MEC COMPANY LTD.

Financial highlights

Consolidated	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Sales(Million yen)	10,865	11,956	15,038	16,329	14,020
Operating income(Million yen)	1,637	2,370	3,939	4,004	2,492
Ordinary income(Million yen)	1,722	2,388	4,104	4,246	2,683
Net income(Million yen)	1,236	1,595	2,949	3,064	2,492
Earning per share(yen)	65.16	84.09	155.28	161.22	122.29
Net assets(Million yen)	16,091	17,470	20,929	23,325	24,777
Net assets per share(yen)	847.94	920.60	1,101.30	1,226.98	1,323.24

Consolidated investment value index

Major figures

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Sales(Million yen)	10,865	11,956	15,038	16,329	14,020
Sales cost(Million yen)	4,247	4,560	5,715	6,525	5,703
Gross profit(Million yen)	6,618	7,395	9,323	9,803	8,316
Selling, general and administrative expenses(Million yen)	4,981	5,025	5,383	5,799	5,824
Operating income (loss)(Million yen)	1,637	2,370	3,939	4,004	2,492
Ordinary income (loss)(Million yen)	1,722	2,388	4,104	4,246	2,683
Net income (loss)(Million yen)	1,236	1,595	2,949	3,064	2,304
Earnings before interest, taxes, depreciation and amortization (EBITDA)*1(Million yen)	2,410	3,098	4,839	4,989	3,993
Capital(Million yen)	594	594	594	594	594
Total number of issued shares(Thousand shares)	20,071	20,071	20,071	20,071	20,071
Net assets(Million yen)	16,091	17,470	20,929	23,325	24,777
Total assets(Million yen)	19,991	21,510	25,305	27,499	28,665
Interest-bearing debt (including discounted notes)(Million yen)	650	400	0	0	0
Number of employees (consolidated)(Persons)	397	397	413	438	454

• EBITDA = Earnings before interest, taxes, depreciation and amortization.

Cash Flow

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
CF from operating activities(Million yen)	2,162	2,429	3,013	3,810	1,941
CF from investment activities(Million yen)	-1,190	-1,149	-1,117	-939	-1,397
CF from financial activities(Million yen)	-632	-771	-916	-800	-1,773
Cash and cash equivalents at the end of year(Million yen)	3,952	4,471	5,620	7,776	6,690

Profitability

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Gross income to sales ratio(%)	60.9	61.9	62.0	60.0	59.3
Operating income to sales ratio(%)	15.1	19.8	26.2	24.5	17.8
Ordinary income to sales ratio(%)	15.9	20.0	27.3	26.0	19.1
Net income to sales ratio(%)	11.4	13.3	19.6	18.8	16.4
Business income to total assets ratio(%)	8.6	11.6	17.0	15.3	9.1
Ordinary income to total assets ratio (ROA)*2 (%)	8.9	11.5	17.5	16.1	9.6
Net income to equity ratio (ROE)(%)	7.9	9.5	15.4	13.8	9.6
Return On Invested Capital (ROIC)*3(%)	6.9	9.3	13.4	12.2	6.4

• Ordinary income to total assets ratio = Business income (operating income + interest received + discounts, dividends) ÷ Average total assets at the beginning and the end of the year
• Return On Invested Capital = (Operating income - Tax) / (Net assets at the end of the period + Interest-bearing debt)

Stability

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Own capital ratio(%)	80.5	81.2	82.7	84.8	86.4
Current ratio(%)	268.8	299.7	365.0	448.8	539.4
Fixed ratio(%)	65.6	62.6	54.8	49.4	53.2
Debt ratio(%)	24.2	23.1	20.9	17.9	15.7
Debt-equity ratio*4(%)	4.0	2.3	0.0	0.0	0.0

• Debt-equity ratio = Interest-bearing debt ÷ Own capital × 100

Growth Potential

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Sales increase rate(%)	-4.1	10.0	25.8	8.6	-14.1
Ordinary income increase rate(%)	-23.0	38.7	71.8	3.5	-36.8
Net income increase rate(%)	-30.5	29.1	84.8	3.9	-24.8

Productivity

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Sales per employee(Thousand yen)	27,370	30,117	36,412	37,281	30,881
Gross margin per employee(Thousand yen)	16,671	18,629	22,574	22,383	18,318
Operating income per employee(Thousand yen)	4,123	5,970	9,539	9,142	5,490
Ordinary income per employee(Thousand yen)	4,338	6,016	9,938	9,695	5,910

Per Share Data

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Net income per share (loss)(yen)	65.16	84.09	155.28	161.22	122.29
Net assets per share(yen)	847.94	920.60	1,101.30	1,226.98	1,323.24
Annual dividend(yen)	26.00	26.00	35.00	45.00	45.00

Employee Data

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Number of employees (consolidated)(Persons)	397	397	413	438	454
Number of employees (non-consolidated)(Persons)	231	228	237	253	263
Average age (non-consolidated)(Years old)	42.1	42.2	42.4	42.6	42.8
Average service years (non-consolidated)(Years)	12.6	12.7	12.8	12.7	12.9

Sales by Item

	51st(12/2019)	52nd(12/2020)	53rd(12/2021)	54th(12/2022)	55th(12/2023)
Chemicals for electronic substrates and parts(Million yen)	10,657	11,598	14,756	16,042	13,764
Machines for electronic substrates(Million yen)	83	282	167	170	112
Materials for electronic substrates(Million yen)	105	68	91	108	139
Other(Million yen)	18	7	22	8	3