FY2020 Second Quarter
Financial Results Briefing
November 12, 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 FY2020 Key Financials
２ Strategic Goals
3

Technology Roadmap

3

1st Half Results and Full-Year Outlook FY2020- Consolidated(100 million yen)

FY19 1st half FY20 1st halfresultsresults

Year-on-year
Diff.

%

Operatingincome59134532
18

Ordinaryincome306-24 -81.5%

2-22 -91.8%

Net sales

Netincome

5.8％
5.1％

243.4%
1.1%-59 -10.0%-16 -46.8%

FY20 2 nd half FY20 full-year
forecast

forecast

628 1,160
35
53
5.6%

4.6%

4.6%

3.0%

4.0%

2.3%

292535
27

4.0％

0.4%

Average FX rate
(JPY/USD)

108.66106.30106.00106.15

Dividend pershare

15 yen020 yen

20 yen4

Half-Yearly Net Sales and Operating Income
Net Sales

700
600
500
400

591
83
351432147300

40628564
124
2828

12102532

10696

32

293132
1935100

202517020127270230

Operating Income
353423031418
115200280(100 million yen)

310268501212FY2019
2019年度
1H
上期実績

FY20192019年度
2H
下期実績

1814181580
FY20192019年度
1H
上期実績

FY20192019年度
2H
下期実績

Automotive

FY20202020年度
1H
上期実績

FY20202020年度2H
下期予想
forecast

Smartphone/Tablet

AI/IoT

Amusement

Storage

FY20202020年度
1H
上期実績

FY20202020年度2H
下期予想
forecast

Other products

5Quarterly Net Sales and Operating Income
Net Sales303
277280255

20032274273307
257

196.8%

178.7%

17243

16136.2%
5.9% 5.7%

5.1%017Q3

17Q4

18Q1

18Q2

18Q318Q4

522.5%
17Q2

30

10.1%

17717Q1

40289

268.2%

5.9%

292299Operatingincome2015100298

25

248.5%

315

OperatingMargin(Total)

OperatingincomeNet sales

300(100 million yen)

19Q1

19Q2

19Q3

0.8%

19Q4

4.6%

2.0%

20Q1

10020Q26Analysis of Operating Income Change FY2019 1 half → FY2020 1 half
stst(100 million yen)
Decreasein SalesDecreasein fixed
cost

Decreasein selling
expenses

Impact ofFX rates

Decrease
invariable
cost

Operating IncomeFY2019 1st half results
FX rate 108.66yen/US$

Operating Income
FY2020 1st half results
FX rate 106.30yen/US$

7

Sales by Product Specification（100 million yen）

Double-sided PCB

Four-layer PCB

Six layers or more

HDI PCBHigh Dissipation PCB

Flexible PCB

Other substrates

EMS

11

FY20202H
forecast

23(3.7%)115(18.3%)

1H

270(18.5%)8(42.9%)(1.3%)

1669628+14(+25.5%)+96(+18.0%)(11.0%)(2.5%)+18(+18.6%)

FY2020116(1.8%)+61(+29.2%)+16(+16.0%)

132397(4.3%) (18.2%)

100209(18.8%)(39.4%)(2.4%)

7(1.3%)

2855

532＋34-59(-10.0%)(10.3%)(5.3%)-42(-30.2%)

FY2019
1H-43(-17.1%)-12(-10.7%)(+161.9%)9 2135(5.9%)139(23.5%)

112

252(42.6%)(19.0%)(1.5%)(3.6%))815(1.4%)

591(2.5%))

0

100

200

300

400

500

600

8１ FY2020 Key Financials
２ Strategic Goals
3

Technology Roadmap

9Global Market Forecast
Light Vehicle Sales

Smartphone（100 million units）（million units)

96.0

95.2

3G/4G

5G
15.0

16.0

14.0

IoT Device （billion USD）

120.0

110.6

13.7

94.012.4

100.0

2.5

80.0

12.0

92.2
92.0

10.0

10.5

8.0

90.0

88.7
6.0

71.6

77.3

60.0

13.7

88.0

40.0

9.9
4.0

86.0

4.5

2.0

84.0

0.0

2019

2020

2025

Source: MarkeLines and SMBC Nikko

20.0

0.0

2019

2020

Source: Edited IDC data

2025

2019

2020

2025

Source: Edited Markets and markets data

10

Strategic Goals
Revenue Growth• Advanced automotive field• Advanced smartphone field• 5G・Module field• EMS business

Financing Strategy• Commitment line:
30 billion yen, 5 years• Interest bearing debt reduction• Self-capital ratio improvement• ROIC improvement

