2022

CORPORATE REPORT
Headquarters: 5-14-15 Ogami, Ayase, Kanagawa, 252-1104 Japan
Tel: 0467-76-6001 (main)
URL:
https://www.meiko-elec.com/

この報告書は、エコマーク認定の古紙配合率
70％の再生紙を使用し、アロマフリータイプ
植物インキで印刷されています。

Challenge and contributeto the evolution of electronics

Business Principles

Positioning of this integrated report

We provide the best-ever products and services for our customers
through Meiko’s manufacturing, thus contributing to the creation ofhappiness in employees and society.
Our ProﬁleOur company designs, develops, mounts, and assembles cutting-edge PCBs and electronic devices
for automobiles, smartphones, IoT devices, computers, etc. and supplies them globally.

Contents

Financial information

Integrated report
Shareholdersʼ newsletter

Business Principles

1

Table of Contents

2

History of Value Creation

3

Value Creation Process

5

Business Portfolio

7

Message from the President & CEO

9

Sustainability Policy

13

Medium-term Business Plan

15

8%
6%

Net sales:

151.3
billion yen

22%
1

48%

Environmental Strategy

19

Product Information25

Supply Chain

27

Activities for Quality Assurance

29

Automotive

Creation of a Comfortable Working Environment

31

For Shareholders and Investors

34

Smartphones

Local Contribution

35

Governance (Management Report)

37

SSD and IoT modules
EMS
OthersPublications

Securities report
Convocation notice
Company brochureInternet

Corporate website

The documents shown in the above table can be browsed in our website.

https://www.meiko-elec.com

To the readers of this report

Eﬀorts on ESG Issues

16%

Non-ﬁnancial Information◇Editorial policy

This integrated report was issued for the purpose of deepening the understandingof all stakeholders, including shareholders and investors, about our mid/long-term
activities.
We will make continuous eﬀorts to meet requests from all stakeholders and havethem deeply understand our business activities.
◇Applicable period
April 1, 2021 to March 31, 2022
◇Coverage
Meiko Electronics Co., Ltd. and aﬃliated companies◇Caution on the forecast
This report mentions our future outlook and plans based on currently available

Financial and Non-ﬁnancial Section

information. In particular, the PCB industry is faced with a variety of risks andFinancial Highlights

45

Non-ﬁnancial Highlights

46

Financial and Non-ﬁnancial Information

47

Consolidated Balance Sheets

49

Consolidated Statements of Income

51

Consolidated Statements of Comprehensive Income

51

Consolidated Statements of Cash Flows52

Meiko s Global Network

53

uncertainties due to changes in raw material prices, diverse customers market
trends, changes in technological trends, exchange rate ﬂuctuations, changes in tax
and other systems, natural disaster, international conﬂicts, COVID-19, etc.
Accordingly, actual performance may be diﬀerent from our expectations.
◇Reference guidelines
The Ministry of Economy, Trade and Industry; Guidance for Comprehensive
Disclosure and Dialogue for Co-creation of Value
IIRC; International Integrated Reporting Framework
Task Force on Climate-related Financial Disclosures (TCFD)

2

History of Value Creation

Amid the first personal computer boom in the 1970s,
Meiko Denshi Kogyo Co., Ltd. was established in Ayase
City, Kanagawa Prefecture in 1974, while expecting the
growth of demand for double-sided PCBs andmulti-layered PCBs, which would replace single-sided
ones used for home appliances. Our businessperformance grew soon thanks to the boom of tablearcade cabinets, and annual sales reached 10 billion
yen in 10 years.
In the wake of the Plaza Accord in 1985, clients
relocated their manufacturing facilities to overseas
countries on a full-scale basis, so our businessperformance declined. Around that time, there was nomainstay, so we keenly felt the necessity to develop acore business. Under such a situation, video game
consoles were released, and we received orders. As aresult, annual sales reached 20 billion yen, and we wereable to enter the next growth phase.

In 2000, our company got listed on JASDAQ, and in
2001, Guangzhou Plant in China was completed, toenhance our overseas strategies. As Japanese clients
made inroads into the Chinese market, our performance
improved significantly, and in 2006, Wuhan Plant, too,
was completed. In the following year, annual sales
reached 80 billion yen.
The Great East Japan Earthquake in 2011 caused
significant damage to Ishinomaki and Fukushima
factories. In the following year, we lost a transaction witha smartphone maker in the U.S. and the large-scale
investment in Wuhan Plant in China became asignificant burden. However, our business negotiations
with smartphone makers in South Korea and China weresuccessful, allowing us to get out of the difficult
situation.

At present, the electronics industry is undergoingonce-in-a-century transformation, and next-generation
technologies, including 5G and autonomous driving, areabout to be distributed. Although there are some delays
due to the COVID-19, there remains growth potential.
Our company will strategically develop technologies,
actively conduct investment, and develop an integrated
manufacturing system for designing, mounting, andassembling electronic devices, to make a further leap
forward.

Present

2000
1997

1978
1990

In 2000, Guangzhou Plant was established. In
parallel with the establishment of Wuhan Plant in
2007, we started manufacturing PCBs for digital
home appliances.

1983
In 1997, the manufacturing of HDI PCBs wasstarted in Yamagata Factory. We manufactured
PCBs mainly for overseas cellphone makers.

In less than a year and a half since therelease in 1978, a total of 500,000 tablearcade cabinets were shipped and distributed throughout Japan.

1982

In 1990, Fukushima Factory wasconstructed. It was first called FBCenter. FB stands for Fine Board. Thisfactory manufactured PCBs for the thencutting-edge liquid crystal displays.
Video game console released in 1983. PCBs wereused for not only this console, but also its game
cartridges.

In 1982, Yamagata Meiko Electronics Co., Ltd.
was established. It manufactured mainly PCBs
used for copiers and fuel injection devices forautomobiles.

■Net sales trend

1975

3

1980

1990

2000

2010

2020

4

Value Creation Process
Value we create

Sources ofCompetitive
Advantage

Business Principles

Social raison d êtreWe provide the best-ever products and services for our customers

through Meiko’s manufacturing,

thus contributing to the creation of happiness in employees andsociety.

Economic value

151,275 million yen
Operating income
13,255 million yen
Profit attributable
11,415 million yen
to owners of parent
Net sales

Meiko s domain
Invested capital

FY2021

Finance
Funds required toprovide products
and services

Manufacturing
Facilities andequipment
necessary toprovide products
and services

Intellectual
Accumulated
knowledge, skills
and expertise

Personnel

Social value
Design and manufacturingof PCBs

Design, development, mounting,and assembly of electronic devices

Development and manufacturing ofvarious mechatronics products

Development and manufacturingof imaging equipment

Research and development of PCBs to respond to theevolution of the world through technological innovationand the new needs that arise from this evolution

We handle the entire manufacturing process from design
to completion and shipment of products with thetechnical capabilities and track record unique to a
manufacturer specializing in the production of PCBs.

We resolve issues such as production quality
improvement, cost reduction, workers’ safety, andhuman resource management, and greatly develop andevolve the manufacturing process.

Design, manufacturing, software development, and systemconstruction for professional imaging equipment that
contributes to society in the facilities for crisis management
in response to disasters, incidents, accidents, etc.

■We meet requests for PCBs in a variety of ﬁelds■We oﬀer EMS for the world s top manufacturers
both domestically and internationally.

We provide various
cutting-edge products,
such as highfrequency-compatible
PCBs for automateddriving, high heatdissipation and highcurrent PCBs that canwithstand harshenvironments such as
those in automobile
engine compartments
and solar power
generation equipment,
and high-density andfinely designed PCBs
for smartphones.

In order to flexibly
respond to various
customer requirements
and issues, we provide
a comprehensive
solution service that
integrates outsourcingof all processes fromproduct planning,
design, partsprocurement,
mounting, assembly,
inspection, andlogistics.

Environmental
resources andmaterials required toprovide products
and services

ICT

Industrial and medical equipment

Touch panel moduleOﬃce equipment●Automation
We design, develop and manufacture automation equipment.

Collaboration withstakeholders andlocal communities

5●IoT systems

Storage

Packaged PCBs

Monitoring and maintenance of manufacturing facilities andequipment, enhancing building security, monitoring remotelocations, and statistical research through information logging.
A variety of conditions can be achieved thanks to the dedicatedrobot. Both lead-time and quality are guaranteed andoperational costs are minimized.

In-vehicle sensor

We are the first in the world todevelop and manufacture
multi-vision system’s imaging
magnification equipment(processors) and peripheral
equipment such as matrix
switchers and converters. Our
products are widelyused in generalcommand systems
and disasterprevention systems
for public institutions,as well as inmonitoring systems
for road traffic control,
railroads, airports, andother social
infrastructure.

Fire-ﬁghting command system
Source: Chiba City s website,
Chiba Fire-Fighting Joint Command Center*Mechatronics: Japanese word combining the terms “mechanism” and “electronics.”

Initiatives for advanced automotive PCBs
With our main focus on PCB manufacturing with hightechnology, we provide flexible comprehensive solution
services from product planning to circuit design,
mounting, and assembly to meet customer needs,

Social relations

We conceptualize andpropose equipment thatmeets the needs of ourcustomers according to theirproblems, issues, anddemands. We propose
evolved, value-added smart
factories, from thedevelopment andmanufacturing of automationequipment, IoT systems, andsoftware to after-sales
service.

●Soldering robot LETHER series

Diverse humanresources

NatureAutomobile■Proposal for value-added smart factories

contributing to further quality improvement and lead-time
reduction.

■EV/PHV(Electriﬁcation)

High-speed, wide area
communication
Connected car

High current and voltage
High heat dissipation

High output
Conversion eﬃciency
EV charging

V2X communications
Location and obstacle information

High-speed,
high-frequency sensing

Miniaturization
Weight reduction
Low fuel consumption
CO2 emission reduction■Automatic driving(Advanced driver assistance system)

System integration
Automatic driving control

Environment
At Meiko, we believe that minimizing theenvironmental burdens of our businessactivities is our mission and our
responsibility as a company helping toachieve a sustainable society.

Society
At Meiko, we manufacture and sell
PCBs, devices that are essential forindustrial development, by interactingwith diverse people in various countries,
regions, and communities.
We recognize that we are a social entity, and we fulfill our
responsibilities accordingly. At the same time, we giveconsideration to our stakeholders as we engage in our businessactivities.

GovernanceTo ensure that operations are efficient andappropriate, Meiko has improved its
transparency and established amanagement framework that will earn thetrust of its stakeholders, establishing asystem that allows audits and internal
control to function appropriately.

Short-and medium-range information

6

Business Portfolio
Our company offers comprehensive solutions flexibly in the electronics field, including the design,
manufacturing, mounting, and assembly of PCBs and the design, development, mounting, andassembly of electronic and mechatronics products.
The Meiko Group creates products together with clients as the best partner of each client, and continues ourendeavor to become the best manufacturer with comprehensive technologies to meet each client’s demand.

Design and manufacturing of PCBs

Design, development, mounting, and assembly of electronic devices

Circuit design

Surface mounter

Assembly

Metal mask

We offer comprehensive solutions forunifying the tasks of outsourcing
processes including the design,
manufacturing, mounting, assembly, andshipment of PCBs.

We offer a wide array of cutting-edge
products, including high-density andhigh-frequency PCBs, heat dissipation andhigh-current PCBs, and bendable PCBs.

Development and manufacturing of mechatronics products

Development and manufacturing of imaging equipment

Control

Surveillance camera

Soldering robot

Material handling equipment

BroadcastingVideo wall controller

We undertake the development andproduction of equipment and software forsolving on-site problems and trouble withadvanced technologies.

7

The multi-vision system developed by
Meiko considerably helps grasp a variety
of information.

Monitoring system

IoT

4K-compatible switcher

Machinery design8Message from the President & CEO

Meiko contributes to society through"Challenge and contribute to the evolution of electronics"

Q

First, please tell us about Meiko’s role insociety and its raison d’etre.

products are evolving every day. As
A Electronics
devices embedded in products such as
smartphones and tablet PCs become smaller andthinner, electronic components are also following thepath of miniaturization, thinning, and high functionality.
Meiko has boldly endeavored to develop PCBs in

Yuichiro Naya, President & CEO

response to the evolution and changes in thiscontribution that supports the evolution of electronics
through business. It goes without saying that directcontribution to the industry such as electronic

We, Meiko Electronics Co., Ltd., are committed to expanding our business base, achieving sustainablegrowth, and pursuing social development and environmental conservation based on our Business
Principles: “We provide the best-ever products and services for our customers through Meiko’s
manufacturing, thus contributing to the creation of happiness in employees and society.” In this light,
our purpose is to “Challenge and contribute to the evolution of electronics.” and we aim to contribute toboth electronics and society by constantly challenging to evolve electronics in order to help people leadsafer and more affluent lives.

communication equipment and in-vehicle equipment is
considered as social contribution. Furthermore, we will
also contribute to society in the broad sense by
returning our increased sales and profits to all
stakeholders, including employees and shareholders.
Our corporate spirit is summarized in our “Business
Principles” and “Purpose.” Meiko’s Business Principles
are “We provide the best-ever products and services forour customers through Meiko’s manufacturing, thus
contributing to the creation of happiness in employees

Over the past year, we faced challenges such as adjusting the production of final products due toand society,” and our purpose is to “Challenge andshortages of materials such as semiconductors, lockdowns due to China’s zero-COVID policy, andcontribute to the evolution of electronics.” However, thelogistics disruptions. We have also been affected by geopolitical tensions such as the situation in Russia
and Ukraine, overseas interest rate hikes to control rapid inflation, and the weaker yen. In such an
unprecedented environment, to achieve sustainable growth, I feel that it is important to review theabove-mentioned purpose and work toward the realization of our Business Principles.
We live as residents of the irreplaceable Earth. People’s lives have become more sophisticated andcomfortable over time. However, we believe that these lifestyles should not be at the expense of global
warming, ocean pollution, natural disasters, food problems, human rights issues, and the depletion ofnatural resources around the world. Our Business Principles cannot be realized without addressing
social issues such as human rights, employees’ workstyles, and job retention, not to mention
addressing climate change and using resources and energy in a more environmentally friendly mannerin order to become carbon neutral. This background and philosophy drive us to continue to take onchallenges in electronics.
We, Meiko, will continue to place sustainability at the center of our business administration and enhance
our corporate value through sustainable growth as a company and contribution to society. We would

completion of this new factory, Meiko aims to triple its
production capacity for advanced PCBs for automotive
applications in Japan. The new factory will also adopt
automation and labor-saving technologies that we havebeen working on at our overseas factories. We intend to
produce results here and then apply them to otherfactories.

cutting-edge technology field and has always provided
new products. This is precisely part of the social

Greetings

Yamagata, following the Kahoku Factory. With thepractical application of our Business Principles is still far
from complete. This purpose is imbued with Meiko’s
spirit. We will continue our endeavors in unexplored
areas, etc. by constantly reminding ourselves of thispurpose.

