Slide 1: 1H FY2017 Financial Results
CMK CORPORATION （Stock code：6958） 1H FY2017 Financial Results (presentation material) November 17, 2017 CMK CORPORATION 1
Slide 2: Contents
Contents １．Consolidated financial results for 1H FY2017 ２．Trends of Automotive PWB market and Sales performance of CMK ３． Supplementary material on financial results 2
Slide 3: Consolidated financial results for 1H FY2017
１．Consolidated financial results for 1H FY2017 3
Slide 4: Key points of 1H FY2017 financial results
Consolidated financial results for 1H FY2017 ①Key points of 1H FY 2017 Financial results • Continued momentum in the increasing orders of our key products for automotive use • Sales increased and profitability improved simultaneously, reflecting the impact of production capacity enhancements and pro
Slide 5: Consolidated Income statement
Consolidated financial results for 1H FY2017 ②Consolidated Income statement Profits more than doubled compared with the previous fiscal year in all the profit related items （Millions of Yen） YoY 1H FY 2016 1H FY 2017 Results Results Change % Net sales 35,785 41,981 +6,195 +17.3% Operating income 860
Slide 6: Sales by application
Consolidated financial results for 1H FY2017 ③Sales by application （Hundred Millions of Yen） AV equipment Digital still camera Mobile communications Amusement Others 1H FY 1H FY 2017 2017 Car electronics 14 11 Results 298 76 419 Results 4 14 +18.1% AV equipment Digital still camera Mobile communicat
Slide 7: Enhancing overseas production capability
Consolidated financial results for 1H FY2017 ④Enhancing overseas production capability Thailand CMK Corporation (THAILAND) co., ltd. (Double-sided PWBs, Multilayered PWBs, HDI PWBs) ・ Order intake mainly of products for automotive use remains strong ・ In the end of September, enhanced production cap
Slide 8: Improving domestic productivity
Consolidated financial results for 1H FY2017 ⑤Improving domestic productivity Changes in Japan profit and loss 300 Net Sales Operating income 18 Focus on improving 256 260 productivity 250 235 15 12.7 Sales (Hundred Millions of Yen) (Hundred Millions of Yen) 200 12 Operating Operating income margin
Slide 9: Analysis of changes in Operating income
Consolidated financial results for 1H FY2017 ⑥Analysis of changes in Operating income （Hundred Millions of Yen） Improved yields Increased productivity Decreased sales prices Profit increase due to sales growth Cost reduction etc. 3.0 ▲10.9 18.7 Streamlining business operations 1.9 21.3 8.6 1H FY 201
Slide 10: Forecast of Consolidated Income statement
Consolidated financial results for 1H FY2017 ⑦Forecast of Consolidated Income statement （Millions of Yen） YoY FY 2016 FY 2017 Results Forecast Change % Net sales 75,370 80,000 +4,629 +6.1% Operating income 2,652 4,000 +1,347 +50.8% Operating margin 3.5% 5.0% +1.5% Ordinary income 2,628 3,700 +1,071
Slide 11: Trends of Automotive PWB market and Sales performance of CMK
２．Trends of Automotive PWB market and Sales performance of CMK 11
Slide 12: Trends of Automotive market
Trends of Automotive PWB market and Sales performance of CMK ①Trends of Automotive market 1. Increase in the number of sales of new cars Strong sales of new cars continue globally The car ownership rate in China and India where maintain high economic growth rates still remains at a low level and
Slide 13: Progress of automotive electrification
Trends of Automotive PWB market and Sales performance of CMK ②Progress of automotive electrification More use of ECU to meet demand for environment friendly and highly functional automobiles （ECU with an annual growth of 10% and over between 2015~2021） Driving Control and Safety ECU HV/PHV/EV/FCV EC
Slide 14: Change in the number of ECU used in automobiles
Trends of Automotive PWB market and Sales performance of CMK ③Change in the number of ECU used in automobiles Number of ECU per an automobile 35 As of 2014 As of 2017 Prospect・Forecast Prospect・Forecast 30.4 30 +34% Number of ECU (unit) 25 22.7 21.6 20.2 20 15 10 5 0 2016 2017 2018 2020 2025 The num
Slide 15: Scale of the automotive PWB market
Trends of Automotive PWB market and Sales performance of CMK ④Scale of the automotive PWB market Market scale forecast of rigid PWBs for automotive use CAGR 8,000 (‘21/’16) Market scale (Hundred Millions of Yen) 6,643 720 Total 6,000 6.6% 4,826 HDI 460 9.4% 4,000 4,664 Multilayered 6.5% 3,404 2,000
Slide 16: Sales growth trend of our products for automotive use
Trends of Automotive PWB market and Sales performance of CMK ⑤Sales growth trend of our products for automotive use Our sales of automotive use Focus on automotive use in the current Medium term management plan 600 100% Sales (Hundred Millions of Yen) Sales ratio of automotive use 73% 80% 71% 69% 68
Slide 17: Applications of PWBs and CMK's positioning
Trends of Automotive PWB market and Sales performance of CMK ⑥Applications of PWBs and CMK’s positioning Market growth Driving Control Powertrain and Safety Engine Management Brake Control System, Electric System, Inverter etc. Stability Control, airbag, Required reliability Millimeter-Wave Radar, C
Slide 18: Sales promotion for foreign customers
Trends of Automotive PWB market and Sales performance of CMK ⑦Sales promotion for foreign customers • ‘Overseas sales expansion’ is set as one of our key strategies in the current Medium-term management plan to strengthen sales activity targeting foreign customers 【Progress status】 Orders of produ
Slide 19: Supplementary material on financial results
３． Supplementary material on financial results 19
Slide 20: Sales by application
Supplementary material on financial results ① Sales by application （Hundred Millions of yen） 1H FY2016 1H FY2017 YoY FY2017 Results Results Change Forecast Car electronics 253 298 +45 581 Mobile communications 13 14 +1 29 AV equipment 3 4 +0 15 Digital still camera 11 11 -0 20 Amusement 8 14 +5 21 O
Slide 21: Sales by type of PWBs
Supplementary material on financial results ②Sales by type of PWBs （ Hundred Millions of yen ） 1H FY2016 1H FY2017 YoY FY2017 Results Results Change Forecast HDI PWBs 101 129 +27 235 Multilayered PWBs 152 177 +25 357 Double-sided PWBs 69 76 +6 129 Others 34 36 +2 76 Total 357 419 +61 800 21
Slide 22: Financial results by region
Supplementary material on financial results ③ Financial results by region （ Hundred Millions of yen ） 1H FY2016 1H FY2017 YoY FY2017 Results Results Change Forecast Operating Operating Operating Operating Sales Sales Sales Sales income income income income Japan 235 6.3 260 12.7 +24 +6.4 493 19.9 Ch
Slide 23: Capital investment
Supplementary material on financial results ④ Capital investment （ Hundred Millions of yen ） 1H FY2016 1H FY2017 YoY FY2017 Results Results Change Forecast Japan 13 7 -6 21 Overseas 10 33 +23 38 Consolidated 24 40 +16 60 Depreciation cost 21 19 -1 42 23
Slide 24: 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 24