FY2023
Financial Results Briefing

May 16, 2024
（Securities Identification Code: 6787）

Disclaimer:This presentation contains forward-looking statements concerning Meiko Group’s
future plans, strategies and performance. However, Meiko does not publish thispresentation as a disclosure document based on the Financial Instruments andExchange 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 of risks
and uncertainties that relate to raw material price, conditions of customers’market, technological trends, change of foreign exchange , change of tax rules
and regulations, disasters, international conflicts and other factors. Meiko
therefore wishes to caution that actual results may differ materially from ourexpectations.
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 Japanese original, the original shall prevail.

１

FY2023 (result)２

FY2024 (forecast)3

Financial Strategy andShareholder Returns

4

Future Policies

FY2023 results（ 100 million yen ）FY2022

FY2023

resultresult

Year-on-year
Diff.

%

Net sales

1,673

1,795

122

7.3%

Operatingincome

96

117

5.7%

6.5%

2121.8%

Ordinary

112

143

6.7%

8.0%

3127.2%

88

113

5.3%

6.3%

2527.8%

136.0

145.3

incomeNet
incomeAverage FX rate
(JPY/USD)

4/5

Meiko Electronics Co., Ltd.

4

FY2023 result by Product Application
FY2022 results

FY2023 results
Operating

Net Sales

Operating

IncomeIncomeNet Sales%

Automotive
Smartphone/
TabletSemiconductor
Package
SSD/
IoT Modulesatellite
communication

845
271
51000249

EMS/ODM

203

Total%

60
7.1%

114.1%

00.0%

1010.0%0.0%
0.0%

AI appliances/
Amusement/
Industrial Equipment/
Other Substrate

1,673（ 100 million yen ）

16
6.4%

-1
-0.5%

96
5.7%

Meiko Electronics Co., Ltd.

947
266
785
0187
303
1,795

81
8.6%

217.9%-15-214.3%

1011.8%00.0%

115.9%

93.0%

117
6.5%

5/5

5１

FY2023 (result)２

FY2024 (forecast)3

Financial Strategy andShareholder Returns

4Future Policies

FY2023 results and FY2024 forecasts（ 100 million yen ）FY2022

FY2023Year-on-year

FY2024Year-on-year

results

results%

forecasts%

Net sales

1,673

1,795

7.3%

1,950

8.7%

Operatingincome

96

117

160

5.7%

6.5%

21.8%

37.2%

Ordinary

112

143

150

6.7%

8.0%

27.2%

88

113

125

5.3%

6.3%

27.8%

136.0

145.3

incomeNet
incomeAverage FX rate
(JPY/USD)

8.2%

7.7%

6.4%

5.1%
10.5%

145

7/5

Meiko Electronics Co., Ltd.

7

FY2024 forecasts by Product Application
FY2023 results

FY2024 forecasts
OperatingNet Sales

OperatingNet Sales

IncomeIncome%Automotive
Smartphone/
TabletSemiconductor
Package
SSD/
IoT Module

947
266
785%

81
8.6%

21
7.9%

-15-214.3%

1011.8%satellite
communication

187

EMS/ODM

303

Total

969
238
1077
80

AI appliances/
Amusement/
Industrial Equipment/
Other Substrate

1,795（ 100 million yen ）115.9%

93.0%

117
6.5%

Meiko Electronics Co., Ltd.

240
336
1,950

95
9.8%

30
12.6%

-17-170.0%

1215.6%8
10.0%

218.8%

113.3%

160
8.2%

8/58

Net Sales by Product Specification
MLBHDI PCB

Flexible PCBHigh Dissipation PCBPackage（100 million yen ）Other Substrates

9(0.5%)

10(0.5%)43(2.2%)

FY2024

forecasts

810

722

336

(41.5%)(37.0%)(17.3%)↑11(1.4%)

FY2023
results622

303(44.5%)(34.7%)(16.8%)↑-19(-3.0%)48(2.9%)20(1.2%)1,950

7(0.4%)

799↑43(5.7%)

FY2022
results

41(2.3%)Total

20(1.0%)9(0.5%)↑100(16.1%)

EMS/ODM

1,795

14(0.8%)5(0.3%)

756

641

203

(45.2%)(38.3%)(12.1%)

1,673

9/5

Meiko Electronics Co., Ltd.

