Mec Company Ltd. · TSE:4971
Mec — FY2022 Earnings Presentation
36 slides from Mec's earnings presentation, Feb 14, 2023
Slide 1: Financial Results Briefing for FYE 12/2022
Financial Results Briefing for FYE 12/2022 February 14, 2023 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 Jap
Slide 2: FYE12/2022 Overview
FYE12/2022 Overview Business environment Demand for consumer electronics such as PCs, smartphones, displays, and tablet PCs has been sluggish due to stagnant personal consumption. Data centers, which had been steady, also entered an inventory cycle adjustment phase. Financial results overview YOY in
Slide 3: Impact From Various Issues
Impact From Various Issues Russia/Ukraine situation • Raw materials from Russia and Ukraine are not being used • Regarding the soaring increase in crude oil prices, (1) Although the ratio of raw materials derived directly from crude oil is relatively small, it does have an impact on the purchase pri
Slide 4: FYE12/2022 Key factors
FYE12/2022 Key factors Sales: 16,329 million yen(YOY change: Up 8.6%) 1 Operating income: 4,004 million yen(YOY change: Up 1.6%) Exchange rate impact (YOY change) 2 Sales: Up 1,072 million yen, Operating income: Up 618 million yen. Chemicals 3 Sales: 16,042 million yen (YOY change: Up 8.7%) Shipment
Slide 5: Exchange rate
Exchange rate Initial 22Q4 21Q4 22Q3 forecast NTD 4.16 4.40 3.93 4.37 RMB 18.07 19.39 17.04 19.33 HKD 14.75 16.70 14.14 16.34 THB 3.44 3.73 3.44 3.69 EUR 130.51 137.93 130.11 136.04 USD 115.01 130.78 109.86 128.03 • Overseas subsidiaries are basically transactions denominated in local currency, and
Slide 6: FYE12/2022 Results
FYE12/2022 Results Unit : million yen Full-year FYE12/'21 FYE12/'22 Results Results YOY Net sales 15,038 16,329 1,290 8.6% Chemical sales 14,756 16,042 1,285 8.7% Gross profit 9,323 9,803 480 5.2% Gross profit margin 62.0% 60.0% -2.0ppt - SGA 5,383 5,799 415 7.7% Sales ratio 35.8% 35.5% -0.3ppt - Op
Slide 7: Net sales YOY bridge
6 FYE12/’22 １６，３２９ Foreign exchange Other sales 1,290 million yen, Up 8.6% Financial Results Briefing for FYE 12/2022 Material sales Machine sales Other solution Etching solution Net sales YOY Adhesion improves FYE12/’21 １５，０３８ Million yen
Slide 8: Operating income YOY bridge
7 FYE12/’22 ４,００４ Foreign exchange （Selling、general and administrative expenses） Selling, general and administrative expenses 64 million yen, Up 1.6 % Foreign exchange （Gross profit） Financial Results Briefing for FYE 12/2022 Material and Other sales Gross profit Material and Operating income YOY Ot
Slide 9: Consolidated B/S (Assets)
Consolidated B/S (Assets) FYE12/’21 FYE12/’22 topics Increase in cash, Current assets 13,839 15,987 inventories, etc. Non-current assets 11,465 11,512 － Property, plant 8,891 8,959 － and equipment Intangible assets 147 146 － Investments and Decrease due to stock 2,427 2,405 price decline, etc. other
Slide 10: Consolidated B/S (Liabilities and Net assets)
Consolidated B/S (Liabilities and Net assets) FYE12/’21 FYE12/’22 特記事項 Decrease in income taxes Current liabilities 3,791 3,562 payable, etc. Non-current liabilities 584 611 － Total liabilities 4,376 4,173 － Increase in retained Shareholders' equity 18,990 21,278 earnings, etc. Increase in foreign c
Slide 11: Quarterly performance: Sales, Operating income, Operating margin
Quarterly performance: Sales, Operating income, Operating margin (Consolidated) Net sales Operating income Operating margin 5,000 35 29.1 27.8 27.7 30 4,000 26.6 24.7 24.4 23.2 25 22.0 22.3 20.3 3,000 17.7 20 16.5 15 2,000 4,132 3,955 4,172 4,236 3,965 3,505 3,519 3,026 3,228 3,881 2,809 2,891 10 1,
Slide 12: Quarterly composition: Operating income, SG&A, COGS
Quarterly composition: Operating income, SG&A, CODS (Consolidated) COGS SGA Operating income Operating margin 5,000 24.7 24.4 35 29.1 26.6 20.3 22.3 27.8 27.7 30 4,000 16.5 17.7 22.0 23.2 1,034 1,202 787 1,051 1,032 886 25 3,000 533 973 975 20 498 635 702 1,457 1,460 1,3521,495 1,377 1,503 15 2,000
Slide 13: Quarterly performance: Product-specific sales
Quarterly performance : Product-specific sales (Consolidated) Chemicals for PCBs Equipments for PCBs Materials for PCBs Other 4,500 4,000 3,500 3,000 2,500 2,000 1,500 (Million yen ) 1,000 500 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 2020 2021 2022 Other 4 1 5 0 2 0 13 6 1 1 1 3 Mater
Slide 14: Quarterly performance: Chemical sales
Quarterly performance : Chemical sales (Consolidated) Adhesion improves Etching solution Other surface processing solution 4,500 4,000 Adhesion improves : CZ, V-Bond etc. 202 200 Etching solution : EXE, SF etc. 193 191 202 166 1,020 908 3,500 174 178 1,190 996 1,019 863 3,000 91 121 127 1,128 1,084
Slide 15: Quarterly performance: CZ series sales
Quarterly performance : CZ series sales 8100 8101 Other CZ 3,000 Other CZ contain 2,784 8201, 8401 and 2,609 2,517 pre- and post-processing of CZ 2,313 2,294 2,403 2,500 1,906 1,964 980 1,700 883 2,000 811 928 1,507 1,491 1,562 802 747 579 616 1,500 521 474 446 476 1,464 1,000 1,244 1,276 1,410 1,27
Slide 16: Quarterly performance: Region-specific sales and overseas sales ratio
