Quarterly Consolidated Financial Statements
Included in the Quarterly Report

Meiko Electronics Co., Ltd.
and its consolidated subsidiaries
For the first quarter and three months ended June 30, 2021
(ENGLISH TRANSLATION)NOTE:This document is an excerpt translation of the Quarterly Report (“Shihanki Houkokusho”) of Meiko
Electronics Co., Ltd. (the “Company”), for the first quarter and three months ended June 30, 2021,
filed with the Director of the Kanto Local Finance Bureau of the Ministry of Finance of Japanpursuant to the Financial Instruments and Exchange Act of Japan on August 11, 2021.
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“Ordinance on the Terminology, Forms, and Preparation Methods 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 first quarter (April 1, 2021 –June 30, 2021), and those for the three months ended June 30, 2021, were reviewed by KPMG AZSA
LLC, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act of Japan.

-1-1 Consolidated Financial Statements(1) Consolidated Balance Sheets
Meiko Electronics Co., Ltd. and its consolidated subsidiaries

Thousands of
U.S. dollars

Millions of yen
March 31, 2021

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, 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-

June 30, 2021

12,371
29,504
6,254
6,954
8,951
2,451
(147)
66,33823,67232,562
1,488
7,258
3,807
68,787928
5,987
75,702142,040¥*1¥June 30, 2021

13,57531,701
8,475
6,798
9,404
3,218
(151)
73,02023,78034,112
1,488
6,148
3,394
68,922914
6,025
75,861
148,881$*1$

122,728
286,601
76,62261,45885,01529,098(1,361)
660,161

214,986
308,401
13,45555,58630,683
623,111
8,263
54,465685,839
1,346,000

Thousands of
U.S. dollars

Millions of yen
March 31, 2021

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors and other officers
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
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
Non-controlling interests
Total net assets
Total liabilities and net assets

¥
*3
*3

*3

38,226
216
2,767
1,038
42,247
101,429¥-3-

20,466
20,834
8,304
225
733
43
8,577
59,182June 30, 2021

¥
*3
*3

*3

21,474
26,041
7,361
412
448
－
9,195
64,93137,976
216
2,771
1,094
42,057
106,988

June 30, 2021

$
*3
*3

*3

194,140
235,434
66,551
3,723
4,048
－
83,131
587,027
343,333
1,952
25,0559,886
380,226
967,253

12,8896,464
17,649(745)
36,257

12,8896,652
18,939(1,331)37,149116,522
60,144
171,224(12,037)
335,853

39
250
4,128
(256)
4,161
193
40,611
142,040

36
103
4,677
(243)
4,573
171
41,893
148,881329
931
42,284(2,194)41,3501,544
378,747
1,346,000¥$

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Three Months Ended June 30, 2021
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands of
U.S. dollars

Millions of yen
Three months ended
June 30, 2020

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance claim income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Loss on disaster
Business restructuring expenses
Provision of allowance for doubtful accounts
Total extraordinary losses
Profit before income taxes
Income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

¥

¥

-4-

24,343
21,345
2,998
2,502
496

Three months ended
June 30, 2021¥

33,28027,623
5,657
3,280
2,377

Three months ended
June 30, 2021$

300,873
249,729
51,14429,652
21,492

16
2
－
25
52
95

10
3
76
34
35
158

94
25
685
306
318
1,428

150
252
36
438
153

162
109
62
333
2,202

1,468
989
560
3,017
19,903

－
－
－

0
10
10

3
89
92

23
－
91
0
114
39
138
(99)
(21)
(78)

52
7
－
0
59
2,153
363
1,790
(21)
1,811

465
66
－
3
534
19,461
3,279
16,182(195)
16,377¥$

Consolidated Statements of Comprehensive Income
For the Three Months Ended June 30, 2021
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands of
U.S. dollars

Millions of yen
Three months ended
June 30, 2020

Profit (loss)
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
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

