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, 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 second quarter and six months ended September 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 November 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 second quarter (July 1, 2021 –September 30, 2021), and those for the six months ended September 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-

September 30, 2021

September 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¥

12,86434,3408,895
6,665
10,2803,047(150)75,941

23,76335,149
1,488
6,194
3,470
70,064962
6,101
77,127
153,068*1$

114,910306,744
79,45859,534
91,83027,212(1,344)
678,344

212,263
313,969
13,29455,33030,992625,848
8,597
54,500688,945
1,367,289

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

¥
*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
59,182September 30, 2021

¥
*3
*3

*3

22,122
29,553
7,362
530
853
－
9,051
69,47135,017
216
62
11
2,745
1,219
39,270108,741

September 30, 2021

$
*3
*3

*3

197,602
263,985
65,760
4,735
7,623
－
80,853
620,558
312,788
1,928
554
96
24,523
10,886
350,775
971,333

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

12,8896,700
21,318(1,924)38,983

115,127
59,854
190,423(17,182)
348,222

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

37
(6)
5,389
(230)
5,190
154
44,327
153,068328(54)
48,138(2,051)
46,361
1,373
395,956
1,367,289¥$

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

Millions of yen
Six months ended
September 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
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

¥

*1

¥

-4-

53,23646,500
6,736
4,921
1,815

Six months ended
September 30, 2021¥

*1

69,471
57,31012,1616,611
5,550

Six months ended
September 30, 2021$

*1

620,553
511,928
108,62559,04949,576

30
2
－
－
413
445

22
13
78
91
153
357

198
118
693
812
1,370
3,191

302
933
465
1,700
560

327
－
232
559
5,348

2,922
－
2,074
4,996
47,771

3
－
3

3
10
13

24
88
112

42
25
223
－
1
291
272
120
152
(43)
195

59
24
－
628
18
729
4,632
482
4,150
(40)
4,190

524
211
－
5,612
164
6,511
41,372
4,303
37,069(361)
37,430

*2

¥

*2

$

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

Millions of yen
Six months ended
September 30, 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¥

152

Six months ended
September 30, 2021

¥

9
99
(435)
19
(308)
(156)
¥

-5-

(108)
(48)

4,150

Six months ended
September 30, 2021

$

(3)
(256)
1,263
26
1,030
5,180
¥

5,219
(39)

37,069(25)(2,289)11,282232
9,200
46,269$46,617(348)

(3) Consolidated Statements of Cash Flows
For the Six Months Ended September 30, 2021
Meiko Electronics Co., Ltd. and its consolidated subsidiaries

Thousands of
U.S. dollars

Millions of yen
Six months ended
September 30, 2020

Cash flows from operating activities
Profit before income taxes¥
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors and other officers
Increase (decrease) in provision for retirement benefits for directors
Increase (decrease) in provision for share awards
Increase (decrease) in provision for share awards for directors
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Insurance claim income
Foreign exchange losses (gains)
Loss (gain) on sale and retirement of property, plant and equipment
Loss (gain) on sale of investment securities
Loss on disaster
Business restructuring expenses
Loss related to COVID-19
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Payments for business restructuring expenses
Payments for loss related to COVID-19
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of insurance funds
Proceeds from maturity of insurance funds
Other, net
Net cash provided by (used in) investing activities
¥

-6-

272
3,656
20
8
78
(40)
(1)
－
－
47
(32)
302
－
395
39
－
25
223
－
(986)
(609)
(1,614)
(102)
99
415
2,195
31
(310)
－
(134)
(108)
(365)
1,309
(5,466)
569
(132)
(109)
－
(1)
25
(588)
(5,702)Six months ended
September 30, 2021

¥

¥

4,632
3,777
20
(0)
118
(43)
－
62
11
4
(35)
327
(78)
(173)
56
(10)
24
－
628
(4,983)(3,365)
1,318
(278)
1,316
10
3,338
37
(335)
78
－
(513)
(261)
2,344
(4,620)
4
(108)
(100)
11
(1)
－
87
(4,727)Six months ended
September 30, 2021$$

41,372
33,742
181
(4)
1,054
(384)
－
554
96
36
(317)
2,922
(693)
(1,542)
500
(88)
211
－
5,612
(44,510)(30,058)
11,773(2,487)
11,757
86
29,813335(2,996)693－(4,586)(2,319)20,940(41,270)
39
(969)
(895)
102
(11)
－
783
(42,221)

