1H FY2019 Financial Results (presentation material) Nov 20, 2019 - PowerPoint PPT Presentation

CMK CORPORATION （ Stock code ： 6958 ） 1H FY2019 Financial Results (presentation material) Nov 20, 2019 CMK CORPORATION 1

Contents １． Consolidated financial results for 1H FY2019 ２． Our business overview ３． Supplementary material 2

１． Consolidated financial results for 1H FY2019 3

Consolidated financial results for 1H FY2019 ① Key points of 1H FY2019 Financial results （ Billions of yen ）  Sales of our key products for 50 3,000 automotive use reminded strong by 44.7 42.9 41.9 the progress of automotive 40 2.1 electrification. 2,000 1.7 However, net sales decreased due 30 to decline in mobile communication sales and amusement sales etc. 20 1,000 0.7 10  Operating income decreased due to decline in sales and low operation 0 0 rate of factories in Japan etc. 1H 1H 1H FY2017 FY2018 FY2019 Sales Operating income 4

Consolidated financial results for 1H FY2019 ② Consolidated Income statement （ Billions of yen ） YoY 1H FY2018 1H FY2019 Results Results Change % 44.7 42.9 Net sales -1.7 -4.0% 1.7 0.7 Operating income -1.0 -60.0% 4.0% 1.7% -2.3% Operating margin 1.8 0.7 Ordinary income -1.0 -56.8% Profit attributable 1.1 0.2 -0.8 -75.7% to owners of parent Exchange rate 108.52 109.98 +1.46 +1.3% (USD/JPY) 5

Consolidated financial results for 1H FY2019 ③ Sales by application （ Billions of yen ） AV equipment Digital still camera Car electronics Mobile communications Amusement Others 0.4 0.6 1H FY2019 42.9 35.1 6.0 0.4 (Results) 0.1 AV equipment Digital still camera Mobile communications Amusement Others Car electronics 1.3 0.8 1H FY2018 33.4 44.7 7.6 (Results) 0.5 1.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Sales of products for automotive use increased steadily by 5.4% compared with the previous fiscal year  The share of products for automotive use in total sales increased from 74.6% in the previous fiscal year  to 81.9% 6

Consolidated financial results for 1H FY2019 ④ Analysis of changes in operating income （ Billions of yen ） Decreased in profit due to sales decline Decreased sales prices Exchange and increased Improved fluctuation procurement cost etc. manufacturing yield ▲ 1.4 and increased 1.7 productivity 0.3 ▲ 0.3 0.3 0.7 0.0 1H FY2018 1H FY2019 Operating income Operating income (Results) (Results) 7

Consolidated financial results for 1H FY2019 ⑤ Changes in quarterly operating income （ Billions of yen ） Japan ： Productivity enhancement Japan ： 2Q Optimization in production Japan ： 3-1Q Low operating rate Overseas ： Enhancement of production capacity in operation Overseas ： 1-2Q Exchange fluctuation 4-1Q Upfront cost of capital the factory of Thailand and Wuxi Overseas ： 2Q Exchange fluctuation and investment in the increased productivity factory of Thailand 1.40 1.13 1.18 1.13 1.03 1.20 1.01 0.95 0.85 0.49 1.00 0.42 0.59 0.76 0.45 0.37 0.57 0.80 1.03 0.16 0.70 0.60 ■ Overseas 0.49 0.40 0.14 0.76 0.75 0.68 0.65 0.65 ■ Japan 0.63 0.20 0.26 0.27 0.26 0.23 ■ Adjustment 0.04 0.00 ▲ 0.08 ▲ 0.07 ▲ 0.07 ▲ 0.09 ▲ 0.09 ▲ 0.12 ▲ 0.14 ▲ 0.15 ▲ 0.16 ▲ 0.16 -0.20 FY2017 FY2018 FY2019 8 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Consolidated financial results for 1H FY2019 ⑥ Quarterly financial results by region （ Billions of yen ） FY2019 1Q FY2019 2Q QoQ Results Results Operating Operating Operating Sales Sales Sales income income income 12.5 0 12.6 0.2 Japan +0 +0.1 7.2 0.3 7.3 0.3 China +0.1 +0 5.9 -0.1 6.2 0 Southeast Asia +0.2 +0.2 Europe & North 1.5 0 1.6 0 +0 +0 America 27.3 0.3 27.8 0.7 Total +0.4 +0.4 ▲ 6.0 ▲ 0.1 ▲ 6.1 ▲ 0.1 Adjustment -0.1 +0 21.3 0.1 21.6 0.5 Consolidated +0.3 +0.4 9

Consolidated financial results for 1H FY2019 ⑦ Consolidated Income Statement （ Billions of yen ） YoY FY2018 FY2019 Results Forecast Change % 90.2 87.0 -3.2 -3.6% Net sales 3.7 2.0 -1.7 -46.9% Operating income 4.2% 2.3% -1.9% Operating margin 3.7 1.7 -2.0 -54.9% Ordinary income Profit attributable to 2.0 1.2 -0.8 -40.4% owners of parent Exchange rate 110.37 110.00 -0.37 -0.3% (USD/JPY) 10