9

１

FY2023 (result)２

FY2024 (forecast)3

Financial Strategy andShareholder Returns

4Future Policies

Financial Strategy and Shareholder Returns（unit：100 million yen）
１．We will continuously expand sales and profits through investments in facilities and R&D.
２．We will continue to strengthen our balanced financial position.
３．The consolidated dividend payout ratio is targeted at 15%.
４． We will strive to increase profits and raise shareholders’ value and dividend amounts.
FY2022(result)

FY2023(result)

FY2024(forecast)

1,673

1,795

1,950

96117

160

OP Margin

5.7%

6.5%

8.2%

Net Income88113

125EBITDA

194228286

Net Assets

845

1,055

1,145

Interest-bearing Debt

753

793

796

Self-capitalization ratio

38.2%

42.7%

44.2%

D/E Ratio

0.90

0.75

0.70

ROE

10.5%

10.7%

10.9%

Dividend Payout Ratio

16.2%

15.9%

15.2%

EPS

338.94 yen

428.70 yen

475.10 yen

PERx 8.5

x 12.3-Dividend (per share)

55 yen

68 yen72 yenmarket capitalization

749

1,390-FX Rate (yen/USD)

136.0 yen

145.3 yen

145 yen

Net Sales
Operating Income

Meiko Electronics Co., Ltd.

11/511Management that is Conscious of the Cost of Capital and the Stock Price
Current Situation
 ROE

FY22 10.5%→FY23 10.7%

 PBR FY22 x 0.97
→ FY23 x 1.32
 PERは FY22 x 8.5→ FY23 x 12.3
 Dividend per share
FY22 55 yen→FY23 68 yen Market Capitalization
FY22 74.9 bio. yen→FY23 1,390 bio. yen

Policies Accomplish Midterm businessplan
 Financial Targets
Improve ROE
Improve Selfcapitalization
ratio
Improve D/E ratio Invest in growthareas to enhance
corporate value

Initiatives
 Expansion ofSales and Profit Manufacturing
Improvement
Yieldimprovement
Quality
improvement
Productivity
improvement
 CAPEX strategy
Concentrate
investment in
cutting-edge
substrates

12/5

Meiko Electronics Co., Ltd.

12

１

FY2023 (result)２

FY2024 (forecast)3

Financial Strategy andShareholder Returns

4

Future Policies

Outlook of Medium-term Business Plan
Operating

Net Sales

Income(100 million yen)

3,000(100 million yen)

Net Sales
Operating Income

1,900

2,000

5.7%
1,000

1,795

1,650

8.2%

6.5%

117

11.1%

1,950

7.9%

5.5%

96

2,700

Operating Income (M-term Biz Plan)
2,300
OP Margin (M-term Biz Plan)

OP Margin1,673600

Net Sales (M-term Biz Plan

9.6%

300

220
200

15090400

16000
FY2022(result)
2023年3月期実績

FY2023 (result)
2024年3月期実績

FY2024 (forecast)
2025年3月期予想
Meiko Electronics Co., Ltd.

FY2025 (forecast)
2026年3月期予想

FY2024(forecast)(forecast)
FY20262027年3月期予想
14/5
14

New Business（PKG Substrates）
Ishinomaki Factory
No.2(100 millionyen)

Net Sales

100Previous forecast

50

Revised forecast

Product:
FC-BGA Substrate0
2024年3月期
2025年3月期
2026年3月期
2027年3月期
FY2023
FY2024FY2025
FY2026

Vietnam Plant No.3(100 millionyen)

Net Sales

FC-BGA Substrate

 Mass production ramp-up plan
delayed due to market conditions.
 Development prototype projects
remain steady.

