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, 2013
(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,
2013, 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, 2013.
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, 2013 September 30, 2013), and those for the six months ended September 30, 2013, were reviewed by
KPMG AZSA LLC, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments andExchange 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, 2013

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
Noncurrent 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 noncurrent assets
Total assets

¥
*2

*1

¥

―2―

September 30, 2013

September 30, 2013

¥

$

9,007
12,129
3,418
2,597
4,472
3,493
(15)
35,101

24,99827,525
1,944
6,588
717
61,772
469
4,704
66,945102,046

*1

¥

9,519
15,945
4,383
3,053
5,103
2,700
(16)
40,687

26,23428,8881,8826,460
735
64,199466
5,204
69,869110,556*1$

97,445
163,223
44,86731,25052,232
27,637(160)
416,494

268,543295,707
19,267
66,125
7,527
657,169
4,771
53,270715,210
1,131,704

Thousands of
U.S. dollars

Millions of yen
March 31, 2013

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
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

*2

¥

*2¥

―3―

7,243
13,971
13,108
739
440
4,677
40,178September 30, 2013September 30, 2013

¥

$

8,902
15,173
12,246
327
448
4,418
41,514

91,120155,323
125,355
3,347
4,590
45,229424,964

22,557
1,517
261
806
25,141
65,31927,171
1,622
261
1,209
30,263
71,777278,130
16,607
2,672
12,372309,781734,745

10,546
12,467
13,827(396)
36,444

10,546
12,467
14,063(396)
36,680107,950
127,619
143,959(4,057)375,471

(115)
(206)
604
283
36,727102,046

(80)
(132)
2,311
2,099
38,779110,556(819)(1,351)
23,65821,488396,959
1,131,704¥$

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Six Months Ended September 30, 2013
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
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of noncurrent assets
Compensation income
Total extraordinary income
Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on abandonment of inventories
Environmental expenses
Plant suspension expenses
Total extraordinary losses
Income (loss) before income taxes
Income taxes
Income (loss) before minority interests
Net income (loss)

Six months ended
September 30, 2012

Six months ended
September 30, 2013

Six months ended
September 30, 2013

¥¥

$*1

¥

―4―29,473
25,527
3,946
3,875
71

*1

37,72432,736
4,988
4,296
692

*1

386,162
335,099
51,06343,980
7,083

12
11－
130
153

8
15
847
110
980

85
157
8,673
1,121
10,036

440
1,003
607
2,050
(1,826)

447
－
243
690
982

4,577
－
2,488
7,065
10,054

4
59
63

2
160
162

20
1,634
1,654

18－
462
437
230
1,147
(2,910)(163)(2,747)(2,747)

166
62
－
－
－
228
916
680
236
236

1,699
636
－
－
－
2,335
9,373
6,958
2,415
2,415

¥

$

Consolidated Statements of Comprehensive Income
For the Six Months Ended September 30, 2013
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
Total other comprehensive income
Comprehensive income

Six months ended
September 30, 2012

Six months ended
September 30, 2013

Six months ended
September 30, 2013¥¥$(2,747)(18)(98)(1,640)(1,756)(4,503)Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests¥―5―(4,503)
－

236
35
74
1,707
1,816
2,052

¥

2,052－

2,415
360
755
17,47818,59321,008$21,008－

(3) Consolidated Statements of Cash Flows
For the Six Months Ended September 30, 2013
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen

Net cash provided by (used in) operating activities
Income (loss) before income taxes
Depreciation and amortization
Impairment lossAmortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for bonuses
Interest and dividends income
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-trade
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividends income received
Interest expenses paid
Proceeds from subsidy income
Proceeds from compensation
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) 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
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of installment payables
Cash dividends paid
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

*1

―6―

Six months ended
September 30, 2012

Six months ended
September 30, 2013

Six months ended
September 30, 2013¥¥$¥

(2,910)
3,212
－
32
(8)
95(90)
(23)
440
891

916
2,974
62－
1105
8(24)
447
(929)

9,373
30,444
636
－
7
1,078
83
(242)
4,577
(9,515)

15

164

1,679

(60)
(686)
(193)
1,051
(341)
(129)
1,296
23(439)
－
60
(560)
380

(160)
(3,730)(1,809)
1,246
(112)
152
(689)
24(462)
500
160
(983)
(1,450)(1,634)(38,184)(18,513)
12,751(1,152)
1,557(7,055)245(4,729)5,118
1,634(10,060)(14,847)(2,942)18(27)(0)(12)
17020(2,773)(2,101)41(56)
(163)
(8)
357
93
(1,837)(21,508)
422(577)(1,671)
(78)
3,652
960
(18,800)

