FY2019
Financial Results Briefing
May 21, 2020

（Securities Identification Code: 6787）

This presentation contains forward-looking statements concerning MeikoGroup’s future plans, strategies and performance. However, Meiko does
not publish this presentation as a disclosure document based on theFinancial Instruments and Exchange Act of Japan.
These forward-looking statements are not historical facts, rather they
represent assumptions and beliefs based on comprehensive data
currently available.
Furthermore, the Printed Circuit Board business is subject to a number ofrisks and uncertainties that relate to raw material price, conditions ofcustomers’ market, technological trends, change of foreign exchange ,change of tax rules and regulations, disasters, international conflicts andother factors. Meiko therefore wishes to caution that actual results may
differ materially from our expectations.

１

FY2019 Results

２

FY2020 Plan

3

Future Endeavor

3

Financial Results Highlights in FY2019

Netsales・Net sales decreased by 3.4 billion yen year on year to 115.5
billion yen.
→The impact of Wuhan and Guangzhou Plants suspension
due to COVID-19 was 2.9 billion yen in the sales drop.
・’Automotive’ decreased 2.4% year on year to 53.4 billion yen
・’Smartphones’ decreased 23.4% year on year to 24.9 billion yen
・’Sales in other fields’ increased 17.4% year on year to 37.2
billion yen

Profit･Operating income declined by 3.7 billion yen from FY2018 to 5.2
billion yen.
→Wuhan and Guangzhou Plants suspension due to COVID-19 resulted
the opportunity loss of 0.6 billion yen.
･Ordinary income declined by 3.8 billion yen from FY2018 to 4.8
billion yen.
･Net income declined by 4.1 billion yen from FY2018 to 2.6 billion
yen.
→Extraordinary loss amounting to 1.2 billion yen was posted in relation
to the suspension of Wuhan and Guangzhou Plants due to COVID-19.

4

FY2019 Consolidated Business Performance（100 million yen）

FY2018resultsN e t

s a l e s

Operating income

Ordinary income

N e t

i n c o m e

Average Exchangerate（Yen /USD）

FY2019results

1,189
89

1,155
52

7.5%

4.5%

86

48

7.2%

4.1%

67

26

5.6%

2.2 %

111.04108.93Year-on-year
difference

-34%

-2.9%

-37 -41.9%-38 -44.4%-41 -61.6%

5

FY2019 Revenue by Product Applications
FY2018
Sales

Sales%

Automotive

Smartphones

Others

Total

547
325
317
1,189

Difference

FY2019Operatingincome397.1%

3811.7%123.8%

897.5%

534
249
372
1,155

(100 million yen)

OperatingincomeSales

Operatingi n c o m e%%%29-13-10

5.4%

-2.4%

-25.6%

18-76

-20

7.2%

-23.4%-52.6%

555

-7

1.3%

17.4%

-58.3%

52-34

-37

4.5%

-2.9%

-41.9%

6

Quarterly Financial Results
Net Sales

Net sales

300

315

303
280

277

200

32274

255
2415298

Operatingincome273

Operatingincome

40307

299

292

OperatingMargin(Total)

30257

26252019

100（100 million yen）

7.4%
6.0%

6.5%

10.1%

175.9%

8.5%

8.2%

8.7% 17

6.8% 6.2%

74.2%

17

16

10

5.9% 5.7%
2.5%
5.1%

2017Q1

17Q2

17Q3

17Q4

18Q1

18Q2

18Q3

18Q4

19Q1

19Q2

19Q3

0.8%
19Q4

07

Analysis of operating profit change (PCB only)

FY2018→FY2019(100 million yen)

Decreasein SalesDecrease
invariablecost

FY2018 results(Exchange rate 111.04yen/us$)

Decreasein fixed
cost

Increasein selling
expenses

Impact ofFX rates

FY2019 results(Exchange rate 108.93yen/us$)8

Revenue by Product Application
AutomotiveAmusement
Digital home appliances（100 million yen ）Smartphones
Storage
Other substrates

IoT・AI
Office equipment
EMS

1526(1.3%)(2.3%)FY2019534

249(46.2%)(21.6%)

