Slide 1: 1H FY2016 Financial Results
CMK CORPORATION （Stock code：6958） 1H FY2016 Financial Results (presentation material) November 25, 2016 CMK CORPORATION 1
Slide 2: Contents
Contents 1. 1H FY2016 Financial Results 2. Progress of Medium-Term Management plan 3. Supplementary material on financial results 2
Slide 3: 1. 1H FY2016 Financial Results
1. 1H FY2016 Financial Results (Six months ended September 30, 2016) 3
Slide 4: Overview
1. (1)Overview • Strong sales of products for automotive use helped to make up for the decline in income affected by a strong yen, maintaining almost the same level of sales as previous fiscal year. • In Japan, profitability was improved significantly by streamlining business operations (the downsiz
Slide 5: Consolidated Financial Results
1. (2)Consolidated Financial Results （Millions of Yen） 1H FY2015 1H FY2016 YoY YoY (Results) (Results) Change % Sales 35,949 35,785 -163 -0.5% Operating income ▲502 860 +1,363 － Ordinary income ▲1,425 776 +2,202 － Profit attributable to owners of parent ▲8,485 802 +9,288 － Exchange rate(USD) 120.50
Slide 6: Sales by application
1. (3)Sales by application （Hundred Millions of Yen） AV equipment Digital still camera Car electronics Mobile communications Amusement Others 1H FY2016 (Results) 253 3 8 13 11 67 357 AV equipment Digital still camera Car electronics Mobile communications Amusement Others 1H FY2015 5 15 (Results) 240
Slide 7: Streamlining business operations
1. (4)Streamlining business operations ■Plan(September 30, 2015 release) 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 relocat
Slide 8: Streamlining business operations: profit improvements
1. (5)Streamlining business operations ■Profit improvements through streamlining measures （Comparison of status before and after the streamlining） （Hundred Millions of Yen） FY2015 FY2016 3Q 4Q FY 1Q 2Q 1H FY (Results) (Results) (Results) (Results) (Results) (Results) (Forecast) Reduction in labor co
Slide 9: Financial Results by region
1. (6)Financial Results by region （Hundred Millions of Yen） 1H FY2015 1H FY2016 YoY Change (Results) (Results) Operating Operating Operating Sales Sales Sales income income income Japan 228 ▲1.2 235 6.3 +7 +7.5 China 112 ▲1.3 104 3.0 -8 +4.3 Southeast Asia 77 ▲0.5 78 1.3 +1 +1.8 Europe and 26 0.8 27
Slide 10: Consolidated Financial Results (Forecast)
1. (7)Consolidated Financial Results(Forecast) （Millions of Yen） FY2015 FY2016 YoY YoY (Results) (Forecast) Change % Sales 73,098 77,000 +3,901 +5.3% Operating income 381 2,500 +2,118 +555.1% Ordinary income ▲628 2,100 +2,728 － Profit attributable to owners of parent ▲8,122 1,600 +9,722 － Exchange r
Slide 11: 2. Progress of Medium-Term Management plan
2. Progress of Medium-Term Management plan 11
Slide 12: Summary - Medium-Term Management plan
2. (1)Summary-Medium-Term Management plan ■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
Slide 13: Sales of products for automotive use
2. (2)Sales of products for automotive use • After the financial crisis in 2008 1,000 100% (Lehman shock), our sales 900 decreased in the area of consumer 900 870 products such as AV digital 90% 805 equipment and communications 800 770 device due to the offshore 726 710 737 730 production shift of o
Slide 14: Prospect for automotive PWB market: ADAS
2. (3)Prospect for automotive PWB market ■Spread of ADAS 100.0% • In the advanced driver assistance 83.0% 84.9% 81.6% 79.5% Ratio of ADAS installed vehicles of new car sales system, millimeter wave radar and 80.0% camera are installed. 70.9% 60.0% 60.8% 53.9% • The ADAS related market is expected to
Slide 15: Prospect for automotive PWB market: new generation vehicles
2. (4)Prospect for automotive PWB market ■Spread of new generation vehicles (HV/PHV/EV/FCV) • The new generation vehicles are expected to be more popular in response to the environmental regulations. • The demand for automotive PWB is expected to grow further, as more PWB are used in a single vehicl
Slide 16: Strengthen cost competitiveness
2. (5)Strengthen cost competitiveness ■Downsizing of domestic production sites Per capita sales at domestic production sites (Index) • Domestic production sites were downsized from 150 3 to 2 by streamlining business operations. • Per-capita sales increased compared to the status before the downsizi
Slide 17: Enhance production capacity
2. (6)Enhance production capacity ■Further enhancement of production capacity in the factory of Thailand • By September 2016, our product capacity had been enhanced by 30% from the year-end of 2015. • However, as the demand for automotive products is expected to increase in future, our production ca
Slide 18: Consolidated Financial Results vs medium-term plan
2. (7)Consolidated Financial Results （Hundred Millions of Yen） Medium-Term Results and Forecast management (As of November 25 , 2016) (May 25, 2015 release) FY2015 FY2016 FY2018 FY2015 FY2016 FY2018 (Results) (Forecast) (Forecast) Sales 750 820 900 730 770 900 Operating income 15 25 45 3 25 45 Opera
Slide 19: 3. Supplementary material on financial results
3. Supplementary material on financial results 19
Slide 20: Sales by application
3. (1)Sales by application （Hundred Millions of Yen） FY2015(Results) FY2016(Forecast) 1H 2H FY 1H 2H FY (Results) (Forecast) (Forecast) Car electronics 240 261 502 253 275 528 Mobile communications 15 11 27 13 21 34 AV equipment 5 4 10 3 12 16 Digital still camera 13 12 25 11 12 24 Amusement 15 9 24
Slide 21: Sales by type of PWB
3. (2)Sales by type of PWB （Hundred Millions of Yen） FY2015(Results) FY2016(Forecast) 1H 2H FY 1H 2H FY (Results) (Forecast) (Forecast) Build-up PWBs 72 69 141 69 66 136 Multilayered PWBs 140 155 296 152 193 346 Double-sided PWBs 105 101 207 101 114 215 Others 41 44 86 34 37 72 Total 359 371 730 357
Slide 22: Financial Results by region
3. (3)Financial Results by region （Hundred Millions of Yen） YoY FY2015(Results) FY2016(Forecast) 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 Europe and North Americ
Slide 23: Capital investment
3. (4)Capital investment （Hundred Millions of Yen） FY2015(Results) FY2016(Forecast) 1H 2H FY 1H 2H FY (Results) (Forecast) (Forecast) Japan 7 4 12 13 9 22 Overseas 8 10 18 10 20 30 Consolidated 15 15 31 24 29 53 Depreciation cost 26 22 49 21 25 46 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