MEC : Financial Results Briefing for Q1 FYE 12 2023

Financial Results Briefing

for Q1 FYE 12/2023

May 10, 2023

MEC COMPANY LTD.

Securities code: 4971

https://www.mec-co.com/en/

Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Notice of Revision of Earnings Forecast

Revision to the first half consolidated earnings forecast for the fiscal year ending in December 2023. (January 1, 2023 to June 30, 2023)

	Net sales	Operating	Ordinary	Net	Net
	income
	(million yen)	income	income	income	per share
	(million yen)	(million yen)	(million yen)
		(yen)
Previously announced
6,500	800	850	600	31.56
Forecast(A)
Forecast revised this
6,000	450	500	300	15.85
time(B)
Difference(B-A)	-500	-350	-350	-300
Percentage change
-7.7	-43.8	-41.2	-50.0
（％）
(Reference) Earnings for
the first half of the
previous year	8,127	2,084	2,374	1,661	87.40
(First half of the fiscal
year ended December
2022)
	Financial Results Briefing for FYE Q1 12/2023		1

Notice of Revision of Earnings Forecast

Revision to the full-year consolidated earnings forecast for the fiscal year ending in December 2023. (January 1, 2023 to December 31, 2023)

	Net sales	Operating	Ordinary	Net	Net
	income
	(million yen)	income	income	income	per share
	(million yen)	(million yen)	(million yen)
		(yen)
Previously announced
15,000	3,000	3,100	2,200	115.72
Forecast(A)
Forecast revised this
13,500	1,800	1,900	1,350	71.71
time(B)
Difference(B-A)	-1,500	-1,200	-1,200	-850
Percentage change
-10.0	-40.0	-38.7	-38.6
（％）
(Reference) Results
for the	16,329	4,004	4,246	3,064	161.22
previous term
(Year ended December
2022)

Financial Results Briefing for FYE Q1 12/2023

2

Decision to Acquire Treasury Stock

1. Reason for acquiring treasury stock

We aim to enhance shareholder returns and implement flexible capital policies in response to changes in the business environment.

2. Details of the acquisition of treasury stock (1)Type of shares to be acquired: Common shares

(2)Total number of shares to be acquired: 300,000 (upper limit) (Percentage of total number of shares issued (excluding treasury stock) 1.56%)

(3)Total amount of stock acquisition: 900 million yen(upper limit)

(4)Acquisition period: May 11, 2023 to June 30, 2023

(5)Acquisition method: Purchase on the Tokyo Stock Exchange market

Financial Results Briefing for FYE Q1 12/2023

3

Q1 FYE12/2023 Overview

Business environment

Continuing from last year demand for consumer electronics such as PCs, smartphones, displays, and tablet PCs has been sluggish due to stagnant personal consumption. Investment in data centers was also restrained.

Financial results overview

YOY decrease in sales and profit

The electronic substrate and parts industry, which is a related market of our Group, was in an inventory adjustment phase affected by the electronics industry, which also affected orders for the Company's related products.

Overview of Main Products

V-Bond: Although automobile production is on a recovery trend, it will decrease due to the impact of semiconductor shortages.

CZ	: Sharply declined due to the decline in demand for PKG substrates for PCs,
	smartphones, displays, tablet PCs, and date center.
EXE	: Sharply declined due to cooling consumer sentiment and inventory adjustments.
SF	: Sharply declined due to cooling consumer sentiment and inventory adjustments.
	Financial Results Briefing for FYE Q1 12/2023	4