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, 2020
(ENGLISH TRANSLATION)NOTE:This document is an excerpt translation of the Quarterly Report (“Shihanki Houkokusho”) of MeikoElectronics Co., Ltd. (the “Company”), for the third quarter and nine months ended December 31,
2020, 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 12, 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 FinancialStatements” (Cabinet Office Ordinance No. 64 of 2007).

2 Review reports
The quarterly consolidated financial statements of the Company for the third quarter (October 1, 2020 –December 31, 2020), and those for the nine months ended December 31, 2020, 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 ofU.S. dollars

Millions of yen
March 31, 2020

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-

13,89024,448
5,148
5,505
8,302
2,559
(135)
59,717

23,20529,176
1,488
4,909
4,219
62,997828
5,696
69,521
129,238

December 31, 2020

¥
*2

*1

¥

13,92829,004
5,866
5,980
8,423
2,587
(138)
65,65022,46130,1271,488
6,8703,708
64,654885
5,669
71,208136,858

December 31, 2020

$
*2

*1$

134,573
280,236
56,677
57,77981,38624,984(1,335)634,300

217,013
291,081
14,38066,37235,833624,679
8,554
54,765687,998
1,322,298

Thousands ofU.S. dollars

Millions of yen
March 31, 2020

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 liabilitiesNon-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 assetsTotal liabilities and net assets

¥
*4
*4

*4

¥

-3-

December 31, 2020

17,732
9,686
15,544
204
688
40
8,171
52,065*2

40,479
217
2,696
1,299
44,69196,756

*4

¥

*4
*4

December 31, 2020

19,95416,303
12,749
158
487
－
8,656
58,307*2

41,183
216
2,711
1,063
45,173
103,480

*4

$

*4
*4

192,791
157,521
123,179
1,527
4,708
－
83,622
563,348
397,899
2,086
26,197
10,280436,462
999,810

12,8896,464
13,160(397)
32,116

12,8896,464
14,275(397)
33,231

124,526
62,459137,923(3,835)321,073(8)30375(225)172
194
32,482
129,238

1183
(3)
(197)
(16)
163
33,378136,8588
1,764(27)(1,901)(156)
1,571
322,488
1,322,298¥$

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Nine Months Ended December 31, 2020
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
Nine months ended
December 31, 2019

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for syndicated loans
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on reversal of loss on valuation of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on disaster
Loss on sales of investment securities
Business restructuring expenses
Provision of allowance for doubtful accounts
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent¥¥-4-89,81476,037
13,777
8,814
4,963

Nine months ended
December 31, 2020¥

85,68773,847
11,8407,699
4,141

Nine months ended
December 31, 2020

$827,898
713,502114,396
74,38240,014

67
6
175
53
364
665

41
4
432
－
207
684

401
42
4,174
－
1,989
6,606

52624－
226
776
4,852

471
620
1,756
90
2,937
1,888

4,554
5,990
16,967869
28,38018,240

0
4
327
331

3－
－
329－
－
29

132
－
0210－
342
4,841
794
4,047
10
4,037

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

679
288
－
2,947
8
3,922
14,3472,313
12,034(211)
12,245¥$

Consolidated Statements of Comprehensive Income
For the Nine Months Ended December 31, 2020
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
Nine months endedDecember 31, 2019

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

¥

4,047

Nine months ended
December 31, 2020¥34(111)(2,021)33(2,065)
1,982¥-5-1,969
131,246

Nine months ended
December 31, 2020$

9152(387)
28(198)1,048¥

1,079(31)12,03490
1,473(3,743)
272(1,908)
10,126$

10,425(299)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 isincluded solely for the convenience of readers outside Japan and have been made at the rate of ¥103.50 to $1,
the approximate rate of exchange at December 31, 2020. 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 Scope of Consolidation and Application of the Equity Method(Important Change in the Scope of Consolidation)
Guangzhou Speed Trading Co., Ltd., which was a non-consolidated subsidiary in the fiscal year ended March
31, 2020, has been included in the scope of consolidation from the first quarter ended June 30, 2020 due toan increase in its significance.
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, 2021, andmultiplying profit before income taxes for the period under review by this estimated effective tax rate.
(Additional Information)
There are no material changes in assumptions including the future spread and timing of subsidence of thenovel coronavirus 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, 2020.

-6-

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

Millions of yen
March 31, 2020

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

106

December 31, 2020¥

112

December 31, 2020

$

1,080

*2 Accounting treatment for notes maturing on December 31, 2020
Notes maturing on the final day of a quarterly reporting period are accounted for as if they had been settled on thefinal 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, 2020.
Thousands ofU.S. dollars

Millions of yen
March 31, 2020

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

December 31, 2020

¥¥

3738

December 31, 2020

$$356
368

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

Millions of yen
March 31, 2020

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

33

December 31, 2020¥38

December 31, 2020

$367

*4 Financial covenants
Consolidated fiscal year ended March 31, 2020
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within
one year), ¥58,091 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.
Nine months ended December 31, 2020
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within
one year), ¥58,827 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 ending 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 nine months ended December 31, 2020.
Depreciation (including amortization related to intangible assets, excluding goodwill) and amortization ofgoodwill for the nine months ended December 31, 2020, are shown below:

Millions of yen
Nine months endedDecember 31, 2019

Nine months ended
December 31, 2020

Depreciation ･･････････････････････････････････････････¥
5,104¥5,510
Amortization of goodwill ･･･････････････････････････････････････････････････････
1030

Thousands ofU.S. dollars
Nine months ended
December 31, 2020

$53,238
294

Total Shareholders’ Equity
Nine months ended December 31, 2019
1 Cash dividends paid
Resolution
Board meeting on May 27, 2019
Common shares
Type of shares ･･･････････････････････････････････････
523
Total dividends (Millions of yen) ･････････････････････････
20.00
Dividend per share (Yen) ････････････････････････････
March 31, 2019
Record date ････････････････････････････････････････････
June 11, 2019
Effective date ･････････････････････････････････････････
Dividend resource ････････････････････････････････････
Retained earnings
Resolution
Board meeting on November 6, 2019
Common shares
Type of shares ･･････････････････････････････････････
393
Total dividends (Millions of yen) ･･････････････････････････
15.00
Dividend per share (Yen) ･･････････････････････････････････
September 30, 2019
Record date ･････････････････････････････････････････････
November 29, 2019
Effective date ･･･････････････････････････････････････
Dividend resource ･･･････････････････････････････････････
Retained earnings
2 Of the dividends whose record date falls during the nine months ended December 31, 2019, those dividends
whose effective date fell after the last day of the third quarter
Not applicable
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 will fall after the last day of the third quarter
Not applicable-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.
Per Share Information
The basis for calculating profit per share is shown below:
Nine months ended
December 31, 2019154.25

Item

Profit per share (Yen)Basis for calculation
4,037
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 to4,037
common shares (Millions of yen)
Average number of common shares outstanding for the period
26,173,894(Shares)
Note: Diluted profit per share is not disclosed, as there were no diluted shares.

Nine months ended
December 31, 2020
48.42
1,267
－
1,267
26,173,881

Significant Subsequent Events
Not applicable
2 Other(1) Dividends of surplus
With regard to interim dividends for the fiscal year ending March 31, 2021, the Board of Directors passed aresolution at its meeting on November 6, 2020 to refrain from paying them.
(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. is demanding compensation for losses
totaling ¥291 million from the Company’s subsidiary, etc. on the grounds that it suffered such losses due tofictitious trades that were carried out at Hohsen Corp. under the direction of a former executive of the Company’ssubsidiary.
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-