FY2019Financial Results Briefing

May 21, 2020

（Securities Identification Code: 6787）

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 other factors. Meiko therefore wishes to caution that actual results may differ materially from our expectations.

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１

２

FY2019 Results

FY2020 Plan

3 Future Endeavor

4

・Net sales decreased by 3.4 billion yen year on year to 115.5billion yen.→The impact of Wuhan and Guangzhou Plants suspension

due to COVID-19 was 2.9 billion yen in the sales drop.・’Automotive’ decreased 2.4% year on year to 53.4 billion yen ・’Smartphones’ decreased 23.4% year on year to 24.9 billion yen ・’Sales in other fields’ increased 17.4% year on year to 37.2

billion yen

Profit

Financial Results Highlights in FY2019

Netsales

･Operating income declined by 3.7 billion yen from FY2018 to 5.2billion yen.

→Wuhan and Guangzhou Plants suspension due to COVID-19 resulted the opportunity loss of 0.6 billion yen.

･Ordinary income declined by 3.8 billion yen from FY2018 to 4.8billion yen.

･Net income declined by 4.1 billion yen from FY2018 to 2.6 billion yen. →Extraordinary loss amounting to 1.2 billion yen was posted in relation

to the suspension of Wuhan and Guangzhou Plants due to COVID-19.

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FY2018results

FY2019results

Year-on-year

difference %

N e t s a l e s 1,189 1,155 -34 -2.9%

Operating income 89 52 -37 -41.9%7.5% 4.5%

Ordinary income 86 48 -38 -44.4%7.2% 4.1%

N e t i n c o m e 67 26 -41 -61.6%5.6% 2.2 %

Average Exchangerate（Yen/USD） 111.04 108.93

FY2019 Consolidated Business Performance（100 million yen）

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FY2019 Revenue by Product Applications

FY2018 FY2019 Difference

SalesOperatingi n c o m e Sales

Operatingi n c o m e Sales Operat ing

i n c o m e

% % % %

Automotive 547 39 534 29 -13 -10

7.1% 5.4% -2.4% -25.6%

Smartphones 325 38 249 18 -76 -20

11.7% 7.2% -23.4% -52.6%

Others 317 12 372 5 55 -7

3.8% 1.3% 17.4% -58.3%

Total 1,189 89 1,155 52 -34 -37

7.5% 4.5% -2.9% -41.9%

(100 million yen)

7

255277 280 274

303315

298

273292 299 307

257

15

24

1917

25

32

26

7

17 17 16

2 0

10

20

30

40

0

100

200

300

17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4

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%

5.1%

0.8%

Quarterly Financial ResultsNet Sales

（100 million yen）

OperatingincomeNet sales Operating

incomeOperatingMargin(Total)

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Analysis of operating profit change (PCB only) FY2018→FY2019

FY2018 results(Exchange rate 111.04yen/us$)

Increase in selling expensesDecrease

in variable

cost

Impact of FX rates

Decrease in fixed

cost

(100 million yen)

FY2019 results(Exchange rate 108.93yen/us$)

Decrease in Sales

9

547

534

325

249

44

60

13

26

65

55

46

40

21

15

76

80

52

96

0 200 400 600 800 1000 1200

FY2018

FY2019

Automotive Smartphones IoT・AIAmusement Storage Office equipmentDigital home appliances Other substrates EMS

(1.8%)

(46.2%) (21.6%)

(1.3%)

(3.5%)

(2.3%)

(46.0%) (27.3%)

(5.5%)

(3.9%)

(6.3%)

(4.8%)

1,155

1,189

Revenue by Product Application （100 million yen ）

-34(-2.9%)

(6.8%)

(1.1%)

＋55(17.4%)

(5.2%)

(3.7%) (4.4%)

(8.3%)

-76(-23.4%)

-13(-2.4%)

