Mec Company Ltd. · TSE:4971
Mec — Q3 FYE12/2024 Earnings Presentation
35 slides from Mec's earnings presentation, Nov 11, 2024
Slide 1: Financial Results Briefing for Q3 FYE 12/2024
Financial Results Briefing for Q3 FYE 12/2024 November 11, 2024 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
Slide 2: Q3 FYE12/2024 Key factors
Q3 FYE12/2024 Key factors Sales: 13,682 million yen(YOY change: UP 37.1%) 1 Operating income: 3,649 million yen(YOY change: UP 118.3%) Exchange rate impact (YOY change) 2 Sales: Up 502 million yen, Operating income: Up 320 million yen. Chemicals 3 Sales: 13,041 million yen (YOY change: UP 32.6%) Shi
Slide 3: Exchange rates
Exchange rates Initial Q3 Q3 Q2 forecast FYE12/2024 FYE12/2023 FYE12/2024 NTD 4.48 4.72 4.48 4.78 RMB 19.66 20.95 19.66 21.08 HKD 17.73 19.28 17.73 19.47 THB 4.01 4.24 4.01 4.22 EUR 150.22 163.86 150.22 164.82 USD 138.87 150.62 138.87 152.30 The exchange rates for Revision to Earnings Forecast in Au
Slide 4: Q3 FYE12/2024 Results
Q3 FYE12/2024 Results Unit : million yen Q3 Full-year FYE12/2023 FYE12/2024 FYE12/2023 FYE12/2024 Progress Progress YOY YOY Results Results Results (Forcast) ratio (%) ratio (%) (%) (%) Net sales 9,981 71.2% 13,682 74.0% 3,700 37.1% 14,020 18,500 32.0% Chemical sales 9,834 - 13,041 - 3,206 32.6% 13,
Slide 5: Net sales YOY
Net sales YOY 16,000 14,000 12,000 Foreign exchange Etching solution Other solution Machine sales Material sales Other sales 10,000 １３，６８２ Adhesion improves 8,000 ９，９８１ 6,000 4,000 Million yen 2,000 0 3,700 million yen, UP 37.1% Q3 Q3 FYE12/’23 FYE12/’24 Financial Results Briefing for Q3 FYE12/2024
Slide 6: Operating income YOY
5 FYE12/’24 ３，６４９ Q3 Foreign exchange （Selling、general and administrative expenses） Selling, general and 1,977million yen, UP 118.3 % administrative expenses Foreign exchange （Gross profit） Financial Results Briefing for Q3 FYE12/2024 Material and Other sales Gross profit Material and Operating inco
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 26.6 26.8 24.7 24.4 24.2 22.3 22.0 25 4,000 19.5 20.3 20 3,000 6.1 15 2,000 3,955 4,172 4,236 3,965 4,354 4,527 4,799 3,782 3,432 10 2,765 4,038 1,000 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 1,053 1,309 1032 1034 820 1051 886 833 3,000 669 168 1,727 1,460 1,496 1,524 1,457 1,503 1,609 1,377 1,406 2,000 1,393 1,414 1,000 1,682 1,741 1,805 1,693 1,785 1,526 1,575 1,369 1,542 1,60
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 4-6 7-9 2022 2023 2024 Other 1 1 1 3 1 1 0 0 1 3 1 Materials for PCBs 18 19 38 31
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 4,000 202 200 202 193 175 1,079 166 213 1,115 3,500 1,020 908 863 222 821 871 1,019 928 3,000 148 814 2,500 694 2,000 3,370 1,
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 2,970 3,000 2,818 2,784 2,609 2,609 2,589 2,517 2,500 2,402 2,311 980 2,071 1,032 1,164 883 942 866 2,000 811 928 1,638 799 715 1,500 505 1,464 1,350 1,415 1,446 1,469 1,00
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 4-6 7-9 2022 2023 2024 Japan 1,579 1,678 1,638 1,698 1,046 1,376 1,474 1,645 1,857 1,688 1,931 Taiwan 853 891 903 844
Slide 13: Capital investment, Depreciation expenses and R&D expenses
Capital investment, Depreciation expenses and R&D expenses Capital investment Depreciation expenses R&D expenses and Ratio 減価償却費 of consolidated sales （million yen） （million yen） （million yen） 3,500 14.0 3,474 3,000 11.4 12.0 2,500 （%） 10.0 8.8 8.7 2,097 8.1 2,000 7.3 1,870 （Forecast） 8.0 1,359 1,32
Slide 14: Capital investment new production base Kitakyushu Plant
Capital investment new production base Kitakyushu Plant (tentative name) （Million yen） Kitakyushu Plant (tentative name) 2,097 1,669 933 Location Wakamatsu-ku, Kitakyushu City, Fukuoka Prefecture Site area 29,889 ㎡ Production capacity Approx. 30,000 t/year (planned) FYE2023 FY2024 FY2025 Total inves
