FY2021 Second Quarter
Financial Results Briefing
November 11, 2021

（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

FY2021 Key Financials

２

Outlook for the current term

3

Future strategy

3

FY2021
Overview

1st half business environment

Sales and profits increased significantly in the first half
supported by the strong demand●Orders for Automotive have remained at a high level
since the beginning of the term
●Smartphones, AI home appliances / IoT, EMS
The impact of semiconductor shortages turned to a mitigation trend●Due to the influence of COVID19,operations (capacities) were adjusted accordingly in Wuhan and Vietnam
from August to early September
All factories have been in full production after the period→Cost of operation adjustments due to COVID19 (approximately 600 million yen)
was posted as an extraordinary loss
●Guangzhou factory is affected by power restrictions in China●Reviewed selling prices to cope with the soaring resource prices
4

FY2021 1st Half Results
FY20 1st half

FY21 1st halfresults

Net sales
Operatingincome
Ordinary income

Net income
Average FX rate
（JPY/USD）

Dividend per share（ 100 million yen ）results

Diff.

532
18695
55

63.4%

1.1%

2

Year-on-year%

163

30.5%

37205.8%5347854.3%

4240 2052.5%

8.0%
7.7%

0.4%

6.0%

106.30110.120yen

20yen
5

FY2021 1st Half Revenue by Product Applications（ 100 million yen ）FY20 1st half results
Net sales

Operating income%

9Automotive

222

SmartphoneTablet

127

10AI・IoT・
Amusement

50

1

Other Products

78EMS

55

Total

532

Year-on-year

FY21 1st half results

4.1%

7.9%

2.0%

00.0%

-2-3.6%183.4%Net sales

Operating income%

Diff.

%

348

29

126

20

8.3%

56.8%

222.2%

146

16

19

6

11.0%

15.0%

60.0%

61

5

11.8%

2.0%

500.0%

5

19

5

5.2%

24.4%

--1-2

1-1.9%

-3.6%

-55

163

37

8.0%

30.5%

205.8%

51
97
53
695

6

１FY2021 Key Financials

２

Outlook for the current term

3

Future strategy
7

FY2021 2nd half business environment
Overview

Full-year earnings forecast revised upward●Orders for automotive are currently declining due to a shortage of electronicand processed parts●Orders for smartphones, AI home appliances / IoT and EMS are stable●Procurement prices rise due to power restrictions in China
and resource price hike8

Full-Year Outlook FY2021- Consolidated（ 100 million yen ）FY2021 1stFY2021 2ndOperating
Income

695
55755
65

Ordinary
Income53

half results Half forecast
Net Sales

Net IncomeAverage FX rate（JPY/USD）Dividend per share8.0%
7.7%

42

FY2021
Full year
forecast

Previous
forecast

1,450
120

1,350
95

57

110

87

49

90

8.6%
7.5%

8.3%
7.6%

7.0%
6.4%

75

6.0%

6.5%

6.2%

5.6%

110.12112

111.06

108

20yen

20yen

40yen

40yen

Diff.
100
25
1.3%

23
1.2%

15
0.6%

9

Full-Year Outlook FY2021- Consolidated(Breakdown by Product Application)
FY2021 1st half
results
Net sales

FY2021 2nd half
forecast

Operating income%Automotive

348

29

Smartphone
Tablet146

16

AI・IoT・
Amusement

51

Other Products

97

EMS

53

Total695（ 100 million yen ）

8.3%

11.0%

611.8%

55.2%-1-1.9%558.0%Net sales

FY2021 Full year
forecast

Operating income%

363

31164

19569478755

8.5%

11.6%

712.5%

55.3%

33.8%

Net sales

%

711

60

310

35107
191
131

65 1,450
8.6%

Operating income

8.4%

11.3%

1312.1%105.2%

21.5%

120
8.3%

10

Sales by Product Specification
Double-sided PCB

Four-layer PCB

Six layers or more

HDI PCB（ 100 million yen ）High Dissipation PCB

Flexible PCB

Other substrates

EMS(1.2%)FY2021 2nd
half forecast(3.2%)

24(20.0%)151(2.1%)

315

157+1(+0.7%)9(41.7%)(20.8%)+13(+9.0%)16(10.3%)578(0.7%)+32(+11.3%)(2.4%)FY2021 1st (3.9%)
half result27(21.6%)(2.0%)

283

144+20(+15.4%)17(40.8%)(20.7%)

150

14(1.0%) (7.6%)+20(+16.1%)

7+2(+0.7%)

53-8(-13.1%)(2.6%)FY2020 2nd (4.2%) (19.7%)
half result28

130+33(+34.0%)

FY2020 1st (4.3%) (18.2%)
half result2397(18.8%)(1.8%)

