FY2016Financial Results Briefing

May 19, 2017

（Securities Identification Code: 6787）

1

１

２

FY2016 Results

FY2017 Plan

4 Technology roadmap

3 Industry trends

2

FY2015performance

FY2016performance

Year-on-year

Increase %

Net sales 952.9 959.1 +6.2 0.7%

Operating income 33.3 57.9+24.6 73.9%

3.5% 6.0%

Ordinary income ▲4.9 29.8+34.7 -

▲0.5% 3.1%

Net income ▲112.5 17.7 +130.2-▲11.8% 1.8％

Average Exchange rate（Yen/USD） 120.12 108.69

（100 million yen）

FY2016 Consolidated Business Performance

3

33.3

26.1

9.9

4.5 ▲3.3▲9.2

▲3.5

57.9

0

20

40

60

80

Increase in sales

Yield improvement

Fixed costVariable cost improvement

Exchange Rate

SG&A

Analysis of operating profit change FY2015→FY2016

24.6Growth

FY2016 performance(Exchange rate108.69yen/us$)

FY2015 performance(Exchange rate 120.12yen/us$)

(100 million yen)

4

Net sales , Operating income

225249 245 234 223 234

252 250

▲6.5

12.215.3

12.19.3

17.315.0 16.3

▲10

0

10

20

30

(100)

0

100

200

300

15Ｑ１ 15Ｑ２ 15Ｑ３ 15Ｑ4 16Ｑ１ 16Ｑ2 16Ｑ3 16Q4

Net sales Operatingincome

Net sales Operatingincome

（100 million yen）

5

FY2015performance

FY2016performance

Year-on-yearIncrease %

GuangzhouNet sales 319 284 -35 -11.0%

Operating income

17 17 0 0.0％5.3% 6.0％

WuhanNet sales 320 358 +38 11.9%

Operating income

5 21 +16 320.0%1.6% 5.9％

VietnamNet sales 166 192 +26 15.7%

Operating income

9 20 +11 122.2%5.4% 10.4％

Average Exchange rate（Yen/USD） 120.12 108.69

Overseas plants-Financial results FY2016(100 million yen)

6

455

437

236

253

52

48

51

53

29

23

66

69

64

76

0 200 400 600 800 1,000

FY2015

FY2016

Automotive Smartphones StorageOffice equipment Digital home appliances other PWBsnon-PWB

(5.4%)

(6.9%)

959

953(47.7%)

(45.6%)

By product Application

(100 million yen)

-18 ＋17

(24.8%)

(5.5%)

(6.7%)

(26.4%)(5.5%)

(7.9%)(5.0%)

(2.4%)

(7.2%)

(3.0%)

＋7

7

81

78

317

287

152

158

324

350

15

10

64

76

0 200 400 600 800 1,000

FY2015

FY2016

Double-sided PWB Four-layerPWB Six layers or more

HDI PWB otherPWBs Non-PWB

(8.1%) (29.9%) (16.5%)

(1.0%)

(8.5%) (33.3%) (15.9%)

(36.5%)

+26

959

953

By product specification (100 million yen)

-30 +6

(7.9%)

(34.0%)

(1.6%)

(6.7%)

8

１

２

FY2016 Results

FY2017 Plan

4 Technology roadmap

3 Industry trends

9

(100 million yen)

Consolidated financial prospect for FY2017

FY2016 FY2017Year-on-year

Increase %

Net sales 959.1 1,030.0 +70.9 7.4%

Operating income 57.9 62.0 +4.1 7.1%

6.0% 6.0%Ordinary income 29.8 46.0 +16.2 54.4%

3.1% 4.5%Net Income 17.7 36.0 +18.3 103.4%

1.8％ 3.5％Average Exchange rate（Yen/USD） 108.69 110.00

10

FY2016 FY2017Year-on-year

Increase %

GuangzhouNet sales 284 250 -34 -12.0%

Operating income

17 15 -2 -11.8%

6.0％ 6.0％

WuhanNet sales 358 373 15 4.2%

Operating income

21 22 1 4.8%

5.9％ 5.9％

VietnamNet sales 192 238 46 24.0%

Operating income

20 25 5 25.0%

10.4％ 10.5％Average exchange rate

（Yen/USD） 108.69 110.00

(100 million yen)FY2017 Sales plan for Overseas plants

11

8 3 4 10 4

35 28 27

59

51

43

31 31

69

55

0

50

100

FY2014 FY2015 FY2016 FY2017 FY2018

Domestic overseas (100 million yen)