Q

Please tell us about your company’s
approach to global social issues suchas the destruction of the global
environment and population decline.

various new initiatives such as digital
A Nowadays,
transformation (DX) are being implemented in the
public and private sectors. These initiatives areQ

Now, please tell us about your thoughts
on DX and other digitalization and what
you are doing at Meiko.

course, what we do digitally does not count,A Of
but what we do with those tools is very
important. Some of our company’s production facilities
are already equipped with computers, robots, and AI,
and the entire factory is already smart. This includes, ofcourse, DX and all the other latest technologies.
Naturally, we will continue to aggressively pursue
productivity improvement through such technologicalinnovation, but I do not think it is necessary for all
employees to have full knowledge of such things. We
would like staff members who are working to improve
efficiency and productivity to be more proactive inraising the level of their efforts, but since there is ample
work for Meiko, not everyone needs to reskill for that
purpose.
Speaking a bit more about the factory, we are graduallytransitioning from traditional systems to smart factories.
The benefits of smart factories include visible
improvements in yield and productivity. However, it’s
not just about productivity improvements, but also
about contributing to the environment, such as waste
disposal. From a broader perspective, smart factories
can contribute to achieving various SDGs, coping withpopulation decline and environmental pollution.

necessary for companies to keep growing.
Meiko is currently constructing a new factory in Tendo
City, Yamagata Prefecture, which is to be completed in
the fall of 2023 as its second production base inappreciate your continued support and guidance.
910

Message from the President

Q

Next, please tell us about your initiatives
regarding diversity and human resources
at Meiko.
Our local subsidiaries are managed by Chinese

A people in China and Vietnamese people inVietnam. In Japan, Chinese, Korean, and Vietnamese
people work together in the engineering department.
Such global business operation has expanded as
Meiko’s business expands, and will continue to expand
further in the future. Of course, we cannot proceed all at
once because of the language barrier, but we are
steadily increasing the number of human resources who
can work anywhere in Vietnam, China, or Japan.

In the case of Meiko, the ratio between new graduates

to learn solid technical skills in Japan before returning to

we might be able to double our sales, and as a result,and mid-career hires is about 50:50, and both new

their home country to take on leadership roles. Throughwe would be able to compete globally with the same

graduates and mid-career hires enjoy equal working

these efforts, we hope to increase the number of

number of people we have now.

opportunities. In other words, Meiko has always had aindividuals who can work in both Japan and overseas,

In this context, we would like to motivate our employees

culture of freedom and openness that shapes ourwhich we believe will further revitalize our business. We

to work harder, and we would like to provide generous

global culture today. It is a freewheeling environment,

have been accepting employees from our Chinese andsupport, including salary consideration, to new hires

but employees are required to perform well in business.

Vietnamese plants who utilize the programs for training

and other young employees.

To be more specific, there is no discrimination at all in

foreign workers and improving their skill since Fiscal

terms of nationality or gender, as long as employees are

2003. In addition, since Fiscal 2013, we have been

competent.

accepting sales and engineering staff from our local

We have a training program that provides foreignsubsidiaries to work in Japan under the intra-company

employees in our overseas plants with the opportunity

transfer system, promoting the activation of our humanQ

Finally, please tell us about your futurebusiness developments.

resources.

ur corporate group strives to operate
A Obusinesses
that are in line with changes in the

Diversity is an essential choice for our company toglobal economy, in countries where our local

strategically advance our global expansion policy.

subsidiaries are located and other countries, and thisThrough these efforts, we focus on the creation of aapproach has not changed. However, in view of the

comfortable working environment that is safe, secure,current business environment, we are focusing on

hygienic for all our employees, respects their diversity,

reshoring and strengthening our domestic production

and allows them to develop. We strive to ensure thatbases, such as the new factory in Tendo City,

diverse talents are able to fully demonstrate their

Yamagata Prefecture. Another aspect is our entry into

abilities without discrimination based on race, creed,

new fields, such as semiconductor packaging, which

religion, nationality, disability, or the like.

we have been focusing on since the previous fiscal

As a result, with gender as an example, the ability for

year. We will continue to increase our investment in theboth men and women to approach their work without

semiconductor packaging field. There are also issues ofworrying about their gender has become one of Meiko’s

economic security to consider, so it is not easy to makestrengths. Such a positive working environment isa definitive statement. However, with regard tosurely part of our company’s value. Of course, it is true

investment, we are focusing on Japan and Vietnam inthat there was a long way to go in terms of internal

particular for new fields.

education to establish such an environment. Unless we

Our core business is the supply of PCBs. We contributemake a steady effort to bridge the gap of awarenessto the countries where we operate business byamong each employee, diversity cannot be achieved. It

employing people in those countries and paying moreis important to continue to make efforts to graduallytaxes as our companies grow. In other words, in Japan,change the mindset of on-site workers until “diversity as

China, and Vietnam, we are making a direct anda matter of course” can be achieved without worrying

sustainable contribution to society.

about various differences.

Meiko will continue to accurately catch up with the

If we aim for further improvement in work performance,

evolution of electronics and make a contribution to

we need to reform the way we work, including

society by providing cutting-edge PCBs.

telecommuting. We are currently working on
improvements in all areas to enhance the quality of ourwork.
For example, if we could improve productivity by 30%,1112

Sustainability Policy

Approach to material issues related to sustainability
We extract material issues from ESG, etc. and solve social issues through our business.

Process for identifying material issues related to sustainability

Extraction of social issues
17 SDGs

Evaluation of importance
Prioritization from the viewpointsof “stakeholders” and “Meiko”

Under the Business Principles, the Meiko Group shores up the trust of stakeholders through sound, highly transparent
business administration and business activities harmonized with society and the environment, and actively conducts activities

The Sustainability Execution Conference, under the direct control of the President andchaired by the Director and Executive Officer in charge, is responsible for determining

Sustainability Execution Conference<Chairperson> Director in charge
Members: Relevant departments

Implementation Promotionof activities●Environment●Society●R&D●Human Rights●Education●Public Relations / IRsustainability-related policies, managing the progress of targets, and deliberating on
measures to be taken.
In cooperation with related departments, the Sustainability Execution Conference will
incorporate measures into environmental, social, R&D, human rights, education, public
relations, investor relations, and other activities, continuously develop them by evaluating
their results and report them to the Board of Directors when necessary.

Material issues (goals in line with SDGs)
High

Importance for stakeholders

for sustainability to contribute to the sustainable growth of society and mid/long-term improvement in corporate value.

President & CEO

Identification of issues to beaddressed from the viewpointof business administration

Material issues related tosustainability

Extraction of sustainability-related
issuesSustainability Policy

Board of Directors

Identification

Importance for the Meiko Group High

【Goal 1】

【Goal 2】No Poverty

Zero Hunger【Goal 5】

【Goal 6】

Gender Equality

Clean Water and Sanitation【Goal 7】

【Goal 8】Aﬀordable and Clean Energy

Decent Work and Economic Growth【Goal 9】【Goal 12】

Industry, Innovation and Infrastructure

Responsible Consumption and Production【Goal 13】

【Goal 14】

Climate Action

Life Below Water【Goal 16】

【Goal 17】

Peace, Justice and Strong Institutions

Partnerships for the Goals

Eﬀorts on ESG Issues

E

13

Environmental initiatives

S

Social initiatives

G

GovernanceWaste reduction
Utilization of water resources

To implement measures following the TCFD Recommendations
・To reduce CO2 emissions per rate of consumption per production volume in Japan by 50% between
Fiscal 2013 and Fiscal 2030
・To promote energy saving (electric power: down 1.5%/year, fuel: down 2.0%/year per rate of
consumption per production volume)
・Adoption of in-house solar power generation
Promotion of zero emissions (recycling rate in 2030: 80%), recycling (collection of copper, palladium,and gold)
Promotion of reuse (to reduce water consumption per rate of consumption per production volume by
10% by 2030)

Engagement of employees

Promotion of diversity (empowerment of women and promotion of non-Japanese personnel)
Development of a safe, comfortable workplace (zero industrial accidents)
Improvement of employees’ health (We are expected to be certified as an excellent corporation interms of health-oriented management.)

Measures against global warming

Contribution to and vitalization of each region

Contribution to protection of nature and the environment (recycling activities)
Contribution to regional vitalization (sports promotion and contribution according to local needs)
Contribution to social welfare

Strengthening of management andrisk control systems

Establishment of management systems for supporting sustainable growth
Strengthening of our BCP
To transform Yamagata Factory into the second headquarters

14

Medium-term Business Plan

Growth strategy (net sales, production and investment)
Net sales are forecasted to increase by 80 billion yen from 170 billion yen in Fiscal 2022 to 250 billion yen in
Fiscal 2026. CAGR is 10.6%.
8.7 ％CAGR from Fiscal 2017 to Fiscal 2021

10.6 ％CAGR from Fiscal 2021 to Fiscal 2026

(Unit: billion yen)

250.0

Net sales
Operating income
Investment
Amortization

151.3
118.9

108.5

We announced the Medium-term Management Plan for a period from FY2022 to FY2026. The current core business is

27.5

119.3

115.5

7.5

driving are advancing, the demand for HDI PCBs, which have high added value, is growing, so our business is

11.8

9.6

8.9
6.3

5.8

5.2

6.7

20.5

20.0

20.0

18.0
13.8

12.7

11.5

10.3

8.2

8.1

7.4

20.0
17.5

15.5

13.3
11.8

10.7
6.9

23.6

22.0

15.8

to manufacture automotive PCBs and smartphone PCBs. As the electrification of automobiles and the automation of

185.0

170.0

225.0

205.0

expected to grow. As smartphone PCBs are becoming general products, we will focus on flagship models, which arehighly profitable. In order to achieve sustainable growth, it is necessary to develop new core businesses. Accordingly,
we will enhance business activities for package PCBs and EMS, to improve our corporate value.

Business Principles

We provide the best-ever products and services forour customers through Meiko’s manufacturing,
thus contributing to the creation of happiness in employees and society.

EBITDA

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

Fiscal 2024

Fiscal 2025

Fiscal 2026

13.3

15.2

11.8

14.1

21.3

23.7

27.7

32.0

36.3

41.3

Average investment: 12 billion yen

Average investment: 20 billion yen●Sales by product application
EMS

AI appliances/amusement/
other products for industrial equipment

9%
14.6 billion yen

12%30 billion yen

Automotive

51%

44%

86 billion yen

110 billion yen

10%

13%

25 billion yen

22.6 billion yen

Fiscal 2026

Fiscal 2022

Purpose170

SSD and IoT modules

12%billion yen

6%
9.8 billion yen

30 billion yen

Smartphones/tablets

Challenge and contribute to the evolution of electronics.

6%
15 billion yen

21%

36.5 billion yen

Net sales: 250 billion yen
Operating income: 27.5 billion yen
Management goals(Fiscal 2026)

Net income: 21.8 billion yen

Other PCBs

EMS

Through-hole multilayered PCBs

Operating income margin: 11.0%

2.9 billion yen

14.6 billion yen

76 billion yen

Expected foreign currency: 122 yen

Rigid ﬂexible PCBs
Flexible PCBs

2%0%

Capital investment: 100 billion yen

45%

40 billion yen

12%2%
5 billion yen
4%
10 billion yen

Fiscal 2022

170

billion yen

12%30 billion yen

500 million yen
HDI PCBs

43%

72.5 billion yen

15

9%

2%

Package PCBs

(Total from Fiscal 2021 to Fiscal 2026)

16%●Sales by product speciﬁcation

3.5 billion yen

Investment

250

billion yen

30 billion yen

34%

85 billion yen

Fiscal 2026

250

billion yen

36%

90 billion yen

16EMS/electronic device development and manufacturing

Investment strategy

Our EMS business mounts and assembles PCBs at the Vietnam Plant No. 1 and Meiko Towada Vietnam, to produce electronic

１．Automotive PCB
The demand for automotive PCBs is growing, as the electric components of automobiles are increasing and EVs are being
distributed. As automatic-driving functions have evolved, we have seen the growth of demand for high-end PCBs for integrating
and controlling the automotive functions to “run,” “stop,” and “turn.” Multi-layered HDI PCBs are used for them. In order to meetsuch demand, we are constructing a factory for manufacturing cutting-edge automotive PCBs in Tendo City, Yamagata Prefecture.
Business outline of the Tendo Factory of Yamagata Oﬃce
Location

Tendo City, Yamagata Prefecture

Site area

About 65,000 m2

Total floor area

About 25,000 m2

Investment

1st phase: About 15 billion yen
2nd phase: About 25 billion yen

Contents of businessStart of operation

Cutting-edge automotive PCBs, the plant for
mass-production of PKG, function as a center forthe development of PCB technologies, anddevelopment and manufacturing of automationequipment in Japan
Second half of Fiscal 2023

is necessary to own factories inside Japan, we acquired NEC Embedded Products, and included it in the scope of consolidation asa consolidated subsidiary named Meiko Embedded Products in October 2022. Accordingly, it became possible to produce
prototypes and mass-produce products. We give proposals to meet clients’ needs, and aim to expand our business.
In the electronic device development and manufacturing business, we develop, manufacture and sell FA equipment in the Industrial

Sales plan of the Tendo Factory(billion yen)devices for automobiles and home appliances. Considering that in order to improve the performance of the EMS business further, it

Automation System Department and imaging equipment in the Visual System Division. In addition, Meiko Automation in Vietnam

15

Step2(PKG)

manufactures factory automation equipment for our PCB factories. The new consolidated subsidiary Meiko Embedded Products
designs and develops products for automobiles and industrial machinery, products in the amusement field, and printers.

