MEC Company Ltd. · TSE:4971
MEC — Q1 FYE 12/2020 Earnings Presentation
20 slides from MEC's earnings presentation, May 11, 2020
Slide 1: Financial Results Briefing for Q1 FYE 12/2020
Financial Results Briefing for Q1 FYE 12/2020 MEC COMPANY LTD. Securities code: 4971 https://www.mec-co.com/en/
Slide 2: Measures against COVID-19 Infection
Measures against COVID-19 Infection Maintaining a system for preventing the spread of infection and continuing to supply products Placing the President as the Head of the Emergency Response Headquarters, and carefully continuing corporate activities according to the circumstances based on the BCP (b
Slide 3: Q1 FYE 12/2020 Key factors
Q1 FYE 12/2020 Key factors Assumed/actual exchange rate JPY to NTD Assumed rate: 3.50 yen / Actual rate: 3.61 yen (previous year was 3.58 yen) １ JPY to RMB Assumed rate: 15.76 yen / Actual rate: 15.56 yen (previous year was 16.38 yen) JPY to EUR Assumed rate: 121.17 yen / Actual rate: 120.66 yen (pr
Slide 4: Q1 FYE 12/2020 Results - 1
Q1 FYE 12/2020 Results - 1 Unit : million yen Q1 Full-year FYE19.12 FYE20.12 FYE19.12 FYE20.12 Progress Progress YOY YOY Results Results Results (Forcast) ratio (%) ratio (%) (%) (%) Net sales 2,328 21.4% 2,809 24.2% 481 20.7% 10,865 11,600 6.8% Chemical sales 2,266 21.3% 2,661 - 394 17.4% 10,657 -
Slide 5: Net sales year-over-year change
4 (million yen) 2020 ２，８０９ Q1 Foreign exchange 481 million yen 20.7 % up Other sales Financial Results Briefing for Q1 FYE 12/2020 Material sales Machine sales Other solution Etching solution Net sales YOY Adhesion improves 2019 ２，３２８ Q1 Million yen
Slide 6: Operating income year-over-year change
5 2020 (million yen) Q1 498 Foreign exchange （Selling、general and administrative expenses） Selling, general and 292 million yen 142.1 % up administrative expenses Foreign exchange （Gross profit） Financial Results Briefing for Q1 FYE 12/2020 Material and Other sales Gross profit Material and Operatin
Slide 7: Quarterly Net sales, Operating income and Operating profit margin
Quarterly Net sales, Operating income and Operating profit margin (Consolidated) 3,500 30 3,000 25 2,500 20 2,000 15 （％） 1,500 (Million yen ) 10 1,000 5 500 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2018 2019 2020 Net sales 2,660 2,839 2,932 2,896 2,328 2,648 3,128 2,761 2,809 Operating income 520
Slide 8: Quarterly composition profit and loss (Consolidated)
Quarterly composition profit and loss (Consolidated) 3,500 30 3,000 25 2,500 20 2,000 15 1,500 （％） (Million yen ) 10 1,000 5 500 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2018 2019 2020 Operating income 520 518 708 475 205 404 755 271 498 SGA 1,169 1,282 1,212 1,353 1,178 1,242 1,225 1,335 1,238 C
Slide 9: Product-specific quarterly sales (Consolidated)
Product-specific quarterly sales (Consolidated) 3,500 3,000 2,500 2,000 1,500 1,000 (Million yen) 500 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2018 2019 2020 Other 16 1 4 1 6 1 5 4 4 Mmaterials for PCBs 21 46 19 3 15 15 58 17 17 Equipments for PCBs 9 17 10 15 40 8 10 24 129 Chemicals for PCBs 2,612
Slide 10: Quarterly chemical sales (consolidated)
Quarterly chemical sales (consolidated) Adhesion improves : CZ, V-Bond, FlatBOND, UT etc. 3,500 Etching solution : EXE, SF etc. 3,000 2,500 2,000 1,500 1,000 (Million yen) 500 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2018 2019 2020 Other surface processing solution 158 156 181 162 132 125 133 122 1
