FY2018 Financial Results Briefing May 16, 2019 Securities - PowerPoint PPT Presentation

FY2018 Financial Results Briefing May 16, 2019 （ Securities Identification Code: 6787 ）

１ FY2018 Results ２ FY2019 Plan 3 The prospect in the future 2

Financial Results Highlights in FY2018 Net sales increased 10,400 million yen to 118,900 million yen. •Automotive increased 13% year on year to 54,700 million yen Net sales • Smartphones are flat year on year to 32,500 million yen • Sales in other fields increased 14% year on year to 31,700 million yen Operating income amounted to 8,926 million yen, up 1,469 million yen over previous year. Ordinary income totaled 8,600 million yen, Profit up 3,815 million yen over previous year. Net income to owners of parent company amounted to 6,743 million yen, up 2,370 million yen over previous year. 3

FY2018 Consolidated Business Performance （ 100 million yen ） Year-on-year FY2017 FY2018 performance performance Increase % 1,085 1,189 104 9.6% N e t s a l e s 74 89 15 19.7% Operating income 6.9% 7.5% 48 86 38 79.6% Ordinary income 4.4% 7.2% 43 67 24 54.2% N e t i n c o m e 4.0% 5.6% Average Exchange 111.04 110.66 rate （ Yen/USD ） 4

Net sales , Operating income （ 100 million yen ） Operating Operating Net sales Margin income Operating Net sales (Total) income 40 8.2% 9.0% 9.2% 7.5% 7.3% 7.1% 6.9% 300 315 6.0% 5.9% 5.9% 5.8% 303 298 30 280 32 277 274 4.2% 273 255 252 250 234 26 223 200 25 24 20 19 17 17 16 15 15 100 10 9 7 0 0 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 5

FY2018 Product Revenue (100 million 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 39 64 2 483 547 Automotive 7.7% 7.1% 13.3% 5.4% 27 38 1 11 324 325 Smartphones 8.3% 11.7% 0.3% 40.7% 10 12 39 2 278 317 Others 3.6% 3.8% 14.0% 20.0% 74 1,189 89 104 15 1,085 Total 6.9% 7.5% 9.6% 19.7% 6

Analysis of operating profit change FY2017 → FY2018 ( 100 million yen ) Increase variable expenses for increased sales 104 Exchange Rate Fixed cost SG&A Increase in Sales FY2017 performance FY2018 performance (Exchange rate 110.66yen/us$) (Exchange rate111.04yen/us$) 7

By product Application （ 100 million yen ） Automobiles Smartphones Storage Office equipment Digital home appliances Industrial equipment Amusement IoT EMS 21 44 (3.7%) (1.8%) 1,189 46 FY2018 547 325 13 75 (3.9%) (6.3 ％ ) (1.1%) (46.0%) (27.3%) 53 65 (4.5%) (5.5%) ＋ 104 ＋ 64 ＋ 23 (9.6%) (109.5%) (13.3%) 22 21 (2.0%) (1.9%) 1,085 18 FY2017 46 483 324 72 (6.7%) (4.2%) (1.7%) (44.5%) (29.9 ％ ) 41 58 (3.8%) (5.3%) 0 200 400 600 800 1000 1200 8

By product specification （ 100 million yen ） Double-sided PCB Four-layerPCB Six layers or more HDI PCB High Dissipation PCB Flexible PCB EMS 13 (1.1%) 1,189 75 FY2018 76 300 222 485 (6.3%) (6.4%) (25.2%) (18.7%) (40.8%) 18 (1.5%) +45 ＋ 104 +38 (9.6%) (25.4%) (8.5%) 9 (0.8%) 1,085 FY2017 77 299 177 447 72 (16.3%) (7.1%) (27.6%) (41.2%) (6.6%) 4 (0.4%) 0 200 400 600 800 1000 1200 9

１ FY2018 Results ２ FY2019 Plan 3 The prospect in the future 10

The prospect in the future Affected by a drop in demand in the previous quarter, but gradually recovering •Automotive are expected to increase as demand recovers and new business starts Net • Smartphone is likely to reduce build-up substrates for other applications sales • Others are expected to increase for IoT , AI home appliances, and amusement → For the full year, it will increase 10,400 million from fiscal 2018 120,000 million yen. • Operating income is expected to be 7,500 million yen, down 1,400 million yen from the previous year • Ordinary income expected to be 6,300 million yen, Operating income down 2,300 million yen from the previous year • Net income expected to be 5,300 million yen, down 1,400 million yen from the previous year 11

Consolidated financial prospect for FY2019 （ 100million yen ） Difference FY2018 FY2019 increase % 1,189 1,200 N e t S a l e s 11 0.9% 89 75 O p e ra t i n g -14 -16.0% i n c o m e 7.5% 6.3% 86 63 O r d i n a r y -23 -26.8% i n c o m e 7.2% 5.3% 67 53 N e t -14 -21.4% i n c o m e 5.6% 4.4% E x c h a n g e r a t e 111.04 111.00 （ Y e n / U S D ） 12

