FY2018
Financial Results Briefing
May 16, 2019（Securities Identification Code: 6787）

１

FY2018 Results

２

FY2019 Plan

3

The prospect in the future2

Financial Results Highlights in FY2018
Net sales increased 10,400 million yen to 118,900 million yen.

Net sales•Automotive increased 13% year on year to 54,700 million yen• Smartphones are flat year on year to 32,500 million yen• Sales in other fields increased 14% year on year to 31,700 million yen

Operating income amounted to 8,926 million yen,up 1,469 million yen over previous year.

ProfitOrdinary income totaled 8,600 million yen,up 3,815 million yen over previous year.
Net income to owners of parent company amounted to 6,743
million yen, up 2,370 million yen over previous year.

3FY2018 Consolidated Business Performance（100 million yen）

Year-on-year
FY2017FY2018
performance performance Increase%
N e t

s a l e s

Operating income

Ordinary income

N e t

i n c o m e

Average Exchangerate（Yen /USD）

1,085
74

1,189
89

6.9%

7.5%

4886

4.4%

7.2%

4367

4.0%

5.6%

110.66111.041049.6%15 19.7%38 79.6%
24 54.2%

4

Net sales , Operating income（100 million yen）

Net sales

Net sales

Operatingincome

8.2%
7.3%

300

5.8%

5.9%

6.0%

200

234

223

280

25

2417

10015159.0%

40

7.5%

298

30273
26

20
1916

9.2%

32

274

255

income

315

303
277

250

6.9%

5.9%

4.2%

252

7.1%

OperatingMarginOperating(Total)

17

10
9

700
16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q45

FY2018 Product Revenue
FY2017
Sales(100 million yen)

Operatingincome

Sales%

Automotive

Smartphones

OthersTotal

483
324
278
1,085

Difference

FY2018377.7%

278.3%

103.6%

74
6.9%

547
325317
1,189

OperatingincomeSales

Operatingi n c o m e%%%

3964

2

7.1%

13.3%

5.4%

38

1

11

11.7%

0.3%

40.7%

1239

2

3.8%

14.0%

20.0%

89

104

15

7.5%

9.6%

19.7%

6

Analysis of operating profit change FY2017→FY2018(100 million yen)

Increase variable expenses
for increased sales

104
Exchange Rate
Fixed cost

SG&A

Increasein Sales

FY2017 performance(Exchange rate 110.66yen/us$)

FY2018 performance(Exchange rate111.04yen/us$)

7By product Application
Automobiles
Office equipment
Amusement（100 million yen ）Smartphones
Digital home appliances
IoT

Storage
Industrial equipment
EMS

2144(3.7%)(1.8%)FY2018547

46325(46.0%)

13 75(3.9%) (1.1%) (6.3％)(27.3%)

1,189

53

65

(4.5%)(5.5%)＋104＋23＋64(9.6%)(109.5%)(13.3%)

22 21(2.0%) (1.9%)

FY2017483

46 18 72324

(44.5%)(29.9％)(4.2%) (1.7%)(6.7%)58(5.3%)

0200

400

600

800

1,085

41(3.8%)1000

12008By product specification（100 million yen ）Double-sided PCB

Four-layerPCB

Six layers or more

HDI PCBHigh Dissipation PCB

Flexible PCB

EMS

13(1.1%)FY201876(6.4%)300

222(25.2%)

75

485

(6.3%)(40.8%)(18.7%)

1,189

18(1.5%)

+45

＋104

+38

(25.4%)(9.6%)(8.5%)

9(0.8%)FY201777(7.1%)299(27.6%)

177

447

(16.3%)(41.2%)

72(6.6%)

1,085

4(0.4%)

0200

400

600

800

1000

1200

9１

FY2018 Results

２

FY2019 Plan

3

The prospect in the future

10

The prospect in the future
Affected by a drop in demand in the previous quarter, but gradually recovering

Netsales•Automotive are expected to increase as demand recovers and new business starts• Smartphone is likely to reduce build-up substrates for other applications• Others are expected to increase for IoT, AI home appliances, and amusement→For the full year, it will increase 10,400 million from fiscal 2018 120,000 million yen.

• Operating income is expected to be 7,500 million yen,down 1,400 million yen from the previous year
Operatingincome• Ordinary income expected to be 6,300 million yen,down 2,300 million yen from the previous year• Net income expected to be 5,300 million yen,down 1,400 million yen from the previous year

11Consolidated financial prospect for FY2019（100million yen）

FY2018FY2019Difference
increase%

Net Sales

1,189

1,200

110.9%

Operatingi n c o m e

89

75

7.5%

6.3%

-14-16.0%

86

63

7.2%

5.3%

-23-26.8%-14-21.4%

Ordinaryi n c o m eNet
i n c o m e

67

53

5.6%

4.4%

Exchange rate
（Yen /USD）

111.04111.0012

FY2019 Product Revenue
FY2018
Sales（100million yen）

OperatingincomeSales%Automotive
Smartphones

OthersTotal547
325
317
1,189

Difference

FY2019397.1%

3811.7%123.8%

897.5%

553
274
373
1,200

OperatingincomeSales

Operatingi n c o m e%%%

406

17.2%

1.1%

2.6%

22-51

-168.0%-15.7%-42.1%

1356

13.5%

17.7%

8.3%

75

11-146.3%

0.9%-16.0%

13

Sales forecast By product Application in FY2019
Automobiles
Office equipment
Amusement（100million yen）