Slide 11: Chemical shipment volume (consolidated)
Chemical shipment volume (consolidated) 12,000 10,000 8,000 6,000 4,000 2,000 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 (t) 2018 2019 2020 Other surface processing solution 360 377 424 399 338 310 320 319 267 Etching solution 1,978 2,186 2,504 2,462 1,758 1,986 2,777 2,242 1,955 Adhesion improves 6,
Slide 12: CZ series sales
CZ series sales 1,600 1,400 1,200 1,000 800 600 400 (Million yen) 200 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2018 2019 2020 Other CZ 392 407 420 382 413 330 475 446 474 8101 723 733 725 713 540 789 752 753 787 8100 270 279 272 253 232 260 257 269 246 Financial Results Briefing for Q1 FYE 12/2020
Slide 13: CZ series sales (Composition ratio)
CZ series sales （Composition ratio） 100 90 80 70 60 50 40 30 （%） 20 10 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2018 2019 2020 Other CZ 29 28 30 28 34 24 32 31 31 8101 52 52 51 53 46 57 51 51 52 8100 19 20 19 19 20 19 17 18 17 Financial Results Briefing for Q1 FYE 12/2020 12
Slide 14: Region-specific sales and overseas sales ratio
Region-specific sales and overseas sales ratio 1,600 60 1,400 50 1,200 40 1,000 (%) 800 30 600 20 400 (Million yen) 10 200 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 2018 2019 2020 Japan 1,239 1,332 1,384 1,410 1,077 1,231 1,430 1,303 1,498 Asia 1,240 1,330 1,399 1,355 1,079 1,269 1,512 1,335 1,154
Slide 15: FYE 12/2020 full-year forecast
FYE 12/2020 full-year forecast FYE 12/2019 FYE 12/2020 (51th term) (52th term) Full-year 1H Full-year Profit Profit YOY Amount ratio Amount Profit ratio Amount ratio change (million yen) (million yen) (%) (million yen) (%) (%) (%) Net sales 10,865 - 5,000 - 11,600 - 6.8 Operating income 1,637 15.1 6
Slide 16: Capital investment, depreciation expenses and R&D expenses
Capital investment, depreciation expenses and R&D expenses 2,500 14.0 12.0 2,000 10.0 1,500 8.0 6.0 1,000 （％） 4.0 500 (Million yen) 2.0 0 0.0 2020/12 2017/3 2017/12 2018/12 2019/12 (Forcast) Capital investment 2,033 1,048* 592 1,362 855 Depreciation expenses 368 568* 609 692 783 R&D expenses 902 1,0
Slide 17: Dividend, payout ratio and ROE
Dividend, payout ratio and ROE Dividend policy Dividend（Forcast） Medium-term goal (consolidated payout ratio) 26.0 yen Q2 12 yen 30% Q4 14 yen Dividend / Dividend ratio 50 13.0 * 15.0 13.0 12.0 39.9 39.5 40 28.0 7.9 10.0 30 23.6 23.4 * 7.6 Dividend（yen） 20 Dividend ratio（%） 5.0 22 26 26 26 ROE（%） 10
Slide 18: ESG-H effort
ESG-H effort Environment • Eco friendly products and products that improve yield. • Contribution to the improvement of the PCBs manufacturing environment. Social • Contribution to social development (5G, autonomous driving). • WLB support, Success of women in the work place. Governance • Invitation
Slide 19: Basic policy of capital policy and shareholder return
Basic policy of capital policy and shareholder return In line with the MEC Group's capital policy, we are making the following efforts in order to help improve shareholder value while securing financial soundness. Improvement of corporate value • Continuously improve consolidated ROE based on a leve
Slide 20: Contact
■Contact■ Corporate Communication Office MEC COMPANY LTD. Email: [email protected] This presentation includes forward-looking statements (such as predictions and business forecasts) made in May 11, 2020. These statements are assumptions based on information available at the time, and they are subjec