Product:Memory PKG Substrate

PKG Business
Memory/Sensor

200

RF Module

150
100500 Mass production ramp-up plan
delayed due to market conditions.
 Acceleration of the certification
2024年3月期
2025年3月期
2026年3月期
2027年3月期
FY2023
FY2024FY2025
FY2026
process for new projects. 15/5
Meiko Electronics Co., Ltd.

15

Vietnam Plant No.4
 A surge in customers expecting supply chains to ASEAN.
 The Vietnam Plant No.2 will reach full capacity in the current fiscal year, so a new factory isbeing built to provide space for future expansion.
Overview of Vietnam Plant No.4
Location

Thach That- Quoc Oai Industrial Zone,
Hanoi City

Extendedarea

Approx. 60,000㎡（15,000㎡×4F）

Capex

Approx. 25 billion yenBusiness•••

Schedule

FY23
study

Capacity complement of Plant No.2(PCB)
High multi-layer and high-density HDI
PCBMemory module substrates

May 8; ground-breaking ceremony

No.4

Will be in operation in phases from FY2025.

FY24

FY25

FY26

FY27No.3PCB

PKG

No.1

construction equipment

No.2
Initiation of partial processing

EMS

FPCPCB

Start of mass production
New memory line

16/5

Meiko Electronics Co., Ltd.

16

Hoa Binh Plant
 A surge in customers expecting supply chains to ASEAN.
 Will launch its business in Hoa Binh for further business expansion to utilize the superiorityof electric power.
Overview of Hoa Binh Plant

Noi Bai Airport

Location

Bo Trai Song Da Industrial Zone,
Hoa Binh City

Site area

Approx. 93,000㎡

Extended Area

Approx. 60,000㎡（Plant No.1）(※expandable）

CapexApprox. 50 billion yen（Plant No.1）

Business

Medium-to-high multilayer and highdensity build-up PCB（Plant No.1）

Schedule

Will be in operation fromFY2026

FY23
study

FY24

FY25

FY26

Quang Minh Plant
Thang Long Plant
Vietnam Plant
45 min. from
Vietnam Plant
by car

Hoa Binh Plant

FY27

April 13
groundbreaking
ceremony

Construction of Plant No.1
equipment

Hai Duong Plant(EMS)

Certification process
Mass production
Plant No.2

Meiko Electronics Co., Ltd.

17/517Sustainability Initiatives
Environmental Initiatives
Global WarmingCountermeasures

Implementation of response measures based on TCFD・Reduce domestic CO2 emissions per unit of production by 50% in FY2030.
(Comparison to FY2021）
・Carbon neutral in FY2050
・Promoting energy conservation（per unit of production; electricity▲2.5%/year, fuel▲2.0%/year）
・Installation of self-consumption solar power generation※existing Fukushima Solar Park3MW 1650t/year-CO2 reduction

Ishinomaki Factory
Commenced operation in March 2023
400kW 200t/year-CO2 reduction

Fukushima Factory
Commenced operation in Aug. 2023
540kW 270t/year-CO2 reduction

Tendo Factory
Commenced operation in Oct. 2023
170kW 60t/year-CO2 reduction
700kW expansion plan in FY2024

Waste Reduction

Zero emission promotion（80% recycling rate in 2030）
resourcing（Copper, palladium, gold）

Utilization of Water Resources

Promotion of Reuse - Reduce unit water consumption by 10% （2021→2030）

Social Initiatives
Strengthen human capital
measures in line withmanagement strategies

Strengthen recruitment and human resources development
・Securing human resources and strengthening education to respond to global customers andexpand new business・Strengthen education to promote IT

Employee Engagement

Diversity Promotion（Promotion of women's activity and foreign employees）
Promotion of employee health（Certified as an excellent health management corporation）

Contribution to local communities
and regional revitalization

Contribution to nature and environmental protection（Recycling Activities）
Contribution to Social Welfare
Contribution to regional revitalization (promotion of sports, contribution to local needs)
Meiko Electronics Co., Ltd.

18/518