281+24(+24.0%)1001712(42.5%)124(18.8%)+25(+47.2%)+72(+34.4%)(39.4%)

209(1.2%) (9.2%)8(5.3%)

28
13(2.4%)(1.3%)(10.3%)

761+6(+10.9%)755+60(+8.6%)

695+34(+5.1%)

661+129(+24.2%)

532

55

11

Half year trend of Net Sales, Operating Income and others
Net sales

474

479

502

457

5.7%

532

7.3%

6.2%

5.8%

39
27

61.2%

27

695

564

532
7.3%

5736

31

591

571
9.2%

6.5%

755

661

618
553

Operating （ 100 million yen ）margin(Total)

Operatingincome

5.7%

5.8%

32

34

8.6%
65

8.0%
55

49

3.2%

3.4%

1818FY2015

FY2015FY2016FY2016FY2017FY2017FY2018FY2018FY2019FY2019FY2020

FY2020

FY2021

FY2021

1ST H

2ND H

1ST H

2ND H

1ST H

2ND H

1ST H

2ND H

1ST H

2ND H

1ST H

2ND H

1ST H

2ND H FORECAST

CAPEX

313196150

120107120Depreciation

64555863697477

DE ratio

2.5

2.0

1.4

1.7

2.0

1.9

1.4

26.2%

27.3%

30.0%

27.8%

25.1%

28.6%

31.8%

Capitaladequacy ratio

12Sustainability initiatives
SustainabilityPolicy

Meiko Group is aggressively striving its sustainable activities to enhance
the trust of all stakeholders through its sound/transparent management
and business activities harmonizing the society and the environment,
thereby contribute to the sustainable development of the society andimprove its corporate value based on the philosophy of Meiko Group.
■Environment

Board ofDirectors
President
and CEO

CO2 emission reduction plan

● CO2 reduction（Kt-CO2）600

Emission intensity

0.02◆Introduction of renewable energy◆Energy saving promotion

300●Resource recycling

00.01
Emissions0201920202025

Solar Park Fukushima

2030■Social●Social contribution activities●Creating a rewarding workplace◆Diversity promotion◆Promotion of women's advancement◆Allocation and exchange of global human resources

Sustainability
Execution Conference＜Chairman＞
Director and Senior Managing
Executive Officer in charge
Members：
all relevant depertments

In-house daycare center Nobiko■ Governance● Board of directors

Outside director

Female officer

Foreign officer

411●Public relations / IR promotion(person)◆Conducting active dialogue with stakeholders

13New Market Segment in Tokyo Stock Exchange
Meiko received the results of the initial assessment from Tokyo Stock
Exchange on July 9th 2021
→Confirmed it complied with the listing criteria for the Prime Market in
the new market segments
Meiko resolved to select and apply for listing on the Prime Marketof Tokyo Stock Exchange at its board of directors meeting➡November 8, 2021, Meiko submitted the application for the selection of
the new market segment (Prime Market) to the Tokyo Stock Exchange

We aim to maximize the corporate value
by the sustainable growth14

１

FY2021 Key Financials

２

Outlook for the current term

3

Future strategy
15

Automotive & Semiconductor Market Forecast
ADAS-Vehicle

Vehicle Production(MUnits)

10075Total
EV96.9674*1(MUnits)

100

5025

11.84*225

Y2021F Y2025F
Source：Fuji Chimera Research Institute, Inc『2021 Prediction of Next-Generation Car Technology』
Source：*1：Boston Consulting Group *2：IHS Markit

0250

Level-3
Level-2
Level-1

0.5

56.19

1.7
LIDAR
Radar
Camera200
1500.03

100183.360.05

Y2021F Y2025F

Source：Fuji Chimera Research Institute, Inc『2021 Prediction of Next-Generation Car Technology』(Lev1:Camera/Radar,Lev2:Camera+Radar,Lev3:Camera+Radar+LIDAR)

400

Memory478.2
Logic(9.6%)
Micro436.4
Analog (20.8%)

361.2(8.4%)

20047.070(BUSD)

300

103.845015.5

Semiconductor Sales

500

35.99

15.7

3.820(MUnits)

7550

ADAS-Sensors

71.14

Y2021F Y2025F
Source：Fuji Chimera Research Institute, Inc『2021 Prediction of Next-Generation Car Technology』

1000Y2020

Y2021F Y2025F
Source：WSTS 2021 Spring Forecast■Environmental Regulations and Competition for EV and Autonomous Driving bring growth ofADAS-Sensors and Vehicle Production.
■Semiconductor Demand Increases throughout worldwide Economy, especially Memory and Logic.
■Market growth of Vehicle, ADAS adoption and Semiconductors will drive PCB Demand.

