Quarterly Consolidated Financial Statements
Included in the Quarterly Report

Meiko Electronics Co., Ltd.
and its consolidated subsidiaries
For the third quarter and nine months ended December 31, 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 third quarter and nine months ended December 31,
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 February 9, 2022.
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 third quarter (October 1, 2021 –December 31, 2021), and those for the nine months ended December 31, 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-

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

December 31, 2021

¥
*2

*1

¥

13,17637,477
10,655
7,295
11,4993,558(155)
83,50524,422
36,980
1,488
8,234
3,382
74,506952
6,081
81,539165,044

December 31, 2021

$
*2

*1

$

114,565
325,859
92,64463,427
99,97930,941(1,350)726,065

212,349
321,535
12,941
71,596
29,401
647,8228,277
52,874
708,973
1,435,038

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
Provision for share awards
Provision for share awards 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

¥
*4
*4

*4

¥

-3-

December 31, 2021

20,466
20,834
8,304
225
733
43
8,577
59,182*2

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

*4

¥

*4
*4

*2

December 31, 2021

26,34531,367
6,429
737
574
－
10,687
76,139*2

34,767
216
61
11
2,746
1,211
39,012
115,151

*4

$

*4
*4

*2

229,065
272,731
55,898
6,405
4,991
－
92,933662,023
302,292
1,877
528
94
23,875
10,539339,205
1,001,228

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

12,8896,700
24,482(2,186)41,885

112,064
58,261
212,870(19,011)364,184

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

14
13
8,028
(217)
7,838
170
49,893
165,044124
112
69,799(1,884)
68,151
1,475
433,810
1,435,038¥$

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Nine Months Ended December 31, 2021
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands of
U.S. dollars

Millions of yen
Nine months ended
December 31, 2020

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
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
Loss related to COVID-19
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

¥

¥

-4-

Nine months ended
December 31, 2021

85,68773,847
11,840
7,699
4,141

¥

Nine months ended
December 31, 2021

109,975
89,99519,980
10,155
9,825$

956,217
782,493
173,724
88,29785,427

41
4
－
639
684

33
16
440
386
875

287
137
3,828
3,357
7,609

471
1,756
710
2,937
1,888

481
－
355
836
9,864

4,185
－
3,083
7,268
85,768

3
－
3

3
10
13

24
85
109

70
30
305
－
1
406
1,485
239
1,246
(21)
1,267

271
35
－
637
181
1,124
8,753
910
7,843
(29)
7,872

2,352
302
－
5,537
1,578
9,769
76,108
7,918
68,190(257)
68,447

*1

¥

*1

$

Consolidated Statements of Comprehensive Income
For the Nine Months Ended December 31, 2021
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands of
U.S. dollars

Millions of yen
Nine months ended
December 31, 2020

ProfitOther 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

¥

1,246

Nine months ended
December 31, 2021

¥

9
152
(387)
28
(198)
1,048
¥

-5-

1,079
(31)

7,843

Nine months ended
December 31, 2021

$

(25)
(237)
3,905
39
3,682
11,525¥

11,548(23)

68,190(220)(2,064)33,967339
32,022100,212$

100,412(200)

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 ¥115.01 to $1,
the approximate rate of exchange at December 31, 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 is recognizedat the time control of the promised goods or services is transferred to the customer and at the price expected
to be received in exchange for said goods or services. By applying the alternative treatment set forth inparagraph 98 of the Implementation Guidance on Accounting Standard for Revenue Recognition, if theperiod 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 nine months ended December 31, 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 nine months ended December 31, 2020, is
not stated.
(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

December 31, 2021¥

113

December 31, 2021$

984

*2 Accounting treatment for notes maturing on December 31, 2021
Notes maturing on the final day of a quarterly reporting period are accounted for as if they had been settled on the
final day of the period.
As the final day of the third quarter was a bank holiday, the following notes that matured on that day were
accounted for as though they had been settled on the maturity date, December 31, 2021.
Thousands of
U.S. dollars

Millions of yen
March 31, 2021

Notes receivable-trade･･･････････････････････････････････¥
Notes payable-trade･･･････････････････････････････････¥
Notes payable-facilities････････････････････････････････
¥

－
－
－

December 31, 2021

¥
¥
¥

41
57
1

December 31, 2021

$
$
$

357
500
12

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

Millions of yen
March 31, 2021

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

45

December 31, 2021¥

36

December 31, 2021$

317

*4 Financial covenants
Consolidated fiscal year ended March 31, 2021
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within oneyear), ¥54,753 million have financial covenants attached under which the breaching of any of the following will
require the accelerated repayment of the obligation in the corresponding funding agreement (when there is morethan 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-

