Quarterly Consolidated Financial Statements
Included in the Quarterly Report

Meiko Electronics Co., Ltd.
and its consolidated subsidiaries
For the second quarter and six months ended September 30, 2014
(ENGLISH TRANSLATION)NOTE:This document is an excerpt translation of the Quarterly Report (“Shihanki Houkokusho”) of Meiko
Electronics Co., Ltd. (the “Company”), for the second quarter and six months ended September 30,
2014, filed with the Director of the Kanto Local Finance Bureau of the Ministry of Finance of Japanpursuant to the Financial Instruments and Exchange Law of Japan on November 13, 2014.
Please note that the quarterly consolidated financial statements in this document are a translation of
the reviewed quarterly consolidated financial statements presented in Japanese. The translation of thequarterly consolidated financial statements and notes has NOT been audited by KPMG AZSA LLC,
who reviewed the original Japanese figures.
The Company provides this translation for your reference and convenience only without any warranty
as to its accuracy. In case of any discrepancy between the translation and the Japanese original, thelatter shall prevail. The final decision and responsibility for investments rests solely with the reader ofthis document.

Financial Information
1 Basis of preparation of the quarterly consolidated financial statements
The quarterly consolidated financial statements of the Company are prepared in accordance with the“Regulation for Terminology, Forms and Preparation of Quarterly Consolidated Financial Statements”(Cabinet Office Ordinance No. 64 of 2007).

2 Review reports
The quarterly consolidated financial statements of the Company for the second quarter (July 1, 2014 September 30, 2014), and those for the six months ended September 30, 2014, were reviewed by
KPMG AZSA LLC, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange
Law of Japan.

―1―1 Consolidated Financial Statements(1) Consolidated Balance Sheets
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
March 31, 2014

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets

¥

*1

¥

―2―

September 30, 2014

September 30, 2014

¥

$

8,978
17,543
4,573
2,604
4,424
4,633
(15)
42,74027,791
29,927
1,702
7,335
824
67,579455
4,653
72,687
115,427*1¥

10,376
21,876
5,373
3,059
5,169
5,851
(16)
51,68828,80932,137
1,7027,152
1,522
71,322422
5,416
77,160128,848*1$

94,804
199,875
49,09527,94947,23053,447(146)
472,254263,214
293,620
15,552
65,343
13,907
651,636
3,859
49,486
704,981
1,177,235

Thousands of
U.S. dollars

Millions of yen
March 31, 2014

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

¥¥

―3―

9,933
8,362
11,867165500
6,083
36,910

September 30, 2014

September 30, 2014¥$

15,18916,564
12,797
431
502
5,824
51,307

138,774
151,341
116,919
3,940
4,591
53,213
468,778

29,216
261
1,942
2,390
33,80970,71926,966
239
2,008
2,628
31,841
83,148

246,379
2,184
18,34524,013290,921759,699

12,88914,81013,756(396)
41,05912,88914,81013,131(396)
40,434

117,757
135,313
119,983(3,621)
369,432

98
(82)
3,766
(133)
3,649
44,708
115,42745(114)
5,458
(123)
5,266
45,700128,848407(1,046)49,868(1,125)
48,104
417,536
1,177,235¥$(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Six Months Ended September 30, 2014
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
OtherTotal non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Compensation income
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses
Income (loss) before income taxes
Income taxes
Income (loss) before minority interests
Net income (loss)

Six months ended
September 30, 2013

Six months ended
September 30, 2014

Six months ended
September 30, 2014

¥¥

$*1

¥

―4―37,724
32,736
4,988
4,296
692

*1

44,23540,343
3,892
5,154(1,262)*1

404,155
368,594
35,56147,090(11,529)

8
15
847
110
980

16
18
1,874
74
1,982

148
163
17,120672
18,103

447
243
690
982

482
208
690
30

4,400
1,903
6,303
271

2
160
162

0－
0

4－
4

166
62－
228
916
680
236
236

70－
8
78
(48)
446
(494)
(494)