¥

(99)

Three months ended
June 30, 2021

¥

13
66
(614)
9
(526)
(625)
¥

-5-

(602)
(23)

1,790

Three months ended
June 30, 2021

$

(3)
(147)
549
13
412
2,202
¥

2,224
(22)

16,182(29)(1,331)
4,965
117
3,722
19,904$

20,102(198)

Notes to the Consolidated Financial Statements
Matters concerning Going Concern Assumption
Not 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 Act 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 is
included solely for the convenience of readers outside Japan and have been made at the rate of ¥110.61 to$1, the approximate rate of exchange at June 30, 2021. 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.
Changes in Accounting Policies(Application of Accounting Standard for Revenue Recognition, etc.)
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. havebeen applied since the beginning of the first quarter ended June 30, 2021. Accordingly, revenue isrecognized at the time control of the promised goods or services is transferred to the customer and at theprice expected to be received in exchange for said goods or services. By applying the alternative treatment
set forth in paragraph 98 of the Implementation Guidance on Accounting Standard for Revenue Recognition,
if the period from the time of shipment to the time of transfer of control of said goods or services is a normal
period for domestic sales of goods or services, revenue is recognized at the time of shipment.
The application of the Accounting Standard for Revenue Recognition, etc. is carried out in accordance withthe transitional treatment set forth in the proviso of paragraph 84 of the Accounting Standard for Revenue
Recognition. Therefore, the cumulative impact of when the new accounting policies are applied
retrospectively to before the beginning of the first quarter ended June 30, 2021, is added to or deducted fromretained earnings at the beginning of the quarter, and the new accounting policies are applied to said
beginning balance.
This has no impact on the profit/loss of the three months ended June 30, 2021. Furthermore, this has no
impact on the beginning balance of retained earnings.
In accordance with the transitional treatment set forth in paragraph 28-15 of the Accounting Standard for
Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), the breakdown information ofrevenue generated from contracts with customers pertaining to the three months ended June 30, 2020, is notstated.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019), etc. havebeen applied since the beginning of the first quarter ended June 30, 2021. Accordingly, new accounting
policies set forth by said Accounting Standard, etc. will be applied in the future in accordance with thetransitional treatment set forth in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4,2019). This has no impact on quarterly consolidated financial statements.
Specific Accounting Treatments Adopted in Preparing the Quarterly Consolidated Financial Statements(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 profit before income taxes for the fiscal year ending March 31, 2022, andmultiplying profit before income taxes for the period under review by this estimated effective tax rate.
Additional Information(Accounting Estimates Relating to the Spread of the Novel Coronavirus (COVID-19))
There are no material changes in assumptions including the future spread and timing of subsidence of
COVID-19 that were stated in “Accounting Estimates Relating to the Spread of the Novel Coronavirus(COVID-19)” from “Additional Information” of the annual report for the fiscal year ended March 31, 2021.
-6-

Consolidated Balance Sheets*1 Amount of allowance for doubtful accounts directly deducted from the amount of assets
Thousands of
U.S. dollars

Millions of yen
March 31, 2021¥
Investments and other assets･･････････････････････････

