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, 2017
(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, 2017,
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 10, 2017.
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, 2017 –June 30, 2017), and those for the three months ended June 30, 2017, 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, 2017

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, 2017

17,422
22,035
4,550
3,390
4,587
2,434
(17)
54,401

19,05018,540
1,488
1,117
5,560
45,755220
3,202
49,177
103,578¥*1¥

June 30, 201716,931
23,803
4,629
3,701
4,962
2,108(167)
55,967

18,941
18,690
1,488
3,589
5,708
48,4162173,279
51,912
107,879$*1$

151,227
212,605
41,34133,05444,31818,836(1,496)499,885

169,177
166,934
13,29332,06050,977432,441
1,937
29,289463,667
963,552

Thousands ofU.S. dollars

Millions of yen
March 31, 2017

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 directorsʼ bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
OtherTotal 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
Non-controlling interests
Total net assets
Total liabilities and net assets¥*3*3*323,893
239
2,699
3,202
30,03375,038¥-3-

13,195
12,292
12,323
210
547
40
6,398
45,005June 30, 2017

¥
*3
*3

*3

15,127
12,775
12,349
241
298
－
8,722
49,51222,858
217
2,732
3,403
29,21078,722June 30, 2017

$
*3
*3

*3

135,112
114,101
110,299
2,156
2,659
－
77,902442,229
204,165
1,941
24,39930,396
260,901
703,130

12,88911,745
1,932(396)
26,17012,88911,7452,060(396)
26,298115,117
104,912
18,404(3,541)
234,892

85
59
2,438
(470)
2,112
258
28,540103,578

105
(14)
2,983
(454)
2,620
239
29,157
107,879935(129)
26,640(4,051)
23,3952,135
260,422963,552¥$(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the Three Months Ended June 30, 2017
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2016

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend incomeOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (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
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent¥¥-4-22,318
18,821
3,497
2,568
929

Three months ended
June 30, 2017¥25,528
21,266
4,262
2,750
1,512

Three months ended
June 30, 2017$

228,014
189,947
38,067
24,566
13,501

6
374
83

5662
73

46
56554
656

325
1,941
31
2,297
(1,285)

335
155
133
623
962

2,990
1,381
1,194
5,565
8,592

－
－

00

1
139
1
3
43(1,328)
170(1,498)(3)(1,495)

38
13－
51
911
363
548
(17)
565

339
114
－
453
8,140
3,248
4,892
(152)
5,044

¥$

Consolidated Statements of Comprehensive Income
For the Three Months Ended June 30, 2017Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2016

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 income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests¥(1,498)

Three months endedJune 30, 2017¥

(79)
35(2,277)
16(2,305)(3,803)¥-5-(3,795)
(8)

548

Three months ended
June 30, 2017$19(73)
545
16507
1,055
¥

1,072
(17)

4,892
173
(653)
4,867
143
4,530
9,422

$

9,576
(154)

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 isincluded solely for the convenience of readers outside Japan and have been made at the rate of ¥111.96 to $1,the approximate rate of exchange at June 30, 2017. 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.
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, 2018, andmultiplying profit before income taxes for the period under review by this estimated effective tax rate.

-6-Consolidated Balance Sheets*1 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, 2017

June 30, 2017

June 30, 2017

¥

¥

$215

215

1,919

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

Millions of yen

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

March 31, 2017

June 30, 2017¥¥43

June 30, 201725

$220*3 Financial covenants
Consolidated fiscal year ended March 31, 2017
Of short-term loans payable and long-term loans payable (including loans payable scheduled for repayment
within one year), ¥31,135 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) ¥21,962 million; or (ii) 80% 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, 2017
Of short-term loans payable and long-term loans payable (including loans payable scheduled for repayment
within one year), ¥30,151 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) ¥21,962 million; or (ii) 80% 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.
Consolidated Statements of Cash Flows
No consolidated statements of cash flow were prepared for the three months ended June 30, 2017.
Depreciation (including amortization related to intangible assets) for the three months ended June 30, 2017 isshown below:
Thousands ofU.S. dollars

