Slide 1: FY 2017 Financial Results
CMK CORPORATION （Stock code: 6958） FY 2017 Financial Results (presentation material) May 22, 2018 CMK CORPORATION 1
Slide 2: Contents
Contents １．Consolidated financial results for FY 2017 ２．Consolidated financial forecast for FY 2018 ３．Trends of Automotive PWB market ４．Medium-Term Management plan ５．Supplementary material 2
Slide 3: Consolidated financial results for FY 2017
１. Consolidated financial results for FY 2017 3
Slide 4: Key points of FY 2017 Financial results
Consolidated financial results for FY 2017 ①Key points of FY 2017 Financial results （Billions of yen） Orders of our key products, PWBs for 90 automotive use, increased significantly, driven 86.8 by the progress of automotive electrification 4.2 80 Profitability improved, as a result of reflectin
Slide 5: Consolidated Income Statement
Consolidated financial results for FY 2017 ②Consolidated Income Statement （Billions of yen） FY 2016 FY 2017 YoY Compared with plan Results Results Change % Plan Change Net sales 75.3 86.8 +11.5 +15.3% 80.0 +6.8 Operating income 2.6 4.2 +1.6 +60.9% 4.0 +0.2 Operating margin 3.5% 4.9% +1.4% 5.0% -0.1%
Slide 6: Sales by application
Consolidated financial results for FY 2017 ③Sales by application （Billions of yen） Car electronics AV equipment Digital still camera Mobile communications Amusement Others FY 2017 2.5 2.2 Results 62.5 0.9 3.1 15.5 86.8 車載売上高 FY 2017 Plan：58.1 （計画） AV equipment Digital still camera Car electronics Mo
Slide 7: Enhancing overseas production capability
Consolidated financial results for FY 2017 ④Enhancing overseas production capability Capability enhancements in FY2017 (reproduced - Presentation material of 1H FY2017 Results) Thailand CMK Corporation(THAILAND) co., ltd. (Double-sided PWBs, Multilayered PWBs, HDI PWBs) ・ Order intake mainly of prod
Slide 8: Improving domestic productivity
Consolidated financial results for FY 2017 ⑤Improving domestic productivity Downsized domestic production sites Changes in Japan profit and loss in 1H FY2016 Operating margin 5.6% 18 4.9% 15 12 3.5% 9 Launched a project to enhance productivity 2.7% 30 26 mainly in Niigata factory since 2H FY2016
Slide 9: Analysis of changes in operating income
Consolidated financial results for FY 2017 ⑥Analysis of changes in operating income （Billions of yen） Decreased sales prices and Increased productivity increased material prices etc. Profit increase due to sales growth 1.0 ▲2.2 2.5 Streamlining of business operations 0.2 4.2 2.6 0.0 FY 2016 FY 2017
Slide 10: Cash dividends
Consolidated financial results for FY 2017 ⑦Cash dividends ■Basic policy Continue to pay stable dividends in light of our financial results and performance, while securing sufficient internal reserves we need to reinforce our management structure and expand our business further ■Cash dividends （Yen）
Slide 11: Consolidated financial forecast for FY 2018
２. Consolidated financial forecast for FY 2018 11
Slide 12: Key points of FY 2018 forecast
Consolidated Financial forecast for FY 2018 ①Key points of FY 2018 forecast （Billions of yen） Demand for products for automotive use is 90.0 expected to remain strong, driven by the 90 86.8 progress of automotive electrification 4.2 4.0 However, the continuing trend of a strong 80 Chinese yuan a
Slide 13: Consolidated Income Statement forecast
Consolidated Financial forecast for FY 2018 ②Consolidated Income Statement （Billions of yen） YoY FY 2017 FY 2018 Results Forecast Change % Net sales 86.8 90.0 +3.1 +3.6% Operating income 4.2 4.0 -0.2 -6.2% Operating margin 4.9% 4.4% -0.5% Ordinary income 3.9 3.7 -0.2 -5.5% Profit attributable to own
Slide 14: Sales by application forecast
Consolidated Financial forecast for FY 2018 ③Sales by application （Billions of yen） AV equipment Digital still camera Car electronics Mobile communications Amusement Others FY 2018 2.4 1.9 Forecast 67.7 1.2 3.5 13.0 900 AV equipment Digital still camera Car electronics Mobile communications Amusemen
Slide 15: CMK Thailand – Factory expansion
Consolidated Financial forecast for FY 2018 ④CMK Thailand – Factory expansion Capability enhancements from FY 2018 to FY 2019 (February 28, release) CMK Corporation(THAILAND) co., ltd. • Demand for automotive PWBs is expected to grow further, driven by the automotive electrification • Expansion of t
Slide 16: Analysis of changes in operating income
Consolidated Financial forecast for FY 2018 ⑤Analysis of changes in operating income （Billions of yen） Exchange Increased productivity fluctuation Decreased sales prices and ▲0.8 increased material prices etc. Profit increase 1.3 due to sales growth 1.2 ▲2.0 Exchange rate FY 2017 FY 2018 % Results P
