywide policies. To prepare for unforeseen events andensure that immediate and appropriate action can betaken should such an event occur, we haveestablished a Risk Management Committee and aredeveloping systems and conducting operational
simulations and training during normal times. In thisway, we are working to strengthen our company-widerisk management. As part of our emergency response,
we have also established the BCP Risk Management
Office, a dedicated organization under the directsupervision of the president, which is charged withbuilding mechanisms for ensuring business continuity.
In this way, we are promoting the building of
mechanisms that will contribute to sustainable
development and the enhancement of corporate value
over the medium-to long-term.

CompliancePositioning compliance as our most importantmanagement issue, CMK Corporation strictly complies
with laws and ordinances, the Articles of Incorporation,and social norms, and is engaged in the establishmentof compliance standards and systems and thestrengthening of operations to ensure compliance. In
terms of structures, led by the director in charge ofcompliance, we are promoting initiatives formaintaining and increasing awareness of complianceamong all directors and employees of the Group, as
well as the management team. Specifically, we haverevised the CMK Group Action Statement, which
provides guidelines for employee conduct, and we

conduct compliance training, including information
security and risk management training, on a continual
basis. We also strive to understand the degree ofawareness of our employees regarding complianceand the situation in the workplace environment byconducting questionnaire surveys of all employees. In
addition, concurrently with the enhancement of ourhelplines, including raising awareness of our internal
whistle-blowing systems, we are working on theestablishment of systems to ensure that signs ofcompliance violations are not overlooked. This
includes workplace-based monitoring by the internal
audit division.

Nomination and Remuneration Advisory Committee
We are working the to strengthen governance with theestablishment of the Nomination and Remuneration
Advisory Committee, which plays important roles suchas the discussion of important matters, including
personnel and remuneration of directors, etc. and theprovision of advice to the Board of Directors from theperspective s of objectivity, transparency, andappropriateness. The Committee met four times in
FY2022.

Matters concerning
nomination
Matters concerning
remuneration

Composition of Nomination and Remuneration Advisory Committee
Chair
Rika Sato (Independent Outside Director)
Members
Isao Osawa (President and CEO)
Kazuto Ono (Director and Executive Officer)
Mitsuru Kaitoh (Independent Outside Director)
Shoshiro Taneichi (Independent Outside Director)

Major Agenda Items- Appointment of new directors and executive
officers- Changes in areas of responsibility of officers- Policies for determining remuneration of
directors- Introduction of non-monetary remuneration(stock-based remuneration)- Performance-linked remuneration
08

Governance

Environment

SocialList of Directors and Company Auditors (As of June 27, 2023)
Name (Attendance at Board of Directors)

Sex

Expected roles, expertise and background※1

Nomination and Remuneration
Advisory Committee★Chair ●Member

Directors

Isao Osawa●(13/13)

male

Co TD

GE

(13/13)

male

Co

FA

GE

(13/13)

male

Co

FA

GE

(12/13)male

Co SM GE

(10/10)

male

Co

—※2

male

Co TD

(13/13)femaleGE(13/13)male

Co TD SM

●

—※2

male

Co TD

GE

●

(13/13)

male

Co

FA

GE

(13/13)

male

Co

FA SM

—※2

male

Kunihiko Tedo
General Manager of President Office

Yoshihisa Yamaguchi
In charge of Accounting
In charge of CMK Products Corporation

Yoshiaki Ishizaka
In charge of Procurement
and Sales

Kazuto Ono
In charge of Personnel System Reform,
Internal Control Management and CSR

GE PH

●

Toru Nishizawa
In charge of Production Structure ReformGE

Rika Sato
Outside★

La

Independent

Mitsuru Kaitoh
OutsideIndependent

Shoshiro Taneichi
OutsideIndependent

Corporate Auditors

Akihiro Okabe

Masaki AshibeOutsideIndependent

Kiyotaka Yokokoji
OutsideCo PH

Independent

Co

Corporate
management

FA

Finance/
Accounting

TD

Technology/
Development

GE

Globalexperience

La

Law

PH

Personnel and Labor/
Human resources development

SM

Sales/
Marketing※1. The above list does not represent all the knowledge and experience of each person.
※2. Director Toru Nishizawa, Director Shoshiro Taneichi and Auditor Kiyotaka Yokokoji assumed office on June 27, 2023 and didn’t attend any meeting in
FY2022. As for each director’s and auditor’s brief personal record, refer to ‘FY2022 Annual Securities Report’.
https://ssl4.eir-parts.net/doc/6958/yuho_pdf/S100R5KX/00.pdf

09Governance

Environment

Social

Evaluation of the Effectiveness of the Board of Directors
auditors were asked to complete a self-evaluationquestionnaire that covered various perspectives,
including the composition of the Board of Directors,
operation, functions, roles, and the provision of
information to outside directors and corporate
auditors.

With the aims of achieving sustainable growth andenhancing corporate value over the medium-to longterm, the Company evaluates the effectiveness of theBoard of Directors every fiscal year in an effort tostrengthen its functions and achieve continuous
improvement. In FY2023, directors and corporate

Evaluation Process
Directors and corporate
auditors complete an
anonymous selfevaluation questionnaire

Questionnaires responses arecollected from all directors andcorporate auditors and tallied
to produce data for comparison
with previous fiscal years

Results are analyzed
and evaluated by a third
party to enhance
objectivity andtransparency

Analysis and evaluation
results are reported to theBoard of Directors, whichthen holds discussions to
identify issues

Remuneration of Directors and Corporate Auditors
The following is a summary of the policies regarding
decisions on remuneration and other details of
individual directors.

three years by a certain percentage and it is paid
together with the monthly fixed remuneration. Nonmonetary remuneration is paid in the form of restricted
shares, in which the transfer of the shares is restricted
for the duration of the director’s term of office. The
number of restricted shares is determined based on acomprehensive consideration of the Company’sbusiness performance and share price, according to
the individual directors’ positions, responsibilities, andother considerations. These shares are granted at a
specific time every year.

Basic policy
Regarding the remuneration of directors, we haveadopted a structure in which remuneration is linked toshareholder profits, to enable adequate functioning as
an incentive to achieve sustainable growth incorporate value. Our basic policy is that, in thedetermination of the remuneration of individual
directors, such remuneration should be at an
appropriate level based on the responsibilities of eachdirector. Specifically, remuneration of directors andexecutive officers consists of basic remuneration,
performance-linked remuneration, and non-monetary
remuneration (restricted share-based remuneration).
Meanwhile, outside directors, who have a supervisory
function, will be paid basic remuneration only, in lightof their duties.

Determination of remuneration, etc.
Determination of the specific details of remuneration,etc., of individual directors is entrusted to thepresident, based on a resolution of the Board of
Directors. Pursuant to the basic policy, the president
determines remuneration amounts for individual
directors after seeking the deliberation and consent of
the Nomination and Remuneration Advisory
Committee regarding basic remuneration andperformance-linked remuneration. For non-monetary
remuneration, after deliberation by the Nomination andRemuneration Advisory Committee, the number ofrestricted shares to be allotted to individual directors isdetermined by the Board of Directors.

Basic remuneration
Basic remuneration of directors is a fixed monthly
salary determined on the basis of a comprehensive
consideration of other companies’ standards, theCompany’s business performance, and employee
salary levels, according to the position, responsibility
and contribution of individual directors.

Remuneration of corporate auditors
Corporate auditors are paid basic remuneration only,
in light of the fact that their role is to audit the
Directors’ execution of their duties. Basic remuneration
is determined separately for the standing and nonstanding corporate auditors within the limit decided byresolution of the General Meeting of Shareholders andis decided upon discussion with the corporate
auditors.

Performance-linked remunerationand non-monetary remuneration
Performance-linked remuneration is cash
remuneration that reflects performance indicators, withthe aim of raising awareness of improving
performance each fiscal year. The amount iscalculated by multiplying the average amount ofconsolidated ordinary income for the most recent
10Governance

Environment

SocialInitiatives for Strengthening Corporate Governanceestablishment of the Nomination and Remuneration
Advisory Committee, we are working to improvetransparency and fairness and to strengthen
monitoring functions. We will continue in our efforts tomake ongoing improvements to corporate governanceinto the future.

