FY2017 Financial Results Briefing May 17, 2018 Securities - PowerPoint PPT Presentation

FY2017 Financial Results Briefing May 17, 2018 （ Securities Identification Code: 6787 ）

１ FY2017 Results ２ FY2018 Plan 3 Industry trends 4 Technology roadmap 1

Financial Results Highlights in FY2017 1. Net sales grew positively, increasing by 13.2% over previous year, to total 108,500 million yen. Net sales •Sales remained strong in the automotive and smartphone markets. •Sales of HDI PCBs substantially increased. 1. Operating income amounted to 7,460 million yen, up 1,670 million yen over previous year. 2. Ordinary income totaled 4,800 million yen, Profit up 1,820 million yen over previous year. 3. Net income to owners of parent company amounted to 4,370 million yen, up 2,600 million yen over previous year. 2

FY2017 Consolidated Business Performance （ 100 million yen ） Year-on-year FY2016 FY2017 performance performance Increase % 959.1 1,085.4 N e t s a l e s 126.3 13.2% 57.9 74.6 Operating income 16.7 28.8% 6.0% 6.9% 29.8 48.0 Ordinary income 18.2 61.1% 3.1% 4.4% 17.7 43.7 N e t i n c o m e 26.6 146.9% 1.8% 4.0% Average Exchange 108.69 110.66 rate （ Yen/USD ） Interest-bearing debt 527 513 ▲ 14 Capital adequacy ratio 27.3% 29.9% +2.6 ％ R O E 6.3% 13.2% +6.9 ％ 3

Analysis of operating profit change FY2016 → FY2017 ( 100 million yen ) Increase variable expenses Increase for increased sales in Sales Yield Variable cost improvement increase due to material cost increase 16.7 Growth Fixed cost SG&A FY2017 performance FY2016 performance (Exchange rate 108.69yen/us$) (Exchange rate110.66yen/us$) 4

Net sales , Operating income （ 100 million yen ） Operating Operating Net sales Margin income Operating Net sales (Total) income 7.3% 7.1% 6.9% 6.0% 5.9% 5.9% 5.8% 300 30 280 277 4.2% 274 23.5 255 252 250 234 223 200 20 19.1 17.3 16.9 16.3 15.0 15.1 9.3 100 10 0 0 17Q1 17Q2 17Q3 17Q4 16 Ｑ１ 16 Ｑ 2 16 Ｑ 3 16 Ｑ 4 5

FY2017 Product Revenue (100 million yen) Difference FY2016 FY2017 Operating Operating Operating Sales i n c o m e i n c o m e i n c o m e Sales Sales % % % % 31.0 37.2 45.8 6.2 482.8 437.0 Automotive 7.1% 7.7% 10.5% 20.0% 19.0 27.5 77.7 8.5 253.5 331.2 Smartphones 7.5% 8.3% 30.7% 44.7% 7.9 9.9 2.8 2.0 268.6 271.4 Others 2.9% 3.6% 1.0% 25.3% 57.9 1,085.4 74.6 126.3 16.7 959.1 Total 6.0% 6.9% 13.2% 28.8% 6

By product (100 million yen) Double-sided PWB Four-layer PWB Six layers or higher HDI PWB other PWBs Non-PWB 20 (1.7%) 1,085 FY2017 76 299 177 447 66 (7.0%) (27.6%) (16.3%) (41.2%) (6.2%) +12 億円 +19 億円 +97 億円 10 (1.1%) 959 FY2016 78 287 158 350 76 (16.5%) (8.1%) (29.9%) (36.5%) (7.9%) 0 200 400 600 800 1,000 1,200 7

１ FY2017 Results ２ FY2018 Plan 3 Industry trends 4 Technology roadmap 8

Future Outlook  Sales will remain strong in both automotive and smartphone markets.  We will focus on HDI PCBs in the new applications. Overall  We will focus on flexible PCBs and module mounting(EMS).  Build third factory in Vietnam.  Increase Japan domestic investment. Investments  Invest in labor saving. 9

Consolidated financial prospect for FY2018 （ 100million yen ） Difference FY2017 FY2018 increase % 1,085.4 1,180 N e t S a l e s 94.6 8.7% 74.6 82 7.4 9.9% O p e r a t i n g i n c o m e 6.9% 6.9% 48.0 68 20.0 41.7% O r d i n a r y i n c o m e 4.4% 5.8% 43.7 60 N e t 16.3 37.3% i n c o m e 4.0% 5.1% Exchange rate 110.66 106 （ Y e n / U S D ） 10

