Mec Company Ltd. · TSE:4971
Mec — Q1 FY2025 Earnings Presentation
34 slides from Mec's earnings presentation, May 12, 2025
Slide 1: Financial Results Briefing for Q1 FYE 12/2025
Financial Results Briefing for Q1 FYE 12/2025 May 12, 2025 MEC COMPANY LTD. Securities code: 4971 https://www.mec-co.com/en/ Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japan
Slide 2: Q1 FYE12/2025 Key Factors
Q1 FYE12/2025 Key Factors Sales: 4,423 million yen(YOY change: Up 1.6%) 1 Operating income: 1,093 million yen(YOY change: Up 3.8%) Exchange rate impact (YOY change) 2 Sales: Up 32 million yen, Operating income: Up 12 million yen. Chemicals 3 Sales: 4,237 million yen (YOY change: Up 8.0%) Shipments:
Slide 3: Exchange Rates
Exchange Rates Initial Q1 Q1 Q4 forecast FYE12/2025 FYE12/2024 FYE12/2024 NTD 4.76 4.63 4.71 4.72 RMB 21.08 20.99 20.55 21.04 HKD 19.48 19.66 18.90 19.41 THB 4.22 4.51 4.16 4.31 EUR 164.84 160.71 160.89 163.79 USD 152.33 152.93 147.86 151.44 • Overseas subsidiaries are basically transactions denomin
Slide 4: Q1 FYE12/2025 Results
Q1 FYE12/2025 Results Unit : million yen Q1 Full-year FYE12.2024 FYE12.2025 FYE12.2024 FYE12.2025 Progress ratio Progress ratio YOY YOY Results Results Results (Forcast) (%) (%) (%) (%) Net sales 4,354 23.9% 4,423 22.1% 69 1.6% 18,234 20,000 9.7% Chemical sales 3,924 - 4,237 - 313 8.0% 17,478 - - Gr
Slide 5: Net Sales YOY
Net Sales YOY 5,000 278 25 4,500 -22 91 6 32 -342 4,000 Other sales 3,500 Material sales Machine sales Other solution Etching solution Foreign exchange Adhesion improves 3,000 ４，４２３ ４，３５４ 2,500 2,000 1,500 1,000 Million yen 500 0 69 million yen, Up 1.6% Q1 Q1 FYE12/’24 FYE12/’25 Financial Results Br
Slide 6: Operating Income YOY
5 FYE12/’25 １，０９３ Q1 Foreign exchange -9 （Selling、general and administrative expenses） Selling, general and administrative expenses 40million yen, Up 3.8 % Foreign exchange 21 （Gross profit） Financial Results Briefing for Q1 FYE12/2025 Material and 0 Other sales Gross profit Material and Operating I
Slide 7: Quarterly Performance: Sales, Operating Income, Operating Margin
Quarterly Performance: Sales, Operating Income, Operating Margin (Consolidated) Net sales Operating income Operating margin 6,000 35 28.9 30 5,000 26.8 24.2 24.7 25 22.0 4,000 19.5 20.3 20.1 20 3,000 15 4,527 4,799 4,354 4,423 2,000 3,782 4,038 6.1 3,432 4,552 10 2,765 1,000 5 1,286 (Million yen ) 1
Slide 8: Quarterly Composition: Operating Income, SG&A, COGS
Quarterly Composition: Operating Income, SG&A, CODS (Consolidated) COGS SGA Operating income 5,000 4,000 1,286 913 1,053 1,309 1,093 820 833 3,000 669 168 1,727 1,791 1,496 1,524 1,655 1,609 1,406 2,000 1,393 1,414 1,000 1,805 1,693 1,785 1,847 1,675 1,369 1,542 1,608 1,182 (Million yen ) 0 1-3 4-6
Slide 9: Quarterly Performance: Product-Specific Sales
Quarterly Performance : Product-Specific Sales (Consolidated) Chemicals for PCBs Equipments for PCBs Materials for PCBs Other 6,000 5,000 4,000 3,000 2,000 (Million yen ) 1,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2023 2024 2025 Other 1 1 0 0 1 3 1 1 8 Materials for PCBs 16 27 15 80 37 44 22 64
Slide 10: Quarterly Performance: Chemical Sales
Quarterly Performance : Chemical Sales (Consolidated) Adhesion improves Etching solution Other surface processing solution 5,000 （CZ、V-Bond etc.） （EXE、SF etc.） 4,500 206 209 182 4,000 202 193 175 1,079 1,115 935 3,500 213 857 222 821 871 3,000 928 148 814 2,500 694 2,000 3,370 3,317 3,177 1,500 2,91
Slide 11: Quarterly Performance: CZ Series Sales