Quarterly performance : Region-specific sales and overseas sales ratio 2,000 70 1,800 60 1,600 1,400 50 1,200 40 1,000 30 800 600 20 400 10 200 (Million yen) (%) 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 2020 2021 2022 Japan 1,498 1,373 1,410 1,503 1,666 1,496 1,849 1,649 1,579 1,678
Slide 17: Capital investment, Depreciation expenses and R&D expenses
Capital investment, Depreciation expenses and R&D expenses R&D expenses and Ratio Capital investment Depreciation expenses of consolidated sales 2,000 850 1,600 15.0 1,763 827 1,504 1,800 1,359 14.0 1,400 1,3231,330 1,600 800 784 1,200 13.0 1,200 1,362 1,400 12.0 759 742 1,000 1,200 750 10.0 11.0 11
Slide 18: Technology trends
Technology trends
Slide 19: Examples of major chemical applications and final products
Examples of major chemical applications and final products Major chemical Characteristic Final products Adhesion improver mainly for PKG Super-roughening type Infrastructure (5G-related, data substrates. adhesive enhancement centers, etc.) and high-function A copper surface treatment agent that devi
Slide 20: Evolution of the PKG substrate
Evolution of the PKG substrate Si Die One PKG One Si Die PKG Mounting multiple Chiplet semiconductors Si Die Si Die PKG EMIB EFB Copper pillar (Embedded Multi-die Interconnect Bridge) (Elevated Fanout Bridge) Si Die Si Die Si Die Si Die Si bridge Si bridge PKG PKG PKG size is big and layers are incr
Slide 21: Roughening and Non-roughening Technologies
Roughening and Non-roughening Technologies Cutting-edge packages Non-roughening Ultra-high Ultra-high Technologies density frequency • Increase in number of packages • Increase in area and number of layers Roughening technology Roughening technology Present Future Financial Results Briefing for FYE
Slide 22: CZ series roadmap
CZ series roadmap 60 CZ-8100 P K G Substrate Minimum line width (μm) 40 CZ-8101 20 CZ-8201 CZ-8401 0 CZ-8401 0.1μm Financial Results Briefing for FYE 12/2022 20
Slide 23: Our future plans
Our future plans
Slide 24: Our future plans
Our future plans Business environment • In the short term, the market for semiconductors, which is in an adjustment phase, and sluggish consumer spending are expected to have a negative impact. • In the medium to long term, technological innovation will advance against the backdrop of the spread of
Slide 25: FYE12/2023 full-year forecast
FYE12/2023 full-year forecast FYE12/2022 FYE12/2023 (54th term) (55th 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 16,329 - 6,500 - -20.0% 15,000 - -8.1% Operatin
Slide 26: Dividend Payout Ratio, and ROE
Trends in Total Dividends, Consolidated Dividend Payout Ratio, and ROE ●Consolidated Payout Ratio (%) ●ROE(%) ■Total Dividends(Million yen) ■share repurchase (Million yen) 39.9 32.0 30.9 26.9 28.0 27.9 21.7 20.9 23.6 23.6 22.5 12.5 13.0 11.3 12.0 7.9 9.5 15.4 13.8 7.6 9.8 12.1 1000 591 265 500 233 8
Slide 27: CSR Materiality (Key Issues)
CSR Materiality (Key Issues) Research and Development and provision of high added value products development to open up Contribution to higher customer productivity and yields the future Development of products that reduce environmental impact Proper procurement, SCM, green procurement, global procu
Slide 28: SDGs That Involve the Company
SDGs That Involve the Company Grow as a company by contributing to the Our mission development of industry Responsibility for procurement, handling, product Our development, manufacturing, and disposal as a company responsibility that uses resources and handles chemical substances Happiness and grow
Slide 29: Capital Policy
Capital Policy Investment in research and Approximately 10% development of consolidated sales every year Approximately 5 billion yen Capital investment over three years (2022 to 2024) Maintain and increase the annual dividend per share Shareholder returns Consolidated payout ratio target: 30% Flexib
Slide 30: 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 FYE 12/2022 27
Slide 31: Appendix
Appendix
Slide 32: Corporate profile
Corporate profile （As of December 31, 2022） 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 33: 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 improve adhesion Financial Results Briefing for FYE 12/2022 29
Slide 34: MEC sales trend since foundation
MEC sales trend since foundation 18,000 Chemicals substances ‘69 Started as a chemical technology consulting company in Kita-ku, Osaka for smartphone boards and 16,000 ‘70 Started manufacturing chemicals for electronic substrates electronic parts '22 Transition on the Tokyo Stock Exchange Prime Mark
Slide 35: Production capacity
Production capacity Amagasaki Factory Nagaoka Factory 900ｔ/ m 1,800ｔ/ m MEC TAIWAN MEC SUZHOU MEC ZHUHAI 1,200ｔ/ m 450ｔ/ m 750ｔ/ m MEC EUROPE MEC THAILAND 400ｔ/ m 500ｔ/ m Financial Results Briefing for FYE 12/2022 31
Slide 36: Forward-looking statements
This presentation includes forward-looking statements (such as predictions and business forecasts) made in Feburary14, 2023. 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 substantial