FY2019 Q2 Financial Results Briefing Securities Identification - - PowerPoint PPT Presentation

（Securities Identification Code: 6787）

FY2019 Q2 Financial Results Briefing

2

１ ２ FY2019 2Q Results

Outlook for the current term

3

Technology Roadmap

3

Net sales decreased 2,700 million yen to 5,910 million yen. ･Automotive increased 2.6% year on year to 27,400 million yen ･Smartphone decreased 23.8% year on year to 14,700 million yen ･Sales in other fields increased 7.6% year on year to 17,000 million yen

FY2019 Q2 settlement highlights

Operating income amounted to 3,400 million yen, down 2,300 million yen over previous year. Ordinary income totaled to 3,000 million yen, down 3,300 million yen over previous year. Net income to owners of parent company amounted to 2,400 million yen, down 2,900 million yen over previous year.

Profit

Net sales

4

FY2018Q2 performance FY2019Q2 performance

Year-on-year

Increase %

N e t s a l e s

618 591

• 27
• 4.3%

Operating income

57 34

• 23 -39.9%

9.2% 5.8%

Ordinary income

63 30

• 33 -52.4%

10.2% 5.1%

N e t i n c o m e

53 24

• 29 -55.6%

8.6% 4.0%

Average Exchange rate（Yen/USD）

110.64 108.66

FY2019 Q2 Consolidated Business Performance

（100 million yen）

5

223 234 252 250 255 277 280 274 303 315 298 273 292 299 9 17 15 16 15 24 19 17 25 32 26 7 17 17

10 20 30 40

100 200 300

16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 4.2% 7.4% 6.0% 6.5% 5.9% 8.5% 6.8% 6.2% 8.2% 10.1% 8.7% 2.5% 5.9% 5.7%

Net sales, Operating income

Net Sales

Operating income

Net sales Operating income Operating Margin

（100 million yen）

6 FY2018 Q2 FY2019 Q2 Difference Sales

Operating i n c o m e

Sales

Operating i n c o m e

Sales

Operating i n c o m e

% % % %

Automotive

267

19

274

15 7

• 4

7.1% 5.5% 2.6%

• 21.1%

Smartphone

193

29

147

14

• 46
• 15

14.5% 9.5%

• 23.8%
• 51.7%

Others

158

9

170

5 12

• 4

5.9% 2.9% 7.6%

• 44.4%

Total

618

57

591

34

• 27
• 23

9.2% 5.8%

• 4.3%
• 39.9%

FY2019 Q2 Product Revenue

（100 million yen）

7

Analysis of operating income change FY2018 Q2➡FY2019 Q2

FY2018Q2 performance Exchange Rate 110.64Yen/us$ FY2019Q2 performance Exchange Rate 108.66Yen/us$

Sales SG&A Variable cost Exchange Rate Fixed cost

• 22

（100 million yen）

8 267 274 193 147 33 31 23 22 11 8 27 26 8 14 18 33 38 36

200 400 600

FY2018 Q2 FY2019 Q2

Automotive Smartphone Storage Office equipment Digital home appliance Industrial equipment Amusement IoT EMS

(1.8%) (46.2%) (24.9%) (1.4%) (3.7%) (2.4%) (43.2%) (31.2％) (5.3%) (3.7%) (4.4%) (5.2%)

591 618 FY2019 Q2 Sales Performance by Product Application

（100 million yen）

＋7

(2.6%)

• 27

(-4.3%)

(4.4%) (1.3%)

＋12

(7.6%)

(5.6%) (2.9%) (6.2%) (6.2％)

• 46

(-23.8%)

9 39 35 152 139 107 112 268 252 4 8 10 9 38 36

200 400 600

FY2018 Q2 FY2019 Q2

Double-sided PCB Four-layer PCB Six layers or more HDI PCB High Dissipation PCB Flexible PCB EMS

(5.9%) (23.4%) (19.0%) (1.5%) (6.3%) (24.6%) (17.3%) (42.6%)

• 16

(-6.0%)

(6.2%) (43.4%) (1.6%) (6.2%)

FY2019 Q2 Sales Performance by Product Specification

+5

(4.7%)

591 618

(0.6%) (1.4%)

• 27

(-4.3%)

• 13

(-8.6%)

（100 million yen）

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１ ２ FY2019 2Q Results

Outlook for the current term

3

Technology Roadmap

11

Investment

Outlook for the current term

Ocerview

・Vietnam Plant#1 factory: we will invest in EMS and flexible ・Vietnam Plant#2 factory: we will invest in an automotive factory ・Vietnam Plant#3 and Tang Long factory: we will make 5G upfront investment ・Automotive will remain at the same level as the first half ・Smartphone will remain at the same level as the first half ・ Sales in other fields, IoT and EMS will grow

