FY2021
Financial Results Briefing
andMedium-term Business Plan
（FY2022-2026）
May 19, 2022
（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.

■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 Strategy3

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 absorbedby the selling price adjustment.

4

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 Factory in Yamagata
and Quan Minh Plant in Vietnam started in April.

5FY2022 results and forecast for the current term

（ 100 million yen ）FY2020

FY2021Year-on-YearFY2022Year-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%

5.6%

8.8%

57

143

4.8%

9.5%

46

115

3.9%

7.6%

7.2%

105.93113.06

122

141
674
28.5%
1.66
11.4%
6.0%

213
664
34.7%
1.13
19.5%
10.8%

237
757
37.4%
1.09
17.5%
10.2%

IncomeOrdinaryIncomeNet
IncomeAverage FX rate
(Yen/USD)Ｅ Ｂ Ｉ Ｔ Ｄ Ａ
Interest-bearing debt
Capital adequacy ratio
D / E
Ｒ Ａ Ｔ Ｉ ＯＲＯＥＲＯＩＣ

9.1%

150.9%

1451.4%8.5%

146.7%

1226.5%

6FY2022 Forecast by Product Application（ 100 million yen ）FY2020 Results

FY2021 Results

Operating
Net Sales

IncomeNet Sales%

Automotive
Smartphone
Tablet523288FY2022 Forecast

Operating
IncomeNet Sales%

366.9%

217.3%

732332

SSD・IoT
moduleAI home appliances
Amusement
Industrial machinery-70196

and other products

EMS116

9638.6%

39
11.7%

12.9%

10.5%

0-86237
126

0.0%

Total

1,193

67
5.6%

1112.8%177.2%

3860
365
598
226
146

2.4%

1,513

Income%Semiconductor
packageYear-on-Year

Operating

133
8.8%

1,700

Operating

Net Sales

Income

Diff.

Diff.

75

128

128.7%

17.5%

19.0%

44

33

5

12.1%

9.9%

12.8%

-6

5-6-120.0%

--

15

124

15.3%

14.0%

36.4%

21-114

9.3%

-4.6%

23.5%

6203

4.1%

15.9%

100.0%

155

187

229.1%

12.4%

16.5%

7

Sales Forecast by Product Application （ 100 million yen ）1,513

15.9%➡

146(8.6%)

8.6%➡

126(8.3%)-4.6%➡

226(13.3%)

14.0%➡

20.9%➡

237(15.7%)

116(9.7%)

22.9%➡

86(5.7%)70(5.9%)1,700

26.8%➡

1,193
196(16.4%)

12.4%➡

15.3%➡

9.9%➡

332

98(5.8%)365(21.5%)(21.9%)(24.1%)

523

732(48.4%)

17.5%➡

860(50.5%)(43.9%)FY2020Results5(0.3%)

AI home appliances
Amusement
Industrial machineryand other products

SSD・IoT Module
Semiconductor
package288

40.0%➡

EMS

Smartphone
TabletAutomotive

FY2021Results

FY2022Forecast

8Sales Forecast by Product Specification（ 100 million yen ）
1,700
1,513
126(8.3%)

1,193
116(9.7%)(42.1%)FY2020Results

EMS5(0.3%)46(3.0%)

Other substrates
725

43(3.6%)634(41.9%)

14.4%➡

(42.6%)

Flexible PCB

25.0%➡

Package PCB(42.5%)

502

29(1.7%)35(2.1%)30(2.0%)25(2.1%)507

146(8.6%)

34.9%➡

677(44.8%)

12.3%➡

760(44.7%)HDI PCBThrough-hole PCB
FY2021Results

FY2022Forecast

9■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Medium-term management plan
Management
philosophy

Providing the best products and services to customers, and happiness

Purpose

Challenge and contribute to the evolution of electronics

for employees and society through manufacturing.

Nest SalesManagement goals（FY2026）

2,500(100 million yen)

Operating Income

275(100 million yen)

Net Income218(100 million yen)

Operating margin
Exchange rate

Investment（FY2022～FY2026）

CAPEX

11.0％
122(Yen/US$)

1,000(100 million yen)

11PCB Market Forecast（Unit: trillion yen）

7.50.9
2.3

1.1

8.3
1.5

2.3

1.1

8.5
1.6

2.3

1.1

3.3

3.4

3.5

2022.32023.32024.3

9.0
1.8

2.3

1.2

9.5
2.0

2.3

1.2

10.1

Market
6.1%

2.2

Package PCB
19.6%

2.3

Flexible PCB
0.7%

1.2

HDI PCB
2.7%

3.8

4.0

4.4

Multi-layer PCB
5.7%

2025.32026.32027.3

CAGR*Forecasted based on data from research companies

12Medium-term earnings forecast
FY2017-FY2021 CAGR 8.7％

FY2021-FY2026 CAGR

10.6％

（ 100 million yen ）

2,500
2,250
2,050Net sales
Operating income

1,850

CAPEX

1,700

Deprecation/Amortization amount

1,513
275

1,189

1,085

1,193

1,155

200

118

75

9658

FY2017
EBITDA

133

63

FY201815252

69

FY2019

11867

103
74

FY2020141

Average CAPEX amount 120

81

FY2021

213

200
180

133 118

107

89

200

175

155

158

236

205

220

115

127

138

82

FY2022

FY2023

FY2024FY2025

FY2026

237

277

320

363

413

Average CAPEX amount 200

13

Sales Forecast by Product Application（ 100 million yen ）2,500
300(12.0%)

