Mec Company Ltd. · TSE:4971
Mec — Q2 FYE12/2020 Earnings Presentation
21 slides from Mec's earnings presentation, Aug 11, 2020
Slide 1: Financial Results Briefing for Q2 FYE 12/2020
Financial Results Briefing for Q2 FYE 12/2020 MEC COMPANY LTD. Securities code: 4971 https://www.mec-co.com/en/
Slide 2: Notice Regarding Revision of Full-year Consolidated Earning Forecast
Notice Regarding Revision of Full-year Consolidated Earning Forecast Revision to the full-year consolidated earnings forecast for the fiscal year ending in December (January 1, 2020 to December 31, 2020) Operating Ordinary Net Net sales Net income income income income (million yen) per share (millio
Slide 3: Measures against COVID-19 Infection
Measures against COVID-19 Infection Maintaining a system for preventing the spread of infection and continuing to supply products Placing the President as the Head of the Emergency Response Headquarters, and carefully continuing corporate activities according to the circumstances based on the BCP (b
Slide 4: Q2 FYE12/2020 Key factors
Q2 FYE12/2020 Key factors Assumed/actual exchange rate JPY to NTD Assumed rate: 3.50 yen / Actual rate: 3.61 yen (previous year was 3.55 yen) １ JPY to RMB Assumed rate: 15.76 yen / Actual rate: 15.37 yen (previous year was 16.22 yen) JPY to EUR Assumed rate: 121.17 yen / Actual rate: 119.82 yen (pre
Slide 5: Q2 FYE12/2020 Results
Q2 FYE12/2020 Results Unit : million yen Q2 Full-year FYE19/12 FYE20/12 FYE19/12 FYE20/12 Progress Progress YOY YOY Results Results Results (Forcast) ratio (%) ratio (%) (%) (%) Net sales 4,976 45.8% 5,701 51.4% 724 14.6% 10,865 11,100 2.2% Chemical sales 4,889 - 5,491 - 601 12.3% 10,657 - - Gross p
Slide 6: Net sales year-over-year change
5 2020 ５，７０１ Q2 Foreign exchange 724 million yen up 14.6 % Other sales Financial Results Briefing for Q2 FYE 12/2020 Material sales Machine sales Other solution Etching solution Net sales YOY Adhesion improves 2019 ４，９７６ Q2 Million yen
Slide 7: Operating income year-over-year change
6 2020 １,１３３ Q2 Foreign exchange （Selling、general and administrative expenses） Selling, general and administrative expenses 523 million yen up 85.8 % Foreign exchange （Gross profit） Financial Results Briefing for Q2 FYE 12/2020 0.2 Material and Other sales Gross profit Material and -0.4 Operating in
Slide 8: Quarterly Net sales, Operating income and Operating profit margin
Quarterly Net sales, Operating income and Operating profit margin (Consolidated) 3,500 30 3,000 25 2,500 20 2,000 15 （％） 1,500 (Million yen ) 10 1,000 5 500 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2018 2019 2020 Net sales 2,660 2,839 2,932 2,896 2,328 2,648 3,128 2,761 2,809 2,891 Operating
Slide 9: Quarterly composition profit and loss (Consolidated)
Quarterly composition profit and loss (Consolidated) 3,500 30 3,000 25 2,500 20 2,000 15 1,500 （％） (Million yen ) 10 1,000 5 500 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2018 2019 2020 Operating income 520 518 708 475 205 404 755 271 498 635 SGA 1,169 1,282 1,212 1,353 1,178 1,242 1,225 1,335
Slide 10: Product-specific quarterly sales (Consolidated)
Product-specific quarterly sales (Consolidated) 3,500 3,000 2,500 2,000 1,500 1,000 (Million yen) 500 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2018 2019 2020 Other 16 1 4 1 6 1 5 4 4 1 Mmaterials for PCBs 21 46 19 3 15 15 58 17 17 16 Equipments for PCBs 9 17 10 15 40 8 10 24 129 43 Chemicals fo
Slide 11: Quarterly chemical sales (consolidated)
