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, 2020
(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, 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 August 11, 2020.
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, 2020 –June 30, 2020), and those for the three months ended June 30, 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-

June 30, 2020

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¥*1¥

June 30, 2020

12,63823,712
7,226
5,393
7,782
2,531(135)59,147

22,682
29,260
1,488
6,513
4,102
64,0458196,068
70,932130,079$*1$

117,336
220,146
67,09250,07372,251
23,486(1,249)549,135

210,582271,653
13,81860,46438,089594,606
7,608
56,331
658,545
1,207,680

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 liabilities
Non-current liabilities
Long-term borrowingsProvision 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 assets
Total liabilities and net assets¥*3*3*3

40,479
217
2,696
1,299
44,69196,756¥-3-

17,732
9,686
15,544
204
688
40
8,171
52,065June 30, 2020

¥
*3
*3

*3

15,141
15,39915,504
139
413
－
8,121
54,71739,436
216
2,710
1,296
43,65898,375June 30, 2020

$
*3
*3

*3

140,575
142,968
143,939
1,294
3,830
－
75,396
508,002366,127
2,004
25,162
12,035405,328
913,330

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

12,8896,464
12,930(397)
31,886

119,659
60,018120,042(3,683)
296,036(8)30375(225)172
194
32,482
129,238

497
(237)
(216)
(352)
170
31,704130,07941897(2,205)(2,001)(3,268)
1,582
294,350
1,207,680¥$

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Three Months Ended June 30, 2020
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2019

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest incomeDividend income
Compensation income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
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
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on sales of investment securities
Business restructuring expenses
Provision of allowance for doubtful accounts
Total extraordinary losses
Profit before income taxes
Income taxes
Profit (loss)Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent¥¥-4-29,21924,652
4,567
2,847
1,720

Three months ended
June 30, 2020

¥24,343
21,345
2,998
2,502
496

Three months ended
June 30, 2020$

226,003198,170
27,83323,233
4,600

17
4
4
121
48
194

16
2
22
25
30
95

148
20
208
234
277
887

174
369
70
613
1,301

150
252
36
438
153

1,397
2,337
335
4,069
1,418

0
4
4－
－－－－－

45
0－
－
45
1,260
163
1,097－
1,097

23－
91
0
114
39
138(99)
(21)
(78)

215
－835
3
1,053
365
1,283(918)
(196)
(722)

¥$

Consolidated Statements of Comprehensive Income
For the Three Months Ended June 30, 2020
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2019

Profit (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 incomeComprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

¥

1,097

Three months ended
June 30, 2020

¥

9(68)
(2,556)11(2,604)(1,507)¥-5-(1,507)－(99)

Three months ended
June 30, 2020

$1366
(614)
9(526)(625)¥(602)
(23)

(918)
120
617
(5,711)87(4,887)(5,805)$(5,589)(216)

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 ¥107.71 to $1,
the approximate rate of exchange at June 30, 2020. 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 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 March31, 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.

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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

June 30, 2020

¥111

June 30, 2020

$1,0342 Discounted notes receivable-trade are summarized below:
Thousands ofU.S. dollars

Millions of yen
March 31, 2020

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

33

June 30, 2020

¥36

June 30, 2020

$339

*3 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.
Three months ended June 30, 2020
Of short-term borrowings and long-term borrowings (including borrowings scheduled for repayment within
one year), ¥62,495 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(where 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.

-7-

Consolidated Statements of Cash Flows
No consolidated statements of cash flows were prepared for the three months ended June 30, 2020. Depreciation(including amortization related to intangible assets, excluding goodwill) and amortization of goodwill for thethree months ended June 30, 2020, are shown below:
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2019

Three months ended
June 30, 2020

Depreciation･･････････････････････････････････････････¥
1,629
Amortization of goodwill･･････････････････････････････････････････—

¥

1,811
10

Three months ended
June 30, 2020

$16,81194

Total Shareholders’ Equity
Three months ended June 30, 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
2 Of the dividends whose record date falls during the three months ended June 30, 2019, those dividends whose
effective date fell after the last day of the first quarter
Not applicableThree months ended June 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 three months ended June 30, 2020, those dividends whose
effective date will fall after the last day of the first 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 or loss per share is shown below:
Three months ended
June 30, 2019
41.91

Item

Profit (loss) per share (Yen)Basis for calculation
1,097
Profit (loss) attributable to owners of parent (Millions of yen)Amounts not attributable to common shareholders－(Millions of yen)
Profit (loss) attributable to owners of parent pertaining to1,097
common shares (Millions of yen)
Average number of common shares outstanding for the period
26,173,897(Shares)
Note: Diluted profit per share is not disclosed, as there were no diluted shares.

Three months ended
June 30, 2020
(2.97)(78)－(78)
26,173,893

Significant Subsequent Events
Not applicable
2 Other(1) Dividends of surplus
The Board of Directors passed a resolution at its meeting on May 25, 2020 to pay year-end dividends toshareholders who are recorded in the shareholder registry as of March 31, 2020 as follows:
1) Total dividends
393 million yen
2) Dividend per share3) Effective date of claim for payment and payment commencement date

15.00 yen
June 10, 2020

(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-