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, 2012
(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,
2012, 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, 2012.
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 Japaneseoriginal, the latter shall prevail. The final decision and responsibility for investments rests solely withthe reader of this 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, 2012 September 30, 2012), and those for the second quarter and six months ended September 30, 2012,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, 2012

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 assetsNoncurrent 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 noncurrent assets
Total assets

¥
*2

*1

¥

―2―

3,971
12,635
2,954
2,774
3,343
2,784
(17)
28,44420,964
27,581
1,944
5,263
675
56,427590
5,644
62,661
91,105September 30, 2012

¥
*2

*1

¥

5,441
12,520
3,204
2,073
3,552
4,243
(16)
31,01721,04023,652
1,9445,132
623
52,391
524
5,238
58,15389,170

September 30, 2012

$
*2

*1

$

70,141
161,404
41,31026,71945,78554,700(207)
399,852

271,236304,915
25,066
66,163
8,031
675,411
6,751
67,529749,691
1,149,543

Thousands ofU.S. dollars

Millions of yen
March 31, 2012

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
Provision for loss on disaster
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―

September 30, 2012

6,297
3,098
10,368
510
460
528
5,355
26,616*2

26,749
1,324
261
1,127
29,461
56,077*3¥*3

September 30, 2012

7,089
6,387
11,828
374
369
477
4,814
31,338*2

24,753
1,418
261
968
27,40058,738*3$*3

91,394
82,334
152,483
4,825
4,763
6,152
62,066
404,017319,105
18,281
3,365
12,478353,229757,246

10,546
12,467
15,518(396)
38,135

10,546
12,467
12,677(396)
35,294

135,950
160,721
163,422(5,110)454,983(178)(90)(2,839)(3,107)35,028
91,105(196)(187)(4,479)(4,862)30,432
89,170(2,527)(2,415)(57,744)(62,686)
392,297
1,149,543¥$

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Six Months Ended September 30, 2012
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
Gain on cancellation of life insurance
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on sales of noncurrent assets
Compensation income
Total extraordinary income
Extraordinary loss
Loss on sales and retirement of noncurrent assets
Loss on disaster
Loss on abandonment of inventories
Environmental expenses
Plant suspension expenses
Total extraordinary losses
Loss before income taxes
Income taxes
Refund of income taxes
Loss before minority interests
Net loss

Six months endedSeptember 30, 2011

Six months ended
September 30, 2012

Six months ended
September 30, 2012

¥

¥

$

*1

¥

―4―

32,32028,194
4,126
3,677
449

*1

29,47325,527
3,946
3,875
71

*1

379,957
329,085
50,872
49,949
923

8
11－
123
142

12
11
36
94
153

154
138
468
1,207
1,967

405
869
338
1,612
(1,021)

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

5,673
12,9407,827
26,440(23,550)

14－
14

4
59
63

50
768
818

2
135－
－－
137
(1,144)94(409)
(829)
(829)

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

237
－
5,954
5,633
2,962
14,786(37,518)(2,101)－(35,417)(35,417)¥$

Consolidated Statements of Comprehensive Income
For the Six Months Ended September 30, 2012
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen

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, 2011

Six months ended
September 30, 2012

Six months ended
September 30, 2012¥¥$(829)(122)(124)(1,276)(1,522)(2,351)

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests¥―5―(2,351)－(2,747)(18)(98)(1,640)(1,756)(4,503)¥(4,503)－(35,417)(228)(1,258)(21,144)(22,630)(58,047)$(58,047)－

(3) Consolidated Statements of Cash Flows
For the Six Months Ended September 30, 2012
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen

Net cash provided by (used in) operating activities
Loss before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' retirement benefits
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement ofproperty, plant and equipment
Compensation income
Loss on disaster
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 compensation
Payments for loss on disaster
Income taxes refund
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

―6―

*1

Six months ended
September 30, 2011

Six months ended
September 30, 2012

Six months ended
September 30, 2012

¥¥

$

¥

(1,144)
3,056
32
1(4)
(29)
(8)
(19)
405
424

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

(37,518)
41,411
410
(107)
1,219
(1,162)－(292)
5,673
11,484

(12)

15

188－
135
(1,694)46(653)
109
172
817
19(393)－(598)
450(81)
214(60)－(686)
(193)
1,051
(341)
(129)
1,296
23(439)60－－(560)
380(769)－(8,849)(2,494)
13,554(4,387)(1,649)16,712292(5,657)769－－(7,214)
4,902(7,198)
30
(93)
(0)
(26)
73(61)(7,275)(2,942)18(27)(0)(12)
170
20(2,773)(37,930)
235
(343)
(0)
(149)
2,188
249
(35,750)

