FY2019 Q2
Financial Results Briefing（Securities Identification Code: 6787）

１

FY2019 2Q Results２

Outlook for the current term

3

Technology Roadmap

2

FY2019 Q2 settlement highlights

NetsalesNet sales decreased 2,700 million yen to 5,910 million yen.
･Automotive increased 2.6% year on year to 27,400 million yen･Smartphone decreased 23.8% year on year to 14,700 million yen･Sales in other fields increased 7.6% year on year to 17,000 million yen

Operating income amounted to 3,400 million yen,down 2,300 million yen over previous year.

ProfitOrdinary income totaled to 3,000 million yen,down 3,300 million yen over previous year.
Net income to owners of parent company amounted to 2,400 million yen,down 2,900 million yen over previous year.

3

FY2019 Q2 Consolidated Business Performance（100 million yen）

Year-on-year
FY2018Q2
FY2019Q2
performance performance Increase%N e ts a l e s

Operating income

Ordinary income

N e t

i n c o m e

Average Exchangerate（Yen /USD）

618
57591
34

9.2%

5.8%

6330

10.2%

5.1%

53

24

8.6%

4.0%

110.64108.66-27-4.3%-23 -39.9%-33 -52.4%-29 -55.6%

4

Net sales, Operating income
Net sales

Net Sales

303
277

200

Operating Operating Operatingincome
Marginincome
40300

234

223

（100 million yen）

252

250

280

255

15

100

97.4%
6.0%

6.5%

15292

273

299

30

26
20

176.8%

1710.1%178.7%

8.2%

8.5%

5.9%

298

25
191632

274

24

17315

6.2%

105.9%

75.7%

4.2%
2.5%

0

16Q1

16Q2

16Q3

16Q4

17Q1

17Q2

17Q3

17Q418Q118Q2

18Q3

18Q4

19Q1

019Q25

FY2019 Q2 Product RevenueFY2018 Q2
Sales

FY2019 Q2

OperatingincomeSales%

Automotive
Smartphone

Others

Total

267
193
158618（100 million yen）

197.1%

2914.5%95.9%

579.2%

274
147
170591

Difference

OperatingincomeSales

Operatingi n c o m e%%

%

157-4

5.5%

2.6%

-21.1%

14-46-15

9.5%-23.8%-51.7%

512-4

2.9%

7.6%

-44.4%

34-27

-23

5.8%

-4.3%

-39.9%
6

Analysis of operating income change FY2018 Q2➡FY2019 Q2（100 million yen）

Sales

-22

Variablecost

FY2018Q2 performance
Exchange Rate 110.64Yen/us$

Fixedcost

SG&A

ExchangeRate

FY2019Q2 performance
Exchange Rate 108.66Yen/us$

7FY2019 Q2 Sales Performance by Product Application
Automotive
Office equipment
Amusement（100 million yen）

Smartphone
Digital home appliance
IoT

Storage
Industrial equipment
EMS

833(1.4%)

FY2019274

Q222147(46.2%)31(5.2%)＋714(3.7%) (2.4%)(24.9%)

2636(6.2％)591(4.4%)-46(2.6%)(5.6%)-27＋12(-23.8%)(-4.3%)(7.6%)

1118(1.8%) (2.9%)

FY2018267

Q2193(31.2％)(43.2%)

2333(5.3%)

0200

400

838(3.7%) (1.3%) (6.2%)

618

27(4.4%)600

8

FY2019 Q2 Sales Performance by Product Specification（100 million yen）
Double-sided PCB

Four-layer PCB

Six layers or moreHigh Dissipation PCB

Flexible PCBEMSHDI PCB

9

FY2019Q2(1.5%)35(5.9%)139(23.4%)112(19.0%)

36

252

(6.2%)(42.6%)

591

8(1.4%)+5-13(4.7%)(-8.6%)-27-16(-4.3%)(-6.0%)

10(1.6%)FY2018Q239(6.3%)

152

107(17.3%)(24.6%)

268(43.4%)38(6.2%)618

4(0.6%)

0200

400

600

9１FY2019 2Q Results２

Outlook for the current term

3Technology Roadmap

10Outlook for the current term
・Automotive will remain at the same level as the first half
Ocerview

・Smartphone will remain at the same level as the first half
・ Sales in other fields, IoT and EMS will grow・Vietnam Plant#1 factory: we will invest in EMS and flexible
Investment