FY2017 Investments

71Depreciation 64 5855

12

１

２

FY2016 Results

FY2017 Plan

4 Technology roadmap

3 Industry trends

13

Industry trends –summary-

14,440 14,980 16,000 16,885 18,940 19,885 20,805

7,130 7,605 8,350 8,810 9,510 9,530 9,565 8,740 8,280 8,650 8,870 9,035 9,200 9,380 8,400 8,535 7,580 8,000 8,450 8,700 9,100

6,340 6,080 6,350 6,600

6,918 7,211 7,570 6,085 5,710 5,900

6,010 5,893 6,005 6,107

4,750 4,500 4,650 4,725

5,197 5,325 5,435

1,010 970 1,020 1,020

915 931 952

56,895 56,660 58,500 60,920 64,858 66,787

68,914

2011 2012 2013 2014 2015 2016 2017

Aviation /

MunitionsMachinery

communication

Automobile

IC package

Consumer

Computer

Smartphone

（100 ｍillion yen）

Source：JMS

Expansion trend continues mainly in smartphones and automotive markets

14

Industry trends –smartphone-

230 210 219

325 310 323

45 100 11640 75 92105140 1527050

50

605595

615

1,420 1,480 1,567

2015 2016 2017

Others

Xiaomi

Huawei

Vivo

Oppo

Samsung

Apple

（ 1 million units ）

Source：Fujikimera、EMC

In the global market, in addition to the global 2 big companies,the shares of Chinese companies keep rising

15

2,850 2,920 2,970 3,030 3,100 3,170

2,550 2,660 2,790 2,940 3,140 3,340 300 330 350 380 410 430 510 550 580 620 660 700

8,715 8,787 8,928 9,109 9,347 9,633

6,390 6,675 6,918 7,211 7,570 7,923

2013 2014 2015 2016 2017 2018Double sided board Multilayer HDI FPC&R/F others

Chin Poon

17%

TTM

8%

Meiko

7%

CMK

6%

KCE

7%

Others

56%

Industry trends –Automobile-

（MUSD）

Usage of PWBs in cars is growing faster than the car sales growing rate.

Automotive sales volume(10k units)

Source：Fujikimera,JMS

Share in 2016

16

１

２

FY2016 Results

FY2017 Plan

4 Technology roadmap

3 Industry trends

17

Automotive Technology Trend

ElectrificationEmission Regulation

2017年 2020年 202X年

130 (g/km) 95 (g/km)Hybrid, Plug-in Hybrid Electric, Fuel Cell

Information

Driving safety

Power train

Communication

Body

Electrical installed >50%

Connected car System Integration 5G

advanced driver assistance system Level 2 Level 3

Large current / high voltageHigh heat dissipation

Compact and lightweightHigh heat dissipation

High speed / high frequencySensing

Electro-mechanical integrated

High speed wide area communication

System integration

18

LED lighting

0.4 / 0.5 pitch CSP

Metal base heat dissipation board

Communication module High density module substrate

In-vehicle PWB technology roadmap

High frequency support

Power IC heat dissipation

High speed Transmission lines

Miniaturization and lightweight

Multi-Layer HDI

Copper inlay heat dissipation board

Component built-in board

Millimeter wave radar board

Impedance control board

Evaluation

Evaluation

Trial

Trial

Trial

Trial

Trial

Communication

Information

Body

Power train

Driving safety

Automotive technology Substrate technology 2017 2020 202X

19

Smartphone PWB technology roadmap

Mobile communication

Data transmission speed

Battery

100M-1Gbps 10Gbps, USB3.14G 5G

Large capacity

2017 2019 2021

Electronic parts

High speed transmission

High accuracy High multilayer material properties

Application processor Low profileFlip-Chip CSP FOWLP

Display panel liquid crystal AMOLED

FC-CSP/FOWLPcoexistenc

Main boardMiniaturization

COF

High density wiring

FPC high definition

20

Smartphone mainboard technology roadmap

＜Smartphone technology＞ ＜Substrate technology＞ 2017 2019 2021

High Layer Ctn12Layer(5-2-5)

Electronic parts 0.4/0.35mmPitch

High density wiringL/S=40/40um

Main IC/Sub IC

Material properties

Flagship

Line/SpaceVia/Land

Midrange/High end

0.35/0.3mmPitch

14Layer(6-2-6)

10Layer(2-6-2/3-4-3) 12Layer(3-6-3/4-4-4)

Dk3.5/Tg170℃ Dk3.5/Tg190℃

L/S=30/40um85/180um 75/150um

8 layer Any layer 10 - 12 layer Any layer 10Layer(3-4-3) 12Layer(4-4-4)Low dielectric material(2013)

Flagship(Mass production)

Mid-range model

High end model

Dielectric constant /Heat-resistant

Main IC mounting part Wiring rule

http://www.meiko-elec.com/