To enhance corporate value over the medium- tolong-term, we are working to improve theeffectiveness of the Board of Directors. This includes
ensuring diversity in the Board, allowing the outside
directors to demonstrate their functions, improving thequality of deliberations, and strengthening theexecution auditing functions. Further, with the(Year)

2002

2003

2015

2016

2017

2018

2019

2020

2021

2022

2023

Introduced executive officer system
Reduced directors’ terms to one year
Abolished directors’ retirement benefits scheme (2012)
Election of one outside director

Increased to two

Increased to three
Outside directors account for more than 1/3

Implemented evaluation of effectiveness of Board of Directors (once a year)
Elected female outside director
Established Nomination and Remuneration Advisory Committee
Disclosed skills matrix
Introduced non-monetary remuneration (restricted shares)

Composition of Directors
Outside: 3

Female: 1

33.3%

11.1%

Ratio of outside
directors

 omposition of NominationC
and Remuneration Advisory
Committee
Outside: 3
60%

Ratio of female
directors

Ratio of outside
directors

Internal: 6

Male: 8Internal: 2

66.6%

88.8%

40%

11

Governance

Environment

SocialInformation Security
We have placed the highest priority on protecting the information provided by our customers. To ensurethat information assets are protected and handled safely, we are undertaking appropriate risk
management and a range of initiatives to maintain and improve information security measures.
In the belief that risk management is crucial, we are working to enhance awareness of information security, while proceedingwith activities for continuous improvement through the PDCA cycle.

PLAN

DO

Policy and relevant rules

Employee education

To ensure that information assets have strong protection
and are used and shared appropriately, we haveestablished an Information Security Policy and Information
Security Management Rules. Regarding personal
information, we have established a Personal Information
Protection Policy, Personal Information Protection Rules,
and Specific Personal Information Handling Rules, andwe comply strictly with these policies and rules.

We are regularly sending the information to the employees on
the methods of cyber attacks, how to find suspicious e-mails
and how to respond if they suspect that their computer may
have been infected with a virus. This year we also conductedtraining for our expatriates and we hope for the enhancementof the security awareness as the whole group.

CMK Group Information Security Policy

We have compiled the procedures when an employee
received a suspicious e-mail. One step to take for him (her) is
to email to the specified address for reporting of the System
Department. The department finds out if there is any employee
who have received the same e-mail. If there is, the department
promptly alert him/her and prevents the expansion. Thus weare reducing the infection risks systematically.

The CMK Group believes that the appropriate
management of information assets, one of its managerial
resources, is most important. Under this Basic Policy, we
will endeavor to maintain and enhance information
security in a systematic and continuous manner.
1. We will comply with relevant laws, regulations,internal rules, other social norms, etc.
2. In order to appropriately manage the information
assets that we have, we will ensure information
security according to the degree of importance andrisk.
3. We will provide officers and employees with education
regarding information security
4. We will establish and maintain the relevant
management systems through continuous activities forenhancing information security.

Countermeasures against suspicious e-mails

P D

A C

CHECK

System-based security measures
To guard against information leaks due to the loss of IT
devices or cyber attacks, we implement various systembased measures and check the status of penetration ofthese measures on the ground. Such measures include
installing antivirus software on terminal devices, encrypting
PC hard disks, and prohibiting the use of external storage
devices such as USB flash drives in principle.

Response to risks

Measures against natural disaster risks

In the “Plan” stage of the PDCA cycle, we identify
information assets, clarify high-risk assets, and analyze
their confidentiality, completeness, and availability. Basedon the likely impacts in the event a risk is manifested, we
envisage what measures should be taken against those
impacts and decide on those measures.

To prepare for natural disaster risks, we conduct statuschecks of disaster preparation measures at our data
centers. We have also made arrangements to ensure that
operations are not impeded even if a cloud environment
becomes unavailable, through decentralized use andintroduction of redundancy in cloud environments.

ACT

Improvement activities
Based on the examination of the impacts of risk exposure, countermeasures and decision-making regarding those
impacts, and the appropriateness of those countermeasures and decisions, we manage information assets
appropriately while flexibly correcting course as needed, including making amendments as required.

[Examples of measures (excerpt)]- Detection and blocking of suspicious e-mails- Monitoring and detection of terminal devices using EDR
system- Encryption of personal computer hard disks- Data storage on designated clouds- Remotely locking operations and acquiring location
information of smartphones- Restriction and management of connection with external
storage devices such as USB memory sticks*EDR: Endpoint Detection and Response A solution in response to cyber attacks through the detection and investigation of suspicious
behavior or traces at endpoints such as personal computers connected to the network.

12Governance

Environment

SocialEnvironmental Protection
Recognizing environmental protection activities as an important management issue, we formulated a Mediumto Long-Term Environmental Action Plan under our Environmental Policy to clarify our basic stance, and we arepromoting related activities under this plan. ALL CMK employees will work together to realize a sustainable
society in co-existence with the Earth.

Challenge for Carbon Neutrality

Smart e-changes NetZero
1st Step

Responses to
Climate Change
Prevention ofenvironmental
pollution

Waste reduction
Resource
recycling

Strengthen initiatives forenvionmental activities toachieve SDG’s goals in2030

Five Issues

Management ofenvironmentallyhazardous substances

2050

Biodiversity
conservation

2030

Aim at substantial zero CMK’s
CO2 emissions to contributeto mitigating climate change.

Carbon Neutral

2020

Responses to Climate Change
The CMK Group has endorsed the Task Force on Climate-related Financial
Disclosure (TCFD), and we are pursuing initiatives to mitigate climate change.

GovernanceMonitoring by Board of Directors- The Board of Directors, which is accountable for ESG risks and opportunities,
including climate change, and the company’s responses to them, receives regular
reports on these matters from the Sustainability Promotion Committee. The Boardis also responsible for deliberating and making decisions on key related policies.
Further, it takes such matters into account in the deliberation and decision of annual
plans and budgets.
- The Board of Directors supervises progress on climate-related indicators andtargets and, if necessary, deliberates and decides on measures.
Roles of management in evaluation and management of climate-related risks
and opportunities- We have established the Sustainability Promotion Committee composed of the
President, as its chairperson, the Director in charge of CSR, as its vice chairperson,and other internal directors. The Human Resources and General Affairs Department
is its secretariat.
- The Sustainability Promotion Committee checks climate change-related risks andopportunities and progress on related indicators and targets, identifies key issues,and proposes measures to the Board of Directors.

Governance Structure
for Climate Change Risks
Board of Directors
Regular reports

Supervision(Chair)President
and CEO
Sustainability Promotion
Committee(Secretariat)
Human Resources andGeneral Affairs Department

Strategies‌
Havingidentified “climate change” as a medium-to long-term risk, for the purpose of discussing strategies andorganizational resilience based on related risks and opportunities, we have conducted scenario analyses with a primary
focus on the automotive products business in Japan to consider the long-term impacts on our Company up to 2050, whilereferring to the climate change scenarios (*below 2°C Scenario and 4°C Scenario) of the International Energy Agency (IEA)
and the Intergovernmental Panel on Climate Change (IPCC).
*Below 2°C Scenario: Refer to external scenarios such as IEA’s WEO SDS. Scenario in which measures such as strengthening of regulations and market changes are taken to
keep temperature rise to a minimum
4°C Scenario: Refer to external scenarios such as IPCC’s RCP 8.5. Scenario in which physical impacts, such as extreme weather events, occur as a result of temperature rise13

Governance

Environment

Social

Risk Management
Risk Management Structure
・Environmental Issues Subcommittee which is establishedunder the Sustainability Promotion Committee examines
climate changes.

Risk Management Structure
Sustainability Promotion
Committee

Risk identification and evaluation process
・Environmental Issues Subcommittee identifies and evaluates
climate change risks and opportunities in coordination withthe related divisions.

Environmental Issues
Subcommittee

Social Issues
Subcommittee

Risk Management Process
Management of climate
Initiatives on social issues
change risk, etc.
・As the process for managing climate-related risks, theEnvironmental Issues Subcommittee analyzes climate-relatedrisks, develops and promotes countermeasures, andmanaged progress on an ongoing basis.
・We assign an order of priority to climate-related risks based on the occurrence of the risks/opportunities and their likely
impact.
・Serious risks and countermeasures are reported and shared at the Sustainability Promotion Committee. After theCommittee reexamines these including the evaluation’s validity, they are regularly reported to the Board of Directors.
Integration status of organization-wide risk management
・We have established a cross-sectional risk management structure based on the company-wide policy and arestrengthening our risk management.

