Mec Company Ltd. · TSE:4971
Mec — 1H FYE12/2025 Earnings Presentation
35 slides from Mec's earnings presentation, Aug 8, 2025
Slide 1: Financial Results Briefing for 1H FYE 12/2025
Financial Results Briefing for 1H FYE 12/2025 August 8, 2025 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 Jap
Slide 2: 1H FYE12/2025 Key Factors
1H FYE12/2025 Key Factors Sales: 9,387 million yen (YOY change: Up 5.7%) 1 Operating income: 2,440 million yen (YOY change: Up 3.3%) Exchange rate impact (YOY change) 2 Sales: Down 110 million yen, Operating income: Down 70 million yen. Chemicals 3 Sales: 9,025 million yen (YOY change: Up 7.6%) Ship
Slide 3: Exchange Rates
Exchange Rates Unit : yen Initial 1H 1H Q1 • Overseas subsidiaries are basically forecast FYE12/2025 FYE12/2024 FYE12/2025 transactions denominated in local currency, and are affected by the yen / local currency NTD 4.76 4.68 4.78 4.63 rate when converting to yen in consolidated accounting. RMB 21.0
Slide 4: 1H FYE12/2025 Results
1H FYE12/2025 Results Unit : million yen 1H Full-year FYE12.2024 FYE12.2025 FYE12.2024 FYE12.2025 Progress ratio Progress ratio YOY YOY Results Results Results (Forcast) (%) (%) (%) (%) Net sales 8,882 48.7% 9,387 46.9% 504 5.7% 18,234 20,000 9.7% Chemical sales 8,384 - 9,025 - 640 7.6% 17,478 - - G
Slide 5: Net Sales YOY
4 FYE12/2025 ９，３８７ 1H Foreign exchange Other sales 504 million yen, Up 5.7% Material sales Financial Results Briefing for 1H FYE12/2025 Machine sales Other solution Etching solution Net Sales YOY Adhesion improves FYE12/2024 ８，８８２ 1H (Million yen)
Slide 6: Operating Income YOY
5 FYE12/2025 ２，４４０ 1H Foreign exchange （Selling、general and administrative expenses） Selling, general and administrative expenses Foreign exchange 77million yen, Up 3.3 % （Gross profit） Financial Results Briefing for 1H FYE12/2025 Material and Other sales Gross profit Material and Other sales Operat
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 26.8 27.1 30 5,000 24.2 24.7 22.0 25 4,000 20.3 20.1 19.5 20 3,000 15 4,799 4,963 4,354 4,527 4,423 2,000 6.1 4,038 3,782 4,552 3,432 10 2,765 1,000 1,347 5 1,309
Slide 8: Quarterly Composition: Operating Income, SG&A, COGS
Quarterly Composition: Operating Income, SG&A, CODS (Consolidated) COGS SGA Operating income 5,000 1,286 1,347 4,000 913 1,053 1,309 1,093 820 833 3,000 669 168 1,727 1,791 1,708 1,496 1,524 1,655 1,406 1,609 2,000 1,393 1,414 1,000 1,907 1,542 1,805 1,693 1,785 1,847 1,675 1,182 1,369 1,608 (Millio
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 2023 2024 2025 Other 1 1 0 0 1 3 1 1 8 7 Materials for PCBs 16 27 15 80 37 44
Slide 10: Quarterly Performance: Chemical Sales
Quarterly Performance : Chemical Sales (Consolidated) Adhesion improves Etching solution Other surface processing solution （CZ、V-Bond etc.） （EXE、SF etc.） 6,000 5,000 206 211 209 182 4,000 202 974 193 175 1,079 935 213 1,115 857 222 821 871 3,000 928 148 814 694 2,000 3,370 3,317 3,601 2,915 2,877 3,
Slide 11: Quarterly Performance: CZ Series Sales
Quarterly Performance : CZ Series Sales 8100 8101 Other CZ Other CZ contain 8201, 8401 and pre- and post-processing of CZ 3,500 3,200 3,000 2,970 2,928 2,818 2,821 2,609 2,589 2,500 1,149 2,311 1,164 1,120 1,032 1,017 2,071 942 866 2,000 799 1,638 715 1,500 505 1,486 1,717 1,469 1,480 1,000 1,415 1,
Slide 12: Quarterly Performance: Region-Specific Sales and Overseas Sales Ratio
Quarterly Performance : Region-Specific Sales and Overseas Sales Ratio 2,500 80 70 2,000 60 1,500 50 40 1,000 30 20 500 (Million yen) 10 (%) 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 2023 2024 2025 Japan 1,046 1,376 1,474 1,645 1,857 1,688 1,931 1,728 1,594 1,756 Taiwan 615 589 711 703 795 878
Slide 13: Our Future Plans
Our Future Plans 12
Slide 14: Our Future Plans: Business environment
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 15: FYE12/2025 Full-year Forecast
FYE12/2025 Full-year Forecast FYE12/2024 FYE12/2025 Full-year Full-year Amount Profit ratio Amount Profit ratio YOY change (million yen) (%) (million yen) (%) (%) Net sales 18,234 - 20,000 - 9.7% Operating income 4,562 25.0 5,000 25.0 9.6% Ordinary income 4,682 25.7 5,100 25.5 8.9% Net income 2,291
Slide 16: Capital Investment, Depreciation Expenses and R&D Expenses
Capital Investment, Depreciation Expenses and R&D Expenses Capital investment Depreciation expenses R&D expenses and 減価償却費 Ratio of consolidated sales （million yen） （million yen） （million yen） 3,500 10.0 8.8 8.7 9.0 3,000 8.1 （%） 7.6 8.0 7.3 2,500 2,097 7.0 For the new Depreciation expenses for the
Slide 17: Trends in Total Dividends, Consolidated Dividend Payout Ratio, and ROE