10

5

Industrial System Equipment Division

FA equipment

Ayase City, Kanagawa

0

FY22

FY23

FY24

FY25

FY26
Meiko Embedded Products

Due to rapid DX, high-end FC-BGA PCBs are insufficient around the world. In this situation, the SAP factory of the Ishinomaki Second

Business outline of the Ishinomaki Second Factory6

Total floor area

About 5,000 m2

5Investment

About 7 billion yen

Nanyo City, Yamagata

4

Vietnam3

Meiko Automation

Meiko Towada Vietnam

Financial strategy/shareholder return
FY22

FY23

FY24

FY25

FY26

telecommunication modules has grown. In response, the Vietnam Plant No. 3 will establish a production line exclusively for thin

1. To keep increasing sales and proﬁt by investing in equipment and R&D
2. To fortify the well-balanced ﬁnancial standing
3. To achieve a consolidated payout ratio of 15%
4. To increase proﬁt, and improve shareholder value and dividends

packages and modules utilizing MSAP.

Total floor area

About 20,000 m2 (for PKG business)

Investment

About 16 billion yen

Contents of business

Package and module PCBs

Start of operation

Stepwise start of operation from thesecond half of Fiscal 2022

EMS
Hai-duong City

Due to the advance of high-speed telecommunication technologies, the demand for thinner high-end memory PCBs andThach That Industrial Zone, Hanoi City

(billion yen)

Sales plan of the Vietnam Plant No. 3

20

15

5

FY23

FY24

FY25

FY26

FY2021

FY2022

FY2023

FY2024FY2025

FY2026

From FY2021

151.3

170.0

185.0

205.0

225.0

250.0

1.7 times

13.3

15.5

17.5

20.5

23.6

27.5

Up 2.2%

Operating income margin

8.8%

9.1%

9.4%

10.0%

10.5%

11.0%

2.2%UP

Net income

11.5

12.2

14.1

16.2

18.4

21.8

1.9 times

8.1

8.2

10.3

11.5

12.7

13.8

EDITDA

21.3

23.7

27.7

32.0

36.3

41.3

1.9 times

Total net assets

58.7

69.2

81.6

95.5

111.2

129.9

2.2 times

Balance of interest-bearing liabilities

66.4

75.7

79.4

74.7

73.1

69.4

From 44% to 30%

Capital-to-asset ratio

34.7%

37.4%

40.0%

44.0%

47.0%

50.0%

Up 15.7%

1.13

1.09

0.97

0.78

0.66

0.53

Improved 0.6%

ＲＯＥ

19.5%

17.5%

17.0%

17.0%

17.0%

17.0%

Maintain 17%

ＲＯＩＣ

10.8%

10.2%

10.4%

11.2%

11.5%

12.4%

Up 1.6%

D/E ratio

FY22(Unit: billion yen)

Operating income

Total net sales

Depreciation and amortization

100

FA equipment

Hanoi City

20

Location

EMS

Meiko Vietnam Plant No. 1

1

Business outline of the Vietnam Plant No. 3

EMS(billion yen)

Ishinomaki City, Miyagi Prefecture

Stepwise start of operation from the second
half of Fiscal 2022

Yonezawa City, Yamagata

Meiko Embedded Technology

Sales plan of the Ishinomaki Second Factory

LocationContents of business Semiconductor package PCBs

Contracted development

Japan

Factory will start manufacturing compact FC-BGA PCBs to meet the demand for legacy products for consumers and in-vehicle devices.

17

Video equipment

Head Oﬃce(Step 1) automotive

２．Package PCBs

Start of operation

Visual System Division18

Eﬀorts on ESG Issues

Identiﬁcation of risks and opportunities

In the 1.5℃ scenario toward a decarbonized society, we are required to deal with the risks accompanying the shift to a
low-carbon economy. In the 4℃ scenario in which global warming will progress and air temperature will rise, we are required todeal with physical risks due to climate change. Even if actual climate follows the 1.5℃ scenario, there is a possibility that thephysical risks in the 4℃ scenario will emerge. In the business environment oriented toward a decarbonized society in the 1.5℃
scenario, we have discussed measures for dealing with the physical risks in the 4℃ scenario.
*The impact on financial affairs was graded with “small,” “medium,” and “large” by estimating the effects on financial indicators.
The period before each risk or opportunity emerges is represented by “short (less than 3 years),” “medium (3 to less than 6
years),” or “long (6 or more years).”

Environmental strategy
Response to climate change

Risks and opportunities accompanying the shift to a low-carbon economy

Meiko views the issue of greenhouse gases as a significant threat to our precious earth. As our approach to achieving carbon
neutrality, we aim to reduce CO2 emissions originating from energy usage through energy-saving while setting a target of 50%

Category/aspect

Policies andthrough the adoption of in-house solar power generation equipment, change of

legalelectric power contracts, utilization of energy-saving certificates, etc. and conduct

regulations

similar activities at overseas plants, too, to promote global measures against climate

through the Sustainability Execution Conference. We will proceed with a plan for
accelerating energy-saving activities.
Sustainability Execution Conference

Upstream
Scope3①Raw materials

Our company
Scope1

Scope2

Technology

Downstream
Scope3Market⑦Commuting④Transportation/logistics

Combustion of fuels

Use of electricity

647Kt

41Kt

468Kt

⑪Use of products⑫Disposal of products

16Kt

Regarding the CO2 emissions from our corporate group, Scopes 1 and 2, which are from production activities, etc., account for

Large

Medium/long term

Large

Medium/long term

Large1）The necessity of energy-saving measures will increase, andthe competition for energy-saving performance will intensify.
As a result, costs for R&D will augment and low-carbon
technologies will be applied to existing products.

Medium/long term

Large2）Intensiﬁcation of competitions for knowledge, technologies,
engineers, manufacturing equipment, etc. related todecarbonization, low-emission technologies, products, etc.

Short term Medium1）Due to the increase of electric components anddigitalization of automobiles and other products, thesupply of PCBs for semiconductors will become insuﬃcient.

Medium/long term

Large2）Makers in other ﬁelds will enter this market, andthe orders from existing makers will decrease.

Medium/long term

Large3）Due to the skyrocketing of prices of materials withsigniﬁcant environmental burdens, costs will augment.

Medium term Large

4）Due to the lack of the ability to take environmental measures,
the number of orders will drop (demand will weaken).

Short term

Large

Medium/long term

Large2）If a company falls behind in measures against climate change, its
corporate value will decline, orders received will decrease, and Medium/long term
the impact on management and recruitment will become serious.

Largeeach country, increasing costs.

3）
Augmentation of costs due to the replacement of fossil fuel1）Being low-carbon and environmentally friendly will
become one of requirements for investment.

Reputation

4% and 43%, respectively. In particular, it is important to reduce power consumption, and we will strive to reduce CO2 emissions
by installing energy-saving equipment and adopting renewable energy. Scope 3 emissions, which is not directly from production

Physical risks and opportunities due to climate change

activities, account for 53%. Most of the Scope 3 emissions is from the procurement of raw materials, etc., so we will strive to

Category/aspect

reduce the CO2 emissions in the entire supply chain.

TCFD response●Governance

Recognizing that an important element of management strategies is to deal with sustainability-related issues, our company
formulated the “Sustainability Policy” at the meeting of the Board of Directors on October 25, 2021. Then, in order to enhancemeasures against climate change, we reformed the conventional CSR promotion framework, and established the Sustainability
Execution Conference. This organ, under the direct control of the President and chaired by the Director and Executive Officer incharge, is responsible for determining sustainability-related policies, managing the progress of targets, and deliberating on
measures to be taken. Furthermore, in cooperation with related departments, the Sustainability Execution Conference will
incorporate measures. Reports on the evaluation of results will be submitted to the Board of Directors when necessary, to improvethe effectiveness of supervision of the Board of Directors.

●Strategy

The Sustainability Execution Conference collected and analyzed necessary data to discuss the effects of risks and earning opportunities due to climate change on our business activities, revenues, etc.
19

Short term2）Regulations for waste will be enforced incountries, because overseas ratio is highIn Fiscal 2021, we confirmed the action plan of each factory division for saving energy

CO2 emissions

Large4）Rapid increase of legal regulations in socialistchange.

Period before Degree of
each risk emerges the impact
Medium/long term

1）Risk of emergence of costs for oﬀsetting CO2 emissions

reduction of CO2 emissions in Japan per rate of consumption per production volume from FY2013 and 2030.
From now on, we will assess all kinds of possibilities, including the energy creation

Risk: Impact on the business of Meiko

Acute

Chronic

Period before
each risk emerges

Degree ofthe impact1)Disasters will become more serious (storm andﬂood damage will augment), increasing the risks Medium/of suspension of factory operation, damage to long term
assets, and employees diﬃculty in commuting

Small

2）
The augmentation of storm and ﬂood damage will disrupt the supply chain.

Medium/long term

Large1）The rise in air temperature will augment thecosts for energy and management of materials

Medium/long term

Large

Risk: Impact on the business of Meiko

Opportunities and measures1 )To proceed with measures for saving energy and reducing
waste2 )To procure renewable energy as much as possible throughin-house power generation business, and reduce costs
3 )To compensate for the insuﬃciency of in-house power
generation, we will buy electric power through oﬀsite PPAs andCO 2 -free power, to achieve the target reduction of CO 2
emissions*To promote the reduction of CO 2 emissions in a planned
manner4 )To monitor the legal regulations and measures in each country
5 )Energy-saving measures will be conducted, more energy-saving
products will be developed, and the demand for low-carbon
technologies will grow. Accordingly, business opportunities will
increase. (Establishment of new methods and technologies for
manufacturing to reduce environmental burdens)
6 )To reduce loss by improving yield rate7 )To promote the reduction of CO2 emissions in a planned manner8 )To develop and oﬀer products with small environmental
burdens9 )To increase products compatible with EVs and adapt to thegrowing market10)To respond to the expansion of business opportunities due tothe increase of telecommunication speed following theaugmentation of data transmission volume and the growth ofdemand for semiconductor PKG
11)To establish a global procurement network
12)To reduce energy consumption in distribution by improving
loading ratio13）To appropriately disclose the progress of the plan for reducing
CO2 emissions

Opportunities and measures1 ）To improve our BCP to cope with more serious disasters, tostabilize business continuity (maintenance of the supply chain,
the stable supply of energy, etc.)
2 ）To promote energy-saving plans
3 ）To strengthen our measures in the anti-disaster system-related
market●Risk management
The Sustainability Execution Conference continuously assesses risks and opportunities. If it turns out to be necessary, it will report the assessment results to the Board of Directors.
●Indicators and goals
With the goal of 50% reduction of CO2 emissions in Japan per rate of consumption per production volume from FY2013
and FY2030, Meiko will promote energy-saving activities (down 1.5%/year for electric power, down 2.0%/year for fuel per
rate of consumption per production volume) and energy creation activities, including the adoption of in-house solar power
generation. From this fiscal year, we will disclose Scope 3, and strive to decarbonize the entire value chain.

20

ESG

●Case of improvement in energy-saving performance at Guangzhou Plant

Initiatives for reducing CO2 emissions●Tendo Factory aiming to become an eco-smart factory
At the new Tendo factory, which is under construction, we aim to reduce energy consumption by 30% with measures,
including the installation of energy-saving manufacturing equipment, such as energy-saving compressors, motors, andWe attached an inverter to the air-conditioner for the clean room in the circuit SR process, reducing consumption. In order toprevent trouble in equipment and maintain its precision, we keep the air-conditioner for the clean room operating even on
holidays. Accordingly, we attached an inverter to the air-conditioner, to decrease frequency on holidays and reduce
consumption. We reduced consumption by about 54.9% per day which is equivalent to 7.95 t-CO2 in a month.

heat-pump heat exchangers, and the shift to energy-saving processes, with the goal of reducing energy consumption
by 20% for all existing factories.
Item

Purpose of use

Eﬀect

Energy saving rate

Transformer

Substation

Curtailment of iron loss and copper loss

Down30%Transformer with a load factor of 60%

Substation

Operation with maximum efficiency
Copper loss = Iron loss

Down10%Air-conditioner for the clean room

Adoption of automatic power factor adjusters

Reactor & capacitor

Reduction of loss

Down2〜5%●MEIKO Solar Park Fukushima

Energy-saving compressor

Air compressor

Reduction of mechanical friction

Down30%

Energy-saving motor

Rotating equipment

Reduction of back EMF

Down30%

Energy-saving manufacturing equipment (change of lamps)

Exposure equipment

Metal-halide lamps ⇒ LED lighting

Down30%Heat-pump heat exchanger

Heat exchanger

Securing of an APF of 5 or higher

Down80%Change of processes
Printing ⇒ Direct silk drawing

Thermal drying to UV

The heat source of a drying furnace is
unnecessary.