Major Risks, Opportunities, and Responses Related to Climate Change(Evaluation focused on automotive products business in Japan)
Scenario

Factors

Changes

Below 2°C
(Transition)

Impact ofcarbontax- Transfer of carbon tax to raw
materials costs- Imposition of carbon tax on
operating costs- Transfer of raw materials
manufacturers’ renewableenergy introduction costs to
product prices- Increase in unit price ofsurcharges for promoting
renewable energy generationand procurement- Increasing importance of energy
conservation for decarbonization

Strengtheningofdecarbonization
policies

Risk/
DegreeOpportunity of Impact
Risk

➡

Risk

➡

Risk

➡

Opportunity

Changes incustomer
behavior,
demandfor
responsible
actionagainstclimatechangeProgressin shift toEVs and
FCVs

4°C(Physical)

Naturaldisasters(Acute)(Chronic)- Demands from customers forproviding of LCA-like CO2
emissions and for CO2
reduction- Increased risk of reputational
damage, etc. due to inability todisclose responsible climatechange response activities (andinvestment potential through theevaluation of disclosures)- Increase in demand for
products used in EVs with
progress in shift to EVs and
FCVs- Increase in demand for
products for dedicated charging
devices and other EV-related
equipment in proportion withpopularization of EVs- Suspension of operations due
to damage to factories andoffices, damage to customers,
and damage to materials
suppliers caused by natural
disasters- Increased load on air
conditioning due to risingtemperatures➡

Opportunity扌Opportunity

扌

Risk

➡

Risk

➡

Opportunity High扌扌Medium扌
Low

Impact on CMKCMK Countermeasures- Increase in raw material costs- Increase in operating costs due toimposition of carbon tax for Scope
1&2 emissions- Increase in raw material costs- Encourage business partners to
reduce CO2 emissions, consider
low-emitting materials, etc.
- Increase ratio of renewable power- Develop and procure materials withhigher energy efficiency- Increase in operating costs- Reduce power usage throughenergy-saving measures- Lower power costs, carbon tax cuts

- Upgrade to facilities with higher
energy-saving effectiveness andlower CO2 emissions- Increase utilization rates of
production equipment- Promote visualization of energy
consumption- Promote calculation and disclosureof CO2 emissions, reduce CO2
emissions through energy-saving
measures and procurement of
renewable energy- Disclose climate change response
activities

扌

Risk

Risk High➡
Medium ➡
➡
Low

- Lower sales due to failure to respondadequately to requests from
customers- Loss of reputation, lower recruitment
capability and market share, higher
capital costs due to failure todisclose climate change responses- Higher sales of products for EVs- Higher sales of products for EVrelated equipment- Invest in and develop market
channels for products for EVs- Strengthen collaboration withcustomers- Secure multiple suppliers, consider
alternative materials- Lower sales due to suspension ofoperations at own factories- Confirm the actions to be taken in
the event of a disaster with suppliersand customers, formulate recovery
plans- Higher costs for temperature control
of clean rooms and storage
warehouses- Upgrade to facilities with higher
energy efficiency

14

Governance

Environment

SocialInitiatives on Carbon Neutrality
In order to contribute to mitigation of climate change, CMK corporation is aiming at realization of carbon neutrality. We
promote our initiatives to reduce our own CO2 emissions.

Road Map toward Carbon Neutrality in 2050
2023
Power
reduction

In-house
renewableenergy

2024

2025

2026

2027

2028

2029

2030

2040

2050

Initiatives on energy saving(Equipment upgrade, etc.)
Renewal of old-style refrigerant air
conditioners
In-house solar power(Domestic area 1)
In-house solar power(Domestic area 2)
In-house solar power(Domestic area 3)

Introduction of
PPA, In-house consumable type,renewable
CO2-free menu
energyRenewal of gas equipment(electification)
OthersRenewal of company cars
(with EVs)
※The target of carbon neutral in 2050 is for our domestic operations.

Image Diagram of CMK’s carbon neutrality achievement (CO2 emissions)<Medium-term CO2 emissions target: Domestic>
・46% reduction in 2030 (compared with FY2013)<Carbon Neutral: Domestically>
・2050

100%

EnergyReduction

50%

0%

CO2
emissionsfromelectricityderived
energyCO2Emissions
reduction

EnergyReduction
In-house renewable energy

CO2emissionsfromelectricityderived
energyCO2Emissions
reduction
In-house renewable energy

CO2emissionsfromelectricityderived
energyCO2 emissions
derivedfrom fuelCO2 emissions
derivedfrom fuelCO2 emissions
derivedfrom fuel

2013

2021

2030

Renewable energy
introduction

CO2
Emissions
reduction

CO2 emissions
from electricityderived energy

Renewal(electrification)

Renewableenergyintroduction

CO2
Emissions
reduction

CO2 emissions
from electricityderived energy

2040

2050

Indicators and Targets
CMK Corporation has been promoting environmental initiatives
under our Medium-to long-term Environmental Action Plan “Smarte-change 30” established in 2020. As responses to climatechange to achieve carbon neutrality are a matter of urgency, we
have revised our 2030 medium-term targets and will make a
fresh start with “Smart e-changes 30 plus.” Recognizing theidentification and reduction of supply chain emissions as key
issues, we will engage in achieving this new plan.

Indicators

Target<Medium-term CO2 emissions target: Domestic>
1. CO2 emissions ・46% reduction in 2030 (compared with FY2013)(Scope 1, 2)<Carbon Neutral: Domestically>・2050
2. Energy
consumption

Energy reduction target (CMK Group): 1%
energy intensity reduction (compared withprevious fiscal year)

Internal Publicity and Initiatives
To let all the employees share the importance of carbon neutrality, we are informing them of related
information through the company newsletter, ‘CMK NEWS’.
We encourage each employee to work positively toward CO2 emissions reduction in the process of his (her)job in coordination with the company-led actions.
15Governance

Environment

SocialSupply chain emissions (Scope1,2,3)
In order to contribute to mitigating climate change, we recognize the identification
and reduction of supply chain emissions as a key issue. Thus we are positively
addressing this issue.
In FY2022, the Scope 1 reduced CO2 by 724t and the Scope 2 reduced CO2 by
2,338t. year on year. Their ratio in the total CO2 emissions stayed almost the sameas the previous year.
CO2 emissions of the Scope 3 which is 73,851t. occupy rather a large proportionand its biggest, Category1 (purchased products and service) sent out 37,329t.CO2.
We keep on striving toward realization of decarbonized society, do our best to
reduce the emission of our own, and promote carbon reduction throughout the
supply chain by cooperating with our clients.

Scope 1,2

FY2022

Percentage
of total

Direct emissions frombusiness activities(Scope1)

11,062t-CO2

8.5%

Indirect emissions throughpurchasing (or othertransaction) power(Scope2)

44,924t-CO2

34.6%

Scope 3

FY2022

Percentage
of total

Upstream anddownstream emissions

73,851t-CO₂

56.9%

FY2021 Scope1,2,3
2,546
Scope1

62

Scope2

2,980

Category3

9,592

8,129

916

11,786CO2 emissions
total amount
137,782 t-CO2

Scope3Category7

506

11,062

8,834

10,124

Category4

358

93

9,952

Category2

Category6

486

2,685

966

Category1

Category5251

FY2022 Scope1,2,3
2,584

47,261

41,775CO2 emissions
total amount
129,837 t-CO2

12,41744,92437,329Category10
Category12
Category13‘Scope3 Specifics’Distinction

CO2 emissions：t-CO2

Scope３Category

1

Purchased
products/service

2 Capital goods

Calculation target

Calculation method

Emissions in production procedures of materials, parts, purchased products,
materials related to sales, etc.

41,77537,329Emissions along with in-house construction/production of capital goods

・Emissions intensity⇒DB 3.2 (based on acquisition amount)

10,124

12,417

9,952

8,834

Activities related to ① Emissions along with procurement of fuels from outside Emissions along with・Emissions intensity
3 fuels and energy
procurement of neccesary fuel for power generation for electricity procured from⇒① IDEAv2 (based on purchased volume)
outside Scope1,2
outside.
⇒② DB 3.2 (based on purchased power)

Upstream

4

5Transport/Delivery(upstream)

Waste fromoperations

6 Business trip

Downstream

FY2021 FY2022

・Emissions intensity⇒DB 3.2 (based on purchased volume)
・Investigation on supplyer⇒Scope1.2
and Scope3 of supplyer (Category1) *1① Emissions along with logistics (transport, cargo handling,storage),of products/
service from supplyers to CMK purchased in the fiscal year to report.

<exempted>
・Impact is small——② Emissions along with logistics service (transport, cargo handling, storage)(whose
cost CMK pays) of those puchased except ① in the fiscal year to report .