60(5.2%)4080

55-76-13(6.8%)21(1.8%)(1.1%)

547

325(46.0%)44(27.3%)(3.7%)

46(3.9%)65(5.5%)

0200

400

600

(-2.9%)(17.4%)

13FY2018-34＋55(-23.4%)(-2.4%)(8.3%)(3.5%)(4.8%)

1,155

96

800

1000

52

1,189(4.4%)

76(6.3%)

1200

9Sales by Product Specification
Double-sided PCBHDI PCB
Other substrates

Four-layerPCB
High Dissipation PCB
EMS（100 million yen ）Six layers or more
Flexible PCB

28(2.4%)FY201965(5.6%)264(22.9%)

222

451(39.1%)(19.2%)

1,155

15 96

(1.3%) (8.3%)

14(1.2%)-36＋44-34(-12.0%)-34(84.6%)(-7.0%)(-2.9%)

23(1.9%)FY201876(6.4%)300

222(25.2%)

13485

52

(1.1%)(4.4%)(40.8%)(18.7%)

18

1,189(1.5%)0200400600800

1000

1200

10１

FY2019 Results

２FY2020 Plan

3Future Endeavor

11

The prospects of FY2020
Assumption: The effects of the new coronavirus will be resolved after summer and gradually
recover from the second half of FY2020.
→ 3.6 billion yen drop of sales is expected due to the transposition of orders and others as a result ofWuhan Plant suspension caused by coronavirus.

• ‘Automotive’ decreases 18.4% year on year to 43.6 billion yenNetsales• ‘Smartphone/Tablet’ increases 2.8% year on year to 25.6 billion yen• ‘IoT/AI/Amusement’ increases 14.0% year on year to 9.8 billion yen• ‘EMS’ increases 59.4% year on year to 15.3 billion yen• ‘Sales in other fields’ decreases 17.4% year on year to 15.7 billion yen→Net sales in FY2020 is expected to be 110 billion yen, decreases 4.8%
year on year
• Operating income is expected to be 3.5 billion yen, declined by 1.7 billion yen

Operatingincome

from FY2019• Ordinary income is expected to be 2.5 billion yen, declined by 2.3 billion yen
from FY2019• Net income is expected to be 1.7 billion yen, declined by 0.9 billion yen from FY2019

12Consolidated Financial Prospect for FY2020（100million yen）

FY2018FY2019Difference
increase%

Net Sales

1,155

1,100-55-4.8%

Operatingi n c o m e

52

35

4.5%

3.2%

-17-32.7%

48

254.1%

2.3%-23-47.9%-9-34.6%

Ordinaryi n c o m eNet
i n c o m e26172.2%

1.5%

Exchange rate
（Yen /USD）

108.93108.0013

FY2020 Revenue by Product Applications
FY2019

Sales

Automotive
Smartphone
TabletIoT・AI・

Amusement
Other substrates(R & D expenses included)

EMS
Total

534
249
86
190
96
1,155

FY2020Op erat i ng
i n c o m e(%)

295.4%

187.2%

78.1%-2-1.1%00.0%

524.5%

Sales

436
256
98
157
153
1,100（100million yen）

Difference

Op era t i n g
i n c o m e(%)

102.3%

207.8%

88.2%-5-3.2%21.3%

353.2%

Op era t i n g
i n c o m e(%)

Sales

-98

-18.4%

72.8%

1214.0%-33-17.4%

5759.4%

-55

-4.8%

-19-65.5%

211.1%

1
14.3%-3150.0%

2--17-32.7%

14

Sales Forecast by Product Application in FY2020 （100million yen）
AutomotiveAmusement
Digital home appliances

Smartphone/TabletStorage
Other substrates

IoT・AI
Office equipment
EMS

28 12(2.5%) (1.1%)

FY2020436

256(39.6%)

3170(2.8%)(6.4%)(23.3%)

34

1,100

153(13.9%)80(3.1%) (7.3%)-98億円＋7(-18.4%)-33＋12(2.8%)(14.0%)

26

534

249(46.2%)(21.6%)