Thousands ofMillions of yen
Six months ended
September 30, 2020

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
Purchase of treasury shares
Proceeds from disposal of treasury shares
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
Increase (decrease) in cash and cash equivalents resulting from change
in scope of consolidation
Cash and cash equivalents at end of period

¥

6,709
42,608(43,875)
(296)
－
－
(393)
4,753
(109)
251
13,646¥-7-¥

14,126Six months ended
September 30, 2021

8,541－
(4,152)
(189)
(956)
0
(520)
2,724
152
493
12,122

$

－

229
*1

U.S. dollars

Six months ended
September 30, 2021

*1¥

12,61576,296－(37,086)(1,690)(8,537)
3(4,655)24,331
1,358
4,408
108,278－*1$

112,686

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 ¥111.95 to $1,
the approximate rate of exchange at September 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 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 six months ended September 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 six months ended September 30, 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.

-8-

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

September 30, 2021¥

113

September 30, 2021

$

1,008

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

Millions of yen
March 31, 2021

Discounted notes receivable-trade･･･････････････････ ¥45

September 30, 2021¥

27

September 30, 2021$

239

*3 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.
Six months ended September 30, 2021
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within oneyear), ¥55,922 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.

-9-Consolidated Statements of Income*1 Main items and corresponding amounts recorded as selling, general and administrative expenses are shown below:
Thousands of
U.S. dollars

Millions of yen
Six months ended
September 30, 2020

Salaries and allowances････････････････････････････････････････¥
1,048
Provision for bonuses･･････････････････････････････････････ 171
Provision of allowance for doubtful accounts･･･････････････････ 5
Provision for share awards･･････････････････････････････････････ －Provision for share awards for directors････････････････－
Retirement benefit expenses･･････････････････････････････････････
52
Research and development expenses･･･････････････････
368

Six months ended
September 30, 2021

¥

1,153
208
(0)
68
11
58
1,243

Six months ended
September 30, 2021$

10,298
1,859
(2)
604
96
522
11,105*2 Loss related to COVID-19
Six months ended September 30, 2020
Not applicable
Six months ended September 30, 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 ¥464 million, an amount equivalent to fixed costs (personnel expenses,
depreciation, etc.) incurred while operations were suspended at overseas subsidiaries, and ¥164 million forinfection control measures under extraordinary losses.
Consolidated Statements of Cash Flows*1 The relationship between cash and cash equivalents as of September 30, 2021, and the amounts shown on theConsolidated Balance Sheets are shown below:
Millions of yen
Six months ended
September 30, 2020

Six months ended
September 30, 2021

Cash and deposits･･････････････････････････････････････････¥
14,373¥
12,864
Time deposits with tenors exceeding 3 months･･････････････････････････････････････････
(247)
(249)
Cash and cash equivalents･･････････････････････････････････････････¥
14,126¥
12,615- 10 -

Thousands of
U.S. dollars
Six months ended
September 30, 2021$$

114,910(2,224)112,686

Total Shareholders’ Equity
Six months ended September 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 six months ended September 30, 2020, those dividends whose
effective date fell after the last day of the second quarter
Not applicable
Six months ended September 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 six months ended September 30, 2021, those dividends whose
effective date will fall after the last day of the second quarter
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 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).
3 Significant changes in shareholders’ equity
In accordance with a resolution of the Board of Directors on March 22, 2021, the Company acquired 314,000
treasury shares during the six months ended September 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). 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 140,200
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 ¥1,179 million in treasury shares to ¥6,700
million and ¥1,924 million, respectively, as of September 30, 2021.

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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
Six months ended
September 30, 2021
22,929Japan
17,373
China
8,558
Vietnam
11,524
Asia
6,929
North America
2,145Europe13
Other69,471
Revenue generated from contracts with customers
Other revenue－
69,471
Sales to external customers
Per Share Information
The basis for calculating profit per share is shown below:
Six months ended
Six months ended
September 30, 2020 September 30, 2021
7.44
161.72

Item

Profit per share (Yen)Basis for calculation
195
4,190
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 to
195
4,190
common shares (Millions of yen)
Average number of common shares outstanding for the period
26,173,893
25,911,140(Shares)
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 106,904 for the six months ended September 30, 2021.
Significant Subsequent Events
Not applicable- 12 -

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
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.

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