Smartphones
Digital home appliances
IoT

Storage
Industrial equipment
EMS

69

19(5.8％)(1.6％)FY2019553274(22.8%)(46.1%)

304365(7.4％)

1,20058(4.8％)(5.4%)+689(3.6%) (2.5%)-51(1.1%)＋11(-15.7%)(0.9%)

2144(1.8%) (3.7%)

FY2018547

325(46.0%)46(3.9%)(27.2%)

65(5.5%)

0200

400

600

800

13 75(1.1％) (6.3%)

1,189

53(4.5%)

1000

1200

14Sales forecast by product specification in FY2019
Double-sided PCBHDI PCB
EMS

Four-layerPCB
High Dissipation PCB（100million yen）
Six layers or more
Flexible PCB9(0.8%)FY201979(6.6%)279(23.3%)

222

502

89(41.8%)(18.5%)

20(7.4%)1,200(1.7%)+14+17-21+11(18.7%)(3.5%)(-7.0%)(0.9%)

13(1.1%)FY201876(6.4%)300

222(25.2%)

75

485(40.8%)(18.7%)

18(6.3%)

1,189(1.5%)

0200

400

600

800

1000

1200

15

１

FY2018 Results

２FY2019 Plan

3

The prospect in the future

16

Expand the scale while strengthening the financial position
・Reduce interest-bearing debt through curbing investment
・As a result, improve the equity ratio and the ratio of net debt to sales
・With the completion of a new plant in Vietnam,
we aim to double the scale of production in three years
Capital investment（100million yen）

150
125

Depreciation

8585

FY2018FY2019FY2020

FY202164687474

17

Transition of dividends
(Yen)
50

Increase profits and aim to increase dividends

40

30

15

Interimdividend20

10

End-of-the-

20

10

10

10

FY2016FY2017

year dividend

0
FY201818

MSAP Business Policy
In the smartphone market, requirements for printed circuit boards are changing due to the new communication
infrastructure “5G”

Demand for PCBs in the Smartphone Market Accelerates High Definition

2019 "5G" the first year

5GHigh speed

High definition image

Large capacity

AR / VR training
self-driving

Ultra lowdelay

Real-time translation

Simultaneousconnection

Smart city
Remote control(㎡/monthConventional MSAP production method
DFR
Lamination

Exposure

DFR
Development

PatternPlating

80K

DFR
StrippingFlashEtching

60K

MSAP integrated line single layer capacity planning
MSAP integrated production from mixed flow production with conventional subtrailers
Launch line to significantly improve yield and productivity

40K
5G infrastructure
construction

MSAP integrated production lineDFR
Lamination

Exposure

DFRDevelopment

PatternPlating

DFR
Stripping

Full-scale 5G
20K

FlashEtching

FY2018FY2019FY2020

FY2021

0K19FPC business policy
In the future, the FPC market is expected to be used in many vehicles, and we can leverage our strengths.
In the field of communications, we will accelerate the response to a wide range of products such as high-speed
communications products.

Flexible printed circuits
Automotive

Smartphone

Body (lighting)

Smartphone

Infotainment

Storage device

Drivingsafety system

Communication
infrastructure etc

Industrial andmedical equipment

Home appliance

Amusement

Focus on market products and mass production pointsAutomotive = Manufacturing for high heat
resistance nd low expansion materials
Communication ＝ Low transmission loss FPC driven by 5G
Established mass production technology
for multilayer FPC

クリーン化 Clean up

Creating next-generation products and creating synergy effects with EMS business

自動化 Automation(㎡/month)

capacity planning

Low transmission
lossHigh bending
Heat dissipation

Thick copper

longTransparent

FY201840K

20K

Vietnam plant: FPC board manufacturing and component
mounting / assembly plant Adjacent to each other, integrated production is possible.
In the case of manufacturing as well, we can make quicker responsethan mutual information.

One side /Double sides

60K

multilayer

FY2019FY2020

FY2021

0K20

Vietnam factory policy：170,000㎡
Factory area：80,000㎡＋45,000㎡＋20,000㎡
Site area(Third factory )(first Factory)

Third factoryFirst Factory

Second Factory

Expansion of the first Factory
・FPC business expansion
・EMS business expansion

Third factory construction

・High-end smartphone
・MSAP integrated production line
・Automotive Development Product Space(1000㎡/Month)

Second factory
・Support for increased productionof automotive products
・Automotive build-up board
Mass production of the new plant will start in July 2019

Production capacity expansion plan

FY2018FY2019FY2020

FY2021First Factory

FPC(EMS)

20（12）

25(16)

35(22)

45(28)

Second Factory

MLB for Automotive
HDI for Automotive40（5）80(10)

120（20）150(30)Third factory

HDI for Smartphone(MSAP)
Automotive Development70-75(20)-80(40)585(80)10※Figures in parentheses are the number of the above production（EMS is the number of lines）

21