FY2019 Product Revenue （ 100million yen ） Difference FY2018 FY2019 Operating Operating Operating Sales i n c o m e i n c o m e i n c o m e Sales Sales % % % % 39 40 6 1 547 553 Automotive 7.1% 7.2% 1.1% 2.6% 38 22 -51 -16 325 274 Smartphones 11.7% 8.0% -15.7% -42.1% 12 13 56 1 317 373 Others 3.8% 3.5% 17.7% 8.3% 89 1,200 75 11 -14 1,189 Total 7.5% 6.3% 0.9% -16.0% 13

Sales forecast By product Application in FY2019 （ 100million yen ） Automobiles Smartphones Storage Office equipment Digital home appliances Industrial equipment Amusement IoT EMS 69 19 (5.8 ％ ) (1.6 ％ ) 1,200 30 FY2019 553 274 43 89 (3.6%) (2.5%) (7.4 ％ ) (22.8%) (46.1%) 65 58 (4.8 ％ ) (5.4%) +6 -51 ＋ 11 (1.1%) (-15.7%) (0.9%) 21 44 (1.8%) (3.7%) 1,189 13 FY2018 547 325 46 75 (46.0%) (1.1 ％ ) (3.9%) (6.3%) (27.2%) 65 53 (4.5%) (5.5%) 0 200 400 600 800 1000 1200 14

Sales forecast by product specification in FY2019 （ 100million yen ） Double-sided PCB Four-layerPCB Six layers or more HDI PCB High Dissipation PCB Flexible PCB EMS 9 (0.8%) 1,200 FY2019 79 279 222 502 89 (7.4%) (6.6%) (23.3%) (41.8%) (18.5%) 20 (1.7%) -21 +17 +14 +11 (-7.0%) (3.5%) (18.7%) (0.9%) 13 (1.1%) 1,189 75 FY2018 76 300 222 485 (40.8%) (6.3%) (25.2%) (6.4%) (18.7%) 18 (1.5%) 0 200 400 600 800 1000 1200 15

１ FY2018 Results ２ FY2019 Plan 3 The prospect in the future 16

Expand the scale while strengthening the financial position ・ Reduce interest-bearing debt through curbing investment ・ As a result, improve the equity ratio and the ratio of net debt to sales ・ With the completion of a new plant in Vietnam, we aim to double the scale of production in three years Capital investment （ 100million yen ） 150 125 85 85 FY2018 FY2019 FY2020 FY2021 64 68 74 74 Depreciation 17

Transition of dividends (Yen) Increase profits and aim to increase dividends 50 40 30 15 Interim dividend 20 10 End-of-the- 20 year dividend 10 10 10 0 FY2016 FY2017 FY2018 18

MSAP Business Policy In the smartphone market, requirements for printed circuit boards are changing due to the new communication infrastructure “5G” Demand for PCBs in the Smartphone Market Accelerates High Definition 2019 "5G" the first year High definition image High speed AR / VR training Large capacity 5G self-driving Ultra low delay Real-time translation Smart city Simultaneous connection Remote control ( ㎡ /month Conventional MSAP production method 80K DFR Pattern DFR DFR Flash Exposure Development Plating Stripping Etching Lamination 60K MSAP integrated line single layer capacity planning MSAP integrated production from mixed flow production with conventional subtrailers 40K Launch line to significantly improve yield and productivity 5G infrastructure Full-scale 5G MSAP integrated production line construction 20K DFR Pattern DFR Flash DFR Exposure Lamination Development Plating Stripping Etching 0K FY2018 FY2019 FY2020 FY2021 19

FPC business policy In the future, the FPC market is expected to be used in many vehicles, and we can leverage our strengths. In the field of communications, we will accelerate the response to a wide range of products such as high-speed communications products. Flexible printed circuits Industrial and Automotive Home appliance Smartphone Amusement medical equipment クリーン化 Clean up Body (lighting) Smartphone Focus on market products and mass production points Automotive = Manufacturing for high heat Infotainment Storage device resistance nd low expansion materials Communication ＝ Low transmission loss FPC driven by 5G Driving Communication Established mass production technology safety system infrastructure etc for multilayer FPC Creating next-generation products and creating synergy effects with EMS business 自動化 Automation ( ㎡ /month) capacity planning 60K Low transmission High bending loss Heat dissipation Thick copper 40K One side / Double sides long Transparent 20K Vietnam plant: FPC board manufacturing and component mounting / assembly plant Adjacent to each other, integrated production is possible. multilayer In the case of manufacturing as well, we can make quicker response 0K than mutual information. FY2018 FY2019 FY2020 FY2021 20