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, 2015
(ENGLISH TRANSLATION)NOTE:This document is an excerpt translation of the Quarterly Report (“Shihanki Houkokusho”) of MeikoElectronics Co., Ltd. (the “Company”), for the first quarter and three months ended June 30, 2015,
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 August 14, 2015.
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 first quarter (April 1, 2015 –June 30, 2015), and those for the three months ended June 30, 2015, were reviewed by KPMG AZSA
LLC, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange 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, 2015

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 assetsProperty, 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

¥

*2, 3

¥

－2－

June 30, 2015

9,710
22,743
5,680
3,170
4,833
5,429
(17)
51,54827,53030,966
1,702
3,241
1,475
64,914294
6,208
71,416
122,964¥*2¥

June 30, 2015

13,316
22,532
6,206
3,487
5,059
4,602
(18)
55,18425,28829,6491,489
2,330
1,19759,953
280
4,554
64,787
119,971$*2$

108,759
184,024
50,68328,48041,31537,588(143)
450,706

206,531242,149
12,157
19,033
9,775
489,645
2,288
37,195529,128
979,834

Thousands ofU.S. dollars

Millions of yen
March 31, 2015

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
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
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
Total net assets
Total liabilities and net assets¥*5*5*532,475
239
2,146
2,362
37,222
84,341¥－3－12,613
13,25914,100
720
460
5,967
47,119June 30, 2015

¥*5
*5

*5

13,734
16,26013,55546
273
6,944
50,81233,221
239
2,148
4,168
39,776
90,588June 30, 2015

$
*5
*5

*5

112,170
132,796
110,706375
2,232
56,711
414,990
271,328
1,952
17,546
34,040324,866
739,856

12,88914,8104,052(396)
31,355

12,88914,810(5,776)(396)
21,527105,264
120,957(47,173)(3,237)
175,811

131
(162)
7,454
(155)
7,268
38,623
122,964

157
(168)
8,085
(218)
7,85629,383
119,971

1,285(1,372)
66,034(1,780)64,167
239,978
979,834¥$(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Three Months Ended June 30, 2015
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2014

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Foreign exchange gains
OtherTotal non-operating incomeNon-operating expenses
Interest expenses
Foreign exchange losses
OtherTotal non-operating expenses
Ordinary loss
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Total extraordinary losses
Loss before income taxes
Income taxes
Loss
Loss attributable to owners of parent¥¥－4－

Three months ended
June 30, 2015

20,95919,443
1,516
2,602(1,086)¥

Three months ended
June 30, 2015

22,451
20,413
2,038
2,684(646)$183,361
166,720
16,641
21,925(5,284)

53－
18
26

53747
57
812

42
24
6,102
465
6,633

232
354
43
629
(1,689)

305
－
78
383
(217)

2,493－
631
3,124(1,775)

0
0

7
756
56

15－
15
(1,704)(292)(1,412)(1,412)

*1

¥

42
8,037
8,079
(8,289)1,078(9,367)(9,367)*1$

341
65,63865,979(67,698)
8,802(76,500)(76,500)

Consolidated Statements of Comprehensive Income
For the Three Months Ended June 30, 2015
Meiko Electronics Co., Ltd. and its consolidated subsidiariesThousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2014

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¥(1,412)Three months ended
June 30, 2015¥25(21)(416)
5(407)(1,819)¥－5－(1,819)－(9,367)

Three months ended
June 30, 2015

$

26(6)
516
(63)
473
(8,894)¥(8,894)－(76,500)215(49)
4,211(514)
3,863(72,637)$(72,637)－Notes to the Consolidated Financial Statements
Matters concerning Going Concern Assumption
Not applicable
Change in Scope of Consolidation and Application of the Equity Method(Important change in the scope of consolidation)
Effective from the first quarter ended June 30, 2015, Meiko Electronics Thang Long Co., Ltd., which was a
non-consolidated subsidiary in the previous consolidated fiscal year, has been included in the scope ofconsolidation, due to a rise in its importance.
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 ¥122.44 to $1,
the approximate rate of exchange at June 30, 2015. Such translation should not be construed as representationthat the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
Change in Accounting Policies(Application of accounting standards for business combinations)
Effective from the first quarter ended June 30, 2015, the Company and its consolidated domestic subsidiaries
have adopted the “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13,2013), the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22,September 13, 2013), the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7,September 13, 2013) and other standards. Accordingly, the Company has changed the presentation of net
income, etc., and the presentation of minority interests to non-controlling interests. To reflect this change inpresentation, reclassification of accounts has been made to the quarterly consolidated financial statements forthe three months ended June 30, 2014 and the consolidated financial statements for the fiscal year ended
March 31, 2015.
Change in Accounting Estimate(Revision of useful life)
The machinery and equipment owned by the Company and its consolidated domestic subsidiaries had
previously been written off for depreciation based on a useful life of six years. However, upon replacement ofmachinery and equipment during the first quarter ended June 30, 2015, the Company has carried out afundamental review of their useful life in order to calculate depreciation that more accurately reflects theactual circumstances. To reflect the actual utilization of machinery and equipment, the Company has revised
their useful life to 10 years, and this change will continue to be applied in the future.
Due to this change, the operating loss, ordinary loss and loss before income taxes for the three month ended
June 30, 2015 have decreased by ¥23 million, respectively, compared to the previous accounting method.