10

76

65

300

264

222

222

485

451

18

14

13

15

23

28

52

96

0 200 400 600 800 1000 1200

FY2018

FY2019

Double-sided PCB Four-layerPCB Six layers or moreHDI PCB High Dissipation PCB Flexible PCBOther substrates EMS

(5.6%) (22.9%) (19.2%) (1.3%)

(6.4%) (25.2%) (18.7%)

(39.1%)

-34(-7.0%)

(8.3%)

(40.8%)

(1.9%)

(2.4%)

(1.1%)(4.4%)

Sales by Product Specification （100 million yen ）

(1.5%)

(1.2%)

-36(-12.0%)

＋44(84.6%)

1,155

1,189

-34(-2.9%)

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FY2019 Results

FY2020 Plan

3 Future Endeavor

12

Assumption: The effects of the new coronavirus will be resolved after summer and gradually recover from the second half of FY2020.

→ 3.6 billion yen drop of sales is expected due to the transposition of orders and others as a result of Wuhan Plant suspension caused by coronavirus.

• ‘Automotive’ decreases 18.4% year on year to 43.6 billion yen • ‘Smartphone/Tablet’ increases 2.8% year on year to 25.6 billion yen • ‘IoT/AI/Amusement’ increases 14.0% year on year to 9.8 billion yen • ‘EMS’ increases 59.4% year on year to 15.3 billion yen • ‘Sales in other fields’ decreases 17.4% year on year to 15.7 billion yen→Net sales in FY2020 is expected to be 110 billion yen, decreases 4.8%

year on year

Operatingincome

The prospects of FY2020

Net sales

• Operating income is expected to be 3.5 billion yen, declined by 1.7 billion yenfrom FY2019

• Ordinary income is expected to be 2.5 billion yen, declined by 2.3 billion yenfrom FY2019

• Net income is expected to be 1.7 billion yen, declined by 0.9 billion yen from FY2019

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FY2018 FY2019Difference

increase %

N e t S a l e s 1,155 1,100 -55 -4.8%

O p e ra t i n gi n c o m e

52 35 -17 -32.7%4.5% 3.2%

O r d i n a r yi n c o m e

48 25 -23 -47.9%4.1% 2.3%

N e ti n c o m e

26 17 -9 -34.6%2.2% 1.5%

E x c h a n g e ra t e（ Y e n / U S D ） 108.93 108.00

Consolidated Financial Prospect for FY2020（100million yen）

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FY2019 FY2020 Difference

SalesOperatingi n c o m e

(%)Sales

Operatingi n c o m e

(%)Sales

Operatingi n c o m e

(%)

Automotive 534 29 436 10 -98 -195.4% 2.3% -18.4% -65.5%

SmartphoneTablet 249 18 256 20 7 2

7.2% 7.8% 2.8% 11.1%

IoT・AI・Amusement 86 7 98 8 12 1

8.1% 8.2% 14.0% 14.3%

Other substrates(R & D expenses included) 190 -2 157 -5 -33 -3

-1.1% -3.2% -17.4% 150.0%

EMS 96 0 153 2 57 20.0% 1.3% 59.4% -

Total 1,155 52 1,100 35 -55 -174.5% 3.2% -4.8% -32.7%

FY2020 Revenue by Product Applications （100million yen）

15

534

436

249

256

60

70

26

28

55

34

40

31

15

12

80

80

96

153

0 200 400 600 800 1000 1200

FY2019

FY2020

Automotive Smartphone/Tablet IoT・AIAmusement Storage Office equipmentDigital home appliances Other substrates EMS

(1.3%)

(39.6%) (23.3%)

(1.1%)

(2.8%)

(2.5%)

(46.2%) (21.6%)

(4.8%)

(3.5%)

(6.8%)

(3.1%)

Sales Forecast by Product Application in FY2020 （100million yen）

(7.3%)

(2.3%)

(6.4%)

(5.2%) (8.3%)

(13.9%)

-98億円(-18.4%)

＋7(2.8%)

-33(-17.4%)