・Emissions intensity⇒DB 3.2（based on monetary amount)

966

916

Emissions along with transprt/disposal of in-house waste

・Emissions intensity⇒DB 3.2（based on weight)⇒IDEAv2 (based on weight)

2,980

2,685

① Transportation (Airplane, ship, railway, bus, taxi, owner-driver car)② Accomodation expenses (expenses or mumber of nights)

・Emissions intensity⇒DB 3.2（based on monetary amount)

62

93

7

EmployeecommutingTransportation(Railway, bus, owmer-driver car) Covered by commuting allowance・Emissions intensity⇒DB 3.2（based on monetary amount)⇒IDEAv2 (based on indivisual/km)

2,546

2,584

8

Lease Assets(upstream)

Emissions along with operation of lease assets of CMK's (except for cases
caluculated in Scope 1,2)

<exempted>
Emissions of lease assets we rent are caluculatedin Scope 1,2.

—

—

9

Transport/Delivery(downstream)

Emissions along with logistics (transport, cargo handling, storage, sales) (only thoseof which we do not pay for) of products sold by us to reach customers<exempted>
・Our products are intermediate products (parts)that are not sold to end users.

—

—

10

Processing of soldproducts

Emissions along with processing by other businesses (valuables in emissions which
are sent out)

・Emissions intensity⇒DB 3.2（based on weight)⇒IDEAv2 (based on weight)

251

358

11

Usage of soldproducts

Emissions along with usage of sold products by users (consumers/businesses)<exempted>
Not calculated because our products consume
too little energy functionally.

——

Emissions along with disposal of sold products by users (consumers/businesses)

・Emissions intensity⇒IDEAv2 (based on weight)*Intermidiate processing service for disposal(disassembling/dismantling~crushing/sorting)*Incineration service

9,592

8,129

Emission along with renting lease assets

・Hearing investigation about Scope1,2 of lessee

486

506

Emissions by franchisee<exempted>
No such activities——

Emissions along with investment activities<exempted>
No such activities——

Disposal of sold12
products

13

Lease Assets(downstream)

14 Franchise
15 Investment

DB 3.2 : Emissions intensity data base to calculate such things as greenhouse gas emissions by organizations involved in supply chain(Ver.3.2)
IDEAv2 : IDEA(Inventory Database for Emvironmental Analysis)Database excel version for calculation of greenhouse gas emissions of supply chain*1 For those of purchased products/service whose materials have big impact, secondary customer's Scope1,2 data is collected and calculated.

16

Governance

Environment

SocialCO2 Emissions

Scope1,2 Annual CO2 Emissions (Domestic/Overseas)

Because we recognize that how we react to climate change is theurgent question, we strive toward carbon neutrality in 2050.
CO2 emissions of the Domestic Group in FY2022 amounted to60,859t-CO2, 95.5% of the previous year and 61.0% of FY2013.
Co2 emissions of the Overseas Group amounted to 130.664t-CO2,
80.6% of the previous year.
We are actively working on awareness-raising activities, such as
displaying posters and setting up special environmental awarenesszones to educate employees about the issues.

(x 1,000 t-CO2)

200

169

162

150

131

100
50

79 160

72

65

60

165
68

157
64

56

150
61

51

121

49

12 13
11 12
14 12
12 12
2018
2019
2020
2021
Domestic group : ■ Scope1 ■ Scope2
Overseas group : ■ Scope1 ■ Scope20

Energy Consumption/Power Consumption
CMK Group is promoting activities of saving energy both in the
manufacturing sectors and in the administrative sectors.
Energy consumption of the Domestic Group in FY2022 amounted to301.000kl crude oil equivalent, 90.5% of the previous year.
Energy consumption of the Overseas Group amounted to627,000klcrude oil equivalent, 82.7% of the previous year.
On the other hand, power consumption of the Group of Japan which
accounts for more 80% or more of the energy consumption
amounted to 101,231MWh, 89.9% of the previous year.
Power consumption of the Group overseas amounted to222,225MWh, 83.0% of the previous year.
In FY2022, we realized 37 cases of energy saving such as upgrading
to high-efficiency compressor and air conditioner, equipping withenergy-saving type goods and replacing ordinary lights with LED.
Thus we are supposed to have reduced power consumption by
about 3,600,000kWH.
Our Niigata Factory strengthened to monitor power consumption ofeach process as part of visualization of energy consumption.
In FY2022, in response to soaring energy prices, we participated insaving energy campaign and achieved good results all together.

178

172

12 10
2022

(FY)

Annual Energy Consumption (Domestic/Overseas)(Crude oil equivalent, x 1,000 kl)

100
80

73

70

76

69

63

60
38

40

35

34

33

31

20
0

2018

2019
2020
2021
■ Domestic group■ Overseas group

2022

(FY)

Annual Power Consumption (Domestic/Overseas)(MWh)

300,000
250,000

256,629

243,397

267,879
241,568

222,225

200,000
150,000

126,587

116,328

100,000

110,103112,665

101,23150,0000

Waste Reduction/Resource Recycling
The CMK Group defines zero emissions “to achieve zero emissionsof waste destined for direct landfill disposal (not including landfill
disposal of residue from intermediate treatment outsourced toindependent operators)” and is working to achieve this goal. In
FY2022, the Domestic Group maintained its 100% record of zero
emissions, while overseas, the result was 99.4% (up 0.1point yearon-year).

Zero Emissions Rate
100

100

Others 4%

Waste oil 2%
Sludge8%
Generation
amount
5,704tWaste plastic
22%

Waste alkali
35%

Waste acid28%

Breakdown of Waste generation by the Overseas Group
100

100

100

99.3

99.4

(%)

Waste rag
5%

Waste board
4%
Others
10%

97.3
96.1

95
94.8

Sludge8%90Domestic group
85

2020
2021
2022
(FY)
■ Overseas Group

Breakdown of Waste Generation by the Domestic Group
Wood chips 1%

Zero-emission initiatives

100

2018
2019
■ Domestic Group

2018

2019

Waste plastic
27%

Overseas group
2020

2021

Generation
amount
6,857t

2022

17

(FY)

Waste alkali 6%

Waste acid40%

Governance

Environment

SocialEffective use of water resources

Annual Water Consumption

We actively promote various initiatives for effectively using
water resources and reducing water consumption, such as
the introduction of water recycling equipment and theinstallation of water saving functions in our production facilities.
Our overseas factories implement recycling campaigns as acountermeasure against water resources risk. In FY2022,
water recycling volume achieved by overseas factories wereas follows: 246,000㎥ by CMK Thailand, 219,000㎥ by CMK
Wuxi, and 70,000㎥ by CMKC Dong Guan(x 1,000 m3)

8,000
6,882

6,341
6,000

5,266

6,202
5,287

6,189
5,175

5,095

5,063

4,958

4,000

2,000

0

Management of Environmental Hazardous
Substances

2018

2019

2020

■ Domestic group

The CMK Group defines chemical substances contained inmaterials, etc. or used in manufacturing processes that havebeen determined to have significant effects on the global
environment or human health in accordance with the laws andregulations of Japan and overseas jurisdictions, customer
requirements, and industry standards as Environmental
Hazardous Substances (EHS) and manages them accordingly.
“CMK Group Management Standards of Environmental
Hazardous Substances in purchased materials” which covers
every kind of legal regulations and customers’ requirements isthe foundation for us to deal with EHS inside and to ask forcooperation of our valued suppliers.

2021

2022

(FY)

■ Overseas group

EHS management certification scheme
We also conduct EHS management audits of our business
partners every few years with the aim of confirming,
maintaining, and improving EHS management activities.
We implement the audits by visiting or remotely via web
conference systems. Business partners that receive highoverall scores in these audits are certified as “CMK Green
Partners”.

Environmentally-friendly PCB “E-spec ”
We label products that meet our own environmental
standards as “E-spec” products and engage in reducing
our environmental footprint through the supply of theseproducts.

Green procurement activities
CMK Corporation develops environmentally-friendly products
and engages in environmentally-conscious production. As partof this approach, we implement green procurement, whichprioritizes the purchase of materials with low environmental
impact from business partners that have well-establishedenvironmental management systems. In evaluating business
partners, we check their EHS management mechanisms andtheir rules and operation records according to a checklist
produced by the Joint Article Management Promotionconsortium (JAMP). We also consider their legal complianceand biodiversity conservation initiatives. Based on theevaluation, we are implementing Green Procurement whichprioritize the partners whose environmental load is less.

HF

PF

HF
PF
E-spec label (registered as trademark in 2000)*The E-spec label is attached to products that meet theE-spec criteria on request.