Quarterly Performance : CZ Series Sales Other CZ contain 8100 8101 Other CZ 8201, 8401 and pre- and post-processing of CZ 3,500 3,000 2,970 2,928 2,818 2,821 2,609 2,589 2,500 2,311 1,164 1,120 1,017 1,032 2,071 942 866 2,000 799 1,638 715 1,500 505 1,486 1,480 1,000 1,415 1,446 1,469 1,229 1,350 1,
Slide 12: Quarterly Performance: Region-Specific Sales and Overseas Sales Ratio
Quarterly Performance : Region-Specific Sales and Overseas Sales Ratio 2,500 70 60 2,000 50 1,500 40 30 1,000 20 500 10 (Million yen) (%) 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2023 2024 2025 Japan 1,046 1,376 1,474 1,645 1,857 1,688 1,931 1,728 1,594 Taiwan 615 589 711 703 795 878 792 859 860
Slide 13: Our Future Plans
Our Future Plans
Slide 14: Our Future Plans: Business environment
Our Future Plans Business environment • In the short term, it will be affected by the semiconductor market, which is in a recovery phase. • In the medium to long term, technological innovation will advance against the backdrop of the spread of technologies such as IoT, AI, 5G, electrification of veh
Slide 15: FYE12/2025 Full-year Forecast
FYE12/2025 Full-year Forecast FYE12/2024 FYE12/2025 (56th term) (57th term) Full-year 1H Full-year Profit Profit YOY Profit YOY Amount ratio Amount ratio change Amount ratio change (million yen) (%) (million yen) (%) (%) (million yen) (%) (%) Net sales 18,234 - 9,600 - 8.1% 20,000 - 9.7% Operating i
Slide 16: Capital Investment, Depreciation Expenses and R&D Expenses
Capital Investment, Depreciation Expenses and R&D Expenses R&D expenses and Capital investment Depreciation expenses Ratio of consolidated sales 減価償却費 （million yen） （million yen） （million yen） 3,500 10.0 8.8 8.7 9.0 3,000 8.1 7.6 8.0 7.3 （%） 2,500 7.0 2,097 6.0 2,000 1,870 5.0 1,525 1,500 1,323 1,33
Slide 17: Payout Ratio, and ROE
Trends in Total Dividends, Consolidated Dividend Payout Ratio, and ROE Dividends per share Total dividends / Treasury stock repurchase ROE amount/Consolidated dividend payout ratio 36.8 36.8 27.9 28.6 22.5 15.4 13.8 30 899 9.5 9.6 25 25 25 8.9 21 25 1,038 20 20 20 862 850 850 14 671 FYE12/21 FYE12/2
Slide 18: ESG Effort
ESG Effort Environment • Development of products that reduce environmental impact. • Appropriate chemical substance management. • Promotion of resource recycling. • Measures to address climate change. Social • Human capital strategy. • Utilization of diverse human resources (empowerment of women, WL
Slide 19: Our Products & PKG Substrate Trend
Our Products ＆ PKG Substrate Trend Ultra-high density Ultra-high frequency Chemical adhesion promoter Cutting-edge AP series CZ-8401 ×Chemical adhesion promoter AP series Advanced CZ-8201 CZ-8101 General-purpose CZ-8100 Financial Results Briefing for Q1 FYE12/2025 17
Slide 20: Aiming to Expand the Technical Domain
Aiming to Expand the Technical Domain Si Die Si Die Interposer PKG 2 PKG 2 PCB PCB Financial Results Briefing for Q1 FYE12/2025 18
Slide 21: Aiming to Expand the Business Domain
Aiming to Expand the Business Domain Creation of new business Technical trend Electronic board Application manufacturing development of market existing technology Financial Results Briefing for Q1 FYE12/2025 19
Slide 22: Appendix
Appendix
Slide 23: Corporate Profile
Corporate Profile （As of December 31, 2024） Company name MEC COMPANY LTD. 3-4-1, Kuise Minamishimmachi, Amagasaki, Hyogo Head quarters location 660-0822, JAPAN Date of establishment May 1, 1969 R&D, production and sales of chemicals, equipment Business activities and related materials used in the pr