1,700

1,513

146(8.6%)

126(8.3%)

226(13.3%)

237(15.7%)

98(5.8%)86(5.7%)365332(21.5%)

1,850250(10.0%)170(9.2%)

300(12.0%)232(12.5%)

150(6.0%)5(0.3%) 118(6.4%)373

45(2.4%)400(16.0%)(20.2%)(21.9%)
732(48.4%)

FY2021Results

860

912

(50.5%)(49.3%)FY2022Forecast

FY2023Forecast

1,100EMS
AI home appliances
Amusement
Industrial machineryand other products

SSD・IoT Module
Semiconductor
package
Smartphone
Tablet(44.0%)
Automotive

FY2026Forecast

14Sales Forecast by Product Specification（ 100 million yen ）

2,500
EMS

300(12.0%)20(0.8%)

1,850
1,513
126(8.3%)

634(41.9%)

677(44.8%)FY2021Results

1,700 20(1.2%) 170(9.2%)

19(1.0%)146(8.6%)9(0.5%)

50(2.7%)35(2.1%)45(2.4%)37(2.4%)9(0.6%)
30(2.0%)100(4.0%)5(0.3%)

725(42.6%)

758(41.0%)

300(12.0%)30(1.2%)Other substrates

13(0.7%)900

Flexible PCB(36.0%)

Package PCB

760

795

850

(44.7%)(43.0%)(34.0%)FY2022Forecast

FY2023Forecast

HDI PCBThrough-hole PCB
FY2026Forecast

15

■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

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 growth rate

ROE

ROIC

D/E Ratio

Operating margin

１．Expansion of profit amount D/E Ratio
２．Increase in EBITDA
３．Improving financial balance

Depreciation
EBITDANet assets
Interest-bearing debt
Capital adequacy ratio
D / E ＲＡＴＩＯ
ROE
ＲＯＩＣ

Operating margin

Capital adequacy ratio（ 100 million yen ） Capital adequacy ratio

Net Sales
Operating Income
Operating margin
Net Income

ROE

ROIC

FY2021
1,513
133
8.8%
115

FY2022
1,700
155
9.1%
122

FY2023
1,850
175
9.4%
141

FY2024
2,050
205
10.0%
162

FY2025
2,250
236
10.5%
184

81
213
587
664
34.7%
1.13
19.5
10.8%

82
237
692
757
37.4%
1.09
17.5
10.2%

103
277
816
794
40%
0.97
1710.4%

115
320
955
747
44%
0.78
1711.2%

127
363
1,112
731
47%0.66
17
11.5%

FY20262,500275
11.0%
218

FY2021➡26
1.7 times
2.1 times
2.2%UP
1.9 times

138
1.9 times
413
2.2 times
1,299
44%➡30%694
50% 15.7% improvement
0.6 improvement
0.53
17 Maintain high standards
12.4% 1.６% improvement

17■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 Strategy18

ESG Initiatives
Environment（Domestic Business）
Global WarmingCountermeasures
Waste ReductionUtilization of Water Resources

Implementation of countermeasures based on TCFD

・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%/year for fuel)・Introduction of self-generated solar power generation

Promotion of zero emissions (80% recycling rate by 2030)
Recycling (recovery of copper, palladium and gold)
Promotion of reuse(10% reduction in water consumption per unit of production by 2030)

SocialEmployee Engagement

Promotion of diversity(promotion of active participation by women, promotion of promotion of overseas human resources)

Promotion of creating a safe and comfortable workplace(zero labor accidents)

Promotion of employee health promotion(planned to be certified as an excellent health management corporation)

Regional Contribution /Revitalization

Contribution to nature / environment protection(recycling activities)

Contribution to regional revitalization(sports promotion, contribution according to regional needs)

Contribution to social welfare
Governance
Strengthening the management system

Building a management system that supports sustainable growth

Strengthening the crisis management system

Strengthening BCPSecond headquarters in Yamagata

19

■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

Technology Trends Automotive

Control method for car electrification and autonomous driving【FY2021】
Distributed ECU【FY2025】

Domain-Integrated ECU
Central Gateway

Central Gateway
SensorECU【FY2030】
Centralized ECUPowertrain&Body ECU

SensorECU

Cockpit &Communication ECU

SensorECU

ADAS ECU

SensorECUSensorECU
SensorECU

SensorECU

ADAS&Powertrain ECU

SensorECU
SensorECU

SensorECU

Body ECU

Cockpit &Communication ECU

SensorECU
SensorECU
SensorECU

SensorECU

SensorECU

SensorECU
SensorECUECU integration, high functionality and high performance

Technologies required for PCB
High density
and high frequency

Miniaturization

Parts with high functionality and high performance⇒ narrow pitch wiring

Space-saving

High-speed signal communication⇒ high-frequency support

3D implementation support

Heat dissipation
Heat generation parts ⇒Support for heat dissipation on PCB

21Automotive PCB Technology LineupHigh 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 of parts through copper inlays●High-density wiring with LVH connection●Small wiring space due to high-density wiring●Low Dk / Df base material