Biodiversity Conservation
As community-based biodiversity conservation activities, CMK
Corporation is engaged in collaborative initiatives with local
governments and volunteer groups near each business site
and in the local communities in FY2022, we raised juvenile
salmon hatched from eggs and released them into the Nodai
River in Niigata. We also worked on the extermination of alien
species and protection of native species in the Gunma region.
Chichibu, Saitama, is one of
the largest regions where
Setsubunso (Eranthis
pinnatifida), near-threatened
species, is growing in
profusion. We cleaned andsupervised the green areaaround the Chichibu factory.
Also we did protective
NPO ‘Togeso, Gosen’
activities of the natural habitat.

Soft windflower

Setsubunso

Prevention of Environmental Pollution
As activities for preventing environmental pollution accidents, we incorporate environmental risk assessments and strive to prevent
environmental risks. Further, under our environmental management system, we constantly monitor the establishment and revisionof laws and regulations, etc., to clarify the latest compliance matters on which our business activities are based. At the same time,
we regularly check the status of compliance and, in the unlikely event that there are any concerns, we make improvements andcorrections, ensuring that legal compliance is our top priority.
18

Governance

Environment

SocialFair trade
Following the CMK Group Procurement Policy, we aim for sustainable development of our mutual
corporate activities with our business partners.

CMK Group Procurement Policy
Based on the recognition that our suppliers are good partners, we will value mutual growth. By conducting
procurement activities based on the following policy, we will fulfill our corporate social responsibility together with ourbusiness partners with the aim of achieving the mutual development of corporate activities in a sustained manner.
Supplier Selection Policy
In commencing and continuing transactions, we will
evaluate and select suppliers in a fair and impartial manner,by comprehensively taking the following items into accountwith the aim to build good partnership with suppliers.
1. Compliance with laws and societal norms
2. Initiatives regarding human rights/labor, safety andhealth, the environment, ethic/fair transactions,information security, etc.
3. Management soundness
4. Quality maintenance and enhancement, optimal prices,
observance of delivery date
5. Supply chain continuity capability and degree ofcooperation during times of disaster and other
unforeseen circumstances

Basic Policy
1. Compliance with laws and societal norms
We will comply with the laws, regulations and social
norms of the countries and regions in which we conduct
procurement activities.
2. Fair and equitable transactions
We will provide equal opportunities for transactions to allcompanies in Japan and overseas. We will not engage inabuse of a superior bargaining position and will not
accept or demand gift-giving, entertainment or otherbenefits beyond socially prevailing standards andcommon sense.
3. Responsible procurement
We will conduct responsible procurement activities byconsidering human rights and the global environment.

CSR Surveys of Business
Partners

Responsible Procurement ofMineral Resources

With the aim of enhancing our partnerships with ourbusiness partners, we conduct CSR surveys on a regularbasis. In FY2022, we surveyed 55 business partners. The
results showed improved ratings for all items, confirmingthat awareness of CSR activities has further improved
among our business partners. These surveys give ourbusiness partners an opportunity to better understand ourCompany’s approach to CSR, and we will continue to
conduct them in the years ahead.

Violations of human rights by armed groups andenvironmental destruction in conflict-affected and high-riskareas (CAHRAs), such as the Democratic Republic of theCongo and neighboring countries, have become global
concerns. As armed groups are funded by illegally mined
mineral resources, surveys are conducted every year to
trace the use of such minerals back through the global
supply chain.
To ensure that we are not complicit in human rights
violations and environmental destruction, we actively
conduct these surveys, as well as asking our business
partners for their cooperation for the responsible
procurement of mineral resources.

Establishment of BCP
Framework
With the cooperation of our business partners, we holdregular meetings on BCP and promote initiatives toestablish strong procurement and production frameworks,
in order to share BCP policies and frameworks between
the CMK Group and our business partners.

Initiatives to abide by the
Subcontract Act
CMK Corporation, as a parent company, has establishedthe internal system where violations of the act hardly
happen under restrictions in order to abide by the act
whose purpose is to realize fair subcontract transactions
to protect subcontractors’ advantage.
19

Governance

Environment

SocialHuman Rights and Labor
Based on our management policy of mutual respect regardless of individual attributes, the CMK Group
contribute to realization of the safe and comfortable society by continuously supplying products that
adapt to the society and its values.

CMK Group Human Rights Policy
In June 2022, we established “ CMK Group Human Rights Policy” which complies with “International Bill of Human Rights”,“ILO Core Labor Standards”
1. Basic policy on human rights
2. Scope of application
3. Commitment to respect of human rights
4. Compliance with applicable laws, regulations,rules, etc.
5. Identifying, treating, and disclosing humanrights issues
6. Remedy / correction
7. Dialogue/discussion with stakeholders

Please check the website for details
You can see the details of "CMK Group Human Rights Policy" at
the URL below
Japan CMK Corporation/Corporate Information/Human Rights
Policy(http://www.cmk-corp.com/company/vision/)

Promotion Structure
The CMK Group launched “Sustainability Promotion Committee” last fiscal year and installed “Social Issues Subcommittee”
under it in order to strengthen cross-division collaboration that leads to the overall promotion of human rights activities.

Human Rights Due Diligence Activities
According to the establishment of “CMK Group Human Rights Policy” now we are promoting the human rights due diligence
activities. Actually, to identify human rights impact assessments, promoting various activities such as compilation of a humanrights risk map from the perspective of seriousness and probability, management of the supply chain to prevent negative
impacts, setup of consultation counters for inside/outside human rights violation and so on.

Human Rights Due Diligence
Disclosure of activities
on website or reports

Specification/Analysis/
Evaluation of Human
Rights Risks

Human
Rights
ImpactAssessment

Monitoring

Preventionof Negative
Impacts
・Formulationof action plan・Implementationof preventive
measures

Follow-up surveyof effectiveness ofactivities to prevent
negative impacts

Human Rights Education/Training

Grievance Mechanism

20

Correction/Remedy

Formulation of
Human Rights Policy

Information
DisclosureGovernance

Environment

SocialPromotion of Diversity
We are aiming at realization sustainable society through our business activities.
Promotion of diversity is an essential initiative to create new values in the environment which changes daily. Based on the
CMK Group Human Rights Policy, we are also aiming at developing together while each one fulfills his/her duties making themost of his/her characteristics regardless of gender, nationality, whether he/she has a disability.
(1)Promotion of women’s advancement
To promote women’s advancement, we have worked to enhance their motivation by positive assignment andeducation/training for women who have a potential to join management. As a result, the percentage of women in
management reached 4.2% in FY2022 and exceeded the average of the industry (3.2%). From the medium-term andlong-term point of view, we are making the environment where women can be actively involved.
To correct gender disparities, to promote dispelling awareness of gender roles, and to expand job categories for
women, we abolished the employment management classification, “General”, which referred to general office work.
In addition, we are promoting childcare leave acquisition rate of 100% for men, and supporting the child-rearing
generation and nursing-care generation by expanding child-care and nursing-care systems that enable the employees
to balance work with family.
Promotion of women's advancement
Career training for women

Cultivate motivation to build her career

Training

Education to raiseawareness for superiors

Dispel awareness of gender roles in workplace

Employment
managementclassification

GeneralImprovement ofchildcare andnursing caresystemRegion-specified

Was abolished as general office work classification in 2022
192 people of this category were converted to region-specified staff
Regular position in a specific region

Regular

Regular position without regional limitation

Childcare leave

Period is expanded to maximum 3 years(whose 5 days are paid)Childcare short-time work

Applicable period is expanded to the end of 9th grade

Exemption from overtime
work

Applicable period is expanded to the end of 9th gradeChildcare with nursing
care leave

Applicable period is expanded to the end of 9th grade*paid

Nursing care leave

Period is expanded to maximum 365 days per one recipient(whose 5 days are paid)

Nursing care day-off

Turned to be paid(2)Promotion of active participation of foreign nationals
To promote active participation of foreign
nationals, we provide them with education oftechniques of plural procedures to become
multi-skilled workers. Additionally, to let them
have better working environment, we arepromoting living environment improvement andsupporting their administrative proceedings incooperation with mediating agencies.
Also, when they have finished the training
program, we have a scheme to keep on hiringthem in our overseas subsidiaries if they wish towork there.
‘ Foreign technical interns

33 trainees in FY2022.