636
－
75
711
(436)
4,075
(4,511)(4,511)¥$

Consolidated Statements of Comprehensive Income
For the Six Months Ended September 30, 2014
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen

Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

Six months ended
September 30, 2013

Six months ended
September 30, 2014

Six months ended
September 30, 2014

¥¥

$236
3574
1,707
－1,816
2,052

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests¥―5―2,052－

(494)
(53)
(33)
1,692
10
1,616
1,122

¥

1,122－(4,511)(486)(299)
15,46191
14,767
10,256$

10,256－

(3) Consolidated Statements of Cash Flows
For the Six Months Ended September 30, 2014
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen

Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accountsIncrease (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ retirement benefits
Increase (decrease) in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividend income
Loss (gain) on valuation of investment securities
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement ofproperty, plant and equipment
Compensation income
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-tradeDecrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Proceeds from compensation
Proceeds from subsidy income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of insurance funds
Proceeds from maturity of insurance funds
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of installment payables
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

―6―

*1

Six months ended
September 30, 2013

Six months endedSeptember 30, 2014

Six months ended
September 30, 2014

¥¥

$

¥916
2,974
62
18－
105
－
(24)
－
447
(929)

(48)
3,279
－
12(22)
－
82
(34)
8
482
(1,748)(436)
29,955－10
19(201)
－
745
(311)
75
4,400
(15,972)

164

69

632

(160)
(3,730)(1,809)1,246(112)
152(689)
24(462)160500(983)(1,450)－(3,693)(1,352)
4,477
(413)
472
1,562
34
(488)
－－
(185)
923

－
(33,741)(12,353)
40,904(3,763)
4,317
14,280311(4,463)－－(1,694)8,434(2,101)41(56)
(163)
(8)
357
93
(1,837)(3,772)
2(19)
(936)
(5)
92
43
(4,595)(34,462)15(177)(8,549)
(43)
840
398
(41,978)803
9,836(6,949)
(66)
(0)
－
3,624
175
512
8,788
9,300

7,697
3,463
(6,051)
(213)
(130)
(40)
4,726
344
1,398
8,759
10,15770,324
31,636(55,281)(1,950)(1,192)(363)
43,174
3,144
12,77480,02992,803*1¥*1$Notes to the Consolidated Financial Statements
Matters concerning Going Concern AssumptionNot applicable
Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of Meiko Electronics Co., Ltd. (the “Company”) havebeen prepared in accordance with the provisions set forth in the Financial Instruments and Exchange Law ofJapan and its related accounting regulations, and in conformity with accounting principles generally acceptedin Japan (“Japanese GAAP”), which are different in certain respects as to application and disclosure
requirements of International Financial Reporting Standards.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which theCompany is incorporated and operates. The translation of Japanese yen amounts into U.S. dollar amounts isincluded solely for the convenience of readers outside Japan and have been made at the rate of ¥109.45 to $1,
the approximate rate of exchange at September 30, 2014. Such translation should not be construed as
representation that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
Change in Accounting Policies
Effective from the three-month period ended June 30, 2014, the Company and its consolidated domestic
subsidiaries have applied article 35 of the “Accounting Standard for Retirement Benefits” (ASBJ Statement
No. 26, issued on May 17, 2012 (hereinafter, the “Statement No. 26”)) and article 67 of the “Guidance on
Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, issued on May 17, 2012 (hereinafter,the “Guidance No. 25”)), based on which the calculation methods for retirement benefit obligations andservice costs have been changed. The period attribution method for estimated retirement benefits has beenchanged from the straight-line basis to the benefit formula basis. And the method of determining the discountrate has been revised from applying the number of years close to employees’ average remaining service
period as the remaining period of the bond based on which the discount rate is determined, to using the single
weighted-average discount rate that takes into account the assumed payment period of retirement benefits andthe amount of each assumed payment period.
These revisions have no impact on retained earnings and income and loss at the beginning of the six-month
period ended September 30, 2014.