60(5.2%)(1.3%)

40(3.5%)55(4.8%)

0200

400

600

800-55(59.4%)(-4.8%)

15(2.3%)

FY2019＋57(-17.4%)

9680(8.3%)

1,155(6.8%)

1000

1200

15Sales Forecast by Product Specification in FY2020（100million yen）
Double-sided PCBHDI PCB
Other substrates

Four-layerPCB
High Dissipation PCB
EMS

Six layers or more
Flexible PCB

23(2.1%)

FY202043204(3.9%) (18.5%)

187

19455

(41.4%)(17.0%)(1.7%)

16153

1,100(13.9%)(1.5%)-60(-22.7%)+4-35＋57(0.9%)(-15.8%)(59.4%)-55(-4.8%)

28(2.4%)FY201965(5.6%)

264(22.9%)222451(39.1%)(19.2%)

15 96

1,155(1.3%) (8.3%)

14(1.2%)0200400600

8001000120016１

FY2019 Results

２

FY2020 Plan

3Future Endeavor

17Initiatives for an AFTER COVID-19 society
Initiatives in China: Surgical Mask production

・ Surgical mask production had been started in a clean room in the Guangzhou Plant
amid difficulties to procure them for internal use. (producing 2 million pieces per month)

Initiatives in Vietnam: Artificial Respirator production

・ Co-development with NIMEC ofVietnam Ministry of Health（NATIONAL INSTITUTE OF MEDICAL DEVICE AND CONSTRUCTION）↓Design/develop the medical equipmentincluding artificial respirator anticipating
future mass production

18

Investment policy（100million yen）

Capital investment
FY19: Completed investment in Vietnam Plant (new building and first-phaseconstruction)
From FY2020: Place emphasis on ROIC and continue strategic investment such as
5G / module••

3 billion yen
reduction

150

120
10050

FY2019 plan
Depreciation

FY2019 results

FY2020 plan

FY2021 plan

68757619

Strengthening 5G businessContinue investment in smartphone production plants with a view to 5G
market expansion
PCB:World smartphone production

5GOthersUnit: 100 million- HDI- Memory Package

World self-driving car production

Level1-3

Level4-5

Unit: million units

Printed circuit board market trends

Communication carrierserver
optical line

50

Macro cell

PCB:- Low transmission loss
- MLB/HDI

Small cell

10CPE
Wi-Fi router
Wi-Fi0

2019

2020

2023

20250

2018 2020※According to our survey as of January 2020

2023

2025 5G priority areas

Wuhan Factory■Expansion of Any Layer line forhigh-definition high-end 5G smartphones

RF Module
Low Transmission Loss

RF Module
Any Layer

Heavy Copper PCB
Heat dissipating board

Vietnam factory■Additional investment in the factory #3
coping with increasing orders forhigh-end 5G smartphones

20

Strengthening Module PCB business

Strengthen module PCB business following automobile and smartphone PCB,and establish products which have effects on entire IC products.

Vital PCB segments

Automobile
Heavy Copper

Smartphone
Buildup

HDI
BuildupStrengthening area
ModuleNAND PKG

FEM

Promote multi-fabrication for development and mass production of module PCB
Guangzhou Plant (China)

Thang Long Plant (Vietnam)

Mainly for customers in China

Dedicated plant for module PCB

Ishinomaki Factory (Japan)

Continuing module production
Focusing on Automotive devices

21

Strengthening EMS・FPC Business
EMS Business

FPC Business（unit：100 million yen）
150

（unit：100 million yen）
20others

100

IoT・AI

10Digital
Appliances
50

Smartphone
TabletAutomobile

0

2018

2019

0

（medical equipment, health care, AGV, etc.）
delevlopment→design→PCB→mounting・assembly→distribution

2019

2020

Expanded factory #1 of Vietnam Plant in order tobolster FPC・EMS business

2020

・Initiative for co-development

2018

Vietnam Plant

第３工場
第２工場

第１工場

Expansion offactory #1・Increasing orders for both PCB and mounting→discover PCB demand from EMS business2019.7月完成

22