Down90%After the Great East Japan Earthquake, our Fukushima Factory started photovoltaic power generation in June 2015 at“MEIKO Solar Park Fukushima” using the unused land within its premises located in Hirono-Cho, Fukushima Prefecture.
Generation capacity is 3MW (megawatt) and the annual generation is 3,200,000 kWh, equivalent to the annual power
consumption of 880 typical households.
This covers the power source for more than one third of the total households in Hirono-cho, which is a step towards asustainable society, in addition to restoration and development of the local Fukushima area.
Overview of MEIKO Solar Park Fukushima
Installation area

●Case of improvement in energy-saving
performance at Guangzhou Factory

Item

We replaced LED lights with energy-saving
ones, and reduced power consumption forlighting by 53% without decreasingillumination, electricity consumption by
65,930 kWh/month, and CO2 emissions by
34.75 t-CO2/month. We plan to donate thereplaced LED lights so as not to let them go
to waste.

Comparisonof parameters

Before improvement (LED)

After improvement (LPB)

Installation of an inverter

41,454㎡

Photovoltaic power generation capacity
MKWh

4.0

11,788Generating capacity

3,026KW

2.5
1.5

Output16W

8W/6W

Service life

20,000 hours

Warranty for 100,000 hours

Light deterioration rate

10-12%/year

Lower than 2%/year

Power generation start dateMaterial

Glass (fragile)

Nano-plastic(break-proof)

Generated heat temperature

48℃〜52℃

27℃

Illumination [LUX]

150.9

204

June 10, 2015

3.7

3.8

3.7

3.6

2017

2018

2019

2020

2021

3.5

Number of solar panels installed

Estimated annual 3,200MWh（Annual power consumption
power generationof 880 typical households）

3.7

3.0
2.0
1.0
0.5
0.0

Illumination
gauge photo

MEIKO Solar Park Fukushima

21

22

ESG

Cyclical Use of Resources●Reduction and recycling of waste●Water consumption●Changes in our water consumption

A large amount of water is used in the manufacture of PCBs
for cleaning. We have reduced the amount of water used bymanaging the amount used at each facility and using
reverse osmosis (RO) water*.
We continue to carry out efforts to use the minimum amountof water required to maintain product quality in eachprocess and to use discharged water through theintroduction of a RO concentrated water system. These
efforts have proven effective in achieving reductions.

■Total consumption (1,000㎥)

We have been reducing waste based on the 3R strategy (reuse, reduce, and recycle). Continuing on from Fiscal(Based on the ﬁgure for Fiscal 2016 set to 1.0)

Rate of consumption per production volume

14,0002.0

10,500

1.5

7,000

1.0

3,500

0.5

0

FY2016FY2017FY2018FY2019FY20202020, efforts were actively made to recycle waste into valuable resources. The recycling rate of waste, thepercentage of waste that was used for purposes other than landfill, exceeded 99% at our factories in Japan in Fiscal
2021.
*Recycling above includes thermal recycling.

Vietnam Plant

Reuse of recyclable resources

0.0

Recovery of resources (rare metal) inside our plants
We installed recovery plants inside our plants to recover rare metal resources fromthe industrial waste generated in the plants.

*RO water refers to water puriﬁed using reverse osmosis. It is used for cleaning the PCBs.

Recovery of metallic copper from waste liquid produced during soft etching1．

Case of water consumption reduction at Kahoku Factory
In the Kahoku Factory, we reuse flushing water by recovering 60% of 122.4 tons of water used in the manufacturing

Photo 1: Equipment for recovering metallic
copper in Vietnam Plant

At 3 overseas plants

2. Recovery of cooper from etching waste liquid as copper carbonate

process per day.

3. Recovery of metallic gold from gold plating waste liquid
4. Recovery of palladium from chemical plating waste liquid

Flow of the processes for reusing ﬂushing water

All plants where chemical plating is conducted

New water

New water

We recover and recycle industrial waste rather than disposing of it, to prevent the
depletion of rare metal resources and protect the earth environment.

Treatment zone (ﬂushing process)New water
Relay tank
Dailite tank

Photo 2: Equipment for recovering copper
carbonate in Vietnam Plant
Pump

OK
Judgment on
usability

NG

Recovered water

Filtering

Pump

Employees VOICE
Yang Fu Jun, Chief of the Energy Conservation Section

Recovery tankAmount of water used in the process: 122.4 tons/day
Recoverable water amount: 73.4 tons/day
Recovery rate: 60%

Yan Gao Li, Vice-president of the President Oﬃce
Wang Cheng, Deputy Head of the Environmental Management Dept.

In the Wuhan Plant, we switched from the method of replacing soft etchingwaste liquid with iron powder to the electrolytic recovery method in
December 2021. As a result, the amount of sludge including copper
decreased 38% from 553 tons/month to 342 tons/month.
In addition, by decreasing steam pressure in the plant by 0.1 MPa, we saved
17,000 m3/month of natural gas (equivalent to 26.7 t-CO2).
We will continue activities for reducing environmental burdens.

23

24

ESG

Product Information
Our company, too, is required to produce environmentally friendly PCBs, including power-saving ones. Our company proposes
environmentally friendly PCBs through marketing, technological exchange sessions with clients, etc.
Developed items

Application

Embedded devices
PCBs
In-vehicle inverters and converters,
and compact consumer electronic devices

Heavy copper
PCBs

Copper inlay
PCBs

Infrastructure for recharging EVs
and in-vehicle rechargers

EPS and in-vehicle inverters and converters

Characteristic processes

・To reduce the consumption of organic materials andmetal materials by downsizing products
・The improvement in power efficiency with low inductancewould produce an energy-saving effect.
・To decrease solder consumption by embedding devices
instead of mounting them on the surface
・To enable products to tolerate high current for EVs. The
distribution of EVs would reduce CO2 emissions.
・The improvement in heat dissipation efficiency would
decrease the burden on semiconductors (loss reduction)and then decrease excess power.

・Heavy copper-embedding buildup
Technology for embedding a copper circuit with a thickness of up to
175 μm into PCBs through vacuum hot pressing.

・Products that can tolerate high current can be used for
EVs and recharging infrastructure. The distribution of
EVs would reduce CO2 emissions.
・The improvement in heat dissipation efficiency would
decrease the burden on semiconductors (loss reduction)and then decrease excess power.

・Copper inlay swaging
Technology for swaging heat-conducting copper inlay (copper block),increasing its diameter, and fixating it on the inner parts of holes on
PCBs.

・Products that can tolerate high current can be used for
EVs and recharging infrastructure. The distribution of EVs
would reduce CO2 emissions.
・The improvement in heat dissipation efficiency would
decrease the burden on semiconductors (loss reduction)and then decrease excess power.

・MSAP
Process of forming wiring patterns through pattern plating by using
ultrathin copper foil as a conductive layer.

High-end HDI
PCBs

SDGs

・Parts-embedding buildup
Technology for embedding parts in PCBs through vacuum pressing, notmounting on PCBs.
・LVH connection to electrodes of parts
Technology for electrically and mechanically connecting the electrodes ofparts and wires by forming connection holes with laser and plating copper forthe electrodes of embedded parts, differing from the general method ofsoldering PCB pads for electrical and mechanical connection.
・Large-area cavity connection to electrodes of parts
Connection technology for coping with high current and improvement in heatdissipation performance as one of technologies for LVH connection toelectrodes of parts.
・Heat-dissipating structure with a heat-dissipating resin sheet
Technology for forming inter-layer connection holes, wiring, etc. by usingmaterials with a thermal conductivity of 1 W/mK or higher, differing fromgeneral PCB materials with a thermal conductivity of around 0.5 W/mK.

・To reduce the consumption of organic materials andmetal materials by downsizing PCBs with fine wiring

Down１０％
Down１０％

Down2％
Down5％

Down3％
Down8％

Down2％
Down4％

Down１０％

Memories, RF patterns, and SiP

・SAP
Process of directly forming a conductive layer on resin and a wiring
pattern through pattern plating.

Package PCBsFCBGAHigh frequency
Millimeter-wave
PCB

ADAS, 5G devices, and IoT modules

・Hybrid structure with LowDk/Df and RF4 materials
Technology for combining LowDk (low-dielectric)/LowDf (low-loss) materials
and general materials for PCBs (RF4) through vacuum hot pressing.
・MSAP
Process of forming wiring patterns through pattern plating by using ultrathin
copper foil as a conductive layer.
・High-density LVH formation
It is possible to design high-density wiring, by shortening the distance
between the inter-layer connection holes formed with laser.

HDI＆
AnyLayer
Vehicle ECU

FR4-FLEXEPSBlack holeLow-elasticity resign
aluminum-based PCBs

Metal-base heatdissipation PCBs
25

chargers, EPS, and high-frequency
devices̶

Down5％
Down１０％With the MSAP technology, we pursue fine wiring, while assuming conventional copper
foil and prepreg materials. With fine wiring, it is possible to downsize products,
decrease the number of layers, and reduce the consumption of resin and metalmaterials.
Necessary technology for PCBs used for packaging, such as FC-BGA PCBs. By
directly forming a conductive layer on resin and performing wiring through patternplating, it is possible to do without copper foil. In addition, by conducting copper
plating on necessary parts only, it is possible to reduce the consumption of metal.

Technology used for advanced driver-assistance systems (ADAS), which have recently
become common as in-vehicle safety equipment. It is scheduled to be applied toautonomous driving of connected cars, etc. Meiko is promoting initiatives to distributeadvanced IoT technology.
The degree of freedom is so high that it is possible to freely place vias, whichconnect the layers of a PCB. Therefore, dense integration is possible. This enables
the downsizing products, and leads to the reduction of consumption of resin andmetal materials. This technology would contribute to all kinds of products that require
downsizing and high density, including EVs.
FR4-FLEX PCBs make it possible to do without connector or flexible PCBs for
products whose multiple PCBs are usually connected by a connector or for which rigid
flexible PCBs composed of flexible PCBs are used. They are also excellent in anti-noise
performance, because there are no discontinuous connection parts, such as
connectors. Accordingly, they help contribute to downsized products that do not need
to be bent multiple times, save resources, and improve their performance.

・Black hole treatment
Formation of a conductive layer on resin with carbon instead ofelectroless copper plating before electroplating on PCBs.

・To curtail the consumption of metal materials by using an
Down１０0％
alternative method to electroless copper plating
Down１０0％
・To reduce environmental burdens by using no formalin・Heavy copper plating and surface fine patterns to through-holes only.

・To conduct heavy copper plating on through-holes only, toincrease the tolerable amount of current in through-holesby two or more times.
・T o i m p r o v e t h e h e a t - d i s s i p a t i n g p e r f o r m a n c e o fthrough-holes to the level two or more times greater thanthermal vias̶

In the case of mega through-holes, copper plating is performed on necessary
through-holes only, providing high-current heat-dissipating property. Copper plating is
not conducted for unnecessary parts, so it contributes to the saving of resources.
Since the PCBs with mega through-holes can exert higher performance than ordinary
ones, it is possible to downsize the PCBs.

・To use low-elasticity insulated heat-dissipating resin toprevent solder cracking and decrease failure rate forlong-term reliability ⇒ The lifespan of each product will
lengthen considerably.

̶

Low-elasticity materials can reduce failure, such as disconnection due to solder cracks.
The lengthening of the lifetime of each product would help reduce the emissions ofcarbon dioxide during the manufacturing process.

・Metal-based PCBs with Meiko’s original low-elasticity insulated
heat-dissipating resin.

IGBT modules (for industrial

・Fusion of a special high heat-dissipating insulated resin material, acopper circuit, and base metal with high-pressure pressing equipment.

etc.)

・To produce high-density automotive PCBs in preparation
for the sophistication of electronic control of electrified
vehiclesThe distribution of EVs would reduce CO2 emissions.
・A structure in which any layer can be freely connected
would increase the degree of freedom in design, enable
the downsizing of PCBs, and then reduce theconsumption of materials

Down5％

Copper inlay PCBs are produced by setting copper blocks beneath power
semiconductors for car EPS modules, inverters, etc. to dissipate generated heat onelements efficiently. This technology curbs the rise in the temperature of power
semiconductors, so it is possible to prevent the decline in operation efficiency of thesemiconductors and improve power efficiency.

・To reduce the consumption of materials by downsizing
products
・To decrease the number of parts by using connector-lessitems

In-vehicle head lamps and EPS

machinery, EVs, power generators,

・To contribute to the provision of access to the Internet at
low cost in a universal manner

Down１０％

Meiko’s product lineup includes heavy copper PCBs that have heavy copper circuitswith a thickness of up to 175 μm in the inner layer. As the infrastructure for rapidly
recharging EVs needs to tolerate high current, we apply the technology of using aheavy copper circuit as a current pathway to contribute to the infrastructuredevelopment. Accordingly, we will help improve the convenience of EVs by shortening
their recharging time and reduce CO2 emissions by facilitating the distribution of EVs.

・Boring to bend
Method of cutting a part to bend to the depth so that the workpiececan be bent there with a machine.

Inverters, converters, on-board

Mega through-hole

・To reduce the consumption of organic materials andmetal materials by downsizing PCBs with fine wiring
・To reduce the consumption of metal materials byrefraining from using copper foil

We implemented measures for embedded devices PCBs as products developed by
Meiko.
By embedding power semiconductors, which are broadly used in EVs and consumer
products such as inverters, in PCBs, it is possible to downsize products and improve
power efficiency with low inductance achieved by shortening wires. With thistechnology, we will help improve the convenience of EVs by increasing their all-electricrange and save energy.

・Highly reliable, because warpage with respect to aceramic substrate is minor (the lifespan is two-threetimes longer, according to a power cycle test)
・Because of the integrated structure, there are few parts
constituting modules, so height and weight could bedecreased.

Down5％
Down１０％

Down50％The black hole process does not require formalin, which is generally used inconventional electroless copper plating. Formalin is one of specified chemical
substances, is considered to be toxic, and imposes a significant environmental burden.
This does not require palladium as a catalyst for electroless copper plating, so it iseffective for saving resources.

