Slide 1: FY 2015 Financial Results
CMK CORPORATION （Stock code：6958） FY 2015 Financial Results (presentation material) May 26, 2016 CMK CORPORATION 1
Slide 2: Contents
Contents ■Financial results for FY2015 1. Overview ・・・ P.4 2. Sales ・・・ P.6 3. Streamlining business operations ・・・ P.7 4. Profits ・・・ P.11 5. Capital investment ・・・ P.14 6. Financial position ・・・ P.15 ■Financial forecast for FY2016 1. Overview ・・・ P.17 2. Sales ・・・ P.19 3. Profits ・・・ P.20 4. Capit
Slide 3: Financial Results for FY 2015
Financial Results for FY 2015 (Year ended March 31, 2016) 3
Slide 4: Overview - Summary
1. Overview-①Summary CMK have restructured our business mainly in Japan and reduced our fixed costs. However, operating loss was recorded in the first half of the fiscal year, mainly due to the insufficient domestic streamlining measures and sudden changes in the situation of overseas order inta
Slide 5: Overview - Consolidated Financial Results
1. Overview-② Consolidated Financial Results ■Consolidated Financial Results （Millions of Yen） FY 2014 FY 2015 YoY YoY （Results） （Results） Change % Sales 73,730 73,098 -632 -0.9% Operating income 641 381 -260 -40.5% Ordinary income 1,513 ▲628 -2,141 － Profit attributable to owners of 1,178 ▲8,122 -9
Slide 6: Sales by application
2. Sales by application (Hundred Millions of Yen） AV equipment Digital still camera Car electronics Mobile communications Amusement Others FY2015 (Results) 500 146 730 27 24 9 22 FY2014 (Results) 485 145 737 30 27 14 33 0 100 200 300 400 500 600 700 800 Sales of products for automotive use increas
Slide 7: Streamlining business operations - Downsizing of domestic production sites
3. Streamlining business operations-① Downsizing of domestic production sites ① Downsizing of domestic production sites Stop production of 2 factories in Gunma prefecture by the end of September 2016. Transfer products to domestic and overseas group factories accordingly. Implement employee re
Slide 8: Streamlining business operations - Relocated main production sites
3. Streamlining business operations-① Downsizing of domestic production sites ■Relocated main production sites Niigata Factory China Wuxi Kanbara Factory China Dong Guan G Station Factory KIBAN Center Factory Chichibu Factory Thailand CMK PRODUCTS CORPORATION • Relocated production sites mainly to N
Slide 9: Streamlining business operations - Voluntary retirement program
3. Streamlining business operations-② Voluntary retirement program ② Voluntary retirement program Eligibility: An employee who is at least age 40 with 3 or more yeas of service Availability: For around 200 employees Application period: November 2, 2015 - November 13, 2015 Retirement date: De
Slide 10: Streamlining business operations - Impact of measures
3. Streamlining business operations-③ Impact of measures ■ Annual profit improvements through streamlining measures (Plan) Reduction in labor costs ＋15 hundred million yen Reduction in depreciation expenses ＋ 4 hundred million yen Additional costs ▲ 1 hundred million yen Total ＋18 hundred million ye
Slide 11: Profits - Quarterly changes
4. Profits-① Quarterly changes ■ Changes in quarterly consolidated profit and loss （Hundred Millions of Yen） Japan Overseas Adjustment Sales 173 181 190 193 175 184 185 187 7.0 Overseas 6.0 6.0 1.1 5.0 2.8 Operating 4.0 3.2 income 3.0 Japan 1.4 1.3 1.3 1.4 5.3 2.0 0.4 1.7 1.9 2.6 1.0 1.0 2.1 0.5 0.6
Slide 12: Profits - Financial Results by region
4. Profits-② Financial Results by region （Hundred Millions of Yen） FY2014 (Results) FY2015 (Results) YoY Change Operating Operating Operating Sales Sales Sales income income income Japan 477 3.3 467 6.6 -10 +3.3 China 229 5.6 225 ▲ 0.9 -4 -6.5 Southeast Asia 143 ▲ 1.7 160 0.0 +17 +1.7 EU & USA 49 2.