112

June 30, 2021¥

113

June 30, 2021

$

1,020

2 Discounted notes receivable-trade are summarized below:
Thousands of
U.S. dollars

Millions of yen
March 31, 2021

Discounted notes receivable-trade･･･････････････････¥

45

June 30, 2021¥

17

June 30, 2021$

158

*3 Financial covenants
Consolidated fiscal year ended March 31, 2021
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within
one year), ¥54,753 million have financial covenants attached under which the breaching of any of thefollowing will require the accelerated repayment of the obligation in the corresponding funding agreement(when there is more than one covenant, the one with stricter conditions is stated).
(1) Two consecutive ordinary losses shall not be recorded in the consolidated statements of income for eachfiscal year.
(2) The total amount of net assets recorded in the consolidated balance sheet as of the close of each fiscal
year shall be at least the higher of: (i) ¥20,589 million; or (ii) 75% of the total amount of net assets
recorded in the consolidated balance sheet as of the close of the immediately preceding fiscal year.
(3) The total amount of interest-bearing debt recorded in the consolidated balance sheet as of the close ofeach fiscal year shall be no more than the amount of net sales recorded in the consolidated statement ofincome for the same fiscal year, divided by 12 and multiplied by 8.
(4) The total amount of interest-bearing debt recorded in the consolidated balance sheet as of the close ofeach fiscal year divided by the amount of total net assets less the amount of foreign currency translation
adjustment shall be maintained at 2.5 or less for the fiscal year ended March 31, 2021, 2.3 or lessfor the fiscal year ending March 31, 2022, 2.1 or less for the fiscal year ending March 31, 2023, 1.9 orless for the fiscal year ending March 31, 2024, and 1.7 or less for the fiscal year ending March 31, 2025.
Three months ended June 30, 2021
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within
one year), ¥56,211 million have financial covenants attached under which the breaching of any of thefollowing will require the accelerated repayment of the obligation in the corresponding funding agreement(when there is more than one covenant, the one with stricter conditions is stated).
(1) Two consecutive ordinary losses shall not be recorded in the consolidated statements of income for eachfiscal year.
(2) The total amount of net assets recorded in the consolidated balance sheet as of the close of each fiscal
year shall be at least the higher of: (i) ¥20,589 million; or (ii) 75% of the total amount of net assets
recorded in the consolidated balance sheet as of the close of the immediately preceding fiscal year.
(3) The total amount of interest-bearing debt recorded in the consolidated balance sheet as of the close ofeach fiscal year shall be no more than the amount of net sales recorded in the consolidated statement ofincome for the same fiscal year, divided by 12 and multiplied by 8.
(4) The total amount of interest-bearing debt recorded in the consolidated balance sheet as of the close ofeach fiscal year divided by the amount of total net assets less the amount of foreign currency translation
adjustment shall be maintained at 2.5 or less for the fiscal year ended March 31, 2021, 2.3 or lessfor the fiscal year ending March 31, 2022, 2.1 or less for the fiscal year ending March 31, 2023, 1.9 orless for the fiscal year ending March 31, 2024, and 1.7 or less for the fiscal year ending March 31, 2025.

-7-

Consolidated Statements of Cash Flows
No consolidated statements of cash flows were prepared for the three months ended June 30, 2021. Depreciation(including amortization related to intangible assets, excluding goodwill) and amortization of goodwill for thethree months ended June 30, 2021, are shown below:
Thousands of
U.S. dollars

Millions of yen
Three months ended
June 30, 2020Three months ended
June 30, 2021¥
1,811
Depreciation･･････････････････････････････････････････
10
Amortization of goodwill･･････････････････････････････････････････

