November 20, 2020 CMK CORPORATION 1. Consolidated financial results for 1H FY2020 2. Consolidated financial forecast for FY2020 and our initiatives Supplementary information 3. CMK 1. Consolidated financial results for 1H FY2020
(Billions of yen) ● Net sales declined due to the decrease in global automobile production and sales by the impact of COVID-19. ● Despite efforts to reduce the fixed costs, operating income was negative due to the sales decrease. -1.5 1H FY2018
Results ◾ Operating income ■ Sales
(Billions of yen ■ Powertrain・Driving control and Safety      ■ Body Electronics・Climate Control ■ Information and Communication ●  Sales of products for automotive use declined 27.7% compared with the previous fiscal year due to a sharp drop in global automobile production and sales by the impact of COVID-19. 6
( Billions of ye 1H FY2019 Operating income (Results) 1H FY2020 Operating income (Results) ●  Streamlining of business operation: Effort of the fixed cost reduction under the quantity booking decrease. Decreased in profit due to the sales decline 7
The index of global booking Booking is expressed as 100 (Before COVID-19 from Jan to Feb) The impact on production due to a sharp drop in booking Booking decreased from March 2020 ● ●  Decline in orders affects production from 1Q to 2Q in Japan, and from 2Q to 3Q in overseas. (Different term of quarter is consolidated. For example, 3rd quarter consolidation contains October to 8 December results of Japanese firms and July to September results of Overseas firms.)
Changes in guarterly sales
Changes in quarterly operating income
(Billions of ven) Clik 2. Consolidated financial forecast for FY2020 and our initiatives
(Billions of ver
(Billions of yen
(Billions of yen
Car Electronics  67.4
■ Powertrain・Driving control and Safety     ■ Body Electronics・Climate Control     ■ Information and Communication ● Total sales of products for automotive use declined by 19% compared with the previous fiscal year, however, sales for our key business sector of Powertrain and Driving control and Safety remain roughly the same as last year. ●  Mobile communications increase 20% compared with the previous fiscal year. 13
( Billions of ve quantity booking decrease. ⇒The positive effects will continue in the next fiscal year and beyond.
Business area with competitive advantage in the application of automotive products : ▷ Advantages in the application requiring high quality and reliability ●  Continue to focus on powertrain and driving control and safety as a our key business sector of existing business areas ● The trend of electrification of automobiles accelerated with the progress of CASE. 15
●  The more 5G penetrate, the connection of automobile and communication will be closer. We will launch the 5G related products by developing our technology.
【investment summary】 Objective: To establish the component technologies required for high speed large capacity PCB under the circumstances of 5G penetration. Amount  : Approximately 2.0 billions of yen ( Initial investment) : Niigata factory Site Action : ・ Consolidation of dispersed R&D divisions to Niigata plant to strengthen the development. . Establishment of small quantity and high variety production.
In response to CASE, including 5G communications, the use of multilayer/high multilayer HDI will advance, and demands for high functionality and high reliability will increase.
CMK 3. Supplementary information
(Billions of yen)
Supplementary information
④Capital investment (Billions of yen)
Depreciation cost
-0 4.5 Future-related information and descriptions in this material are just forward-looking statements and not guarantees for future achievements (Amounts are rounded, and % is rounded to one decimal place.) END