Slide 1: FY2021 Financial Results Briefing and Medium-term Business Plan
FY2021 Financial Results Briefing and Medium-term Business Plan （FY2022-2026） May 19, 2022 （Securities Identification Code: 6787）
Slide 2: Forward-looking statements disclaimer
This presentation contains forward-looking statements concerning Meiko Group’s future plans, strategies and performance. However, Meiko does not publish this presentation as a disclosure document based on the Financial Instruments and Exchange Act of Japan. These forward-looking statements are not h
Slide 3: Agenda
■Financial Results Briefing ・FY2021 Results ・FY2021 Forecast ■Medium-term Business Plan ・Business Plan ・Financial Strategy and Shareholder Returns ・ESG ・Medium-term Technology Strategy ・Medium-term Production Strategy 3
Slide 4: FY2021 Business Environment
FY2021 Business Environment ●Our Wuhan Plant and Vietnam Plant adjusted the operations due to the spreading Covid-19 infections from August to early September. ●The orders from customers declined partly affected by the shortage of semiconductors. ●Raw material price hike was absorbed by the selling
Slide 5: FY2022 Business Environment
FY2022 Business Environment ●The world economy has become unforeseeable due to the situation in Ukraine, Chinese Covid-19 policy, and lack of semiconductors. ●Further price hike of raw material is expected. ●Invest in package boards facilities as a new business field. ●Construction of our Tendo Fact
Slide 6: FY2022 results and forecast for the current term
FY2022 results and forecast for the current term （ 100 million yen ） FY2020 FY2021 Year-on-Year FY2022 Year-on-Year Results Results % Forecast % Net Sales 1,193 1,513 26.8% 1,700 12.4% Operating 67 133 99.1% 155 16.9% Income 5.6% 8.8% 9.1% Ordinary 57 143 150.9% 145 1.4% Income 4.8% 9.5% 8.5% Net 46
Slide 7: FY2022 Forecast by Product Application
FY2022 Forecast by Product Application （ 100 million yen ） FY2020 Results FY2021 Results FY2022 Forecast Year-on-Year Operating Operating Operating Operating Net Sales Net Sales Income Net Sales Income Net Sales Income Income % % % Diff. Diff. 36 63 75 128 12 Automotive 523 732 860 6.9% 8.6% 8.7% 17
Slide 8: Sales Forecast by Product Application
Sales Forecast by Product Application （ 100 million yen ） 12.4%➡ 1,700 26.8%➡ 1,513 15.9%➡ 146(8.6%) EMS 8.6%➡ 126(8.3%) -4.6%➡ 226(13.3%) AI home appliances 1,193 20.9%➡ 237(15.7%) 14.0%➡ 98(5.8%) Amusement Industrial machinery 5(0.3%) and other products 116(9.7%) 22.9%➡ 86(5.7%) 365 9.9%➡ SSD・IoT
Slide 9: Sales Forecast by Product Specification
Sales Forecast by Product Specification （ 100 million yen ） 1,700 1,513 146(8.6%) 29(1.7%) EMS 35(2.1%) 126(8.3%) 46(3.0%) 5(0.3%) 1,193 30(2.0%) Other substrates 725 116(9.7%) 43(3.6%) 634 (42.6%) 14.4%➡ Flexible PCB 25(2.1%) (41.9%) 507 25.0%➡ (42.5%) Package PCB 760 677 12.3%➡ HDI PCB 34.9%➡ 502
Slide 10: Agenda: Medium-term Business Plan
■Financial Results Briefing ・FY2021 Results ・FY2021 Forecast ■Medium-term Business Plan ・Business Plan ・Financial Strategy and Shareholder Returns ・ESG ・Medium-term Technology Strategy ・Medium-term Production Strategy 10
Slide 11: Medium-term management plan
Medium-term management plan Providing the best products and services to customers, and happiness Management philosophy for employees and society through manufacturing. Purpose Challenge and contribute to the evolution of electronics Nest Sales 2,500 (100 million yen) Operating Income 275 (100 millio
Slide 12: PCB Market Forecast
PCB Market Forecast （Unit: trillion yen） Market 10.1 6.1% 9.5 9.0 8.3 8.5 2.2 Package PCB 19.6% 2.0 7.5 1.8 1.5 1.6 0.9 Flexible PCB 2.3 0.7% 2.3 2.3 2.3 2.3 2.3 1.2 HDI PCB 1.2 2.7% 1.2 1.1 1.1 1.1 Multi-layer PCB 4.4 5.7% 3.8 4.0 3.3 3.4 3.5 2022.3 2023.3 2024.3 2025.3 2026.3 2027.3 CAGR *Forecast
Slide 13: Medium-term earnings forecast
Medium-term earnings forecast FY2017-FY2021 CAGR 8.7％ FY2021-FY2026 CAGR 10.6％ （ 100 million yen ） 2,500 2,250 Net sales 2,050 Operating income 1,850 CAPEX 1,700 Deprecation/Amortization amount 1,513 275 1,189 1,155 1,193 236 1,085 220 205 200 200 200 175 180 158 155 138 133 118 127 118 115 107 103
Slide 14: Sales Forecast by Product Application
Sales Forecast by Product Application （ 100 million yen ） 2,500 300(12.0%) EMS 1,850 250(10.0%) AI home appliances 1,700 Amusement Industrial machinery 170(9.2%) 300(12.0%) and other products 1,513 146(8.6%) 232(12.5%) 150(6.0%) 126(8.3%) 226(13.3%) SSD・IoT Module 45(2.4%) 5(0.3%) 118(6.4%) 400 237(
Slide 15: Sales Forecast by Product Specification
Sales Forecast by Product Specification （ 100 million yen ） 2,500 300(12.0%) EMS 20(0.8%) 100(4.0%) 30(1.2%) 1,850 19(1.0%) 300(12.0%) Other substrates 1,700 20(1.2%) 170(9.2%) 1,513 13(0.7%) 146(8.6%) 9(0.5%) 50(2.7%) 37(2.4%) 126(8.3%) 35(2.1%) 45(2.4%) Flexible PCB 9(0.6%) 5(0.3%) 900 30(2.0%) 75
Slide 16: Agenda: Financial Strategy and Shareholder Returns
■Financial Results Briefing ・FY2021 Results ・FY2021 Forecast ■Medium-term Business Plan ・Business Plan ・Financial Strategy and Shareholder Returns ・ESG ・Medium-term Technology Strategy ・Medium-term Production Strategy 16