Operating Margin Increase• Increase sales portion ofadvanced fields• Productivity improvement• Fixed cost and SG&A costreduction• Profitability improvement ofJapan business

Investment Strategy• 5G・Module• Automotive• Smart factory

11

CAPEX Highlights
Net Sales
1,200

Strategic investment area:

Net Sales(100 million yen)
Cutting-edge products for Automotive
and Smartphone, and 5G・Module products

CAPEX

1,189

1,000
800

1,085
959

1,155

1,160

200

150120600

10096400

100

31200
0300
CAPEX

FY2016FY2017FY2018FY2019FY20200ForecastAmortization

505358646712

SALES/CAPEX Highlights by Country
Japan700

VietnamChina（including intercompany sales）

675642(100 million yen)695615

600

503

500
400369366382500

428425359
289300192

200
1000401

513

FY2016FY201724
FY20188131824

FY2019FY2020FY2016FY201747

FY2018

Forecast

1721

FY2019FY2019Forecast

Net Sales

59799566

8
FY2016FY2017FY2018FY2019FY2020
Forecast

CAPEX

13

ESG Initiatives
Key items
Carbon dioxideemission

E

Reuse of water
Solar power plant in Fukushima, Japan

Copper recycling plant using electrochemical process

Resource recycling

SG

Social contribution
Women empowerment& Diversity

On-site childcare facility

Surgical mask donation

Enhancement ofCorporate Governance

Promote disclosure of ESG
initiatives• Enhance ESG contents on thewebsite• Issue integrated report

ESG/SDGs assessment
loan certificate

Organic vegetable farming in Vietnam

14

１ FY2020 Key Financials
２ Strategic Goals
3Technology Roadmap

15Mid-term Market Trend
Global pandemic has accelerated social and economic change to cloud connected devices.
5G adoption drives digital transformation across many market sectors.
5G Smartphone（B Units）

1.05

1Storage Device（M Units）

HDD

600400（M Cars）

8260

0.57.8（M Cars)

746020054043340
0.250SSD

Connected Car

Electric Vehicle(EV)Y2020 Y2025
Source：Edit IDC Data

2000280

Y2020 Y2025

Source：Edit DEMPA PUBLICATIONS Data

3020

1.7

Y2020

Y2025

Source：Edit FUJI KEIZAI Data

0

Y2020

Y2025

Source：TrendForce■5G unleashing full potential of IoT to become an integral part of our economy and lifestyle.
■Advanced Analytics and AI processors driving SSD penetration in data centers.
■EV and Connected Car growth occurring through Environmental Regulations andcompetition for Autonomous Driving.
■Increased data rates requiring higher complexity and functionality HDI PCB
with high-speed signal capability.

16５G Application
Industry

Smartphone

IoT
DeviceConnected
Car

DataCenter
Storage

Product

Application

Factory

StatusFeatures

PCB Stackup

Main Board

Wuhan
VietnamHigh Speed
Volume Fine Line Width& Spacing

RF Module

VietnamVolumeThin Dielectrics
8L AnyLayer
Smaller Microvia

VolumeHigh Speed
SMT Reliability

12L AnyLayer

Communication Vietnam
High Speed
SampleModuleIshinomaki
SMT Reliability

12L AnyLayer
12L HDI

Communication
Wuhan
ModuleSSD
MemoryPackage

10L AnyLayer
12L AnyLayer

High Speed
16L HDI
Hybrid Structure

Wuhan

SampleVietnamThin Dielectrics
Sample Fine Line Width& Spacing

3L AnyLayer
4L AnyLayer

17PCB Technology Roadmap
Ethernet Speed
Bit Rate

400Gbit/s
8Gbps (Gen3)

16Gbps (Gen4)

800Gbit/s
32Gbps (Gen5)

Package
ModuleFlash Memory / RF Module(MSAP L/S=25/25um)

Flash Memory(L/S=20/20um)

Base StationServer

Data Center Server SSD(16Layer Low-Loss Transmission Line PCB)

Ultra Low-Loss
Transmission
Line PCBConnected Car
IoT Device

Communication Module(12Layer AnyLayer PCB⇒ Low-Loss Transmission Line PCB)

Smartphone

Mother Board(MSAP L/S=30/30um ⇒ 25/25um)

Autonomous
Driving
Electric Vehicle

ECU Integration(Multi-function Integrated Power PCB)

Vehicle Computer(3Layer HDI PCB)

Autonomous
Driving

Level 3

Level 4

Y2020

Y2021

Y202518

Design Proposal for Automotive ECU Integration

19