Specific Accounting Treatments Adopted in Preparing the Quarterly Consolidated Financial Statements
Six months ended September 30, 2014
Computation of Tax Expense
Tax expenses are calculated by reasonably estimating the effective tax rate after the adoption of tax-effectaccounting that is applicable to income before income taxes for the fiscal year ending March 31, 2015, andmultiplied by this estimated effective tax rate.

―7―

Consolidated Balance Sheets*1 Amount of allowance directly deducted from the amount of assets
Thousands ofU.S. dollars

Millions of yen
March 31, 2014

Investments and other assets････････････････････¥

21

September 30, 2014¥21

September 30, 2014$193

2 Discounted notes receivable are summarized below:
Thousands ofU.S. dollars

Millions of yen
March 31, 2014

Discounted notes receivable–trade･･････････････¥

38

September 30, 2014¥50

September 30, 2014$456

Consolidated Statements of Income*1 Main items and corresponding amounts recorded as selling, general and administrative expenses are shown
below:
Thousands ofU.S. dollars

Millions of yen
Six months ended
September 30, 2013

Salaries, allowances, and other salaries･･････････
Research and development expenses････････････
Provision for bonuses･･････････････････････････
Provision of allowance for doubtful accounts･････
Retirement benefit expenses････････････････････

¥866
460
111
052

Six months ended
September 30, 2014

¥997
439
118
066

Six months ended
September 30, 2014

$9,111
4,014
1,075
2604

Consolidated Statements of Cash Flows*1 The relationship between cash and cash equivalents as of September 30, 2014, and the amounts shown on theConsolidated Balance Sheets is shown below:
Thousands of
U.S. dollars

Millions of yen
Six months ended
September 30, 2013

Cash and deposits ･････････････････････････････
Time deposits with tenors exceeding 3 months ･･･
Cash and cash equivalents ･････････････････････

¥¥
¥

9,519
(219)
9,300

―8―

Six months ended
September 30, 2014¥¥¥

10,376(219)
10,157Six months ended
September 30, 2014$$$

94,804(2,001)92,803

Total Shareholders’ Equity
Six months ended September 30, 2013
1 Cash dividends paid
Not applicable
2 Of the dividends whose record date falls during the six months ended September 30, 2013, those dividends
whose effective date fell after the last day of the second quarter
Resolution
Board meeting on November 8, 2013
Type of shares ･････････････････････････・・・･･・
Total dividends (Millions of yen) ･････････････・・
Dividend per share (Yen)･････････････････････・
Record date･････････････････････････････････・
Effective date････････････････････････････････・
Dividend resource･･････････････････････・・･･･・

Common stock94
5.00
September 30, 2013
November 29, 2013
Retained earnings

Six months ended September 30, 2014
1 Cash dividends paid
Resolution
Board meeting on May 28, 2014
Type of shares ･････････････････････････・・・･･・
Total dividends (Millions of yen) ･････････････・・
Dividend per share (Yen)･････････････････････・
Record date･････････････････････････････････・Effective date････････････････････････････････・
Dividend resource･･････････････････････・・･･･・

Common stock131
5.00
March 31, 2014
June 12, 2014
Retained earnings

2 Of the dividends whose record date falls during the six months ended September 30, 2014, those dividends
whose effective date will fall after the last day of the second quarter
Not applicable―9―Segment Information
As the Group’s businesses are all in the single segment of PCB design, manufacturing, sales, and ancillary
operations, this section is omitted.
Per Share Information
The basis for calculating net income or net loss per share is shown below:
Item
Net income (loss) per share (Yen)Basis for calculation
Net income (loss) (Millions of yen)Amounts not attributable to common shareholders(Millions of yen)
Net income (loss) attributable to common shares(Millions of yen)
Average number of common shares outstanding for the period(Shares)

Six months ended
September 30, 201312.56

Six months ended
September 30, 2014(18.86)

236

(494)

––236(494)

18,774,076

26,174,076

Note: Diluted net income per share is not disclosed as there were no diluted shares.

Significant Subsequent EventsNot applicable2Other
As per a resolution passed by the Board of Directors at its meeting held on November 7, 2014, no interim
dividend will be paid for the fiscal year ending March 31, 2015.

― 10 ―