Millions of yen
Three months ended
June 30, 2016

Depreciation･････････････････････････････････-7-¥1,370

Three months ended
June 30, 2017

¥1,380Three months ended
June 30, 2017$12,323

Total Shareholders’ Equity
Three months ended June 30, 2016
1 Cash dividends paid
Not applicable
2 Of the dividends whose record date falls during the three months ended June 30, 2016, those dividends whose
effective date fell after the last day of the first quarter
Not applicable3 Significant changes in shareholders’ equity
By resolution of the annual shareholders’ meeting held on June 28, 2016, the Company reduced its capitalreserve by ¥8,000 million as of June 30, 2016 in accordance with the provisions of Article 448, Paragraph 1 ofthe Companies Act, and transferred it to other capital surplus. In addition, the Company transferred ¥8,000
million of other capital surplus to retained earnings brought forward, in accordance with the provisions ofArticle 452 of the Companies Act to compensate for loss.
As a result, capital surplus was ¥11,745 million and retained earnings were ¥(1,154) million as of June 30,
2016.

Three months ended June 30, 2017
1 Cash dividends paid
Resolution
Board meeting on May 29, 2017
Type of shares ･････････････････････････・･･･・・
Total dividends (Millions of yen) ･････････････・
Dividend per share (Yen)･････････････････････・
Record date･･････････････････････････････････
Effective date････････････････････････････････
Dividend resource･･････････････････････・・･･･・

Common shares
262
10.00
March 31, 2017
June 13, 2017
Retained earnings

Resolution
Board meeting on May 29, 2017
Type of shares ･････････････････････････・･･･・・
Total dividends (Millions of yen) ･････････････・
Dividend per share (Yen)･････････････････････・
Record date･･････････････････････････････････
Effective date････････････････････････････････
Dividend resource･･････････････････････・・･･･・

Class A preference shares
175
3,500,000.00
March 31, 2017
June 13, 2017
Retained earnings

2 Of the dividends whose record date falls during the three months ended June 30, 2017, 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 and the basis for calculating diluted profit per share are shown
below:
Three months ended
June 30, 2016
(60.45)

Item

Three months ended
June 30, 201718.21

(1) Profit (loss) per share (Yen)Basis for calculation
565
Profit (loss) attributable to owners of parent (Millions of yen)
(1,495)
Amounts not attributable to common shareholders
8788(Millions of yen)
Of which the amount of Class A preferred dividends
[87]
[88]
(Millions of yen)
Profit (loss) attributable to owners of parent pertaining to(1,582)
477
common shares (Millions of yen)
Average number of common shares outstanding for the period
26,174,053
26,174,076(Shares)
14.20－(2) Diluted profit per share (Yen)Basis for calculation
Adjustments of profit attributable to owners of parent
88－(Millions of yen)
Of which the amount of Class A preferred dividends[－][88](Millions of yen)
13,601,900－
Increase in the number of common shares (Shares)
Of which Class A preference shares (Shares)[－][13,601,900]
Descriptions of diluted shares that were not included in thecalculation of diluted profit per share due to their anti-dilutive－－
effect but that changed significantly from the end of theprevious fiscal year
Note: Diluted profit per share for the three months ended June 30, 2016 is not disclosed although
there were diluted shares, as the profit per share was negative.
Significant Subsequent Events
Not applicable2OtherThe Board of Directors passed a resolution at its meeting on May 29, 2017 to pay year-end dividends toshareholders who are recorded in the shareholder registry as of March 31, 2017 as follows:(1) Total dividends

Common sharesClass A preference shares

262 million yen
175 million yen(2) Dividend per share

Common sharesClass A preference shares

10.00 yen
3,500,000.00 yen(3) Effective date of claim for payment and payment commencement date-9-

June 13, 2017