２． Our business overview 11

Our business overview ① Our business overview ： Our key Business sectors and sales for automotive use Sales for automotive use Our key business sectors （ Billions of yen ） ＊ Compared with FY2018 1Q Market growth + 17.8 + 17.8 + 17.8 + 17.3 Powertrain + 17.0 + 16.3 Required quality ・ reliability Driving control +13 ％ and Safety Value-added Products Information +11 ％ and Body Electronics Communication Climate Control -4 ％ FY2018 FY2019 1Q 2Q 3Q 4Q 1Q 2Q Powertrain ・ Driving control and Safety Single-sided Double-sided Multilayered HDI Body Electronics ・ Climate Control Information and Communication 12

Our business overview ② Our business overview ： Enhanced production capacity in overseas factories CMK electronics(Wuxi)co., ltd. （ HDI ） Capital investment was finished to enhance production capacity by 20% compared with the existing capacity, responding to a growing demand for HDI PWBs for automotive use CMK Corporation(THAILAND) co., ltd. （ Double-sided, Multilayered, HDI ） Capital investment was finished to enhance production capacity by 25% compared with the existing capacity, responding to a growing demand for products for Powertrain and Driving control and Safety 13

Our business overview ③ Our business overview ： Technology roadmaps We will progress our developments in the fields high quality and high reliability required Application for Market Main PWB 2019 2020 After 2021 automotive use needs products requirement ・ Down-sized unit Under Mass-production Compact sizing ・ Reliability of high withstand voltage ／ Next generation Trial （ EV has higher voltage than 10x voltage for gasoline Inverter Powertrain vehicle ） Converter ・ High heat-resistance performance （ More than 1.5x Mass-production Heavy cooper conductive reliabilities of consumer products ） ・ High current PWB for PHV or EV Under Mass-production HDI Millimeter ・ Requests of more down-sizing and more accuracy wave Radar improvement Mass-production MSAP Trial Driving Mass- Trial control and Camera ・ Thick RF PWB Development production Information ・ Thick RF PWB for higher stiffness Safety module, Other ・ Higher reliability of thin PWB for automotive use Mass- sensors Thin PWB Trial production ADAS Camera Trial Mass-production Fine pattern ・ PWB combined higher density and higher stiffness control Mass-production LED Lamp Cooper based ・ Requests of higher heat radiation Under Mass-production Information Communication ・ Requests of more down-sizing and more accuracy Under-Mass-production Fine pattern and module for improvement communication automotive 14 ※RF Stands for Rigid flexible PWB

３． Supplementary material 15

Supplementary material ① Sales by application （ Billions of yen ） 1H FY2018 1H FY2019 YoY FY2019 Results Results Change Forecast 33.4 35.1 71.2 Car electronics +1.7 Mobile 1.3 0.4 0.8 -0.8 communications 0.5 0.4 1.0 AV equipment -0 0.8 0.6 1.4 Digital still camera -0.1 1.0 0.1 0.3 Amusement -0.8 7.6 6.0 12.0 Others -1.5 44.7 42.9 87.0 Total -1.7 16

Supplementary material ② Sales by type of PWBs （ Billions of yen ） 1H FY2018 1H FY2019 YoY FY2019 Results Results Change Forecast 13.8 11.3 22.6 HDI PWBs -2.4 19.5 22.0 45.1 Multilayered PWBs +2.5 7.5 6.7 13.5 Double-sided PWBs -0.8 3.8 2.8 5.6 Others -1.0 44.7 42.9 87.0 Total -1.7 17

Supplementary material ③ Financial results by region （ Billions of yen ） 1H FY2018 1H FY2019 YoY FY2019 Results Results Change Forecast Operating Operating Operating Operating Sales Sales Sales Sales income income income income Japan 26.9 1.4 25.2 0.2 -1.6 -1.1 50.9 1.0 China 14.3 0.1 14.5 0.7 +0.1 +0.5 29.0 1.4 Southeast Asia 11.3 0.1 12.2 -0.1 +0.8 -0.3 25.0 -0.1 Europe & 3.6 0.2 3.2 0.1 -0.4 -0 6.2 0.3 North America Total 56.2 2.0 55.2 1.0 -1.0 -0.9 111.3 2.6 Adjustment ▲ 11.5 ▲ 0.2 ▲ 12.2 ▲ 0.3 -0.7 -0 ▲ 24.3 ▲ 0.6 Consolidated 44.7 1.7 42.9 0.7 -1.7 -1.0 87.0 2.0 18

Supplementary material ④ Capital investment （ Billions of yen ） 1H FY2018 1H FY2019 YoY FY2019 Results Results Change Forecast 0.5 0.5 2.2 Japan +0 1.7 5.1 7.5 Overseas +3.4 2.2 5.7 9.8 Consolidated +3.4 2.1 2.2 5.0 Depreciation cost +0.1 19

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 20