16Automotive PCB Technology Roadmap
Environment
Autonomous
EV/FCVPCB
Connected(CommunicationModule)

ADAS

Y2025

Y2030

ADAS Mandatory (‘22)

US 50%(include PHV)

China, Japan 100%
(Include HEV)

China Level-3 50%

UK 100%IEA,EU,CA 100%

Y2021

Y2023
4G TCU Market Growth

Y2035

Y2025
5G Penetration(10-12L AnyLayer PCB)

(Larger Size PCB)

Fusion Sensing Increase

Millimeter-wave(Sensor)(Hybrid High Frequency PCB)

(100GHz HF material)

ADAS

Domain Integrated ECU

Centralized ECU(E/E Architecture)(Stacked Microvia, Impedance controlled PCB)Electrification

ABS, EPS & LED Headlamp Increase(Power Device)(Heat Dissipation, FR-4 Flex PCB)(Computer Board)

800V Application(Heat Dissipation,Higher Voltage PCB)

17

Module/Package Substrate Technology Roadmap
IC Package Trend
Lead-FramePBGA

FC-CSP

Discrete IC

MemoryFEM

Smartphone
Edge Device

Competitor

PCB
Package
TypeCircuit
Formation

From PBGA/FC-CSP to FC-BGA

Y2021

FC-BGA

Automotive MPU
PC, Gaming

NetworkServer

FC-BGA Capacity Expansion

Y2023
PBGA

(Fine,Large I/O)

Y2025

PBGA / FC-CSP(Memory/FEM)(Application Expansion)

MSAP （L/S=25/25um）

MSAP（L/S=20/20um）

SAP Development

SAP Production
Total Thickness < 0.1mm

X-section of PBGA Substrate18

New Yamagata Factory【Concept】 Domestic Advanced Eco-smart(IT/FA/Energy Saving & Harvesting)１）Location : Yamagata-Prefecture, Tendo-City
２）Land Area : Approx. 65,000㎡
３）Floor Area : Approx. 25,000㎡ (Step1)
Approx. 45,000㎡ (Step2)
４）Annual Sales : Approx. 10 Billion JPY (Step1)
Approx. 20 Billion JPY (Step2)
５）Investment : Approx. 10 Billion JPY (Step1)
Approx. 10 Billion JPY (Step2)
６）Business Content①Advanced Automotive PCB Volume Production②PCB Technology Development Center③Automation Equipment Development & Production④EMS Business for Domestic Customer

Y21Plan★
Land

Y22Y23Construction

Step1

Y24Y25

Step2

19

Module/Package Substrate Business Expansion
Vietnam #3 Factory#3

Sales Plan for Substrate Business#1#2（Billion JPY）
3020１）Concept : Overseas Substrate Dedicated Factory２）Floor Area : Approx. 20,000㎡
３）Investment : Approx. 16 Billion JPY
10Vietnam

Memory/Sensor

Ishinomaki #2 Factory
Ishinomaki

0#2#1

１）Concept : Domestic Substrate Dedicated Factory２）Floor Area : Approx. 5,000㎡３）Investment : Approx. 5 Billion JPY

Y21

Y22Y23

SubtractiveMSAP

L/S=40/40um～

Y24

Y25

RF/Antenna/Automotive※Modify Semi Additive Process

SAP※Semi Additive Process

L/S=25/25～35/35um

L/S=～20/20um

20Appendix

21

Net Sales by Product Application
Automotive
Office equipment

Smartphones/Tablets
Digital home appliances

AI appliances/IoT
Other substrates（100 million yen ）Amusement
EMS

Storage(1.3%) (0.8%)

FY2021 2nd(48.1%)

363

half forecast10(21.7%)

164+15(+4.3%)

26+5(+9.8%)

half result20(21.0%)348(4.5%)

146+47(+15.6%)14755+25(+47.2%)+60(+8.6%)(3.4%) (6.4%)+18(+12.3%)(50.1%)

78(10.3%)(1.9%)

46

31-15(-9.3%)

753

695-8(-13.1%)+34(+5.1%)(7.6%)(2.3%)

16(4.0%)-2(-3.8%)48-3(-3.1％)(1.0%)(2.9%)FY2021 1st6(6.1%)(6.6%)

28 +12 46(+14.1%)(2.0%) (1.1%)

FY2020 2nd
half result(45.4%)

301

40+34(+26.8%)+3(+6.0%)14(2.7%) (7.0%)

18+7 46(+9.0%)(3.6%) (1.1%)

FY2020 1st
half result(41.8%)

222(23.9%)

127

19(5.8%)31(9.2%)(6.1%) (2.1%)

161

+79
(+35.6%)

7

13(24.4%)6(2.6%)

14(10.3%)(4.5%) (6.4%)

2455

61+6(+10.9%)661+129(+24.2%)

532

3422