High heat dissipation metal-based PCBs are used for inverters, converters, etc. toimprove power sources conversion efficiency, curtail power loss, and reduce power
consumption.

*Compared by our company with conventional processes and PCBs.

26

ESG

Supply ChainAt Meiko, we have formulated the “Basic Procurement Policy” as a guideline for each of our business
partners to understand our CSR policies and environmental policies. At the same time, we are promoting
CSR activities through cooperation among companies by enhancing initiatives on environmental
protection and action.

Basic Procurement Policy
At Meiko, we encourage the continuation of procurement activities based on the “Basic Procurement Policy” and “Action Guidelines
for Purchasing Deals” below.
As a basic concept, we at Meiko believe that the most important aspect of our procurement activities is to establish win-win
relationships and relationships of mutual trust with our business partners for further growth as we live in an era in which an integrated
supply chain ranging from procurement of materials from business partners to production, distribution and sales is required.
We ensure cooperation not only between the production and sales bases in Japan but also with overseas bases, and select business
partners through a comprehensive assessment of quality, delivery punctuality, price, and management and business continuity in caseof an accident and a disaster as well as UN’s SDGs (human rights, equality, environment and partnership) under the basic principles of(1) understanding our Basic
Procurement Policy, (2) compliance●Basic Procurement Policy
with laws, ordinances, and social
1. Procurement activities optimized for our global production in accordance with thenorms, (3) environmental
Action Guidelines for Purchasing Deals
protection, (4) exclusion ofantisocial forces and (5) RBA (the2. Smooth, fair, appropriate procurement activities based on closer communicationand strengthened cooperation with our business partners
former EICC) Code of Conduct. In
this way, we are strongly
3. Strengthened environmental measures (chemical substances/green procurement)emphasizing CSR practices within
4. Promotion of elimination of conflict minerals based on RBA and surveys on the
our supply chain.
employment of young workers

Request to our business partners
In accordance with the measures for theenvironment included in our Basic
Procurement Policy, we are calling for morethan 800 business partners to understandand practice matters concerning the points
shown on the right in order to protect the
global environment. In addition to control ofgreenhouse gas emissions, waste reduction,and management of specified chemical
substances, which we naturally undertake in
our internal production activities, we also
implement a variety of measures to ensure
environmentally friendly procurement. We
ask our business partners to implement andrecommend green procurement, and also
request that distribution and sales activities
be undertaken in an environmentally friendly
manner. Specific results of activities for
Fiscal 2021 include enhanced measures forminimizing procurement risks caused bynatural disaster, epidemics, etc., surveys on
conflict minerals and employment of young
workers based on the RBA standard format
and environmental measure surveys basedon the latest version of regulations such as
REACH regulations.

27

Measures concerning purchasing and procurement
Internal control and compliance

At Meiko, we undertake smooth operations with our business partners by complying with the following rules on purchasing andprocurement activities. We carry out enhanced appropriate, perpetual transactions with our business partners by undertaking
internal training and confirming compliance in relation to adherence to customs regulations, laws, ordinances, and social normsof the relevant regions and nations in our global procurement activities as well as the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors in Japan.

Procurement policy based on ESG management

Under the Business Principles of Meiko, we put together social issues in the mid/long-term business fields, which are specified in
our mid/long-term vision, with the ESG (environment, society, and governance) framework, and will engage in business activities
for the purpose of attaining the SDGs that are considered important for Meiko and stakeholders by utilizing our strengths.
● Code of Conduct of the Meiko Group

1. Fair, appropriate operations with business partners shall be undertaken through compliance with laws
and ordinances concerning purchasing and procurement activities.

2. Business partners’ information that we obtain through purchasing and procurement activities shall be kept confidential andthe information security system for preventing the leakage of confidential and personal information shall be strengthened.
3. Entertainment and gifts from business partners shall be permitted to the extent that would normally be considered reasonable,
and shall be prohibited if such acts result in personal profits.
4. Efforts shall be geared toward eliminating antisocial forces, procurement of conflict minerals and young labor.

Environmental measures (green procurement)
In accordance with the “Meiko Group Green Procurement
Standards,” we encourage environmentally-friendly
purchasing and procurement activities together with ourbusiness partners.

1. We confirm laws and regulations (RoHS Directive, ELV● Request to our business partners
1. Focus on green procurement, compliance with the green procurement
standard, provision of information concerning “eco products”

Directive, and REACH Regulations) and the content ofenvironmentally hazardous substances to encourage theprocurement of compliant products and maintain andimprove the environmental quality of our products.

2. No idling and other efforts to reduce CO2 emissions① RoHS Directive: E U r e s t r i c t i o n o n t h e u s e o f c e r t a i nhazardous substances in electrical and electronicequi pment

3. Waste reduction② ELV Directive: A di rect i v e adopt ed by t he E U t o reducet he env i ronment al burdens of end-of -l i f e v ehi cl es

4. Cooperation with contact in case of an emergency● Action Guidelines for Purchasing Deals (excerpts)
1. To recognize that purchase would produce profits, and always
contribute to business administration proactively
2. To always respect courtesy, keep moderation in good faith, andmake efforts to be respected and trusted by business partners
3. To follow related laws and regulations, and operate business fairand square
4. To understand well the purposes of green procurement when selecting
materials, etc. and actively carry out environmental protection activities
5. To avoid having a personal stake in business partners and prospective business partners③ REACH Regulations: E U l a w f o r p r o t e c t i n g p e o p l e ’ sheal t h and t he env i ronment④ JIG（1-R）： Legally controlled substances specified in the CSCL
guidelines concerning the disclosure of information regarding
chemical substances contained in electrical and electronicequipment⑤ Customersstandards

2. W e e n c o u r a g e t h e s i g n i n g o f t h e M e m o r a n d u m o nEnvironmental Protection and Guarantee of Non-Use ofEnvironmentally Hazardous Substances to ensure
environmental protection together with our business partners.
We are pursuing the signing of this Memorandum andGuarantee with our major business partners, including
manufacturers to whom we outsource processing.

3. We strive to reduce the discharge of industrial waste andencourage the use of this waste as a valuable resource byrecycling it or using it in other ways together with ourbusiness partners.

artnerBusiness P

s VOICE

Hirohiko Hirao
Director in charge of R&D and
the Vice Chief ofChemicals Business Dept.
Shikoku Chemicals Corporation

Meiko Electronics Co., Ltd. has been using ourcopper surface treatment agent for over 20 years. We
would like to express our heartfelt thanks to them.
While the social environment is changing considerably
due to globalization, the awareness of corporatesocial responsibility is drastically changing. Meikoconducts consistent CSR activities and focuses onenvironmental measures in all processes including the
procurement of materials, manufacturing, researchand development. I was deeply impressed by theiractivities for distributing renewable energy throughsolar power generation and realizing a sustainable
society. In step with their activities, our company
started manufacturing products to be delivered to
Meiko with electric power generated through solar
power generation only this year.
We will make efforts to develop new products, so as
to support the technological innovation of Meiko,which not only implements environmental measures,
but also actively operates business amid the unstableglobal economy, as much as possible. We would
appreciate your continued patronage.

28

ESG

Activities for Quality Assurance
While securing the reliable and safe quality of products, we will improve the attractiveness and follow our Business Principles of● Objective evaluation for securing reliability and safety (design review)“providing the best-ever products and services for our customers.”

We carry out design review (DR) to define design quality at the stages of designing and developing new products before

We examine each element of the lifecycle of each product from the viewpoints of reliability and safety, take measures formass-production.

improving or upgrading our products, and deliver products to customers.

In the DR system of the Meiko Group, risks are assessed to rank them, and processes in the development phase are

We strive to optimize QCDS*, which have trade-off relationships with each other, through communication with customers, tosystematized for each rank.

realize attractive quality and satisfy requests from customers.

At the execution stage, mainly the production design, technology, and quality assurance divisions review changed points and*QCDS stands for “Quality,” “Cost,” “Delivery,” and “Service.”

past trouble, discuss products’ tolerance of risks and the feasibility of manufacturing, and take improvement measures forpreventing the recurrence of past trouble, etc. to meet requests from clients.

Quality policy

Product lifecycle

Meiko is committed to contribute to society by supplying customers with products that are backed by world classtechnology and guaranteeing the highest level of customer satisfaction, resulting in improved company profits andemployee well-being. Therefore, we always set quality goals to improve continuously the quality of our operations aswell as our products by ensuring the management cycle in every process of work. Needless to say, we will comply

Phase ofreceiving requests

Development phase【1】Stage of receiving requests from clients
Stage of developing element technologies【2】Stage of preparing for production

Manufacturing phase

Actual use phase【6】Mass-production stage 【7】Actual use stage【3】Stage of designing production processes【4】Trial production stage

all statutory and regulatory requirements.

【5】Stage of shifting to mass-production

Ensuring quality that meets customer expectations and instills confidence

Demanded
specs/items

New points/changed points

Quality of design
Design review
Determination of materials and structures
Process design
Reliability check

Initiatives to meet customers request

Procurement of materials● M-QMS (Meiko Quality Management System)
The products of the Meiko Group are used by a broad range of customers in the ﬁeld of electronic devices. In
particular, the importance of quality of in-vehicle products is growing further. Accordingly, we adopted theAutomotive Process Approach (APA), which is an obligatory requirement of the International Automotive Task

The quality, characteristics, and reliability of PCBs are significantly affected byForce (IATF) 16949, in addition to the quality management system based on ISO 9001: 2015. In addition, wethe quality of their raw materials and secondary materials for processing them.

conduct analysis emphasizing customer-oriented processes (COPs), examine quality at the design anddevelopment stages, carry out global quality assurance activities, and implement external process
management, to meet requests from customers.

As procurement becomes global, it becomes necessary to procure materials
with globally unified quality.

Furthermore, we are promoting initiatives to improve quality by continuously enhancing the quality

In order to satisfy clients’ requests, it is important to propose materials suitedmanagement system.

for their products and secure the quality of procured materials.
We distribute the “Quality Control Standards for Business Partners” formulated

Status of certiﬁcation of ISO 9001 and IATF 16949 at manufacturing bases

Certifications

Headquarters

Advanced
PCB
Center○○Fukushima Yamagata Meiko Electronics Guangzhou
Factory
Plant
Kahoku Factory Ishinomaki Factory○by the Meiko Group, to have our business partners understand and follow the

China

Japan

29

● Quality of procured materials (measures for securing quality in external processes)○○

To acquire
IATF in 2024○○

Vietnam
Wuhan
Plant

○
○

quality control and change management items in the quality management

Thach That Thang Long
Plant
Plant

○
○

○

system of the Meiko Group.
In addition, we regularly audit the business operations of business partners, tocheck whether they follow our standards and maintain/secure quality.

30

ESG

Creation of a Comfortable Working Environment
In line with the concept that “the greatest asset of a company is its human resources,” we focus on thecreation of a comfortable working environment that is safe, secure, hygienic for all our employees, respects
their diversity, and support them to develop.

Promotion of women s participation and advancement
The ratio of female employees in Meiko exceeded 20%, as women accounted for 51% of the employees recruited in
Fiscal 2020, and further increased to 22%, due to the active recruitment in Fiscal 2021. We will keep actively
recruiting women, and put energy into the promotion of female employees to managerial positions.
■Persons●The number of female employees
170

180

Respect for diversity

160

At Meiko, we respect human rights and strive to recruit, evaluate, and treat our employees without

120

140

discrimination on the basis of race, creed, religion, nationality, age, gender, disability, and other attributes, sothat they are able to show their true abilities.

131

117

120

164

●The number of female managers■Persons

40

40

31

130

38

38

FY2020

FY2021

33

26

100

20

80
60
40

Allocation and exchanges of global human resources
Meiko makes efforts to recruit non-Japanese personnel. We
recruit desirable personnel, including new graduates andmid-career workers, regardless of nationality. At present,
there are 31 non-Japanese employees recruited in Japan,
including Chinese and Vietnamese nationals.
In addition, we train and utilize non-Japanese personnel,
based on the intra-company transfer system and theprograms for improving skills. Currently, 8 employees from
Chinese and Vietnamese plants are working in Japan basedon the intra-company transfer system, and 7 employees fromthe Vietnamese Plant are working at Fukushima Factory
based on the corporate programs for improving skills.

Furthermore, 16 Vietnamese workers managed by asupervising organization for improving skills are scheduled towork at Yamagata Factory. By using such systems, over 300
non-Japanese employees have undergone training in Japan,
and some of them engage in the operation of overseas
plants, including the general manager (plant manager) of
Guangzhou Plant and executives of overseas plants.
On the other hand, the number of Japanese expatriates
working in local subsidiaries has been decreasing year by
year due to an increase of non-Japanese managers, andis now less than one third of the number at the peak, but it
is 36.

s VOICEeeylopGlobal Em
I graduated from a Japanese university, and joined this company in April 2021 as a new

Guen Gock Jeppu
Module & Package Group
Eastern Japan Marketing Dept.

graduate.
After a 6-month training period, I was assigned to the marketing section in October 2021,
and am now in charge of clients related to modules and packages.
The products of these clients have difficult specs, and we need to produce prototypes in ashort period of time and the demand for quality is rigorous. Furthermore, our clientcompanies have production bases in not only Japan, but also Taiwan and the Philippines.
Accordingly, our company makes efforts to meet requests from clients in cooperation withthe members of domestic factories and plants in China and Vietnam.
I feel that I lack technical knowledge and common sense as a member of society in many
aspects, but my colleagues kindly guide and support me, so I really appreciate them. I will
make every possible effort to increase the tasks I can deal with, grow early, and contribute to
our company.