21

Governance

Environment

Social(3)Promotion of active participation of seniors
For the senior employees, we extended the retirement age to 65 years old to let them keep and enhance theirmotivation, and actively participate in the workplace realizing ‘Equal pay for equal work’.
We are also providing ‘Life plan seminar for 50 years old’ to let them make a safe life plan for the future, and ‘Career
training for 55 years old’ to give them an opportunity to reconfirm their work styles and their recognition of roles, aiming
at further enhancement of motivation.
For the employees of 55 years old or over, we also have an early retirement incentive system called, ’New career
support system’ for those who are thinking of second career, hoping to help senior employees realize their dreams.
(4)Promotion of employment/active participation of persons with disability
We are actively employing people with disability and the rate
Employment rate of people with disabilitiesof their employment is 2.74% (the average of all quarters)（％）
which exceeds the legal employment rate.
2.74
2.80
CMK
legal rate
We are promoting expansion of job areas where they can
2.70
2.60
work as they are and environmental arrangements to enable
2.50
2.45
2.43
2.50
them to utilize their abilities.
2.40

2.33

2.33

2.30

2.30

2.20
2.10
2.00

2.00
2017

2.20

2.20

2.20

2.20

2018

2019

2020

2021

2022

(FY)

Human resources Development
Stratified training

Common occupational education

Directors

Jobspecificeducation

Education for
globalization

Study abroad for language system

Work efficiency training

Various business skill acquisition training

Prevention of mental health problem training

The first-yeartraining

Women’s advancement related training

The third-yeartraining

Life plan seminar

Coach training

Personnel evaluation related education

Team leader training

Job-specific specialized education

Section chief training

Compliance education (Each level)

Posts

Grade

Section chief
follow-up training

Candidates for expatriates raising system

Manager trainingNew
employees

Self-development
supportNew executive
officer training
Next Generation
Leadership Training

Practical training system for staff based overseas

We are carrying out business activities which adapt to the various
values of the age. We are working to provide circumstances todevelop human resources adjustable to changes, andopportunities to enhance possibilities for employees.

Correspondence
education
Technical skill test
Qualificationacquisition
Business career
Language test
Englishconversation
Others

New employees’
production practice
New employee
training

Work-life Balance
We believe that the pursuit of employees’ mental and physical happiness is an important factor that leads to thedevelopment of human resources. We aim to realize a good balance between work and private life that allows employees tochoose various options, taking each employee’s value awareness and life style into account.

VO ICE

Comments from male employees who took child care leave

I took the childcare leave when I had the third son. I
had already shared housework as my routine. But
when I changed diapers, let the child have a daytime
nap, gave him a bath, and did other things for thekid, a day passed so quickly. I deeply realized how
hard childcare is. If this leave gives other fathersmuch more opportunities to experience childcare, I say, “like!”.
(Y.Y.)

By taking this leave, I could support my wife who were
exhausted from childbirth. Taking full responsibility forhousework and childcare, I certainly realized hardships ofchild-rearing and gratitude to my wife. This precious experience
led me to share housework and childcare with my wife.
Based on this experience, my wife and I will continue to takecharge of childcare together. (T.N.)

Comments from employee who took family care leave
My mother, who has been certified as needing long-term care at Level 5, resides in a special elderly care facility.
Due to the ongoing COVID-19 pandemic, there have been prolonged periods during which direct visits have not been possible.
However, necessary care cannot wait. I take caregiving leave to assist with outpatient visits and provide transportation for rehabilitation.
The flexibility of being able to take leave for half-days or even by the hour has been so helpful.
Caring for my aging mother can be challenging at times, but I plan to continue using this system effectively to spend time with her.

22(T.K.)Governance

Environment

SocialHealth and Safety
Ensuring the health and safety of our employees is the foundation that underpins the “Development andLasting Prosperity” of our business. In addition to raising each and every employee’s awareness ofhealth and safety, our aim is for all employees to work together to create safe and comfortableworkplaces that are free from danger, based on the philosophy of safety first in the workplace.

Health and Safety Management Structure
To manifest our company motto and Basic Philosophy, the CMK Group strives through our Safety and Health Policy tocreate a workplace environment where employees can work with peace of mind. As part of this initiative, we have appointed
an executive officer in charge of corporate safety and are actively promoting health and safety activities within the CMKGroup. The Company-wide Health and Safety Committee meets every six months to promote information sharing across the
CMK Group and company-wide activities for preventing occupational accidents.
CMK Group Health and Safety Management Structure
Under the General Safety and Health Manager, we
appoint health and safety officers at each locationand promote organizational initiatives.

President
Executive Officer in
Charge of Safety

Secretariat (Human Resources andGeneral Affairs Department)
CMK Thailand

CMKC(Dong Guan)

CMK (Wuxi)

CMK
Products

KanbaraFactory

Niigata
Factory

Chichibu
Factory

G Station
Factory

SE Center

Head Office

Initiatives for preventing occupational accidents (analysis of causes and reinforcement of countermeasures)
To improve and maintain the workplace safety
environment, we share the results of analysis of
information about past accidents from theperspective of preventing similar injuries.
In addition to health and safety patrols that include
risk assessments, led by the Health and Safety
Committee, we confirm the current situation,
including the status of countermeasures, throughhead office audits led by the Human Resources andGeneral Affairs Department.
Our Thailand factory is working to improve health andsafety by holding safety training sessions, which all
employees attend, to educate them about health andsafety. In addition, to prevent the recurrence ofoccupational accidents and raise safety awareness atour business sites, including overseas, we areworking to strengthen occupational accident
prevention in the CMK Group through measures suchas holding workshops and displaying posters.

Flying/falling objects

Burns

4%

2%

Falls fromheights

6%

Crashes andcollisions

25%

Slips and trips

11%

Cuts andlacerations
Contactwith harmful
substances

8%

12%

Types ofaccident
Crushing, caught
in machinery

17%

Reaction to
motion andimproper motion

15%

Breakdown ofOccupational Accidents in FY2022

Poster showing company-wide health and safety slogan 2023
*Selected from a total of 1,214 entries in a competition open to all employees (including overseas locations)23Governance

Environment

SocialHealth and Safety activities in overseas factories
CMK Wuxi pastes a two-dimensional code on each cart and uses PDA for inspection and management. In order to raiseawareness of “Near misses” and “risk prediction”, which are very common words domestically but unfamiliar overseas, weare promoting KYT activities and such activities as ‘Stop a second to detect near misses’.
CMK Thailand is raising a poster, detecting ‘Unsafe behaviors’ and ‘Unsafe situations’ and appreciating good results withpoints.

CMK Wuxi

Cart control system

KYT Material

CMK Thailand［SAFETY POINT ACTIVITY］Poster

Implementation of Stress Check
We conduct stress checks in October every year.
As well as encouraging employees to take note of their own stress levels, we conduct organizational analysis and areworking to create comfortable workplaces where employees can fully demonstrate their abilities without being troubled bystress.
We are providing the employees with consultation counters by experts in specific fields. Counseling by outside industrial
counsellors is also available.

Promotion of BCP Initiatives (Approach to Fire and Natural Disaster Risks)
The frequency of natural disasters caused by climatechange is increasing markedly, and the damage theycause is sometimes greater than expected. To
reduce the risks of fire and natural disasters, we are
implementing initiatives to ensure safety withthorough preventive activities, while assessing risks
and identifying the status of countermeasures atindividual business locations.
Fire and disaster evacuation drill at Niigata factory24Governance

Environment

SocialQuality and Safety
We are working to enhance quality and safety so that we can deliver attractive products and services
that give greater satisfaction to customers.
CMK Group Quality Policy

Initiatives to improve customer satisfaction
We aim to be a company that ensures customer
satisfaction through customer satisfaction surveys (CSsurvey).
We seriously accept customers’ comments and advice,
and work on improvement activities. We regularly informthem of results as feedback.

1. By complying with the relevant laws and regulations
and responding to the demands and requirements ofcustomers and society, we will conduct open and fair
manufacturing operations.
2. We will enhance the Quality Assurance System bycontinuously improving our Quality Management
System.
3. We will constantly aim at quality improvement throughthe formulation and implementation of action plans forestablishing and achieving quality targets.

INPUT
Advice/Comments from customers
Preparation

Quality Assurance System
We are clarifying and strengthening each organization’sfunction and roles committed to technology, production
and quality.

Analysis/Application

Investigation/Totalization

Analysis of answers/Improvement/Feedback of results[PLAN]
Technology departments are committed to procedure
design to assure quality.

OUTPUT・We take a survey and receive comments, advice andanswers from customers.
・We totalize and analyze to grasp points for
improvement from customers’ point of view.

[DO]
Production departments carry out just and fair
production provided that top management of eachsection is responsible for quality.

・We aim to be a company that ensures customer
satisfaction.