Slide 15: MEC's technology & Our future plans
MEC’s technology ＆ Our future plans
Slide 16: 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 Super-roughening type that enhances adhesion between Infrastructure (5G/6G-related, adhesive enhancement copper and resin. data centers, etc.) and high- It is main
Slide 17: Our future plans
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 18: 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 Q3 FYE12/2024 16
Slide 19: Market trend
Market trend Cutting-edge packages Chemical adhesion promoter AP series Ultra-high Ultra-high density frequency CZ-8401 ×Chemical adhesion promoter AP series Roughening technology Roughening technology Present Future Financial Results Briefing for Q3 FYE12/2024 17
Slide 20: New production base
New production base MEC COMPANY LTD. Kitakyushu Plant (tentative name) Conceptualized image of completed facility Location 10 Koyomachi, Wakamatsu-ku, Kitakyushu City, Fukuoka Prefecture Site area 29,889 ㎡ Total investment Approx. 4.7 billion yen (including land acquisition costs) Investment plan Ow
Slide 21: FYE12/2024 full-year forecast
FYE12/2024 full-year forecast FYE12/2023 FYE12/2024 (55th term) (56th term) May 10, 2024 August 8, 2024 Full-year Full-year Full-year Profit Profit YOY Profit YOY Amount ratio Amount ratio change Amount ratio change (million yen) (%) (million yen) (%) (%) (million yen) (%) (%) Net sales 14,020 - 17,
Slide 22: 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 36.8 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 9.6 9.8 12.1 7.6 2000 899 1000
Slide 23: ESG effort
ESG effort Environment • Development of products that reduce environmental impact. • Appropriate chemical substance management. • Measures to address climate change. Social • Human Capital Strategy. • Utilization of diverse human resources (empowerment of women, WLB, promotion of men taking childcar
Slide 24: 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 Q3 FYE12/2024 22
Slide 25: Appendix
Appendix
Slide 26: Corporate profile
Corporate profile （As of December 31, 2023） 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 27: MEC sales trend since foundation
MEC sales trend since foundation 20,000 Chemicals substances ‘69 Started as a chemical technology consulting company in Kita-ku, Osaka for smartphone boards and 18,000 ‘70 Started manufacturing chemicals for electronic substrates electronic parts 16,000 '22 Transition on the Tokyo Stock Exchange Pri
Slide 28: 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 Q3 FYE12/2024 25
Slide 29: Example of product usage process
Example of product usage process ≪Drying≫ ≪Water Rinse≫ ≪Chemical Treatment≫ Direction of movement Financial Results Briefing for Q3 FYE12/2024 26
Slide 30: 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 Q3 FYE12/2024 27
Slide 31: 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 32: Cross section observation
Cross section observation XEON PKG 14 layers(6-２-6） Core i7 PKG 8 layers(3-2-3) Ryzen PKG 12 layers(5-2-5) cm2 Layers XEON 27.44 14 Core i7 14.44 ８ Ryzen 7 16.00 12 Financial Results Briefing for Q3 FYE12/2024 29
Slide 33: 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 34: Production capacity
Production capacity Amagasaki Factory Nagaoka Factory 900ｔ/ m 2,750ｔ/ m MEC TAIWAN MEC SUZHOU MEC ZHUHAI 1,200ｔ/ m 450ｔ/ m 1,000ｔ/ m MEC EUROPE MEC THAILAND 400ｔ/ m 500ｔ/ m As of December 31, 2023 Financial Results Briefing for Q3 FYE12/2024 31
Slide 35: This presentation includes forward-looking statements (such as predictions and business forecasts) made in November
This presentation includes forward-looking statements (such as predictions and business forecasts) made in November 11, 2024. 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 substantia