¥

1,958
10

Three months ended
June 30, 2021$

17,69892

Total Shareholders’ Equity
Three months ended June 30, 2020
1 Cash dividends paid
Resolution
Board meeting on May 25, 2020
Common shares
Type of shares ･････････････････････････・･･･・・･･・・・･･
393
Total dividends (Millions of yen) ･････････････・・･･･・･･･
15.00
Dividend per share (Yen)･････････････････････・・・･･････
March 31, 2020
Record date･･･････････････････････････････････・・・･･･
June 10, 2020
Effective date･･･････････････････････････････････・・・･･
Dividend resource･･････････････････････・・･･･・・・･･････
Retained earnings
2 Of the dividends whose record date falls during the three months ended June 30, 2020, those dividends whose
effective date fell after the last day of the first quarter
Not applicableThree months ended June 30, 2021
1 Cash dividends paid
Resolution
Board meeting on May 24, 2021
Common shares
Type of shares ･････････････････････････・･･･・・･･・・・･･
521
Total dividends (Millions of yen) ･････････････・・･･･・･･･
20.00
Dividend per share (Yen)･････････････････････・・・･･････
March 31, 2021
Record date･･･････････････････････････････････・・・･･･
June 10, 2021
Effective date･･･････････････････････････････････・・・･･
Dividend resource･･････････････････････・・･･･・・・･･････
Retained earnings
2 Of the dividends whose record date falls during the three months ended June 30, 2021, those dividends whose
effective date will fall after the last day of the first quarter
Not applicable3 Significant changes in shareholders’ equity
In accordance with a resolution of the Board of Directors on March 22, 2021, the Company acquired 136,200
treasury shares during the three months ended June 30, 2021. In accordance with a resolution of the Board of
Directors on the same day, it also disposed of 109,500 treasury shares through a third-party allotment to theCustody Bank of Japan, Ltd. (Trust Account E) on April 16, 2021, following the introduction of an Employee
Stock Ownership Plan (J-ESOP). The 109,500 Company shares remaining in the trust have been booked astreasury shares. This has resulted in increases of ¥188 million in capital surplus and of ¥586 million in treasury
shares to ¥6,652 million and ¥1,331 million, respectively, as of June 30, 2021.

-8-

Segment Information
As the Group’s businesses are primarily in PCB design, manufacturing, sales, and ancillary operations, thedescription of other businesses is omitted as they are of little significance.
Revenue Recognition
The regional breakdown of revenue generated from contracts with customers is as follows.
Millions of yen
Three months ended
June 30, 2021
Japan
11,461
8,006
China
Vietnam
3,912
Asia
5,370
North America
3,497Europe1,034
Revenue generated from contracts with customers
33,280
Other revenue－
Sales to external customers
33,280Per Share Information
The basis for calculating profit or loss per share is shown below:
Three months ended Three months ended
June 30, 2020
June 30, 2021
(2.97)
69.67

Item

Profit (loss) per share (Yen)Basis for calculation
Profit (loss) attributable to owners of parent (Millions of yen)
(78)
1,811
Amounts not attributable to common shareholders－－(Millions of yen)
Profit (loss) attributable to owners of parent pertaining to
(78)
1,811
common shares (Millions of yen)
Average number of common shares outstanding for the period
26,173,893
26,000,708(Shares)
Notes 1. Diluted profit per share is not disclosed, as there were no diluted shares.
: 1.
2. Due to the introduction of the Employee Stock Ownership Plan (J-ESOP), the average number ofcommon shares outstanding for the period that was used to calculate profit per share has been
calculated by including Company shares held by the Custody Bank of Japan, Ltd. (Trust Account E)
in deductible treasury shares. The average number of treasury shares for the period that werededucted to calculate profit per share was 109,500 for the three months ended June 30, 2021.
Significant Subsequent Events
Not applicable
2 Other(1) Dividends of surplus
The Board of Directors passed a resolution at its meeting on May 24, 2021 to pay year-end dividends toshareholders who are recorded in the shareholder registry as of March 31, 2021 as follows:
1) Total dividends
521 million yen
2) Dividend per share
20.00 yen
3) Effective date of claim for payment and payment commencement dateJune 10, 2021

(2) Litigation
Legal action was brought against Meiko Tech Co., Ltd., a consolidated subsidiary of the Company, by Hohsen
Corp. on September 27, 2017. According to the complaint, Hohsen Corp. had been demanding compensation forlosses totaling ¥291 million from the Company’s subsidiary, etc. on the grounds that it suffered such losses due
to fictitious trades that were carried out at Hohsen Corp. under the direction of a former executive of theCompany’s subsidiary. Said demand was dismissed on March 17, 2021. Hohsen Corp. has appealed against thedecision, and the case is currently pending.
The Company recognizes that there are no obligations or grounds to respond to the demand claimed by theplaintiff, and intends to make such claims in the litigation.

-9-