Slide 17: Financial Strategy and Shareholder Returns
Financial Strategy and Shareholder Returns １．Expand sales and profits through equipment and R&D investment. ２．Strengthen our well-balanced financial structure. ３．Consolidated dividend payout ratio is around 15%. ４． Improve shareholder value and dividends by expanding profits. Sales growth rate Sales
Slide 18: Agenda: ESG
■Financial Results Briefing ・FY2021 Results ・FY2021 Forecast ■Medium-term Business Plan ・Business Plan ・Financial Strategy and Shareholder Returns ・ESG ・Medium-term Technology Strategy ・Medium-term Production Strategy 18
Slide 19: ESG Initiatives
ESG Initiatives Environment（Domestic Business） Global Warming Implementation of countermeasures based on TCFD Countermeasures ・50% reduction in CO2 emissions per unit of production in Japan by 2030 (compared to 2013) ・Promotion of energy conservation (basic unit: -1.5%/year for electricity, -2.0%/ye
Slide 20: Agenda: Medium-term Technology Strategy
■Financial Results Briefing ・FY2021 Results ・FY2021 Forecast ■Medium-term Business Plan ・Business Plan ・Financial Strategy and Shareholder Returns ・ESG ・Medium-term Technology Strategy ・Medium-term Production Strategy 20
Slide 21: Technology Trends Automotive
Technology Trends Automotive Control method for car electrification and autonomous driving 【FY2021】 【FY2025】 【FY2030】 Distributed ECU Domain-Integrated ECU Centralized ECU Central Gateway Central Gateway SensorECU SensorECU SensorECU Cockpit & Powertrain&Body ECU ADAS ECU SensorECU Communication ECU
Slide 22: Automotive PCB Technology Lineup
Automotive PCB Technology Lineup High density / high frequency Miniaturization Heat dissipation Heavy Copper LVH Stack ●Current wiring layer thick copper Semi Flex ●Bending using FR-4.0, 4.1 ●Incorporation into small size and space saving 6L penetration inner layer 105µm Cu-Inlay ●Heat dissipation o
Slide 23: Semiconductor Package Substrate Market Trends
Semiconductor Package Substrate Market Trends Architectural View of 5G-Enabling Technologies Semiconductor package substrate demand forecast *Our forecast Core Network SDN NFV （DataServer） Network Slicing Increased amount Of data WBCSP FCCSP Mesh FCBGA ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 ‘27 ‘30 Fiber Wirel
Slide 24: Semiconductor Package Substrate Technology Roadmap
Semiconductor Package Substrate Technology Roadmap Technological trends FY2022 FY2025 FY2030 Increased amount of High communication data Early 5G(32Gb) 5G spread (64Gb) Early 6G(128Gb) frequency Board development content Memory Wiring refinement Wiring refinement Package (20/20um～) (8/8um) FCBGA Wir
Slide 25: Agenda: Medium-term Production Strategy
■Financial Results Briefing ・FY2021 Results ・FY2021 Forecast ■Medium-term Business Plan ・Business Plan ・Financial Strategy and Shareholder Returns ・ESG ・Medium-term Technology Strategy ・Medium-term Production Strategy 25
Slide 26: Medium-term Production Strategy
Medium-term Production Strategy Meiko will accelerate its improvement and strengthening efforts for manufacturing, challenging the cutting-edge fields and expanding the products portfolio, aiming for stable supply to customers and extension of services based on the expertise to meet customer’s requi
Slide 27: Medium-term Investment Policy
Medium-term Investment Policy While continuing to invest in quality, automation and environmental friendliness in response to the customers requirements for existing businesses, we will increase the ratio of new business investment, which is expected to grow in demand in the future, to realize the s
Slide 28: Ishinomaki Factory #2
Ishinomaki Factory #2 THe high-end FC-BGA market is tightening all over the world due to the rapid shift to DX. The Ishinomaki Factory #2 will enter the small and small FC-BGA market utilizing SAP for the consumers needing legacy and automotive products . Business summary FC-BGA PCB Location Ishinom
Slide 29: Meiko Yamagata - Tendo Factory
Meiko Yamagata - Tendo Factory HDI for automotive is expected to increase significantly due to the progress of EV/ADAS. We open a state-of-the-art “Eco Smart Factory” in Yamagata to cope with the high demand. Outline of the Tendo Factory Place Tendo-City, Yamagata Pref. Site area Approx. 65,000㎡ Flo
Slide 30: Vietnam Plant #3
Vietnam Plant #3 With the evolution of high-speed communication technology, the demand for thinner high-end memory boards and communication modules has increased. At the Vietnam Plant #3, a line dedicated to thin packages and modules utilizing MSAP will be launched. PKG business Business summary Mem
Slide 31: Quan Minh Plant #2
Quan Minh Plant #2 The Quan Min Plant #1, our 4th base in Vietnam, which has already been operating as a rental factory, will be used for EMS business. We will plan to build plant #2 to meed the demand from the growing fields in the future. Cutting edge HDI PCB Business summary Location Quan Minh, H