Slide 17: Trends of Automotive PWB market
３．Trends of Automotive PWB market 17
Slide 18: Trends of Automotive PWB market
Trends of Automotive PWB market ①Trends of Automotive PWB market Electric components Social Environment Automotive industry industry Economic growth of Increase of global production volume emerging countries Strengthening of fuel efficiency regulation Next-generation automobiles (xEV) Technology inn
Slide 19: Trends of market expansion
Trends of Automotive PWB market ②Trends of market expansion Growing popularity of next Forecast of ECU sales volume USA: Inter-vehicle generation automobiles Breakdown of ECU increase communications become ※our calculation mandatory in new cars from (2016: 2.1 billion ⇒ 2025: 4.4 billion units) 20
Slide 20: Prospect of Automotive PWB market
Trends of Automotive PWB market ③Prospect of Automotive PWB market Market scale forecast of rigid PWBs for automotive use （Billions of yen） （Composition ratio） 817 2025 Forecast 800 718 105 1% 13% 15% 80 8% 2% 600 17% 535 HDI Market scale 44 Multilayered 2016 Results 400 584 510 Double-sided Single-
Slide 21: Trends of Automotive PWBs
Trends of Automotive PWB market ④Trends of Automotive PWBs Scope of our business Use of HDI PWBs Required reliability HDI PWBs used for Powertrain ECU increased, as microcomputers contain more pins than ever Powertrain/Driving control and Safety With the spread of ADAS, HDI ※Engine Management Sy
Slide 22: Medium-Term Management plan
４．Medium-Term Management plan 22
Slide 23: Review of the Medium-Term Management Plan (summary)
Medium-Term Management plan<FY 2015- FY 2017> ①Review of the Medium-Term Management Plan(summary) Sales fell short of our plan due to the unachieved sales in the consumer sector and the Yen’s appreciation Sales Sales in our key automotive sector exceeded our forecast, driven by accelerating auto
Slide 24: Review of the Medium-Term Management Plan (Consolidated Income Statement)
Medium-Term Management plan<FY 2015- FY 2017> ②Review of the Medium-Term Management Plan(Consolidated Income Statement) （Billions of yen） Medium-term Management plan （May 25, 2015 release） Results FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 Net sales 75.0 82.0 90.0 73.0 75.3 86.8 Operating incom
Slide 25: Present issues
Medium-Term Management plan ③Present issues Demand in the automotive PWB market is expected to increase drastically Chance after 2020 The environment surrounding our business is expected to be getting more Risk competitive because a further rise in material prices and more intense competition wi
Slide 26: Positioning of FY2018 in the Medium-Term Management Plan
Medium-Term Management plan ④Positioning of FY2018 in the Medium-Term Management Plan Positioning of FY2018 ① Review the whole business process thoroughly and promptly under the new management team started on 1st April (facilities, value-chain and corporate function） ② Work out a program for restruc
Slide 27: Supplementary material
５．Supplementary material 27
Slide 28: Promote ESG management
Supplementary material ①Promote ESG management Carbon-Dioxide emission reduction, Water consumption ＜Note＞ Environment reduction, Resource recycling, and Renewal with In July 2018, the energy-saving current ‘CSR Report’ will be renewed and issued as ‘CMK Report’. Diversity and inclusion, and Promoti
Slide 29: Sales by type of PWBs
Supplementary material ②Sales by type of PWBs （Billions of yen） FY 2016 FY 2017 YoY FY 2018 YoY Results Results Change Forecast Change HDI PWBs 21.8 26.9 +5.0 30.4 +3.5 Multilayered PWBs 31.9 37.0 +5.1 39.2 +2.1 Double-sided PWBs 14.2 15.2 +0.9 14.9 -0.2 Others 7.2 7.6 +0.3 5.3 -2.3 Total 75.3 86.8
Slide 30: Financial results by region
Supplementary material ③Financial results by region （Billions of yen） FY 2016 FY 2017 FY 2018 YoY YoY Results Results Forecast Operating Operating Operating Operating Operating Sales Sales Sales Sales Sales income income income income income Japan 49.1 1.5 52.6 2.6 +3.4 +1.1 50.7 1.9 -1.9 -0.7 China
Slide 31: Capital investment
Supplementary material ④Capital investment （Billions of yen） FY 2016 FY 2017 YoY FY 2018 YoY Results Results Change Forecast Change Japan 1.7 1.5 -0.2 2.8 +1.3 Overseas 2.8 5.4 +2.6 7.1 +1.6 Consolidated 4.6 7.0 +2.4 10.0 +3.0 Depreciation cost 4.1 4.1 0 4.6 +0.5 31
Slide 32: END
Future-related information and descriptions in this material are just forward-looking statements and not guarantees for future achievements (Amounts are rounded down, and % is rounded to one decimal place.) END 32