4,758
8,588
(4,358)
(449)
(1)
8,538
(96)
1,381
2,509
3,890

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

45,21068,117(60,486)(504)(1,207)
51,130(1,329)18,95348,36567,318*1¥*1$

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 ¥77.57 to $1,
the approximate rate of exchange at September 30, 2012. 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
Six months ended September 30, 2012
(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)
In accordance with revisions to the Corporation Tax Act, from the first quarter of the fiscal year ending
March 31, 2013, the Company and its domestic consolidated subsidiaries have changed the depreciation
method, based on the revised Corporation Tax Act, for property, plant and equipment acquired on or after
April 1, 2012.
The effect of this change on profit and loss is negligible.
Specific Accounting Treatments Adopted in Preparing the Quarterly Consolidated Financial Statements
Six months ended September 30, 2012
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, 2013, andmultiplied by this estimated effective tax rate.

―7―

Notes to the Consolidated Financial StatementsConsolidated 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, 2012

Allowance for doubtful accounts･･･････････････
Allowance for investment loss･････････････････

¥

46
69

September 30, 2012¥38
69

September 30, 2012

$496
890

*2 Accounting treatment for notes maturing on September 30, 2012
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 second quarter (September 30, 2012) was a bank holiday, the following notes
maturing on the final day of the quarter were accounted for as if they had been settled on the maturity date.
Thousands ofU.S. dollars

Millions of yen
March 31, 2012

Notes receivable–trade･･･････････････････････
Notes payable–trade･････････････････････････
Notes payable–facilities･･････････････････････
*3¥

73
44
1

September 30, 2012

¥

8030－

September 30, 2012

$1,029386－

Financial covenantsSix months ended September 30, 2012
Of loans payable, ¥22,425 million (including loans payable scheduled for repayment within one year) havefinancial covenants attached under which the breaching of any of the following will require the accelerated
repayment of the obligation in the corresponding funding agreement (the covenants differ by agreement, withthe main covenants listed below).
(1) An ordinary loss shall not be recorded in the consolidated statement of income for each fiscal year.
(2) Two consecutive ordinary losses shall not be recorded in the consolidated statements of income for eachfiscal year.
(3) 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, 2012; 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.
(4) 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.

―8―

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, 2011

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

¥816
411
164
239

Six months ended
September 30, 2012

¥852
460
127
044

Six months ended
September 30, 2012$

10,978
5,925
1,642
3562

Consolidated Statements of Cash Flows*1

The relationship between cash and cash equivalents outstanding as of September 30, 2012, and the amounts
shown on the Consolidated Balance Sheets is shown below:
Thousands ofU.S. dollars

Millions of yen
Six months ended
September 30, 2011

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

4,109(219)3,890

Six months ended
September 30, 2012¥

5,441(219)5,222

Six months ended
September 30, 2012

$70,141(2,823)67,318

Total Shareholders’ Equity
Six months ended September 30, 2011
1 Cash dividends paid
Not applicable
2 Of the dividends whose record date falls during the six months ended September 30, 2011, those dividends
whose effective date fell after the last day of the second quarter
Not applicable
Six months ended September 30, 2012
1 Cash dividends paid
Resolution
June 27, 2012 Shareholders’ meeting
Type of shares ･････････････････････････・・・ Common stock
Total dividends (Millions of yen) ･･･････････ 94
Dividend per share (Yen)･･･････････････････ 5.00
Record date･･･････････････････････････････ March 31, 2012
Effective date･･････････････････････････････ June 28, 2012
Dividend resource･･････････････････････・・･ Retained earnings
2 Of the dividends whose record date falls during the six months ended September 30, 2012, those dividends
whose effective date will fall after the last day of the second quarter
Not applicable―9―Segment Information
I Six months ended September 30, 2011
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, 2012
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, 2012.
Securities
There were no significant changes in the amount of other securities recorded in the Consolidated Balance Sheetscompared with that of March 31, 2012.
Derivative Transactions
There were no significant changes in the contract amounts, etc. of derivative transactions as of September 30,
2012, compared with those of March 31, 2012.
Business Combinations, etc.
Not applicable
Per Share Information
The basis for calculating net loss per share is shown below:
Six months ended
September 30, 2011

Six months ended
September 30, 2012

Net loss per share (Yen)(44.15)
Basis for calculation
Net loss (Millions of yen)(829)
Amounts not attributable to common shareholders(Millions of yen)－
Net loss attributable to common shareholders(829)(Millions of yen)
Average number of common shares outstanding for the period
18,774,150(Shares)
Note: Diluted net income per share is not disclosed as there were no diluted shares.

(146.34)

Item(2,747)－(2,747)
18,774,076

Significant Subsequent Events
Not applicable2Other
As per a resolution passed by the Board of Directors at its meeting held on November 6, 2012, an interim
dividend will not be paid for the fiscal year ending March 31, 2013.

― 10 ―