FY2018 Full-year forecast （ 100million yen ） Difference FY2017 FY2018 Operating Operating Operating Sales i n c o m e i n c o m e i n c o m e Sales Sales % % % % 37.2 38.9 28.6 1.7 482.8 511.4 Automotive 7.7% 7.6% 5.9% 4.6% 27.0 32.1 25.8 4.6 323.8 357.0 Smartphones 8.3% 9.0% 7.8% 16.7% 10.6 11 40.2 1.1 278.8 311.6 Others 3.8% 3.5% 14.8% 11.1% 74.6 1,180.0 82 94.6 7.4 1,085.4 Total 6.9% 6.9% 8.7% 9.9% 11

2018 Investments （ 100 million yen ） Domestic Overseas 120 96 100 85 83 50 35 31 31 27 35 35 28 13 4 3 0 FY2014 FY2015 SY2016 SY2017 SY2018 71 64 55 58 62 Depreciation 12

１ FY2017 Results ２ FY2018 Plan 3 Industry trends 4 Technology roadmap 13

Industry trends -Automobile- Usage of PWBs in cars is growing faster than the car sales growing rate. Automotive 10,270 9,998 9,754 9,452 Sales volume 8,715 8,787 8,928 (10k units) (100 million yen) 745,260 718,870 692,990 88,450 666,730 80,350 641,900 69,800 61,330 596,890 55,650 49,750 535,070 44,100 529,390 510,770 496,200 480,660 465,090 432,160 388,280 117,600 118,640 118,660 111,090 115,050 104,540 92,290 10,440 10,070 9,690 9,390 9,110 8,760 10,400 2016 2017 2018 2019 2020 2021 2022 Single side board Double sided board Multilayer HDI Source ： Fujikimera 14

Industry trends -smartphone- （ 1 million units ） 1,531 1,493 1,480 1,420 Others 471 483 Huawei 595 605 Xiaomi 177 162 115 140 Vivo 105 105 93 50 88 70 75 40 120 115 45 100 Oppo 315 325 320 310 Samsung 240 230 220 Apple 210 2015 2016 2017 2018 Source ： Fujikimera 15

１ FY2017 Results ２ FY2018 Plan 3 Industry trends 4 Technology roadmap 16

Automotive Market Trend No. of new cars sold EV/PHV ratio No. EV/PHV sold in major countries Unit: 10,000 750,000 cars 28.87 million cars Other 100% 80 (3%) (up 38%) countries 2016 70 US 80% 2017 60 Norway 17.23 million cars 160,000 cars (-2%) 50 60% UK 40 5.23 million cars (5%) 40% 28% 30 4.01 million cars 3.85 million cars 20 (10%) (3%) 20% 340,000 cars 7% Less than 10 1% 0 0% China US Japan India Germany 2014 15 16 2016 20 30 Source: The Nikkei Source: METI Source: IEA ■ As for the number of new cars sold, we can see sales of cars increase in China, and growth rate rise in India. ■ EV/PHV ratio will grow considerably from 2020 onward, and we will see the number of EV/PHV sold increase significantly in China. ■ Overseas production of EV/PHV will expand, and the demand of printed-wiring boards for EV/PHV will become larger. 17

PWB for EV/PHV ・ Automatic operation ■ Automatic operation ■ EV/PHV （ Advanced driving support system ） （ Electrification ） Large current High speed high voltage wide area communication High heat dissipation Connected car V2X communication High power location information Conversion efficiency Obstacle information EV charging High speed / high frequency Compact and lightweight Sensing System integration Short / medium Low-fuel consumption distance information Automatic operation control CO 2 emission reduction High function · High performance PWB 18

Automotive Technology Trend Communication Evaluation Communication High density module substrate module Information Narrow pitch IC Multi-Layer HDI Trial Mass Metal base heat LED lighting production dissipation board Body Copper inlay heat Power IC Trial dissipation board Trial Heat dissipation Thick copper substrate Power train Component Power IC development built-in board High speed Trial Impedance control board Transmission lines High frequency Millimeter wave radar board Trial support Driving safety Evaluation High function ADAS camera substrate Autonomous-driving Stack via substrate Evaluation 2018 2021 202X Automotive technology Substrate technology 19

Smartphone mainboard technology roadmap High speed Mobile communication 4G 5G transmission Low dielectric Data transmission speed 100M-1Gbps 10Gbps, USB3.1 material Application processor Flip chip CSP Flip chip CSP/FOWLP Narrow pitch Liquid crystal / Liquid crystal / FPC Display panel high definition AMOLED AMOLED/Micro LED Main board Battery Large capacity miniaturization MainBoard L/S=40/40um MSAP (L/S=30/30um) SLP 2018 2020 2022 ■ MainIC Mounting part wiring rule ■ MSAP Wiring formation 20

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