Initiatives for employing disabled people
Variations in the statutory number and actual number of disabled employees
20
18
16
14
12
10
8
6
4
2
0

31

Statutory number ofdisabled employees

13 13

15

13

Achieved the statutory number
Actual number ofof disabled employees
disabled employees

16

17
13

14

17

18

Since Fiscal 2018, the actual number of disabled employees in Meikohad been below the statutory number, but we actively recruited
disabled people, and achieved the statutory employment ratio again in
September 2021. At present, 13 disabled employees are working (No.
of recruited ones: 18).
Meiko aims to create a workplace where disabled people can work andbuild a bridge between society and disabled people, in order to fulfill

FY2017FY2018FY2019FY2020

FY2021

our social responsibility.

20
0FY2016FY2017FY2018FY2019FY2020

FY2021

・Number of employees as of the end of each fiscal year (excluding Group companies)0

FY2016FY2017FY2018FY2019・Managers at or above the rank of chief (excluding Group companies)

Parental leave and reduced work hour system

Meiko Daycare Center

For female employees, a reduced work hour system is

We opened an in-house nursery in April 2020 for the
purpose of improving employee benefits and promoting
opportunities for women to play an active role in thecompany. The facility is located adjacent to the
Headquarters, allowing parents to work safely with theirchildren by their side. Our childcare philosophy is to“carefully nurture the ability to fully grow in a family-likeatmosphere,” and our goal is to provide childcare that is
flexible to the working patterns of our employees and that is
personalized to each individual child. Since its opening, thecenter has been used by 16 employees, including those fortemporary care. We will continue to support balancing workand childcare and work to develop human resources.

promoted for those returning from maternity or parental
leave. In Fiscal 2021, 7 employees took parental leave, 3employees returned to work and 16 used the reduced
work hour system (excluding Group companies).

duced
Leave, Re
Parental
and
m
te
ys
rS
Work Hou ter User s VOICE
Cen
DaycareOffice of the President and CEO
Yasuko Takahashi

Nobikko

I gave birth to a child in September 2021, and took one-year
parental leave. At present, I entrust Meiko’s daycare center“Nobikko” with caring for the child, and work with the reduced
work hour system.
My section and tasks are unchanged from before childbirth,but my colleagues support me by reducing my work hours andwhen I look after my child at the time of a sudden onset offever. Thanks to them, I can work while raising my child.
When my one-year parental leave ended, nursery schools in
the neighborhood of my home were already fully occupied, but
thanks to the in-house nursery, I was able to resume my worksmoothly.
The daycare center’s staff take a walk with children to a nearbypark on fine days, give a crafting lesson, and so on just like thestaff of ordinary nursery schools. At an event on the day before
the beginning of spring, a Halloween party, etc., parents canvisit the daycare center during their working hours to see theirchildren.
At present, the staff of the daycare center look after a small
number of children aged 1 to 3 years in the same room. My
child apparently enjoys every day thanks to the staff’s care. It
has been one month after my child got enrolled in the daycare
center, and it seems that my child prefers playing in the
daycare center over staying at home.
The nursery is very helpful, as I can entrust its staff withchildcare and concentrate on my work. Thanks to theunderstanding, cooperation, and warm atmosphere of mycolleagues, I can work and raise my child in an enjoyablemanner. I feel grateful to them.

32

ESG
Human resource development
At Meiko, we provide job-class-specific trainings. These training programs are
aimed at extracting the potential ability of individual employees and cultivating
human resources who will achieve our Business Principles in a mid/long-term
vision. In the job-class-specific training, directors give a lecture titled “Lecture
for Meiko’s leaders and managers” to directly convey ideal human resources
for our company to employees.
In addition, as a support for our employees to engage in voluntaryself-development, our company pays incentives for obtaining skill certifications
and bears a part of employees’ expenses for language study and e-learning.
In order to train employees at overseas plants as part of efforts to develop

For Shareholders and Investors Improvement and Expansion of IR
Future Plans

Major Activities in FY2021
Held meetings including results briefings for
institutional investors, analyst meetings, andsmall meetings, also made several investor calls
Produced English versions of IR tools for foreign
investors

Continue holding explanatory meetings
Continue globalization and deliver valuable
information for investors

human resources of the Meiko Group, we utilize the intra-company transfer

One of the pledges made in our Code of Conduct is:system and the programs for improving skills. We resumed the transfer of

We communicate with shareholders as well as our stakeholders, including customers, investors, businessemployees to Japan, which was suspended due to COVID-19, as thepartners, and employees, in an effort to actively, fairly, and promptly disclose corporate information andrestriction on entry to Japan has been lifted.

enhance the transparency of our corporate activities.

Promote the development of a safe, comfortable working environment and health improvement

Based on this pledge, we are striving to maximize our corporate value by actively engaging in sound, fair

Initiatives for safety and healthcorporate activities while complying with laws and ordinances.

Based on the Industrial Safety and Health Guideline, we aim to develop a working environment in which all employees can workin a physically and mentally safe manner with peace of mind and exert their respective abilities to a sufficient degree.
In addition to the safety and health committee for each base, which is set forth in the Industrial Safety and Health Act, weorganized the global industrial safety and health committee, which is superior to the safety and health committee, to manage theentire corporate group.
In addition, we declared health-oriented management, to proactively prevent occupational injury and illness and enhance thehealth of employees through group-wide efforts.

Industrial Safety and Health Guideline
In line with the concept that “the greatest asset of acompany is its human resources,” at Meiko Group we
focus on the creation of a working environment that issafe and secure for the mental and physical health of all
our employees, and allows them to fully demonstrate
their individual capabilities.
1．We will comply with the regulations and in-houserules related to industrial health and safety as we
endeavor to eliminate dangers in all workplaces.
2. We will conduct risk assessments for our
workplaces, set goals for work environment
improvements and continually work toward reducing
work accident risks.
3. We will ensure that each and every employee isaware of industrial safety and health initiatives as we
endeavor to improve awareness of safety and health.
4. We will endeavor to actively support the maintenanceand improvement of the mental and physical healthof our employees.

Timely and adequate disclosure of information
In accordance with the timely disclosure regulations, we adequately disclose key information considered to influence theinvestment decisions of our shareholders and investors. We also disclose other key information via prompt, adequate, and fairmeans to ensure the transparency of our management practices.

Health-oriented Management Declaration

For foreign investors
Management Philosophy: “We provide thebest-ever products and services for our customers
through Meiko’s manufacturing, thus contributing
to the creation of happiness in employees andsociety.”
Meiko declares the Health Initiative in order to realize
its Management Philosophy
by fostering a corporate culture that enables employees
to work smiley

In order for foreign investors to have a better understanding of our business activities, we have been promoting the globalizationof IR activities, including the production of IR tools in English, such as convocation notice of the shareholders’ meeting,presentation documents, shareholders’ newsletter and documents for results briefing.

Shareholders newsletterTo ensure a better understanding of Meiko, we publish the MEIKO REPORT twice a year toprovide shareholders with information on Meiko.

and actively with health both in mental and physical.

Response to COVID-19: Corporate activities for leading a daily life while coping with the novel coronavirus

In response to the declaration of a state of emergency issued in April 2020, the subsequent declarations of a state of emergency
issued intermittently, and pre-emergency measures, we have strived to prevent infection among employees following therequests from the government.
We will continue thoroughgoing measures for preventing infection, while keeping up with the latest information and carrying out
social and economic activities.
As the labor environment has changed considerably due to COVID-19, we will implement more flexible measures while
communicating with employees.

33

34

ESG

Local Contribution
At Meiko, we encourage social contributions by our Headquarters and group companies to build close
relationships with local communities. We will continue to actively participate in environmental beautification
activities and other events organized by the local governments in the various areas. At the same time, we will

Action 【Wuhan Plant, China】
Participation in testing activities related to the novel coronavirus
1
In 2021, our company dispatched voluntary staff for nucleic acidtests in Industrial Park in Wuhan Development Zone, to compensate
for the extreme shortage of infection prevention staff in Wuhan City.

Action4【Thang Long Plant, Vietnam】
Scholarships and donations

Like in the previous year, we offered scholarships to 200
excellent students in the industrial park and 4 neighboringvillages, and sent gifts to underprivileged households.

fulfill our responsibility as a good corporate citizen by encouraging social contribution activities in each local
community.
Wuhan Plant, China● Support of the underprivileged households in Hubei Province.
● Cooperation with health officials in nucleic acid tests.

Guangzhou Plant, China● Participation in the local blood donation activities.
● Donation to local elementary schools.

● Support of local public safety activities.

Vietnam Plant● Donation to the fund for preventing COVID-19.

● Donation of 10,000 face masks to the healthcare centerin Thach That district.
● Donation of food and face masks, disinfected water andclothes for preventing infection as items for preventing
COVID-19 to the People’s Committee, the healthcare
center, and the public safety division of Phung Xa
Village.
● Donation to the Vietnam Fatherland Front in Thach That
district.
● Donation of gifts to the People’s Committee of Phung
Xa Village.
● Donation of quick COVID-19 test kits to the healthcare
center in Thach That district.
● Donation of gifts to the People’s Committee of Phung
Xa Village and the association of the blind in Thach That
district.
● Donation of quick COVID-19 test kits to the People’s
Committee of Thach That district.

Thang Long Plant, Vietnam● Continual participation in the social responsibility
committee of Thang Long Industrial Park Corporation(TLIP).
Provision of scholarships for 200 excellent students in
the industrial park and 4 neighboring villages.
Gifts to the industrial park and impoverished areas of 4neighboring villages (152 persons).
● Cash grant to a computer support fund for students in arural area (Dong An District) for online education due to
COVID-19.
● Cash grant to the committee for the prevention of thenovel coronavirus infection (COVID-19) in Dong An
District.

Action 【Guangzhou Plant, China】
Participation in the local blood donation activities
2
We participated in the local blood donation activities.

Action5【Headquarters/Advanced PCB Center】
Sponsorship of the spring game of the Ayase City
Children s Baseball Foundation and the 13th Meiko Cup

We held Meiko Cup, sponsoring Ayase City Children’s BaseballFoundation.

Headquarters/Advanced PCB Center● Sponsorship of the spring game of the Ayase City
Children’s Baseball Foundation and the 13th Meiko Cup.
● Donation of Asahi Photo News’ “Prevention of car
accident campaign” leaflets to neighboring elementaryand junior high schools.
● Sponsorship of the 45th fireworks display (with noaudience) hosted by the youth branch of the Ayase City
Societies of Commerce and Industry.
● Sponsorship of the Kanagawa Prefecture’s Skills
Competition for People with Disabilities, Abilympics
2021.
● Fund donation for the operation of the “Fureai-no-ie”
managed by the Ayase Council of Social Welfare.
● Collection of eco-caps to distribute vaccines to children
around the world.

Action 【Vietnam Plant】
Donation for the prevention of COVID-19
3
In order to cope with COVID-19, we donated money, test kits, etc.
to hospitals and groups.

Action 【Kahoku Plant】
6
Provision of factory visits and internships
We allowed local high school students to tour our factories andaccepted interns.

Kahoku Factory● Provision of factory visits and internships for students oflocal high schools.
● Provision of factory visits and internships for students ofjunior colleges.
● Participation in blood donation activities.
● Donation of photo news board to neighboring
elementary school.
● Participation in the home game event of Montedio
Yamagata with the junior sport club of local elementary
schools.
● Local cleaning activities (weeding) in Yachi Industrial
Complex.

Action 【Fukushima Plant】
Participation in clean-up activities in Hirono Town
7
A river beautification event was held for the purpose of conserving
or restoring the good river environment, involving local citizens,
river protection groups, and others. From our company, 6
employees, including 3 Vietnamese interns, participated.

Fukushima Factory● Participation in blood donation activities (twice a year).
● Participation in clean-up activities in Hirono Town.
35

36

ESG

Governance (Management Report)

Expertise and experience of Directors and auditors

To ensure that operations are efficient and appropriate, Meiko has improved its transparency and established a management

Name

Position in the
Company

GenderOutsideDirectorframework that will earn the trust of its stakeholders, establishing a system that allows audits and internal control to function
appropriately.

○

Male

Director andMasakuni Shinozaki Senior Managing
Executive Oﬃcer

Male

○

Director andSenior Managing
Executive Oﬃcer

Male

○

Director andAtsushi Sakate Managing Executive
Oﬃcer

Male

○

Director andYoshihito Kikyo Managing Executive
Oﬃcer

Male

Shigeru Naya Director

Male

Board of Auditors

Yoon Ho, Shin Director

Male(Foreign
Nationality)

Accounting Auditor

Nao Tsuchiya Director

FemaleYosuke Nishiyama Director

Male

Takashi Harada Director

MaleToshifumi Kobayashi Director

Male

Takahiro Matsuda Senior Corporate Auditor

Male

Hiroshi Miyauchi Audit & Supervisory Board Member

Male

Corporate governance system
Meiko is a company with the Board of Auditors, along withmanagement. The Board of Directors is comprised of 11

the Board of Directors and accounting auditors. As for

Directors, 4 of whom are outside directors. The Board of

Directors and auditors, we invite outside directors andAuditors consists of 3 auditors, 2 of whom are outside

outside auditors who are highly independent from andauditors.

have no special stake in our management, and reinforce

We disclose the situation of compliance with the

our audit and supervision functions towards the

Corporate Governance Code on our website.