Slide 24: MEC Sales Trend since Foundation
MEC Sales Trend since Foundation 25,000 Chemicals substances ‘69 Started as a chemical technology consulting company in Kita-ku, Osaka for smartphone boards and ‘70 Started manufacturing chemicals for electronic substrates electronic parts 20,000 '22 Transition on the Tokyo Stock Exchange Prime Mark
Slide 25: Process of Commercialization
Process of Commercialization From R＆D To Factory Beaker experiment ⇒ Scale-up experiment ⇒ Production line verification customers To Manufacturing ⇒ Quality inspection ⇒ Filling Financial Results Briefing for Q1 FYE12/2025 22
Slide 26: Example of Product Usage Process
Example of Product Usage Process ≪Drying≫ ≪Water rinse≫ ≪Chemical treatment≫ Financial Results Briefing for Q1 FYE12/2025 23
Slide 27: MEC's Core Technologies
MEC’s Core Technologies Creating and Fostering Value at Various Interfaces Roughen the surface, and physically improve adhesion CZ,V-Bond Pattern formation EXE Selective etching SF Treat the surface, and chemically adhesion promoter Financial Results Briefing for Q1 FYE12/2025 24
Slide 28: Examples of Major Chemical Applications and Final Products
Examples of Major Chemical Applications and Final Products Major chemical Characteristic Final products A copper surface treatment agent Infrastructure (Generative AI, Super-roughening type that enhances adhesion between 5G/6G-related, data centers, adhesive enhancement copper and resin. etc.) and h
Slide 29: CZ Series Roadmap
CZ Series Roadmap 60 Minimum Line Width [µm] CZ-8100 40 CZ-8101 CZ-8401 ×AP series 20 CZ-8201 （Chemical adhesion Under development promoter） （Chemical adhesion promoter） 0 1995 2000 *Source: JPCA 2005 2021 PWB Roadmap. 2010 2015 2020 2025 2030 Year 2035 CZ-8100 1.5μm CZ-8101 0.7μm CZ-8201 0.3μm CZ-8
Slide 30: Changes in Copper Adhesion Surface Technology
Changes in Copper Adhesion Surface Technology Package Substrates Reduced etching volume Reduced etching volume CZ-8401 Reduced etching volume Low signal loss Low signal loss × AP＊ CZ-8100 CZ-8101 CZ-8201 Ultra-fine roughening Roughening Fine roughening Ultra-fine roughening Growing demand for roughe
Slide 31: Cross Section Observations
Cross Section Observations Core layer XEON PKG 14 layers(6-２-6） Core layer Core layer Core i7 PKG 8 layers(3-2-3) Ryzen PKG 12 layers(5-2-5) Size(cm2) Layers XEON 27.44 14 Core i7 14.44 ８ Ryzen 7 16.00 12 Financial Results Briefing for Q1 FYE12/2025 28
Slide 32: Evolution of the PKG Substrate
Evolution of the PKG Substrate Si Die One PKG PKG One Si Die Mounting multiple Chiplet semiconductors Si Die Si Die PKG EMIB CoWoS EFB (Embedded Multi-die Interconnect Bridge) (Chip on Wafer on Substrate) (Elevated Fanout Bridge) Si Die Si Die Si Die Si Die Si Die Si Die Si/Organic interposer Si bri
Slide 33: Production Capacity
Production Capacity Plans in progress N E w Amagasaki Factory Nagaoka Factory Kitakyushu Plant (tentative name) 900ｔ/ mo. 2,750ｔ/ mo. Maximum capacity 2,500ｔ/mo.（Plan） MEC TAIWAN MEC SUZHOU MEC ZHUHAI 1,200ｔ/ mo. 1,350ｔ/ mo. 1,000ｔ/ mo. MEC EUROPE MEC THAILAND 400ｔ/ mo. 500ｔ/ mo. 8,100 t/mo. (97,200
Slide 34: Forward-looking statements notice
This presentation includes forward-looking statements (such as predictions and business forecasts) made in May 12, 2025. These statements are assumptions based on information available at the time, and they are subject to risks and uncertainties. Actual results or events could differ substantially f