Nine months ended December 31, 2021
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within oneyear), ¥55,581 million have financial covenants attached under which the breaching of any of the following will
require the accelerated repayment of the obligation in the corresponding funding agreement (when there is morethan 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.
Consolidated Statements of Income*1 Loss related to COVID-19
Nine months ended December 31, 2020
Not applicable
Nine months ended December 31, 2021
In response to requests by the governments of China, Vietnam, etc. concerning COVID-19, the Company
booked a loss related to COVID-19 of ¥471 million, an amount equivalent to fixed costs (personnel expenses,
depreciation, etc.) incurred while operations were suspended at overseas subsidiaries, and ¥166 million forinfection control measures under extraordinary losses.
Consolidated Statements of Cash Flows
No consolidated statements of cash flows were prepared for the nine months ended December 31, 2021.
Depreciation (including amortization related to intangible assets, excluding goodwill) and amortization of goodwill
for the nine months ended December 31, 2021, are shown below:
Thousands of
U.S. dollars

Millions of yen
Nine months ended
December 31, 2020

Depreciation･･････････････････････････････････････････¥
5,510
Amortization of goodwill･･････････････････････････････････････････
30-8-Nine months ended
December 31, 2021

¥

5,831
30

Nine months ended
December 31, 2021$

50,699265

Total Shareholders’ Equity
Nine months ended December 31, 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 nine months ended December 31, 2020, those dividends whose
effective date fell after the last day of the third quarter
Not applicable
Nine months ended December 31, 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
Resolution
Board meeting on November 5, 2021
Common shares
Type of shares ･････････････････････････････････････････
517
Total dividends (Millions of yen) ･････････････････････････････
20.00
Dividend per share (Yen)･･････････････････････････････････････････････
September 30, 2021
Record date･･･････････････････････････････････････････
November 30, 2021
Effective date･･････････････････････････････････････････････････
Dividend resource･････････････････････････････････････
Retained earnings
Note: Total dividends by a resolution of the Board of Directors on November 5, 2021, include ¥3 million in dividends
on Company shares held as trust assets of the Board Benefit Trust and the Employee Stock Ownership Plan (JESOP).
2 Of the dividends whose record date falls during the nine months ended December 31, 2021, those dividends whose
effective date will fall after the last day of the third 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 405,600
treasury shares during the nine months ended December 31, 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). Furthermore, in accordance with a resolution of the Board of Directors on August
6, 2021, the Company disposed of 32,800 treasury shares through a third-party allotment to the Custody Bank ofJapan, Ltd. (Trust Account) on August 24, 2021, following the introduction of a Board Benefit Trust. The 139,700
Company shares remaining in the trust have been booked as treasury shares.
This has resulted in increases of ¥236 million in capital surplus and of ¥1,441 million in treasury shares to ¥6,700
million and ¥2,186 million, respectively, as of December 31, 2021.

-9-

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
Nine months ended
December 31, 2021
36,589Japan
27,421
China
14,120Vietnam
17,948Asia
10,394
North America
3,485Europe18
Other109,975
Revenue generated from contracts with customers
Other revenue－
109,975
Sales to external customers
Per Share Information
The basis for calculating profit per share is shown below:
Item
Profit per share (Yen)Basis for calculation
Profit attributable to owners of parent (Millions of yen)Amounts not attributable to common shareholders(Millions of yen)
Profit attributable to owners of parent pertaining tocommon shares (Millions of yen)
Average number of common shares outstanding for the period(Shares)Nine months ended Nine months ended
December 31, 2020 December 31, 2021
48.42
304.85
1,267

7,872

－

－

1,267

7,872

26,173,881

25,823,045

Notes 1. Diluted profit per share is not disclosed, as there were no diluted shares.
: 1.
2. The average number of common shares outstanding for the period that was used to calculate profit
per share has been calculated by including Company shares held as trust assets of the Board
Benefit Trust and Employee Stock Ownership Plan (J-ESOP) in deductible treasury shares.
The average number of treasury shares for the period that were deducted to calculate profit per
share was 117,919 for the nine months ended December 31, 2021.
Significant Subsequent Events
Not applicable- 10 -

2 Other(1) Dividends of surplus
With regard to interim dividends for the fiscal year ending March 31, 2022, the Board of Directors passed a
resolution at its meeting on November 5, 2021 to pay interim dividends to shareholders who are recorded in theshareholder registry as of September 30, 2021 as follows:
1) Total dividends
517 million yen
2) Dividend per share
20.00 yen
3) Effective date of claim for payment and payment commencement dateNovember 30, 2021
Note: Total dividends include ¥3 million in dividends on Company shares held as trust assets of the Board
Benefit Trust and the Employee Stock Ownership Plan (J-ESOP).
(2) Litigation
A ¥291 million legal action was brought against Meiko Tech Co., Ltd., a consolidated subsidiary of theCompany, by Hohsen Corp., the demand of which was dismissed by the Osaka District Court on March 17,2021. Hohsen Corp. appealed against the decision, to which, on December 16, 2021, the Osaka High Court
delivered a judgment ordering a former executive of the Company’s subsidiary and Meiko Tech Co., Ltd., tojointly pay compensation and a delinquent charge thereon. The litigation was settled with a payment of ¥162
million.
The compensation has been recorded under extraordinary losses during the nine months ended December 31,
2021.

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