Specific Accounting Treatments Adopted in Preparing the Quarterly Consolidated Financial Statements
Three months ended June 30, 2015
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, 2016, andmultiplying income before income taxes for the period under review by this estimated effective tax rate.
As a result of a review of the realizability of deferred tax assets in the first quarter ended June 30, 2015, theCompany has recorded tax expense (reversal of deferred tax assets) of ¥950 million.
－6－

Consolidated Balance Sheets
1 Guarantee obligation
We provide debt guarantee for installment payables of the following affiliate.
Thousands ofU.S. dollars

Millions of yen

Meiko Electronics Thang Long Co., Ltd.
For contracts in US dollars･････････････････････

March 31, 2015

June 30, 2015¥

¥2,328June 30, 2015－－$(US$19,375 thousand)Note: Meiko Electronics Thang Long Co., Ltd. has been excluded from the above table since it has beenin the scope of consolidation during the first quarter ended June 30, 2015.
*2 Amount of allowance for doubtful accounts directly deducted from the amount of assets
Thousands ofU.S. dollars

Millions of yen

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

March 31, 2015

June 30, 2015¥¥19

June 30, 2015

19

$

159

*3 Amount of allowance for investment loss directly deducted from the amount of assets
Thousands ofU.S. dollars

Millions of yen

Investment and other assets････・・・・・・・・・･･････

March 31, 2015

June 30, 2015¥¥361

June 30, 2015－－$4 Discounted notes receivable-trade are summarized below:
Thousands ofU.S. dollars

Millions of yen

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

March 31, 2015

June 30, 2015¥¥72

June 30, 2015

74

$

601

*5 Financial covenants
Consolidated fiscal year ended March 31, 2015
Of short-term loans payable and long-term loans payable (including loans payable scheduled for repayment
within one year), ¥32,535 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) 75% of the total amount of net assets recorded in the consolidatedbalance sheet as of March 31, 2014; and (ii) 75% of the total amount of net assets recorded in theconsolidated 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.

－7－

Three-month period ended June 30, 2015
Of short-term loans payable and long-term loans payable (including loans payable scheduled for repayment
within one year), ¥32,884 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) 75% of the total amount of net assets recorded in the consolidatedbalance sheet as of March 31, 2014; or (ii) 75% of the total amount of net assets recorded in theconsolidated 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.
Consolidated Statements of Income*1 Impairment loss
Three-month period ended June 30, 2015
The Group recorded impairment loss for the following asset group.
UseBusiness assets

Type of assets
Buildings and structures
Machinery, equipment and vehicles
OthersLocation

Buildings and structures
Machinery, equipment and vehicles
OthersAmountIshinomaki,
Miyagi, Japan¥964 million

Hanoi, Vietnam¥7,073 million

Total¥8,037 million

The Group carries out grouping mainly based on each plant for business assets. During the three month ended
June 30, 2015, the Group reduced the book value of business assets to the recoverable amount due to a decline
in profitability, and recorded the reduced amount as an impairment loss of ¥8,037 million under extraordinary
losses. The breakdown is: ¥3,194 million for buildings and structures; ¥3,358 million for machinery,equipment and vehicles; ¥213 million for land; ¥828 million for construction in progress; and ¥444 million forothers.
The recoverable amount of this asset group uses the higher of net realizable value and use value. Net
realizable value is evaluated based on the amount obtained by making reasonable adjustments to the assessedvalue of non-current assets. Use value is obtained by discounting future cash flow by 14.0%.

Consolidated Statements of Cash Flows
No consolidated statements of cash flow were prepared for the three months ended June 30, 2015.
Depreciation (including amortization related to intangible assets) for the three months ended June 30, 2015 isshown below:
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2014

Depreciation･････････････････････････････････

¥

－8－

1,588

Three months ended
June 30, 2015

¥1,763Three months ended
June 30, 2015

$14,401

Total Shareholders’ Equity
Three months ended June 30, 2014
1 Cash dividends paid
Resolution
Board meeting on May 28, 2014
Type of shares ･････････････････････････・・・･･・
Total dividends (Millions of yen) ･････････････・
Dividend per share (Yen)･････････････････････・
Record date･････････････････････････････････・
Effective date････････････････････････････････
Dividend resource･･････････････････････・・･･･・

Common stock131
5.00
March 31, 2014
June 12, 2014
Retained earnings

2 Of the dividends whose record date falls during the three months ended June 30, 2014, those dividends whoseeffective date fell after the last day of the first quarter
Not applicableThree months ended June 30, 2015
1 Cash dividends paid
Not applicable
2 Of the dividends whose record date falls during the three months ended June 30, 2015, those dividends whoseeffective date will fall after the last day of the first quarter
Not applicable3 Significant changes in shareholders’ equity
Effective from the first quarter ended June 30, 2015, Meiko Electronics Thang Long Co., Ltd., which was a
non-consolidated subsidiary in the previous consolidated fiscal year, has been included in the scope ofconsolidation, due to a rise in its importance. As a result, retained earnings as of the beginning of the term
have decreased by ¥462 million.

－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.
Per Share Information
The basis for calculating loss per share is shown below:
Three months ended
June 30, 2014(53.94)Item

Loss per share (Yen)Basis for calculation
Loss attributable to owners of parent (Millions of yen)
(1,412)
Amounts not attributable to common shareholders–(Millions of yen)
Loss attributable to owners of parent pertaining to(1,412)
common shares (Millions of yen)
Average number of common shares outstanding for the period
26,174,076(Shares)
Note: Diluted profit per share is not disclosed as there were no diluted shares.

Significant Subsequent Events
Not applicable
2 OtherNot applicable－10－Three months ended
June 30, 2015(357.86)(9,367)–(9,367)
26,174,076