● Corporate Governance System at Meiko

Junya Wada○

Appointment/Dismissal

President & CEO
ReportInstruction

Executive Officers andDivision Heads
Risk Management and Compliance Office
Contact Point for Whistle-Blowing

NotifyDivisions, affiliatedcompanies, employees

Instruction＜Audit Function＞

SupervisionInternal Audit Office

Cooperation

ReportSupervisionInternal Audit
Internal Control and Audit

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○
Outside○Independent

OutsideIndependent

○

○

○

○

○

Internal Audit
Internal Control and Audit

Outside Law Office

37

○

○

Board of Directors

Report

○

○

Sales

Meeting

Appointment/Dismissal

Risk Management andCompliance Committee○

Yuichiro Naya President & CEO

Corporate Governance

Shareholders

Expertise and Experience
Finance and Manufacturing,
Corporate Legal andIndustry Global(Overseas WorkManagement Risk Management Accounting Technology, R&D Knowledge Experience)

Board of Directors

Board of Auditors

The Board of Directors consists of 11 Directors, including 4
outside directors. The Board of Directors is responsible for
specific consideration, discussion, and decision-making ongroup-wide management strategies and issues, as well as
for supervising the execution of business by each groupcompany. In addition, the introduction of an executive
officer system separates management decision-making
from business execution and realizes flexible
decision-making.
Moreover, we have established an internal control system
and a risk and compliance management system to create
an environment that enables aggressive management witha sharp distinction between risk and profit.

The Board of Auditors, consisting of 3 auditors including 2
outside auditors, audits the status of business execution
and internal control systems. The senior corporate auditor,
who is well versed in internal affairs, and the outside
corporate auditors, who have experiences in the electronicparts industry and a high level of expertise and insight inlaw, engage in in-depth discussions from an independentand objective perspective. The Board of Auditors verifies
the appropriateness and legality of accounting andaccounting-related internal controls by attending important
meetings such as the meetings of Board of Directors andthe Management Committee, collaborating with accounting
auditors and the Internal Audit Office, and conducting
audits of internal departments and affiliated companies.

Kotomi Ejiri

Audit & Supervisory Board Member Female

Outside Outside director or outside auditor

Outside○Independent

OutsideIndependent

○

○
○

○
○

○

○
○

OutsideIndependent

OutsideIndependent

Independent Independent oﬃcer as stipulated by the stock exchange

38

ESG
Governance (Management Report)

Internal control concerning ﬁnancial reporting

Director s Message
In the Power Electronics Dept., I concentrate on the R&D of PCBs while putting importance onheat-dissipating performance, and the start of mass-production. The heat generation problemof electronic devices is becoming more serious year by year, and it is now difficult to develop
high-performance products without solving the heat generation problem. As our originaltechnology for curbing heat generation with the structure of a PCB, our company announced
mega-through holes, which are highly evaluated by many clients. We are now preparing for the
mass-production of them. We also developed metal-based PCBs using an insulated
Director
Shigeru Nayaheat-dissipating material with a thermal conductivity of 16 W/m.k, which is one of the highest
in this industry. The metal-based PCBs are highly evaluated as they are used for inverters, etc.
We will develop PCBs to be used for controlling power sources in a highly efficient manner,and make efforts to broadly contribute to society.
We would appreciate your continued support.

Under its Basic Policy on Internal Control System andaccording to the Practice Standards for Management
Assessment and Audit concerning Internal Control overFinancial Reporting set by the Financial Services Agency,
Meiko developed policies and plans concerning the policy,
procedures and methods for evaluating our internal control,
the framework of valuations, the scope of evaluations,evaluation schedules and recording and storage of evaluation
results, and we have set a framework for evaluations led bymanagement. In line with these policies and plans, following
Fi s cal 2020, we eval uated the effecti venes s of ourcompany-wide internal controls (including account settlement
and financial reporting processes) that could have asubstantial effect on our consolidated financial reporting once
again in Fiscal 2021. As a result of this evaluation, we statedthat “Our internal control over financial reporting has beeneffective” in our internal control report for Fiscal 2021 andreceived appropriate opinions from our auditors.

Internal control of the Meiko GroupInternal Audit Oﬃce

Board of Directors

Board of Corporate Auditors● Assistance in● Passing resolutions● Audit and validation

improving internal
control,
preparations forevaluations andcreation of reports

on internal control
policiesof the effectivenessof internal control● Passing resolutions

on the improvement/promotion ofinternal control

President & CEO● Operations and directions concerning internal control● Confirmation of the effectiveness and coordination of internal control

Group companies departments responsiblefor implementing internal control

ComplianceInternal Control

Major Activities in 2021

Future Plans

These coordinate with each other to establish corporate governance. Internal control, as part of corporate

Response to the “Power Harassment Prevention Act,”
which was enforced in June 2020

Compliance with the revised Act on the Protection of
Personal Information

governance, is essential for ensuring increased management efficiency and the fairness of all company

Education of managers and leaders about harassment

Dissemination and rollout of Compliance Handbook

activities. The effectiveness of Meiko’s internal control is evaluated, and the results of these evaluations are

Revision of Compliance Handbook

Compliance awareness survey

Meiko’s corporate governance system includes external directors, auditors as corporate monitoring function,accounting auditors, and the Internal Audit Office for ensuring fair management and high level of transparency.

used to make further management improvements. This is our mission to fulfill our corporate social responsibility
and we, as the Meiko Group, will promote these activities.

Meiko positions compliance as a critical aspect of management. Our corporate activities comply with laws and ordinances, social

Basic Policy on Internal Control System

Monitoring through internal audits

Our Board of Directors passes resolutions and seeks to

The Internal Audit Office has been established as therefine the following aspects of our system (Basic Policy oninternal audit division to monitor the effectiveness ofInternal Control System) for ensuring proper operations ininternal control by conducting internal audits of theaccordance with the Companies Act and Ordinance forCompany and the Group companies, and to ensure that

Enforcement of the Companies Act.

information on the results is shared with corporate
auditors.

norms and corporate ethics.
To promote compliance, our activity standards are codified in the Corporate Charter of the Meiko Group and the Code of
Conduct of the Meiko Group, and the framework of our activities is explained in our Risk and Compliance Regulations.

Compliance Handbook● Basic Policy on Internal Control System for FY2021

In order to raise awareness of compliance,

1. A system for ensuring compliance within the Meiko Group

Compliance Handbook is distributed to all

2. A system for storage and management of information
concerning the execution of duties by our Directors

executives and employees. (Revised in March

3. A system regarding risk management within the Meiko Group
4. A system for ensuring that the duties of Meiko Group
Directors are executed efficiently
5. A system for ensuring proper operations by the Meiko Group
6. A system relating to employees who will assist theauditors with their duties

2021)

Explanation with color illustrations

Introduction of the reporting contact point

7. A system for reporting to auditors
8. A system for ensuring the effective execution of audits byauditors

39

40

ESG
Governance (Management Report)

Compliance e-mail newsletter
Monthly newsletter is distributed electronically.

The revised Compliance Handbook is available in print andas an e-learning resource.

Eliminating antisocial forces
It is stated in the Corporate Charter that Meiko refuses to have anything to do with any antisocial forces including gangsters. We
work in close cooperation with external dedicated institutions such as the police and the National Center for Removal of Criminal
Organizations to resolutely eliminate antisocial forces.

Introduction of the helpline
We set an internal desk and an external desk (law office) for receiving whistle-blowing. Upon receiving a notification or the like, wewill investigate the case and facts, and if we confirm an act that is subject to whistle-blowing, we will immediately implement
corrective measures and recurrence prevention measures. We also formulated whistle-blowing regulations, so that none of

Posting compliance cases to the in-house website

Published as a booklet

whistle-blowers, cooperative employees, and others will suffer detrimental treatment, and if there is anyone who has unfairly treatedor harassed whistle-blowers or the like or anyone who is involved with whistle-blowing or who obtained information on

Every month, an example of compliance case is introduced

whistle-blowing discloses information on whistle-blowing without any reasonable grounds, disciplinary action will be taken in

and explained with illustrations on in-house website.

accordance with in-house rules.

●Helpline Flow

Rollout in e-learning

Compliance education through e-learning
Compliance Education during COVID-19
In addition to the e-learning version of ComplianceHandbook, the training, which was originally scheduled tobe conducted as group training in a conference room, isnow being conducted in the form of streaming video
materials. In addition, we are implementing complianceeducation in a manner that enables telecommuters toparticipate in the training while adhering to the “avoidance ofdense gatherings,” which is an important measure in thefight against COVID-19.

Whistleblowernom Perso
VOICE fr
in Charge
Internal Reporting
Contact 1

Internal Reporting
Contact 2External Reporting Contact(Available in English, Chinese, Vietnamese, etc.)

Deputy General Manager,
Legal and Compliance Department
Takashi Katsumata

The Meiko Group has established sales offices in the
United States, Europe, India, and ASEAN countries, inaddition to large-scale production bases in Vietnam andChina, and employs over 10,000 people worldwide. In
order for the entire organization to be compliant, theawareness and actions of each and every employee areimportant, and we strive to communicate the spirit set
forth in our Business Principles and Corporate Charter
to all employees in an easy-to-understand manner.
In recent years, as values and work styles have become
more diverse, the compliance required or expected ofcompanies has also changed. In order to respond andadapt to these changes, it is important to have thenecessary knowledge, which is why we revised ourCompliance Handbook in Fiscal 2020.
We will continue to respond to the changing social
environment and strive to foster a corporate culture thatis rooted in compliance.

Administrative Section Chief

AuditorCommittee Chair

Risk Management and Compliance Committee(Including Directors and Auditors)

Streaming of videos for e-learning
41

42

ESG
Governance (Management Report)

Information Security

Risk Management

Our main business is the manufacture and sales of electronic PCBs. To continue our business, we believe that

Meiko has created a set of Risk and Compliance Regulations, and also BCP Basic Policy and Emergency

it is essential that our customers have faith that we properly manage customers’ important information. As a

Manual thereunder, which assume a variety of risks associated with environments, disasters, quality andcompany-wide initiative on information security, we have obtained ISO 27001 certification in Information

information security. We have also created a Business Continuity Plan (BCP) for each of our factories to

Security Management System (ISMS), with which we will establish, maintain and strengthen information
management systems with our customers.

● Information Security Policy
Based on our Business Principles, we implement measures to strengthen our information security system inorder to protect our customer information and information
assets from threats including fraudulent access, disasters,
criminal acts and cyberattacks. We also take steps toraise awareness about information security amongst the
management and employees. Considering that theabove-mentioned information security risks as one of therisks we may face, we have set out the following policies
on information security and declare that, in line with ourBusiness Principles, all management and employees
should devote concerted efforts to implementing thesepolicies.

1. We pursue continuous improvement in our information security system.
2. We provide every protection for our information assets andcontinuously enhance the information management function.

3. We comply with laws, ordinances, and norms and fulﬁll social responsibilities.
4. We conduct continuous education and training for the management and employees.
5. We swiftly respond to a problem as soon as it occurs
and conduct risk management practices.

Protection of customer information

information-related risks, we constantly back up our data at Headquarters and data centers outside theProtection of personal information
To comply with the Act on the Protection of Personal
Information and to handle personal information
appropriately, Meiko has adopted the “Personal
Information Protection Regulations.” Based on theseregulations, we handle information with particular care.

company.
If a disaster or an accident occurs, we will immediately set up an Emergency Headquarters led by the President& CEO, and we have prepared an organization to identify the cause, assess the situation and takecomprehensive future measures, to quickly cope with risks and prevent reoccurrence.

Types of crises and risks

Construction of Group BCP

Many risks could potentially affect the Meiko’s operating

Meiko conducts business impact analyses of various risk

environment, including risks of natural disasters such as

factors, and creates manuals for each site, setting the

At Meiko, we receive important information from
customers. We therefore recognize the importance of
information security. Since the initial certification in 2006,
we have been extending the coverage of certification stepby step to reinforce the information management system.

earthquakes and tsunamis, changes in the management

recovery time objective (RTO) and simulating initialenvironment such as currency fluctuations and changes inemergency response systems. We will continue tomacroeconomic conditions, and country risk at overseas

regularly perform BCP reviews as well as simulation drills,

bases relating to politics, economy, and infrastructure.

prepare equipment and supplies, and raise the awareness

Meiko has created the Business Continuity Plan (BCP) forof employees in order to ensure that BCP can be carriedJanuary 2006 The Information System Division of our
Headquarters obtained BS7799-2 certification.

each site in preparation for emergencies. These plansout smoothly.

October 2009 Four applicable departments at the Wuhan
Plant in China obtained the certification.

ranging from a consideration of risk prevention measures

Information security initiatives

December 2010 Six applicable departments at the Guangzhou
Plant in China obtained the certification.

We take comprehensive measures to protect theconfidential information of our customers in accordancewith our Information Security Policy.

December 2016 Coverage in Japan extended.

Information security education

June 2020

Coverage at the Vietnam Plant extended.

May 2021

The Thang Long Plant obtained thecertification.

At Meiko, we hold an annual training program on
information security through e-learning and group lectures
so as to ensure that internal rules are thoroughly compliedwith.

minimize impact on the customer’s production plan in preparation for emergencies. As a measure to prevent

September 2017 Three applicable departments at the Vietnam
Plant obtained the certification.
November 2018 Coverage in Japan extended.

October 2022 Coverage in Japan extended.

describe various measures against relevant risk factors,
to post-disaster recovery work. We also reinforce our risk
management system through ERM (Enterprise Risk
Management) activities.

Introduction of employee safety conﬁrmation system
employees in Group companies in Japan, as well as
safety of employees and convey information in the event ofLocal response headquarters

to practice this type of drill in the future on a regular basis.

Group in charge of recovery

sample e-mail to all e-mail users based in Japan. We planof the system in the event of disasters.

Group in charge of operations measuresa simulation for targeted e-mail attack by sending acompany-wide educational training to ensure effective use

Group in charge of general affairs and human resources

drill has been implemented every year since Fiscal 2017 as

or other disasters or accidents. We periodically perform

Assistant Chief

Risk Management andCompliance Committee
Administrative Section
Group in charge of collection of company-wide information

To raise the risk consciousness of information security, aChief of Emergency Headquarters (President & CEO)

employees stationed overseas, in order to confirm thean earthquake with a seismic intensity of 5 lower or higher,

Drill against targeted e-mail attack● Emergency Headquarters

We introduced a safety confirmation system for all

Division in charge of individual risks*Since FY2021, we have been assessing the vulnerability ofcompany-wide networks and important IT devices every year.