＋57(59.4%)

＋12(14.0%)

1,100

1,155

-55(-4.8%)

16

65

43

264

204

222

187

451

455

14

16

15

19

28

23

96

153

0 200 400 600 800 1000 1200

FY2019

FY2020

Double-sided PCB Four-layerPCB Six layers or moreHDI PCB High Dissipation PCB Flexible PCBOther substrates EMS

(3.9%) (18.5%) (17.0%) (1.7%)

(5.6%) (22.9%) (19.2%)

(41.4%)

-35(-15.8%)

(13.9%)

(39.1%)

(2.4%)

(8.3%)

(2.1%)

(1.3%)

Sales Forecast by Product Specification in FY2020（100million yen）

1,100

1,155

(1.2%)

(1.5%)

-55(-4.8%)

-60(-22.7%)

+4(0.9%)

＋57(59.4%)

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FY2019 Results

FY2020 Plan

3 Future Endeavor

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Initiatives for an AFTER COVID-19 societyInitiatives in China: Surgical Mask production

Initiatives in Vietnam: Artificial Respirator production

・ Co-development with NIMEC of Vietnam Ministry of Health（NATIONAL INSTITUTE OF MEDICAL DEVICE AND CONSTRUCTION）

↓Design/develop the medical equipment including artificial respirator anticipatingfuture mass production

・ Surgical mask production had been started in a clean room in the Guangzhou Plantamid difficulties to procure them for internal use. (producing 2 million pieces per month)

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150 120

100

50

FY2019 plan FY2019 results FY2020 plan FY2021 plan

3 billion yenreduction

Investment policy

Depreciation 68 75

（100million yen）

76

Capital investment• FY19: Completed investment in Vietnam Plant (new building and first-phase

construction)• From FY2020: Place emphasis on ROIC and continue strategic investment such as

5G / module

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Strengthening 5G businessContinue investment in smartphone production plants with a view to 5G market expansion

Wuhan Factory Vietnam factory

■Expansion of Any Layer line forhigh-definition high-end 5G smartphones

■Additional investment in the factory #3coping with increasing orders for high-end 5G smartphones

Printed circuit board market trends

RF Module RF ModuleLow Transmission Loss Any Layer

5G priority areas

02018

10

2020 2023 20250

50

2019 2020 2023 2025

World smartphone production World self-driving car production

Unit: 100 million Unit: million units5G Others Level1-3 Level4-5

※According to our survey as of January 2020

server

Communication carrier

optical line

Wi-Fi routerCPE

Wi-Fi

Small cell

Macro cell

Heavy Copper PCBHeat dissipating board

PCB: - Low transmission loss- MLB/HDI

PCB: - HDI- Memory Package

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Strengthening Module PCB business

Vital PCB segments

Automobile Smartphone Module

Strengthening area

Thang Long Plant (Vietnam) Ishinomaki Factory (Japan)

Mainly for customers in China Continuing module productionFocusing on Automotive devices

Guangzhou Plant (China)

Promote multi-fabrication for development and mass production of module PCB

Strengthen module PCB business following automobile and smartphone PCB, and establish products which have effects on entire IC products.

Heavy Copper Buildup HDIBuildup

Dedicated plant for module PCB

NAND PKG FEM

22

Strengthening EMS・FPC BusinessEMS Business FPC Business

Vietnam Plant

（unit：100 million yen）

100

50

0

150

2018 2019 2020

Automobile

SmartphoneTablet

DigitalAppliances

IoT・AI

others

・Initiative for co-development（medical equipment, health care, AGV, etc.）delevlopment→design→PCB→mounting・assembly→distribution

・Increasing orders for both PCB and mounting→discover PCB demand from EMS business

（unit：100 million yen）20

10

02018 2019 2020

Expansion offactory #1

第１工場第２工場

第３工場

Expanded factory #1 of Vietnam Plant in order to bolster FPC・EMS business

2019.7月完成