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FY2019 plan FY2019 Q2 results FY2019 full-year forecast N e t S a l e s

1,200 591 609

O p e r a t i n g I n c

• m e

75 34 41

6.3% 5.8％ 6.7%

O r d i n a r y I n c

• m e

63 30 33

5.3% 5.1％ 5.4%

N e t i n c o m e

53 24 29

4.4% 4.0％ 4.7%

E x c h a n g e r a t e

（ J P Y / U S D ）

111.00 108.66 108.00

FY2019 Full-year forecast

（100 million yen）

13

Depreciation

30 10 10 120 115 115 25

150 125 150

FY2018 FY2019 Original plan FY2019 Revised plan

Domestic

• verseas

Additional investment

Investment plan

64 68 68

（100 million yen）

Depreciation

14

Vietnam factory strategy

Vietnam Plant #3

MSAP・Automotive developed products

T ang Long Plant

High frequency module

Meiko-T

• wada Vietnam

EMS Longcheer Joint Venture IoT / AI Appliance Flexible PCB/EMS

Vietnam Plant #3

Automotive

High frequency module Smartphone

Automotive developed products

MLB Flexible PCB 5Gmodule HDI 5G Smartphone Smartphone

Vietnam Plant #1

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１ ２ FY2019 2Q Results

Outlook for the current term

3

Technology Roadmap

16

Transformation brought about by 5G

Source: Ministry of Internal Affairs and Communications

Conventional

Cars Three features and innovation in each industrial field Smartphone IoT Base Stations Servers

 Increase in macro cells/small cells  Big data volume: 15 ZB (Increase in storage capacity)  Ethernet speed: 400 GbE (Increase in optical communication)

 Acceleration in automatic driving level 4  Increase in connected cars  Acceleration in electrification (xEV)  Conventional + 5G communications compatible  Increase in communication modules  Increase in passive components  High-density PCBs

Assign a dedicated signal to each one

Source: Website of Softbank

5G

New markets for printed wiring boards (PCB) will be created in 5G and the existing market will expand

Automatic driving

Ultra-high speed: Maximum of 10 Gbps

Multiple simultaneous connections: 1 million units/km2 connections

Main requirements

• f 5G

Ultra-low delay: Around 1 msec. 5G Features

Vast number of sensors and terminals

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5G market trends (sales volume)

500 1,000 1,500 FY2019 FY2025 EV PHV HV

xEV

5.23 16.76

Smartphone

Source：Canalys

5 10 15 FY2019 FY2023 Conventional 5G 0.37 5.25 13.5 15

（100 Million units）

Source:Fuji Keizai Group

2,000 4,000 6,000 FY2019 FY2025

Connected car

29 55

（Million units）

Source：Techno System Research

2 4 6 FY2019 FY2023 HDD SSD

Storage

2.0 2.7 3.4 2.7

■5G smartphones have become popular, SSDs have increased due to the increase in big data volume ■The number of connected cars supporting 5G increases, xEV significantly increases ■IoT equipment continues to grow steadily ■Demand for higher-density build-up boards and boards for vehicles will increase

500 FY2019 FY2025

IoT devices

350 800

（100 Million units） （Million units） （100 Million units）

Source:Fuji Keizai Group Source:HIS Markit

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Technology development roadmap for 5G

Base stations servers Smartphone IoT Automatic driving Electrification Connected cars Communications System Conventional Communications 5G Communications

3.6GHz 700MHz 6GHz 28GHz Millimeter-wave

Automatic driving

Level 2 Level 3 Level 4

2019 2020 2025

Data center SSD (16-layer high-frequency board) Macro cell/Small cell/High-frequency module (Multilayer high-frequency board) (High-frequency board) Main board (L/S=50/50um) Main board (MSAP L/S=30/30um⇒25/25um) Communication module (L/S=35/35um) Communication module (MSAP L/S=25/25um) Milli-wave radar (MSAP high-frequency board) TCU/V2X communication module (12-layer any-layer)

Power device (Copper inlay thick copper board)

IVI (Infotainment) (3-stage build-up) Vehicle computer (3-stage build-up) Server SSD (10 layers)

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5G development example

Unit application

TCU / V2X communication module for connected cars

Using a mobile communication system, two-way communication between the car and cloud servers, infrastructure, and other cars

feature

High-density printed wiring board on which 5G communication chip is mounted High-density PCB Communication module

This presentation contains forward-looking statements concerning Meiko Group’s future plans, strategies and performance. However, Meiko does not publish this presentation as a disclosure document based on the Financial 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 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

• ther factors. Meiko therefore wishes to caution that actual results may

differ materially from our expectations.