Thorough change management
Changes in products and manufacturing processes arelikely to have an impact on product quality. For changes in
the 4 Ms (material, man, method, and machine), we haveestablished a management structure under rules
integrated Group-wide that is capable of providing reports
to customers without delay.

[CHECK]
Quality departments are committed to strengthening
quality assurance system by monitoring and managing
activities, identifying real causes of defects andpreventing recurrence, and establishing quality/
environment management system.

Compliance with safety standards
We manufacture and deliver products made with materials
and processes certified by UL, the safety standard of theUnited States.

[ACTION]
Quality departments are promoters of PDCA (Plan-DoCheck-Action) who continuously improve Quality
Management System across the company working
together as one, who share the quality information
having close and coordinated divisions of roles, andreflect customers’ various needs.

Quality/Environment Management
All business locations of the CMK Group have obtained ISO 9001 certification, the international quality management systemstandard, and ISO 14001 certification, the international environmental management system standard. The CMK Group-wide
integrated management system based on these international standards, we are strengthening our governance in quality andenvironment systems.

25

Governance

Environment

SocialResponse to customer needs
To identify the needs of our customers, we create opportunities to understand their opinions, requests, andother matters through customer satisfaction surveys (CS survey) and active participation in trade shows.
We aim to be a company that ensures customer satisfaction through ongoing improvement activities.

Customer Needs Research Activities
Conduct CS survey

TopicsWe regularly conduct CS surveys in various categories,
such as “products,” “sales,” “quality,” “delivery deadlines,”and “technology.”

We hold monthly workshops aimed at sharing industry
information and deepening our understanding of legal
knowledge. We are putting in effort on improving our sales
staff’s ability to make proposals from the customers’
perspectives.

Links to management goals
We have mechanisms in which the improve–check–correct
cycle of processes naturally leads to achieving
management goals and improving customer satisfaction,by incorporating the issues identified by the analysis of CS
survey results into our management goals. Through theselinks, all employees work together to improve customer
satisfaction.

Awarding
We awarded DENSO electronics CO., LTD
for keeping the appointed dates for delivery.

Evaluation of effectiveness of improvement
activities with CS survey
In response to issues identified by the CS survey, in afollow-up survey, we verify/evaluate whether or not any
activities undertaken to improve those issues have beeneffective. We hope that this ongoing cycle of collecting,evaluating and analyzing customer needs and undertaking
improvement activities will lead to improved customer
satisfaction.

Trade show exhibits
We participate in various trade shows to research and collectcustomers’ needs.
As usual, we participated in Nepcon in Nagoya and Nepcon inTokyo as domestic exhibits. For our global development, as for
Europe, we participated in Electronica (Germany) in Nov., 2022,
as for North America, APEX Expo (USA) in Jan. 2023, both ofwhich enabled us to communicate with many new customers
including overseas mega suppliers. Recently, we receive manyinquiries from foreign users. We regard our factory in Thailand
as a base for global production. The sales from there are
actually expanding.
To expand into new technology fields, we newly participated in

Nepcon in Tokyo 2022

Wireless Japan 2022 whose concept is products/service/solutions utilizing latest wireless technology. In May this year,
we participated in COMNEXT 2023. We also participated inTechno-Frontier 2023, the exhibit of power electronics, where
we could introduce our thick copper high current PCBs whichhave high thermal conductivity and our thermal design
technology utilizing thermal analysis simulation. We could havecommunication with new customers. In this new technology
field, we propose a total solution composed of designprototyping-mass production-mounting with active expansion
from domestic production bases.

Electronica(Germany)

IPC APEX Expo (USA)[Expansion into new technology fields]

Wireless Japan 2022

COMNEXT2023

26

Techno-Frontier2023

Governance

Environment

SocialSocial Contribution
We promote social contribution activities in the belief that it is important for us, as a corporate citizen,
to achieve harmony and co-existence with local communities and to build relationships of trust withthose communities.

Donation to public facilities by
CMK Thailand
In Thailand, the practice of making donations has
firm roots, CMK Thailand conducts donation as an
ongoing initiative. In FY2022, CMK Thailand donatedthe empty chemical tanks, wooden pallets and suchto municipalities and schools (to serve as dustboxes, tables and chairs).

National Cleanup Campaign
Participation in the ‘Zero marine waste week 2022’
To address the increasing marine waste, we
participated in the National Cleanup Campaign, ‘Zero
marine waste week 2022’, and cleaned up the
Ajirohama Beach, Niigata in June, 2022.

Other Activities
Cleanup (inside and outside Niigata Factory)
invited local high school students and showed the factory.
donated 317 cleaning rags and 240L of bottled water to the Disaster
Volunteer Center of Murakami City.
Cleanup of Ajirohama Beach, Seiro Town
September [Niigata Factory]
October[CMK Products]
Cleanup of the Sagami River[Niigata Factory]
Cleanup (inside and outside Niigata Factory)
OctoberNovember [CMKC(Dong Guan)] Cleanup hike at Yin Ping Shan Forest Park
participated in Year-end Big Cleanup, Shinjuku
December [Head Office]

April
June
August[Niigata Factory][Niigata Factory][Niigata Factory]

Donation to the Disaster Volunteer Center,
Murakami City
[Niigata Factory]

Year-end Big Cleanup, Shinjuku[Head Office]27

Cleanup hike at Yin Ping Shan Forest Park
[CMKC(Dong Guan)]CMK Group Business Bases
Major Business Bases
Overseas Sales Offices
CMK AMERICA CORPORATION
Atlanta, United States
CMK EUROPE N.V.
Geel, Belgium

Overseas Factories
Overseas Sales Offices
Overseas Factories
CMKC (Shenzhen), Ltd.
Shenzhen, China- Wuxi- Dongguan

G Station Factory
Isesaki City, Gunma

China
CMKC (Dong Guan) Ltd.
Dongguan, Guangdong
CMK Electronics (Wuxi) Co., Ltd.
Wuxi, Jiangsu

Niigata Factory
Seiro-machi, Niigata

Kanbara Factory
Gosen City, Niigata

Chichibu Factory

Kawagoe Office

Chichibu City, Saitama

Kawagoe City, Saitama

CMKC (HK) Limited

Head Office

Overseas Factories
CMK CORPORATION（THAILAND）CO.,LTD.
ThailandPrachin Buri

Shinjuku-ku, Tokyo

Overseas Sales Offices
CMK CORPORATION（THAILAND）
CO.,LTD.
Thailand Bangkok

CMK Products Corporation
Sagamihara City, Kanagawa

CMK ASIA（PTE.）LTD.
Singapore(Representative Office)Indonesia Jakarta

Sales Office(Japan)点（営業所等）

CMKM SDN.BHD.
Malaysia- Kuala Lumpur- Penang※

SE Center*, Nagoya,
Osaka, Hiroshima※closed in April, 2023

Major Production Base

Niigata Factory

Kanbara Factory

CMK Products Corporation

CMK Electronics (Wuxi) Co., Ltd.

CMKC (Dong Guan) Ltd.

CMK CORPORATION (THAILAND) CO.,LTD.

28

Performance and Financial Highlights
In FY2022, the mainstay market of the CMK Group had a very severe business environment because car manufacturers
continued reduction in production due to the shortage of semiconductors and confusion of the supply chain.
In the severe business environment, the CMK Group was able to increase the sales of products of power train anddriving safety. Thus we could achieve the consolidated net sales of 83,840 million yen (2.9% increase year-on-year).
In income figures, due to the decreased operation rate of production factories, the rising cost of energy, etc., operating
income was 2,650 million yen (13.7% decrease year-on-year). According to the decreased operating income and otherfactors, ordinary income was 2,622 million yen (13.7% decrease year-on-year) and net profit attributable to owners ofparent was 1,588 million yen (43.0% decrease year-on-year).

