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/