Slide 13: Profits - Non-operating expenses and extraordinary losses
4. Profits-③ Non-operating expenses・Extraordinary losses ■Non-operating expenses • Due to fluctuations in foreign currency exchange rate, foreign exchange losses of 733 million yen relative to receivables and payables denominated in foreign currencies are recorded. ■Extraordinary losses • In connect
Slide 14: Capital investment
5. Capital investment （Hundred Millions of Yen） FY 2014 FY 2015 YoY Notes (Results) (Results) Change Reduced capital investment Japan 21 12 -9 in view of the profit and loss Invested to improve Overseas 24 18 -6 productivity and quality Consolidated 45 31 -14 Depreciation expenses 49 49 0 14
Slide 15: Financial Position
6. Financial Position （Hundred Millions of Yen） FY 2014 FY 2015 YoY (Results) (Results) Change Cash and deposits 145 215 +70 Interest-bearing liabilities 187 224 +37 Shareholder's equity 559 465 -93 Total assets 991 905 -86 Equity ratio 56.4％ 51.4％ -5.0％ • Shareholder's equity decreased due to extra
Slide 16: Financial Forecast for FY 2016
Financial Forecast for FY 2016 (Year ended March 31, 2017) 16
Slide 17: Overview - Summary
1. Overview-①Summary • CMK continues to improve profitability in Japan through streamlining measures. • We continue our focus on quality improvement to increase profitability in the overseas market, while enhancing factory capacity in Thailand where we can expect increasing orders. • With respect to
Slide 18: Overview - Consolidated Financial Results
1. Overview-② Consolidated Financial Results ■Consolidated Financial Results （Millions of Yen） FY 2015 FY 2016 YoY YoY （Results） （Forecast） Change ％ Sales 73,098 77,000 ＋3,902 5.3％ Operating income 381 2,500 ＋2,119 555.1％ Ordinary income ▲628 2,100 ＋2,728 － Profit attributable to owners of ▲8,122 1,
Slide 19: Sales by application
2. Sales by application (Hundred Millions of Yen） AV equipment Digital still camera Car electronics Mobile communications Amusement Others FY2016 (Forecast) 528 142 770 35 24 16 24 FY2015 (Results) 500 146 730 27 24 9 22 0 100 200 300 400 500 600 700 800 ・ Sales arising mainly from products for auto
Slide 20: Profits - Analysis of changes in operating income
3. Profits-① Analysis of changes in operating income (Hundred Millions of Yen） 50 40 Improved yields Increased productivity Profit increase due 30 to sales growth 6 ▲10 Decreased sales prices 20 Streamlining 14 Cost reduction etc business operations 10 25 11 0 4 FY2015 FY2016 Results Forecast 20
Slide 21: Profits - Financial forecast by region
3. Profits-② Financial forecast by region (Hundred Millions of Yen) FY 2015（Results） FY 2016（Forecast） YoY Change Operating Operating Operating Sales Sales Sales income income income Japan 467 6.6 468 15.7 +1 +9.1 China 225 ▲ 0.9 236 9.4 +11 +10.3 Southeast Asia 160 0.0 206 4.5 +46 +4.5 EU & USA 55
Slide 22: Capital investment
4. Capital investment （Hundred Millions of Yen） FY 2015 FY 2016 YoY Notes （Results） （Forecast） Change Japan 12 22 +10 12 hundred million yen to Overseas 18 30 +12 enhance factory capacity in Thailand Consolidated 31 53 +22 Depreciation expenses 49 46 -3 ・ Capital investment is expected to increase b
Slide 23: Medium-Term Management Plan
Medium-Term Management Plan 23
Slide 24: Our Medium-Term strategy and key objectives
1. Summary-① Our Medium-Term strategy ■Our Medium-Term strategy ◆A growing CMK to deliver sustainable growth by transforming our solid business strategy ◆Getting an advantage to better compete in the automotive PWB market ■Key objectives ◆Increase sales in the market for products for automotive and
Slide 25: Changes in business environment
1. Summary-② Changes in business environment ■Changes in business environment after working out the Plan (May 2015) Global economy • Change of monetary policy by each nation (a rate increase in the US and a negative interest rate in Japan) • Concern over the economic slowdown in Japan due to a stro
Slide 26: Consolidated Income Statement
1.Summary-③ Consolidated Income Statement ■Consolidated Income Statement （Hundred Millions of Yen） Medium-Term Results and Forecast management （As of May 26, 2016) （May 25, 2015 release） FY 2015 FY 2016 FY2017 FY2015 FY2016 FY2017 （Results） （Forecast） （Plan） Sales 750 820 900 730 770 900 Operating 1
Slide 27: Progress of the objectives - Summary
2. Progress of the objectives-① Summary Objectives in the Medium-Term Progress status Management Plan Expanding sales of products for millimeter- Increase sales in the market for products for wave radar and vehicle-mounted cameras automotive PWB and communication with growing demand in the market de
Slide 28: Progress of the objectives - Expand sales
2. Progress of the objectives -② Expand sales ■Expanding sales in the market for products for automotive PWB and communication devices • In the area of products for automotive use which requiring higher quality, expand sales to the existing customers by taking advantage of our ability to produce qua
Slide 29: Enhance production capacity in Thailand factory
2. Progress of the objectives-③ Enhance production capacity ■Enhancing production capacity in the factory of Thailand • In Thailand, automotive production for exports continues to be strong. • Order intake by our factory in Thailand also remains strong, operating at full capacity. • Launch capital i
Slide 30: Enhancing support for overseas factories
2. Progress of the objectives-④ Enhance quality management ■ Enhancing support for overseas factories • Yields in overseas factories must be improved to enhance profitability. • Invest in improving quality through automated production and enhance support for overseas factories from Japan. • Improve
Slide 31: Supplementary material on financial results
Supplementary material on financial results 31
Slide 32: Sales by type of PWB for FY2015
Supplementary material on financial results- ① Sales by type of PWB for FY2015 （Hundred Millions of Yen） Build-up PWBs Multilayered PWBs Double-sided PWBs Others FY2015 (Results) 204 294 136 94 730 FY2014 (Results) 220 270 153 93 737 0 100 200 300 400 500 600 700 800 32
Slide 33: Sales by type of PWB for FY2016
Supplementary material on financial results- ② Sales by type of PWB for FY2016 （Hundred Millions of Yen） Build-up PWBs Multilayered PWBs Double-sided PWBs Others FY2016 (Forecast) 215 346 136 72 770 FY2015 (Results) 204 294 136 94 730 0 100 200 300 400 500 600 700 800 33
Slide 34: END
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 34