Mec Company Ltd. · TSE:4971

Mec — Q1 FYE 12/2019 Earnings Presentation

19 slides from Mec's earnings presentation, May 10, 2019

  1. Slide 1: Financial Results Briefing for Q1 FYE 12/2019

    Financial Results Briefing for Q1 FYE 12/2019 May 10, 2019: HQ May 13, 2019: Tokyo MEC COMPANY LTD. Securities code: 4971 https://www.mec-co.com/en/

  2. Slide 2: Q1 FYE 12/2019 Key factors

    Q1 FYE 12/2019 Key factors Assumed/actual exchange rate １ JPY to USD Assumed rate: 109.00 yen / Actual rate: 110.48 yen (previous year was 108.83 yen) JPY to NTD Assumed rate: 3.66 yen / Actual rate: 3.58 yen (previous year was 3.70 yen) JPY to RMB Assumed rate: 16.85 yen / Actual rate: 16.38 yen (p

  3. Slide 3: Q1 FYE 12/2019 Results - 1

    Q1 FYE 12/2019 Results - 1 Q1 Q1 vs. same period vs. forecasts FYE12/2018 FYE12/2019 Profit Profit Amount YOY Amount Amount ratio Amount ratio change Ratio (million (million (million yen) (million yen) (%) （%） （%） （%） yen) yen) Net sales 2,660 - 2,328 - -332 -12.5 -9.471 19.7 Operating income 520 19

  4. Slide 4: Q1 FYE 12/2019 Results - 2

    Q1 FYE 12/2019 Results - 2 Q1 Q1 FYE12/2018 FYE12/2018 vs. same period YOY Amount Amount Amount change* (million yen) (million yen) (million yen) (%) Chemical sales 2,612 2,266 -346 -13.2% Ratio of net sales（％） 98.2% 97.3% - -0.9pt CZ series sales 1,385 1,185 -200 -14.4% Ratio of net sales（％） 53.0%

  5. Slide 5: Net sales YOY

    Net sales YOY 3,000 (million yen) 2,500 237 81 26 31 6 10 DOWN DOWN Adhesion improves DOWN UP DOWN DOWN Etching solution 2,000 Other solution Material sales Machine sales Other sales 1,500 2,660 2,328 1,000 500 0 Q1 Q1 FYE12/2018 FYE12/2019 Financial Results Briefing for Q1 FYE 12/2019 4

  6. Slide 6: Operating income YOY change

    5 FYE12/2019 (million yen) Q1 205 Shipping fare UP 6 DOWN Personnel expenses 6 Selling, general and DOWN administrative expenses 8 (Not included Personnel Financial Results Briefing for Q1 FYE 12/2019 expenses and Shipping fare) Material and UP 1 Other sales Gross profit Material and DOWN Operating

  7. Slide 7: Quarterly net sales

    Quarterly net sales 3,000 2,500 2,000 1,500 1,000 (Millions of yen ) 500 0 Jan-Mar Apr-Jun Jul-Sep Oct.-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Consolidated 2,374 2,585 2,811 2,978 2,660 2,839 2,932 2,896 2,328 Non-consolidated 1,675 1,791 2,002 2,131 1,767 2,026 2,168 1

  8. Slide 8: Quarterly operating income

    Quarterly operating income 1,000 800 600 400 200 (Millions of yen ) 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Consolidated 307 605 762 663 520 518 708 475 205 Non-consolidated 197 413 600 544 288 459 558 184 132 Financial Results Briefing for

  9. Slide 9: Quarterly ordinary income

    Quarterly ordinary income 1,000 800 600 400 200 (Millions of yen ) 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Consolidated 292 618 788 698 511 531 721 473 240 Non-consolidated 847 425 617 569 337 615 575 170 349 Financial Results Briefing for Q

  10. Slide 10: Quarterly net income

    Quarterly net income 1,000 800 600 400 200 (Millions of yen ) 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Consolidated 180 485 566 571 365 523 540 348 158 Non-consolidated 760 364 461 488 255 536 448 136 275 Financial Results Briefing for Q1 FYE

  11. Slide 11: Product-specific quarterly sales (consolidated)

    Product-specific quarterly sales (consolidated) 3,500 3,000 2,500 2,000 1,500 1,000 (Millions of yen) 500 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Other 8 1 5 2 16 1 4 1 6 materials for PCBs 36 26 28 23 21 46 19 3 5 Equipments for PCBs 27 39

  12. Slide 12: Quarterly chemical sales (consolidated) (1)

    Quarterly chemical sales (consolidated) (1) 3,500 3,000 2,500 2,000 1,500 1,000 (Millions of yen) 500 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Other 14 12 7 12 9 3 8 5 8 Stripper 81 103 139 165 73 87 105 96 59 Flux 49 46 42 45 47 45 42 37 39

  13. Slide 13: Quarterly chemical sales (consolidated) (2)

    Quarterly chemical sales (consolidated) (2) 3,500 Adhesion improves : CZ, V-Bond, FlatBOND, UT etc. Etching solution : EXE, SF etc. 3,000 2,500 2,000 1,500 1,000 (Millions of yen) 500 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Other surface pro

  14. Slide 14: Chemical shipment volume (consolidated)

    Chemical shipment volume (consolidated) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar (t) 2017 Converted 2018 2019 Other surface processing solution 352 366 423 451 360 377 424 399 338 Etching solution 1,768 1,9

  15. Slide 15: CZ series sales

    CZ series sales 800 700 600 500 400 300 200 ( Millions of yen ) 100 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 ＣＺ－8100 249 269 260 270 270 279 272 253 232 ＣＺ－8101 628 634 704 709 723 733 725 713 540 Financial Results Briefing for Q1 FYE 12/2019

  16. Slide 16: 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 (Millions of yen) 10 200 0 0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2017 Converted 2018 2019 Japan 1,104 1,225 1,383 1,479 1,239 1,332 1,384 1,410 1,077 Asia 1,104 1

  17. Slide 17: FYE 12/2019 Full-year forecasts

    FYE 12/2019 Full-year forecasts FYE 12/2018 FYE 12/2019 (50th term) (51th term) Amount Profit ratio Amount Profit ratio YOY change* (million yen) (%) (million yen) (%) (%) Net sales 11,328 - 11,800 - 4.2 Operating income 2,222 19.6 2,050 17.5 -7.8 Ordinary income 2,236 19.7 2,100 18.4 -6.1 Net incom

  18. Slide 18: Capital investment, depreciation expenses and R&D expenses

    Capital investment, Depreciation expenses and R&D expenses 2,500 12.0 2,208 2,033 11.0 1,957 10.8 10.0 2,000 9.7 9.8 1,280 8.8 8.0 1,500 735 1,048 1,240 Million yen 798 902 1,053 6.0 368 568 1,000 360 % 4.0 609 592 500 2.0 0 0.0 Capital investment Depreciation expenses R&D expenses R&D expense ratio

  19. Slide 19: Dividend, Payout ratio and ROE

    Dividend, Payout ratio and ROE 35 13.0 13.0 32.9 14.0 12.5 12.0 30 12.0 28.0 9.6 23.6 23.4 25 10.0 20 23.6 8.0 ％ Yen 15 6.0 26 26 22 10 20 4.0 18 5 2.0 0 0.0 Dividend Payout ratio ROE Financial Results Briefing for Q1 FYE 12/2019 18

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