MEC : Financial Results Briefing for Q3 FYE 12 2023

Financial Results Briefing

for Q3 FYE 12/2023

November 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 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
13,500	1,800	1,900	1,730	91.89
Forecast(A)
Forecast revised this
13,800	2,250	2,500	2,150	114.07
time(B)
Difference(B-A)	300	450	600	420
Percentage change
2.2	25.0	31.6	24.3
（％）
(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 Q3 12/2023

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Q3 FYE12/2023 Key factors

1	Sales: 9,981 million yen(YOY change: Down 19.3%)
Operating income: 1,671 million yen(YOY change: Down 46.4%)

Exchange rate impact (YOY change)

2	Sales: Up 202 million yen,
	Operating income: Up 69 million yen.

	3	Chemicals
	Sales: 9,834 million yen (YOY change: Down 19.5%)
		Shipments: 25,439 t (YOY change: Down 26.7%)

Major products sales (YOY change)

4	EXE: Up 0.1%	V-Bond: Down 7.4%
	CZ: Down 22.8%	SF: Down 37.6%
	Financial Results Briefing for FYE Q3 12/2023	2

Exchange rate

	Initial	23Q3	22Q3	23Q2	23Q1
	forecast
NTD	4.37	4.48	4.37	4.44	4.37
RMB	19.33	19.66	19.33	19.48	19.33
HKD	16.34	17.73	16.34	17.36	17.02
THB	3.69	4.01	3.69	3.95	3.90
EUR	136.04	150.22	136.04	147.00	143.34
USD	128.03	138.87	128.03	135.99	133.26

• Overseas subsidiaries are basically transactions denominated in local currency, and are affected by the yen / local currency rate when converting to yen in consolidated accounting.
• Our major foreign currencies are the Taiwan dollar (NTD) and the Chinese yuan (RMB). Both use the average rate during the period.

Exchange sensitivity	NTD: (Sale)	42	(Operating income) 22
(9 months conversion)(million yen)︓ RMB: (Sale)	15	(Operating income)	6
	Financial Results Briefing for FYE Q3 12/2023	3

Q3 FYE12/2023 Results

Unit : million yen

			Q3						Full-year
	FYE12.2022			FYE12.2023		FYE12.2022	FYE12.2023
	Results	Progress	Results		Progress	YOY		Results	(Forcast)	YOY
	ratio (%)		ratio (%)	(%)		(%)
Net sales	12,364	75.7%	9,981		72.3%	-2,382		-19.3%	16,329	13,800	-15.5%
Chemical sales	12,214	-	9,834		-	-2,379		-19.5%	16,042	-	-
Gross profit	7,414	-	5,886		-	-1,527		-20.6%	9,803	-	-
Gross profit margin	60.0%	-	59.0%		-	-		-	60.0%	-	-
SGA	4,295	-	4,214		-	-81		-1.9%	5,799	-	-
Sales ratio	34.7%	-	42.2%		-	-		-	35.5%	-	-
Operating income	3,118	77.9%	1,671		74.3%	-1,446		-46.4%	4,004	2,250	-43.8%
Operating profit margin	25.2%	-	16.8%		-	-		-	24.5%	-
Ordinary income	3,438	81.0%	1,878		75.1%	-1,560		-45.4%	4,246	2,500	-41.1%
Ordinary profit margin	27.8%	-	18.8%		-	-		-	26.0%	-	-
Profit before tax	3,410	-	2,422		-	-988		-29.0%	4,224	-	-
Net income	2,382	80.8%	1,707		79.4%	-675		-28.4%	3,064	2,150	-29.8%
Net income per share	125.35	-	90.39		-	-		-	161.22	114.07	-
		Financial Results Briefing for FYE Q3 12/2023			4

Net sales YOY

Million yen

１２，３６４

Adhesion improves

Etching solution

Other solution

Machine sales

Material sales

Other sales

Foreign exchange

９，９８１

FYE12/'22	2,382 million yen, Down 19.3%	FYE12/'23
Q3		Q3

Financial Results Briefing for FYE Q3 12/2023

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Operating income YOY

Million yen

３，１	Chemical sales	Chemical gross profit	Machine sales	Machine sales Gross profit	Material and Other sales	Material and Other sales Gross profit	Foreign exchange （Gross profit）	Selling, general and administrative expenses	Foreign exchange （Selling、general and administrative expenses）
１８									１
									，６７１

FYE12/'22	1,446 million yen, Down 46.4 % FYE12/'23
Q3	Q3

Financial Results Briefing for FYE Q3 12/2023

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Quarterly performance:

Sales, Operating income, Operating margin (Consolidated)

Net sales		Operating income		Operating margin

5,000																35
	27.8		27.7	29.1												30
4,000						26.6
								24.7	24.4
										22.3			22.0	25
						20.3
3,000													19.5
														20
2,000			4,132	3,881	3,955	4,172	4,236		6.1	3,782	15
3,505			3,432
	3,519								3,965			10
												2,765
1,000																5
)	973	975	1,202			1,051	1,032 1,034	886	168
	787	833		（％）
0											669	0
(Millionyen	1-3		4-6	7-910-121-3		4-6	7-910-121-3	4-6	7-9
			2021						2022			2023

Financial Results Briefing for FYE Q3 12/2023

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Quarterly composition:

Operating income, SG&A, CODS (Consolidated)

	COGS	SGA	Operating income	Operating margin
5,000												22.0	35
	27.8	27.7	29.1	20.3	26.6	24.7	24.4	22.3	6.1
	19.5		30
4,000
							1,034
			1,202	787	1,051	1,032	886			833	25
3,000	973	975				669
							168		20
			1,352 1,495		1,457	1,460	1,503
2,000	1,246	1,289	1,377	1,414	1,393	1,406	15
													10
1,000			1,577	1,597	1,526	1,682	1,741	1,575		1,369	1,542	5
)	1,284	1,254	1,182
				（％）
0													0
(Millionyen	1-3	4-6		7-9	10-12	1-3	4-6	7-9	10-12	1-3	4-6	7-9
		2021			2022			2023

Financial Results Briefing for FYE Q3 12/2023

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Quarterly performance :

Product-specific sales (Consolidated)

			4,500				Chemicals for PCBs			Equipments for PCBs			Materials for PCBs			Other
			4,000
			3,500
			3,000
			2,500
			2,000
)	1,500
		yen	1,000
		(Million
		500
			0
			1-3		4-6		7-9		10-12	1-3		4-6		7-9				10-12	1-3		4-6				7-9
									2021										2022												2023
		Other		2		0		13		6		1		1		1					3		1		1					0
		Materials for PCBs	16		21		19		33		18		19		38				31		16		27				15
		Equipments for PCBs	33		16		90		27		36		17		13				102		34		31				17
		Chemicals for PCBs	3,452	3,480	4,008	3,814	3,898	4,134	4,181		3,827	2,712	3,372		3,749

Financial Results Briefing for FYE Q3 12/2023

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