3,507
5,284
(4,692)
(39)
(94)
3,966
(103)
1,470
3,752
5,222

803
9,836
(6,949)
(66)
(0)
3,624
175
512
8,788
9,300

8,229
100,687(71,134)(681)(4)
37,097
1,792
5,242
89,962
95,204*1¥*1$Notes to the Consolidated Financial Statements
Matters concerning Going Concern Assumption
Not applicable
Change in Scope of Consolidation and Application of the Equity Method
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 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 ¥97.69 to $1,
the approximate rate of exchange at September 30, 2013. 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
Not applicableSpecific Accounting Treatments Adopted in Preparing the Quarterly Consolidated Financial Statements
Six months ended September 30, 2013
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, 2014, andmultiplied by this estimated effective tax rate.

―7―

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

Millions of yen
March 31, 2013

Allowance for doubtful accounts･･･････････････¥

40

September 30, 2013¥40

September 30, 2013$408

*2 Accounting treatment for notes maturing on September 30, 2013
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.
Because the final day of the previous fiscal year (March 31, 2013) was a bank holiday, the following notes
maturing on the final day were accounted for as if they had been settled on the maturity date.
Thousands ofU.S. dollars

Millions of yen
March 31, 2013

Notes receivable–trade････････････････････････
Notes payable–trade･･･････････････････････････
Notes payable–facilities･･･････････････････････

3149
2

¥

September 30, 2013¥－－－

September 30, 2013$－－－

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

Millions of yen
March 31, 2013

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

38

September 30, 2013¥42

September 30, 2013

$433

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, 2012

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

¥852
460
127
044

―8―

Six months ended
September 30, 2013

¥866
460
111
052

Six months ended
September 30, 2013

$8,867
4,714
1,131
2534

Consolidated Statements of Cash Flows*1

The relationship between cash and cash equivalents outstanding as of September 30, 2013, and the amounts
shown on the Consolidated Balance Sheets is shown below:
Thousands ofU.S. dollars

Millions of yen
Six months ended
September 30, 2012

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

Six months ended
September 30, 2013

5,441
(219)
5,222

¥

9,519
(219)
9,300

Six months ended
September 30, 2013

$97,445(2,241)
95,204

Total Shareholders’ Equity
Six months ended September 30, 2012
1 Cash dividends paid
Resolution
June 27, 2012 Shareholders’ meeting
Type of shares ･････････････････････････・・・･･・
Total dividends (Millions of yen) ･････････････・
Dividend per share (Yen)･････････････････････・
Record date･････････････････････････････････・
Effective date････････････････････････････････・
Dividend resource･･････････････････････・・･･･・

Common stock94
5.00
March 31, 2012June 28, 2012
Retained earnings

2 Of the dividends whose record date falls during the six months ended September 30, 2012, those dividends
whose effective date fell after the last day of the second quarter
Not applicable
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 will fall 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―9―Segment Information
I Six months ended September 30, 2012
As the Group’s businesses are all in the single segment of PWB design, manufacturing, sales, and ancillary
operations, this section is omitted.
IISix months ended September 30, 2013
As the Group’s businesses are all in the single segment of PWB design, manufacturing, sales, and ancillary
operations, this section is omitted.

Financial Instruments
There were no significant changes in the amount of other financial instruments recorded in the Consolidated
Balance Sheets compared with that of March 31, 2013.
Securities
There were no significant changes in the amount of other securities recorded in the Consolidated Balance Sheetscompared with that of March 31, 2013.
Derivative Transactions
There were no significant changes in the contract amounts, etc. of derivative transactions as of September 30,
2013, compared with those of March 31, 2013.
Business Combinations, etc.
Not applicable
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, 2012(146.34)

Six months ended
September 30, 2013
12.56

(2,747)236––(2,747)

236

18,774,076

18,774,076

Note: Diluted net income per share is not disclosed as there were no diluted shares.
Significant Subsequent Events
Not applicable

2

Other
As per a resolution passed by the Board of Directors at its meeting held on November 8, 2013, an interim
dividend will be paid as follows for the fiscal year ending March 31, 2014 to shareholders recorded in theshareholder registery as of September 30, 2013:
1. Total dividends: 94 million yen
2. Dividend per share: 5.00 yen
3. Effective date of claim for payment and payment commencement date: November 29, 2013― 10 ―