Mec Company Ltd. · TSE:4971
Mec — Q1 FY2023 Earnings Presentation
33 slides from Mec's earnings presentation, May 10, 2023
Slide 1: Financial Results Briefing for Q1 FYE 12/2023
Financial Results Briefing for Q1 FYE 12/2023 May 10, 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 Japan
Slide 2: Notice of Revision of Earnings Forecast (First Half)
Notice of Revision of Earnings Forecast Revision to the first half consolidated earnings forecast for the fiscal year ending in December 2023. (January 1, 2023 to June 30, 2023) Operating Ordinary Net Net sales Net income income income income (million yen) per share (million yen) (million yen) (mill
Slide 3: Notice of Revision of Earnings Forecast (Full Year)
Notice of Revision of Earnings Forecast Revision to the full-year consolidated earnings forecast for the fiscal year ending in December 2023. (January 1, 2023 to December 31, 2023) Operating Ordinary Net Net sales Net income income income income (million yen) per share (million yen) (million yen) (m
Slide 4: Decision to Acquire Treasury Stock
Decision to Acquire Treasury Stock 1. Reason for acquiring treasury stock We aim to enhance shareholder returns and implement flexible capital policies in response to changes in the business environment. 2. Details of the acquisition of treasury stock (1)Type of shares to be acquired: Common shares
Slide 5: Q1 FYE12/2023 Overview
Q1 FYE12/2023 Overview Business environment Continuing from last year demand for consumer electronics such as PCs, smartphones, displays, and tablet PCs has been sluggish due to stagnant personal consumption. Investment in data centers was also restrained. Financial results overview YOY decrease in
Slide 6: Q1 FYE12/2023 Key factors
Q1 FYE12/2023 Key factors Sales: 2,765 million yen(YOY change: Down 30.1%) 1 Operating income: 168 million yen(YOY change: Down 83.9%) Exchange rate impact (YOY change) 2 Sales: Up 95 million yen, Operating income: Up 38 million yen. Chemicals 3 Sales: 2,712 million yen (YOY change: Down 30.4%) Ship
Slide 7: Exchange rate
Exchange rate Initial 23Q1 22Q1 22Q4 forecast NTD 4.37 4.37 4.18 4.40 RMB 19.33 19.33 18.44 19.39 HKD 16.34 17.02 15.00 16.70 THB 3.69 3.90 3.53 3.73 EUR 136.04 143.34 131.35 137.93 USD 128.03 133.26 117.12 130.78 • Overseas subsidiaries are basically transactions denominated in local currency, and
Slide 8: Q1 FYE12/2023 Results
Q1 FYE12/2023 Results Unit : million yen Q1 Full-year FYE12.2022 FYE12.2023 FYE12.2022 FYE12.2023 Progress Progress YOY YOY Results Results Results (Forcast) ratio (%) ratio (%) (%) (%) Net sales 3,955 24.2% 2,765 20.5% -1,189 -30.1% 16,329 13,500 -17.3% Chemical sales 3,898 - 2,712 - -1,185 -30.4%
Slide 9: Net sales year-over-year change
8 FYE12/’23 ２，７６５ Q1 Foreign exchange 1,189 million yen, Down 30.1% Other sales Financial Results Briefing for FYE Q1 12/2023 Material sales Machine sales Other solution Etching solution Net sales YOY Adhesion improves FYE12/’22 Q1 ３，９５５ Million yen
Slide 10: Operating income year-over-year change
9 FYE12/’23 １６８ Q1 Foreign exchange （Selling、general and administrative expenses） Selling, general and 882 million yen, Down 83.9 % administrative expenses Foreign exchange （Gross profit） Financial Results Briefing for FYE Q1 12/2023 Material and Other sales Gross profit Material and Operating incom
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 22.3 25 20.3 3,000 20 4,172 4,236 15 2,000 4,132 3,955 6.1 3,881 3,505 3,519 3,965 2,765 10 1,000 5 1,202 168 (Million yen ) 973
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 35 27.8 27.7 29.1 20.3 24.7 24.4 22.3 26.6 6.1 30 4,000 1,032 1,034 25 1,202 787 1,051 886 3,000 973 975 20 168 1,457 1,460 1,352 1,495 1,377 1,503 15 2,000 1,246 1,289 1,414 10 1,000
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 2021 2022 2023 Other 2 0 13 6 1 1 1 3 1 Materials for PCBs 16 21
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,193 SF etc. 202 191 166 3,500 1,020 908 174 178 1,190 996 1,019 863 3,000 1,128 1,084 2,500 148 69
Slide 15: Quarterly performance: CZ series sales
Quarterly performance : CZ series sales 8100 8101 Other CZ 3,000 Other CZ contain 8201, 8401 and 2,784 pre- and post-processing of CZ 2,609 2,517 2,500 2,403 2,313 2,294 980 883 2,000 1,964 811 928 1,906 747 802 616 1,638 579 1,500 505 1,000 1,410 1,464 1,276 1,199 1,244 1,276 1,026 1,038 883 500 (M
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 2021 2022 2023 Japan 1,666 1,496 1,849 1,649 1,579 1,678 1,638 1,698 1,046 Taiwan 676 783 809
Slide 17: Capital investment, depreciation and R&D expenses
Capital investment, Depreciation expenses and R&D expenses R&D expenses and Ratio Capital investment Depreciation expenses of consolidated sales 2,000 900 1,600 15.0 1,763 827 1,504 1,800 784 1,359 14.0 800 742 759 1,400 1,3231,330 1,600 692 1,200 13.0 700 1,200 1,362 1,400 11.1 12.0 600 1,000 1,200
Slide 18: Our future plans
Our future plans
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: 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 21: 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 FYE Q1 12/2023 19
Slide 22: 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 23: 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 FYE Q1 12/2023 21
Slide 24: 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 ㎡ Start of construction October 2023 (planned) Total investment Approx. 4 billion yen (including
Slide 25: FYE12/2023 full-year forecast
FYE12/2023 full-year forecast FYE12/2022 FYE12/2023 (54th term) (55th term) May 10, 2023 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 - 6,000 - -26.2% 13,500 - -
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 28.0 30.9 27.9 23.6 23.6 26.9 21.7 20.9 22.5 9.5 15.4 9.8 12.1 12.5 13.0 11.3 12.0 13.8 7.9 1000 591 265 500 233 862 671 38
Slide 27: 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 Q1 12/2023 25
Slide 28: Appendix
Appendix
Slide 29: 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 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 FYE Q1 12/2023 27
Slide 31: 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 32: Production capacity
Production capacity Amagasaki Factory Nagaoka Factory 900ｔ/ m 2,200ｔ/ m MEC TAIWAN MEC SUZHOU MEC ZHUHAI 1,200ｔ/ m 450ｔ/ m 1,000ｔ/ m MEC EUROPE MEC THAILAND 400ｔ/ m 500ｔ/ m Financial Results Briefing for FYE Q1 12/2023 29
Slide 33: Forward-looking statements
This presentation includes forward-looking statements (such as predictions and business forecasts) made in May 10, 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 substantially f