・Vietnam Plant#2 factory: we will invest in an automotive factory
・Vietnam Plant#3 and Tang Long factory:
we will make 5G upfront investment

11

FY2019 Full-year forecast
FY2019plan（100 million yen）

FY2019 Q2
results

FY2019full-year
forecast

Sales

1,200591609

OperatingI n c o m e

7534

41

6.3%

5.8％

6.7%

NetO r d i n a r y
I n c o m e

63

30

33

5.3%

5.1％

5.4%

Net income

53

24

29

4.4%

4.0％

4.7%

111.00108.66108.00Exchange（JPY/UrateSD）

12

Investment plan
Domestic（100 million yen）

overseas

Additional investment

150

150
125

25

115

115

1010

FY2018FY2019 Original plan

FY2019 Revised plan64

68
Depreciation

6812030

Depreciation

13

Vietnam factory strategyHigh frequencymodule

Smartphone
5GSmartphone
Automotive
developed products

Meiko-Towada Vietnam

EMS

Vietnam Plant #3
MSAP・Automotive developed products

Vietnam Plant #3
Automotive

Tang Long Plant

High frequency module
5Gmodule

Smartphone

MLBHDI

Vietnam Plant #1
Flexible PCB/EMS
Flexible PCBLongcheer
Joint Venture
IoT/ AI Appliance14

１

FY2019 2Q Results２

Outlook for the current term

3

Technology Roadmap

15

Transformation brought about by 5G
5G

Conventional

Assign a dedicated signal to each one
Source: Website of Softbank

Three features and innovationin each industrial field
Smartphone

Base Stations

IoT

Ultra-high speed:
Maximum of 10 Gbps Conventional + 5G
communications compatible
Increase in communication modules
Increase in passive components
High-density PCBs

Increase in macro cells/small cells
Big data volume: 15 ZB (Increase in storage capacity)
Ethernet speed: 400 GbE (Increase in optical communication)
Automatic driving

Main requirementsof 5G

Multiple simultaneous connections:
1 million units/km2 connections 5G
Vast number ofsensors and terminals

Features

Servers

Ultra-low delay:
Around 1 msec.

CarsAcceleration in automatic driving level 4
Increase in connected cars
Acceleration in electrification (xEV)

New markets for printed wiring boards (PCB) will be created in 5G
and the existing market will expand
Source: Ministry of Internal Affairs and Communications

16

5G market trends (sales volume)
Smartphone

Storage（100 Million units）

15

Conventional
5G
15
13.5

（100 Million units）

64

10
5.25

5

FY2019 FY2023
Source：Canalys（Million units）

6,000

3.4

55

4,000
2.7

29
2,0002（Million units）

EV（100 Million units）

HV 16.76

800

1,500

1,000500
350

500

2.7PHVIoT devices

5.23

2.0

0.370HDD
SSD

xEV

Connected car0

FY2019 FY2023

Source：Techno System Research0

FY2019 FY2025
Source:Fuji Keizai Group0

FY2019 FY2025
Source:Fuji Keizai Group0

FY2019 FY2025
Source:HIS Markit■5G smartphones have become popular, SSDs have increased due to the increase in big data volume■The number of connected cars supporting 5G increases, xEV significantly increases■IoT equipment continues to grow steadily■Demand for higher-density build-up boards and boards for vehicles will increase

17Technology development roadmap for 5G
Communications
SystemConventional Communications

Automatic driving
Electrification
Connected cars

6GHz

28GHz Millimeter-wave

5G Communications

Macro cell/Small cell/High-frequency module(Multilayer high-frequency board) (High-frequency board)

Base stations
servers

Smartphone
IoT

3.6GHz700MHzServer SSD(10 layers)

Data center SSD(16-layer high-frequency board)

Main board(L/S=50/50um)

Main board(MSAP L/S=30/30um⇒25/25um)

Communication module(L/S=35/35um)

Communication module(MSAP L/S=25/25um)

Milli-wave radar(MSAP high-frequency board)

TCU/V2X communication module(12-layer any-layer)

Power device(Copper inlay thick copper board)

Level 2

Automatic driving

2019

IVI (Infotainment)(3-stage build-up)

Level 32020

Vehicle computer(3-stage build-up)

Level 42025

18

5G development example
Unit

TCU / V2X communication module for connected cars

application
featureUsing a mobile communication system, two-way communication
between the car and cloud servers, infrastructure, and other cars
High-density printed wiring board on which
5G communication chip is mounted

Communication module

High-density PCB

19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.