Trends in Total Dividends, Consolidated Dividend Payout Ratio, and ROE Total dividends / Treasury stock repurchase Dividends per share amount/Consolidated dividend payout ratio ROE 36.8 36.8 27.9 28.6 22.5 15.4 13.8 12.8 30 （％） 1,292 9.6 25 25 25 8.9 899 21 25 1,038 *Net profit declined in FY 2024 d
Slide 18: Cash Allocation
Cash Allocation Profits obtained through business activities by investing management capital will be allocated to shareholder returns, growth investments, and foundation strengthening while maintaining balance. ・Investment in R&D: Approximately 10% of consolidated sales every year Investment ・M＆A in
Slide 19: ESG Effort
ESG Effort Environment • Development of products that reduce environmental impact. • Appropriate chemical substance management. • Promotion of resource recycling. • Measures to address climate change. Social • Human capital strategy. • Utilization of diverse human resources. (Empowerment of women, W
Slide 20: 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 1H FYE12/2025 19
Slide 21: Aiming to Expand the Technical Domain
Aiming to Expand the Technical Domain Evolution of Our Company's Technology and Required Technology Ultra-high density, low signal loss, low power consumption New field（Interposer） PKGs, PCBs Larger size and more layers ・Products︓Roughening adhesion(CZ)×Chemical adhesion(AP) Si Die ・Technical trend︓
Slide 22: 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 1H FYE12/2025 21
Slide 23: Appendix
Appendix 22
Slide 24: Corporate Profile
Corporate Profile （As of December 31, 2024） Company name MEC COMPANY LTD. Head quarters location 3-4-1, Kuise Minamishimmachi, Amagasaki, Hyogo Date of establishment May 1, 1969 R&D, production and sales of chemicals, equipment and Business activities related materials used in the production of PCBs
Slide 25: MEC Sales Trend since Foundation
MEC Sales Trend since Foundation 25,000 ‘69 Started as a chemical technology consulting company in Kita-ku, Osaka ‘70 Started manufacturing chemicals for electronic substrates Chemicals substances for smartphone boards and electronic parts 20,000 Driven by chemicals for PKG substrates for PCs '22 Tr
Slide 26: 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 1H FYE12/2025 25
Slide 27: Example of Product Usage Process
Example of Product Usage Process ≪Drying≫ ≪Water rinse≫ ≪Chemical treatment≫ Financial Results Briefing for 1H FYE12/2025 26
Slide 28: 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 AP Financial Results Briefing for 1H FYE12/2025 27
Slide 29: 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 that Super-roughening type Infrastructure (Generative AI, enhances adhesion between copper and resin. adhesive enhancement 5G/6G-related, data centers, etc.) It is
Slide 30: 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 2021 PWB Roadmap.2005 2010 2015 2020 2025 2030 Year2035 CZ-8100 1.5μm CZ-8101 0.7μm CZ-8201 0.3μm CZ-840
Slide 31: Changes in Copper Adhesion Surface Technology
Changes in Copper Adhesion Surface Technology Package Substrates Reduced etching volume Reduced etching volume CZ-8401 Reduced etching volume x CZ-8100 CZ-8101 Low signal loss CZ-8201 Low signal loss AP* Ultra-fine roughening Roughening Fine roughening Ultra-fine roughening Growing demand for roughe
Slide 32: Cross Section Observations
Cross Section Observations Core layer XEON PKG 14 layers(6-２-6） Core layer Core layer Core i7 PKG 8 layers(3-2-3) Ryzen PKG 12 layers(5-2-5) Size(cm2) Layers XEON 27.44 14 Core i7 14.44 ８ Ryzen 7 16.00 12 Financial Results Briefing for 1H FYE12/2025 31
Slide 33: Evolution of the PKG Substrate
Evolution of the PKG Substrate Conventional PKG substrate Si Die PKG One PKG, One Si Die Advanced PKG substrate Chiplet, 2.X/3D Si Die Si Die Enlarging PKG to mount multiple semiconductors ・High-density PKG PKG ・Large-size PKG ・High multi-layer PKG EMIB CoWoS EFB (Embedded Multi-die Interconnect Bri
Slide 34: Production Capacity
Production Capacity New production base (Under construction) Domestic base (Japan) Amagasaki Factory Nagaoka Factory Kitakyushu Plant (tentative name) 900ｔ/ mo. 2,750ｔ/ mo. Maximum capacity 2,500ｔ/mo.（Plan） MEC TAIWAN MEC SUZHOU MEC ZHUHAI 1,200ｔ/ mo. 1,350ｔ/ mo. 1,000ｔ/ mo. Global base MEC EUROPE M
Slide 35: This presentation includes forward-looking statements (such as predictions and business forecasts) made in August
This presentation includes forward-looking statements (such as predictions and business forecasts) made in August 8, 2025. 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