Copper inlay cross section

Surface photo of copper inlay

Mega through hole

AnyLayer

Embedded Devices●Built-in parts inside the board to reduce wiring area
●Built-in heat-generating parts on the heat dissipation side
to improve heat dissipation efficiency●Selective TH plating
Heat dissipation bythickeningThickening

General THMegaTH

Metal Base●Heat dissipation with metal-based structure●High-density wiring with AnyLayer connection●Small wiring space with AnyLayer connection●Low Dk / Df base material

接着層

AluminumCu22

Semiconductor Package Substrate Market Trends
Architectural View of 5G-Enabling Technologies

Semiconductor package substrate
demand forecast *Our forecastCore Network（DataServer）

SDN
NFVNetwork Slicing

Increased amountOf data
WBCSP
FCCSP

MeshBackhaul NetworkFiber
BackhaulSmall Cells
SONs
D2D

Higher functionalityof terminals‘20

Wireless
Backhaul（Data back up）

V2X（Communication technology）

‘21

‘22

‘23

‘24

‘25

‘26

‘27

‘30

Fiber
BackhaulHigh-speed
communication

Radio AccessNetwork

FCBGA

C-RAN

Fronthaul Fiber
Network Backhaul

Ｗireless
Fronthaul

RRHs

Low Latency

Ultra low latency
High reliability

23

Semiconductor Package Substrate Technology Roadmap
Technological trends

FY2022

FY2025

Increased amount ofcommunication data

Early 5G(32Gb)

5G spread (64Gb)

Board development content

FY2030Early 6G(128Gb)

Highfrequency

MemoryPackage

Wiring refinement(20/20um～)

Wiring refinement(8/8um)FCBGAPackage

Wiring refinement(12/12um～)

Wiring refinement(8/8um)MSAP
Pursuit ofthickness
90um
L/S=20/20um～

Memory Package
・Substrate mass production technology
・Customer mounting technology

SAP

L/S=8/8um～20/20um

Pursuit of1.0mm
thin wire

FCBGA24

■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 Strategy25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 requirements.

Extend customers setvice

Strengthen manufacturing

MLBHDI

China

R&DJapandesignEcoSmart
Factory

42%
Manufacturing

FPC
Vietnam
PKG
Challenge to cutting-edge fields《Medium-term plan production balance》

Vietnam
35%
40%

55%

China10%Japan

Mounting
Balance of production sites’22.3

18%
‘27.3

26

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 sustainable growth.

(100 million yen)
200
150
New Business

100(PKG,F/R)

50
Existing Business0'23.3《Domestic investment》

'24.3

'25.3

'26.3

'27.3

EMS

Ishinomaki Factory #2
Tendo Factoly Step1

Step2《Overseas investment》

Vietnam Plant #3
Quan Minh Plant #2#327

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

Ishinomaki-City, Miyagi Pref.

Floor Area

Approx. 5,000㎡

Investment

Approx. 70 million JPY

Business content

Semiconductor package substrate

Operation time

The second half of the FY2022 period#2(million Yen)
60Sales plan

#1504030
P-BGA

20

AnyLayerHeat dissipation PCBHigh frequency PCB

100'23.3

'24.3

'25.3

'26.3

'27.3

28

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㎡

Floor area

Approx. 25,000㎡

Investment¥1.5bio / ¥2.5bio

Business-Mass production of advanced PCBfor Automotive and PKG-R&D-Development & manufacturing of
automated production system(¥100Mio)
150

Environment

BCP

Net sales (projected)
Step2(PKG)100

Step1(Automotive)

50
0Automation

'23.3

'24.3

'25.3

’22.3

'26.3

'27.3

’23.3

’24.3

’25.3

’26.3

’27.3

Planning Const- Step1 (automotive)★
ructionPurchase
Step2(PKG)of land29

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
Memory/Sensor

Business summary
Location

Thach, Hanoi-City

Floor Area

Approx. 20,000㎡ (PKG business)

Investment

Approx. 160 million JPY

Business content

Package/Module PCB

Operation time

The second half of the 2022 period

RF Module#3#1(million Yen)
200

#2

Sales Plan

FPC

150
100

Automotive

EMS

50
0

Smartphone

'23.3

'24.3

'25.3

'26.3

'27.3

30

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 PCBBusiness summary
Location

Quan Minh, Hanoi-CityLand Area

Approx. 63,000㎡

Floor Area

Approx. 20,000㎡

Investment

Approx. 100 million JPY

Business content

Package/Module PCB Volume ProductCutting edge HDI PCB Volume Product

Memory PKG#3#2(million Yen)
100Sales Plan
#1

80
60
40

’22.3

200’23.3’24.3

planning construction #2

'23.3

'24.3

'25.3

'26.3

'27.3

’25.3

’26.3

’27.3

Factory#3 Factory

31