Quarterly chemical sales (consolidated) Adhesion improves : CZ, V-Bond, FlatBOND etc. 3,500 Etching solution : EXE, SF etc. 3,000 2,500 2,000 1,500 1,000 (Million yen) 500 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2018 2019 2020 Other surface processing solution 158 156 181 162 132 125 133 122 1
Slide 12: Chemical shipment volume (consolidated)
Chemical shipment volume (consolidated) 12,000 10,000 8,000 6,000 4,000 2,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 (t) 2018 2019 2020 Other surface processing solution 360 377 424 399 338 310 320 319 267 269 Etching solution 1,978 2,186 2,504 2,462 1,758 1,986 2,777 2,242 1,955 2,209 Adhesi
Slide 13: CZ series sales
CZ series sales 1,600 1,484 1,468 1,507 1,491 1,417 1,379 1,385 1,419 1,348 1,400 1,185 1,200 1,000 800 600 400 (Million yen) 200 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2018 2019 2020 Other CZ 392 407 420 382 413 330 475 446 474 446 8101 723 733 725 713 540 789 752 753 787 820 8100 270 279 27
Slide 14: CZ series sales (Composition ratio)
CZ series sales （Composition ratio） 100 90 80 70 60 50 40 30 （%） 20 10 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2018 2019 2020 Other CZ 29 28 30 28 34 24 32 31 31 30 8101 52 52 51 53 46 57 51 51 52 55 8100 19 20 19 19 20 19 17 18 17 15 Financial Results Briefing for Q2 FYE 12/2020 13
Slide 15: Region-specific sales and overseas sales ratio
Region-specific sales and overseas sales ratio 1,600 60 1,400 50 1,200 40 1,000 (%) 800 30 600 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 2018 2019 2020 Japan 1,239 1,332 1,384 1,410 1,077 1,231 1,430 1,303 1,498 1,373 Taiwan 543 532 552 622 490 531 558 600 560 588 C
Slide 16: FYE12/2020 full-year forecast
FYE12/2020 full-year forecast FYE12/2019 FYE12/2020 (51th term) (52th term) Full-year Full-year (August 11,2020) Amount Profit ratio Amount Profit ratio YOY change (million yen) (%) (million yen) (%) (%) Net sales 10,865 - 11,100 - 2.2 Operating income 1,637 15.1 2,000 18.0 22.2 Ordinary income 1,72
Slide 17: Exchange rate
Exchange rate FYE12/2019 FYE12/2020 FYE12/2020 Prevailing rate Assumed rate New assumed rate NTD 3.54 3.50 3.61 RMB 15.85 15.76 15.37 EUR 122.53 121.17 119.82 THB 3.52 3.52 3.44 HKD 13.96 13.88 13.96 USD 109.37 108.62 108.41 Financial Results Briefing for Q2 FYE 12/2020 16
Slide 18: 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 2,500 900 1,600 15.0 783 1,407 800 14.0 2,033 1,400 692 1,240 2,000 1,200 13.0 700 1,200 * 609 1,053 * 12.7 12.0 600 568 1,000 902 1,500 1,362 11.0 500 11.
Slide 19: Dividend, payout ratio and ROE
Dividend, payout ratio and ROE Dividend policy Dividend（Forcast） Medium-term goal (consolidated payout ratio) 26.0 yen Q2 12 yen 30% Q4 14 yen Dividend / Dividend ratio 50 13.0 * 15.0 13.0 12.0 39.9 40 35.2 28.0 7.9 10.0 30 23.6 23.4 * 8.5 Dividend（yen） 20 Dividend ratio（%） 5.0 22 26 26 26 ROE（%） 10
Slide 20: ESG-H effort
ESG-H effort Environment • Eco friendly products and products that improve yield. • Contribution to the improvement of the PCBs manufacturing environment. Social • Contribution to social development (5G, autonomous driving). • WLB support, Success of women in the work place. Governance • Invitation
Slide 21: Basic policy of capital policy and shareholder return
Basic policy of capital policy and shareholder return In line with the MEC Group's capital policy, we are making the following efforts in order to help improve shareholder value while securing financial soundness. Improvement of corporate value • Continuously improve consolidated ROE based on a leve