Sales by product
Mobile communications
Mobile communications

1.2%

Others1.2%

Information andcommunication

17.4%

Others

17.2%

9.0%

Information andcommunication

Body electronics /climate control

6.5%

27.0%

FY2022

Body electronics /climate control

26.4%

Powertrain /driving control and safety

Powertrain /driving control and safety

Car electronics

FY2021

45.6%

48.5%

81.6%

Car electronics

81.4%

Sales by type of PCB

Sales by region

HDI PCBs Double-sided PCBs

Multilayered PCBs Others

Japan

China

Double-sided PWBs

OthersSoutheast Asia

Europe and North America(Million yen)

100,000
90,23090,23082,61980,000(Million yen)

100,000

81,486

83,84082,61981,486

83,84080,00026,246
21,37569,96721,08420,50369,96751,52018,46360,00060,00047,216

48,41047,73843,384
41,78442,40140,00044,09640,00047,65636,391
16,796

14,861
13,094

14,8499,759

10,606

10,091

7,339

5,747

5,352

5,699

5,588

2018

2019

2020

2021

2022

16,067

14,676
10,133

0

(FY)

29

18,702

12,50820,00020,000014,891

13,28013,316

7,064

5,835

3,940

3,728

4,083

2018

2019

2020

2021

2022

(FY)

Performance Highlights
Consolidated Fiscal Year

2018

2019

2020

2021

2022

Net sales

(Million yen)

90,23082,61969,967

81,486

83,840Operating income (loss)

(Million yen)

3,767

1,601

△ 1,676

3,021

2,605

Ordinary income (loss)

(Million yen)

3,770

792

△ 1,511

3,305

2,622

Net income (loss)

(Million yen)

2,015

△ 1,128△ 1,868

2,785

1,588

Net assets

(Million yen)

55,84954,93251,51954,466

58,779Equity ratio

(%)

49.9

53.6

49.8

50.3

49.6

(Persons)

4,990

4,851

4,960

4,854

4,487

Number of employees

Profit (loss) attributable to owners of parent is presented as net income (loss).

Net sales

Operating income (loss)(Million yen)

100,000

Ordinary income (loss)(Million yen)

5,000(Million yen)

5,000

90,23082,61981,486

83,840

4,000

4,000

3,767

3,770

80,0003,305
69,967

3,021

3,000

60,000

3,000

2,605

2,622

2,000

2,000
1,601

40,000

1,000

1,000

0

0

△1,000△1,000792

20,000

0

2019

2018

2020

2021

2022

(FY)

Net assets and equity ratio
80,000

2018

(%)

64

54,932

2020

2021

2022

(FY)

(persons)

Equity ratio

58,77955,849

2019

6,000

4,990

60,000△1,511△1,676

Number of employees(Million yen)
Net assets△2,000

4,851

4,960

4,854
4,487

60

54,4664,000

51,51940,000

56

53.6
2,000
20,000

52

49.9
0

2018

49.8

2019

2020

50.3
49.6
2021

2022

(FY)

48

0

2018

2019

2020

30

2021

2022

(FY)

△2,000

2018

2019

2020

2021

2022

(FY)

Corporate Data
Name of listedcompany
Date ofestablishment
President andCEO
Capital

CMK CORPORATIONHead OfficeFebruary 1961

Business
description

StocksPrime Market, Tokyo Stock Exchange

Isao Osawa
22,310 million yen

Number of
employees
Averageage

6-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo, Japan
Development, production and marketing ofvarious printed wiring boards and electronics
devices for consumer and industrial use
1,268 (CMK Group total: 4,487)
47.13

Executives (as of June 28, 2022)
Director and Corporate Auditors

Executive Officers

President and CEO

Isao Osawa

Senior Executive Officer

Toshikazu Fujino

Director and Executive Officer

Kunihiko Tedo

Executive Officer

Junichi Ishibashi

Director and Executive Officer

Yoshihisa Yamaguchi

Executive Officer

Masanori Kawashima

Director and Executive Officer

Yoshiaki Ishizaka

Executive Officer

Tatsuya Koizumi

Director and Executive Officer

Kazuto Ono

Executive Officer

Satoru Takahashi

Director and Executive Officer

Toru Nishizawa

Director

Rika Sato

Director

Mitsuru Kaitoh

Director

Shoshiro TaneichiStanding Corporate Auditor

Akihiro Okabe

Corporate Auditor

Masaki Ashibe

Corporate Auditor

Kiyotaka Yokokoji

History
1959 Noboru Nakayama founded a private company that
manufactured nameplates.

1990 CMK establishes the Niigata Satellite Factory in
Seiro-machi, Niigata, now called Niigata Factory.
CMK invests in CMK Kanbara Electronics Corporation(Gosen City, Niigata).

1961 Incorporation occurs and Chuo Meiban Kogyo Co.,
Ltd. (Suginami-ku, Tokyo) is founded.

1995 CMK relocates its head office to Shinjuku-ku, Tokyo.

1963 Chuo Meiban Kogyo starts PWB manufacturing.

1998 CMK invests in Yamanashi Sanko Co., Ltd. (Nirasaki
City, Yamanashi).

1967 Chuo Meiban Kogyo opens Saitama Factory in
Miyoshi-machi, Saitama, now called SE Center.

2000 CMK establishes CMKC (Dong Guan) Ltd. in China.

1970 Chuo Meiban Kogyo concentrates on PWB
manufacturing.

2001 CMK establishes CMK Electronics (Wuxi) Co., Ltd. in
China.
CMK establishes CMKC (Hong Kong) Limited in Hong
Kong.

1974 Chuo Meiban Kogyo opens Gunma Factory in Isesaki
City, Gunma, now called G Station Factory.
1980 Chuo Meiban Kogyo establishes Chumei Engineering
Co., Ltd. (trade name changed to CMK Mechanics
Corporation) in Chichibu City, Saitama.
Chuo Meiban Kogyo opens CMK Singapore (PTE.)
Ltd., now called CMK Asia (PTE.) Ltd. in Singapore.

2006 CMK establishes CMK Corporation (Thailand) Co., Ltd.
in Thailand.
2007 CMK merges three domestic subsidiaries andchanges its trade name to CMK Products Corporation.
CMK establishes CMK America Corporation in the
United States.

1984 Chuo Meiban Kogyo changes its name to CMKCorporation and relocates its head office to Miyoshimachi, Saitama.

2012 CMK establishes CMKC (Shenzhen), Ltd. in China.

1985 CMK is listed on the Second Section of the Tokyo
Stock Exchange.

2014 CMK absorbs and merges CMK Multi Corporation,
CMK Kanbara Electronic Corporation, Yamanashi
Sanko Co., Ltd, and CMK Mechanics Corporation.

1987 CMK establishes CMK Europe N.V. in Belgium.

2020 CMK absorbs CMK Finance Corporation.
CMK establishes CMKM SDN.BHD. in Malaysia.

1989 CMK is listed on the First Section of the Tokyo Stock
Exchange.

2022 CMK moved to the prime market of the Tokyo Stock
Exchange.
CMK opened Kawagoe Office in Kawagoe, Saitama.
31

Stock Information(As of March 31, 2023)

Total number of shares authorized227,922,000

Major shareholders (10 largest)

Total number of shares issued
and outstanding63,077,770

Shareholders

Number of shareholders7,762

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

9,248

15.6

Custody Bank of Japan, Ltd.
(Trust Account)

6,564

11.0

Mizuho Bank, Ltd.

2,576

4.3

The Foundation for Technology
Promotion of Electronic Circuit Board

2,500

4.2

JP Morgan Securities Japan Co., Ltd.

1,957

3.3

The Dai-ichi Life Insurance Company,
Limited

1,895

3.2

Kiraboshi Bank, Ltd.

1,745

2.9

Sumitomo Mitsui Banking Corporation

1,613

2.7

Takahiro Nakayama

1,515

2.5

Sato Shoji Corporation

1,216

2.0

Share trading unit100
Shareholder Breakdown
Individuals andothersOther firms
11,220 thousand shares(17.6%)

Foreigncompanies
andindividuals

12,614thousandshares(20.0%)

Total
63,077,770

Notes
1. Although the Company holds 3,865,795 shares of treasury stock, it is notincluded in the above list of major shareholders.
2. Treasury shares were excluded in calculating the shareholding ratios.

8,127 thousand
shares(12.9%)

Securities firms
3,781 thousand shares(6.0%)

Number ofshares held Percentage(%)(thousands)

Financial
27,435 thousand shares(43.5%)

Editorial Policy
About CMK Report

Other basic information about this Report

The Environmental Report, which our Company began publishing in
1999, evolved into the CSR Report in 2007, after which we continued
to disclose and publish activities in the non-financial information area
every year until 2017. Since fiscal 2018, we have added corporate
information, such as financial, executive and stock information, in thereport, and we now produce and disclose this report with the aim ofcontinuously communicating our Company’s activities to various
stakeholders in a format that is easy to read and understand.

Period covered by the Report: April 1, 2022 – March 31,
2023 (however, articles and contents include information
up to August 2023)
Date of publication: October 2023

WebsiteReference Guidelines

This Report and our Environmental Data, which focuses solely on
environmental information, are available on the website.

ISO 26000 Guidance on Social Responsibility
Environmental Reporting Guidelines 2018, Ministry of theEnvironment

https://www.cmk-corp.com/csr/

32

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