E-learning
43

44

Financial Highlights

Non-ﬁnancial Highlights
Changes in the amount of our CO2 emissions

Net Sales

151,275(million yen)

108,542

118,910

115,479

Total CO2 emissions

Operating Income
13,255(million yen)

(1,000 tons of CO2)

119,257
394

8,926
7,457

Rate of consumption per production volume(Based on the ﬁgure for Fiscal 2016 set to 1.0)

460

424

464

Changes in our electricity consumption
Total consumption

Rate of consumption per production volume(Based on the ﬁgure for Fiscal 2016 set to 1.0)

(Million kW/h)

506
537

628

579

612

675

1.00

0.96

1.03

0.99

0.95

1.00

0.96

1.03

0.96

0.93

FY2017FY2018FY2019FY2020

FY2021FY2017FY2018FY2019FY2020

FY2021

6,657
5,189

FY2017FY2018FY2019FY2020

FY2021FY2017FY2018FY2019FY2020

FY2021

Changes in our fuel oil consumption

Changes in our natural gas consumption
Total consumption

Total consumption

Rate of consumption per production volume(Based on the ﬁgure for Fiscal 2016 set to 1.0)

(1,000 L)

6,493

Ordinary Income

Proﬁt Attributable to Owners of Parent(million yen)(million yen)

1.00
11,451

14,2948,610

FY2017

6,743
4,789

4,795

4,859

5,697

4,640

4,373

4,319
0.80

FY2018FY2018FY2019FY2020

FY2021FY2017FY2018FY2019

0.91

0.98

0.99

FY2019FY2020

FY2021

FY2020169

FY20211.36
1.00

Net Income Per ShareFY2017ROE(yen)

444.2393
0.90

FY2018FY2017FY2018

9,923

10,462

0.79

0.82

0.76

FY2019FY2020

FY2021

Rate of consumption per production volume(Based on the ﬁgure for Fiscal 2016 set to 1.0)

（1,000㎥）

10,784

1.00

10,5890.88

10,071

0.82

10,5290.82

11,0530.76

0.65
FY2020

FY2021FY2017FY2018FY2019FY2020

FY2021

Total consumption

257.65Rate of consumption per production volume(Based on the ﬁgure for Fiscal 2016 set to 1.0)

14,749

23.20

20.20

160.34

0.91

71

0.68
FY2019

1.00

9,139

Changes in our photocopying paper consumption（%）(1,000 sheets)

177.3371

10,388

Total consumption

Rate of consumption per production volume(Based on the ﬁgure for Fiscal 2016 set to 1.0)

92

10,168Changes in our water consumption

Total consumption(1,000 L)（1,000L）

5,634

Changes in our gasoline consumption

2,586

FY2017

5,015

Rate of consumption per production volume(Based on the ﬁgure for Fiscal 2016 set to 1.0)

10,41914.30

15,325

1.27

1.29

1.22

FY2018FY2019FY2020

12.80

98.81

15,124

15,586

1.11

1.00
7.90

FY201745

FY2018FY2019FY2020

FY2021FY2017FY2018FY2019FY2020

FY2021FY2017

FY202146

Financial and Non-ﬁnancial Information

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Net sales (million yen)

95,287

95,911

108,542

118,910

115,479

119,257

151,275

Operating income (million yen)

3,325

5,788

7,457

8,926

5,189

6,657

13,255

Operating income margin（％）

3.5

6.0

6.9

7.5

4.5

5.6

8.8

Ordinary income (million yen)

△491

2,981

4,795

8,610

4,789

5,697

14,294

Ordinary income margin（％）

△0.5

3.1

4.4

7.2

4.1

4.8

9.5

Proﬁt attributable to owners of parent (million yen)

△11,250

1,767

4,373

6,743

2,586

4,640

11,451

Ratio of net income（％）

△11.8

1.8

4.0

5.6

2.2

3.9

7.6

Net income per share (yen)△429.8354.14

160.34257.6598.81

177.33444.23

Total assets (million yen)

109,605

103,578

110,316

120,655

129,237

142,040

168,328

Net assets (million yen)

28,76428,54033,04233,58732,482

40,61058,686

Earnings per share (EPS) (yen)△429.8354.14

160.34257.6598.81

177.33444.23Book-value per share (BPS) (yen)897.97882.84

1,071.37

1,283.24

1,233.61

1,551.93

2,281.09

Shareholders

24,57826,17029,63830,44632,11636,25645,464Return on assets (ROA)（％）

△10.3

1.7

4.0

5.8

2.1

3.4

7.4

Return on equity (ROE)（％）

△33.5

6.2

14.3

20.2

7.9

12.8

23.2

3,143

3,123

9,559

15,765

11,836

10,715

14,388

827

742

816

1,041

1,211

1,427

3,074

9,491

10,677

11,64011,89912,232

13,721

14,115■Proﬁt/loss situation■Financial situation■Management indicators

equity (million yen)

■Others
Capital investment (million yen)
R&D expenses (million yen)
No. of employees at the end of the term (persons)47

48

Consolidated Balance Sheets(Unit: million yen)

FY2020Assets

FY2021

Notes and accounts payable -trade20,46524,319

Short-term borrowings

20,834

28,166

Current portion of long-term borrowings

8,303

5,961

Lease obligations

339

213

Income taxes payable

225

984

Provision for bonuses

733

1,064

Provision for bonuses for directors

43

58

Other

8,237

12,258

Total current liabilities

59,18273,02738,22632,266

Lease obligations

603

392

Provision for retirement beneﬁts for directors

215

215

Provision for share awards―

114

Provision for share awards for directors

―

24

2,767

2,717

434

883

42,24736,615

101,429

109,642

Liabilities

Current assets
Cash and deposits

12,37010,699Notes and accounts receivable-trade

29,503―

Notes receivable - trade

―

2,092

Accounts receivable - trade―33,655Merchandise and ﬁnished goods

6,253

10,238Work in process

6,954

8,073

Raw materials and supplies

8,950

11,457

Accounts receivable - other

1,113

1,117

Other

1,337

1,197

Allowance for doubtful accounts

△146

△164

Total current assets

66,33878,367

Current liabilities

Non-current liabilities
Long-term borrowings

Non-current assets
Property, plant and equipment
Buildings and structures

47,17253,491

Accumulated depreciation△23,500△27,847

Buildings and structures, net

23,67125,643

Machinery, equipment and vehicles

94,527

114,369△61,964△73,276

Machinery, equipment and vehicles, net

32,562

41,092

Land

1,488

2,445

Lease assets

4,213

2,844

△1,891△1,208

Lease assets, net

2,321

1,636

Construction in progress

7,258

9,925

Share capital

12,88812,888

Other

5,649

6,833

Capital surplus

6,464

6,700

△4,164△5,014

Other, net

1,484

1,819

Retained earnings

17,64828,061

Total property, plant and equipment

68,78682,562

Treasury shares△745△2,186927

954

36,25645,464

2,607

2,554

Valuation diﬀerence on available-for-sale securities

39

4

799

552

Deferred gains or losses on hedges

250

△41

Deferred tax asset

1,254

1,841

Foreign currency translation adjustment

4,127

13,173

Other

1,438

1,518

△112

△112

△22

Remeasurements of deﬁned beneﬁt plans△255

Allowance for doubtful accounts

Total accumulated other comprehensive income

4,161

13,024

Total investments and other assets

5,987

6,444

192

197

75,701

89,961

40,61058,686142,040

168,328

142,040

168,328

Accumulated depreciation

Accumulated depreciation

Accumulated depreciation

Intangible assets
Investments and other assets
Investment securities
Long-term loan receivable

Total non-current assets
Total assets

49(Unit: million yen)

FY2020

FY2021Retirement beneﬁt liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders

equityTotal shareholders

equityAccumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

50

Consolidated Statements of Income

Consolidated Statements of Cash Flows(Unit: million yen)

FY2020

FY2021

Net sales

119,257

151,275

Cost of sales

101,732

123,880

Gross proﬁt

17,52427,394

Selling, general and administrative expenses

10,866

14,139Operating income

6,657

13,255Interest income

51

48

Dividend income

415Foreign exchange gains

―

1,497

Other

739

527

Total non-operating income

795

2,090

Interest expenses

643

642

Foreign exchange losses

344―

Non-operating income

Non-operating expenses

Other

766

407

Total non-operating expenses

1,755

1,050

Ordinary income

5,697

14,294Gain on sale of non-current assets

32Gain on sale of investment securities―

9

Total extraordinary income

3

12Loss on sale and retirement of non-current assets

198

524

Loss on disaster

48

116

Business restructuring expenses

310

226

Loss related to COVID-19

12

646

Extraordinary income

Extraordinary losses

Other

71

181

Total extraordinary losses

641

1,694

Proﬁt before income taxes

5,059

12,612

Income taxes - current

686

1,347

Income taxes - deferred

△263

△171

Income taxes

422

1,175

Net income

4,636

11,436

△4

△14

4,640

11,451

Loss attributable to non-controlling interests
Proﬁt attributable to owners of parent

Consolidated Statements of Comprehensive Income(Unit: million yen)

Net income

FY2020

FY2021

4,636

11,436

Other comprehensive income
Valuation diﬀerence on available-for-sale securities

47

△34

Deferred gains or losses on hedges

220

△292

Foreign currency translation adjustment

3,755

9,065

Remeasurements of deﬁned beneﬁt plans

△30

143

Total other comprehensive income

3,992

8,882

Comprehensive income attributable to

8,629

20,318Comprehensive income attributable to owners of parent

8,630

20,314△0

4Comprehensive income attributable to non-controlling interests
51(Unit: million yen)

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
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
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
Refund of insurance funds
Other
Net cash provided by (used in) investing activities
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
Net increase (decrease) in cash and cash equivalents resulting from the change in scope of consolidation
Cash and cash equivalents at end of period

FY2020

FY2021

5,059
7,448
40
5
44
2
△1
―
―
40
△55
643
△105
△337
194
―
48
310
12
△4,642△2,430
1,770
252
491
631
9,422
52
△632
105
△291
△113
△689
7,853

12,612
7,994
40
△100
321
15
―
114
24
44
△64
642
△79
△653
521
△9
116
226
646
△3,617△5,384
1,567
△264
932
13
15,659
63
△634
79
△37
△528
△627
13,975△9,737
565
△219
△236
―
△2
25
116
△9,489△11,834
4
△138
△104
98
△2
―
191
△11,785

10,574
42,597△52,484
△563
△348
―
△393
△618
501
△1,753
13,646229
12,121

6,195―△8,304△359△1,2220△1,038△4,730869△1,671
12,121―
10,45052

Meiko s Global Network
Challenge and contribute to the evolution of electronics

We have established global manufacturing
and sales systems for meeting diversiﬁed demand.

Domestic production bases

The cooperation with production bases made it possible to manufacture and sell high-quality products in a highly
efficient way. We have developed a network for swiftly delivering high-quality products to customers.

❶Advanced PCB Center ❷Kahoku Factory
5-14-15 Ogami, Ayase, Kanagawa

250 Maki, Yachi, Kahoku Town,
Nishimurayama District, Yamagata●●

1-2 Iwasawa, Kamikitaba, Hirono Town,
Futaba District, Fukushima❹Ishinomaki Factory
8-5 Shigeyoshi Town,
Ishinomaki City, Miyagi

Domestic sales bases

Domestic development base

⓬Nagoya Sales Oﬃce

⓰MEIKO Research andDevelopment Center

Room 601 Advance Square Kariya,
1-1-1 Aioi Town, Kariya City, Aichi●⓴●❸Fukushima Factory

3-35-6 Sugikubo-minami,
Ebina City, Kanagawa⓭Osaka Sales Oﬃce

⓳
● ●
❽
❼
●
❿ ●●
●
❾●
●
⓫
●

❺Meiko Embedded Products, Ltd.
1-808-33 Arcadia, Yonezawa City,
Yamagata❻Meiko Embedded Technology, Ltd.
1305-1 Urushiyama, Nanyo City,
Yamagata❷ ❹❻❺7th Floor of Shin-Osaka Doi Bldg.,
7-5-25 Nishinakajima, Yodogawa
Ward, Osaka City, OsakaAﬃliates⓮Omiya Sales Oﬃce

⓱Meiko Techno Co., Ltd.

⓯Mito Sales Oﬃce

⓲Meiko Tech Co., Ltd.

1-14-1 Daikan, Yamato City,
Kanagawa

2nd Floor of OZ Bldg., 1-124-2 Naka Town,
Omiya Ward, Saitama City, Saitama

8th Floor of Shin-Osaka Doi Bldg.,
7-5-25 Nishinakajima,
Yodogawa Ward, Osaka City, Osaka

7th Floor of Shin Prince Bldg. No. 5,
1-4-7 Jonan, Mito City, Ibaraki❸

Overseas production bases

⓯
⓮

⓱
⓰❶ ●

⓬

⓭⓲

❼Guangzhou Plant

Corporate ProﬁleNo. 2 Guangsheng Road, Western Industrial
District, Nansha Economic and Technological
Development Zone, Guangzhou, Guangdong
Province, P. R. China■Trade name
■Established■Representative■Headquarters

53

No. 9 Shenlong Road, Wuhan Economic
and Technological Development Zone,
Hubei Province, P. R. China❾Vietnam Plant

Lot CN9, Thach That -Quoc
Oai Industrial Zone, Hanoi City

❿Thang Long Plant(Vietnam)

Lot J1-J2, Thang Long
Industrial Park,Vong La Commune,
Dong Anh district, Hanoi City

Overseas sales bases
To Ebina

Sagamino Station
South Exit

LawsonYokohama
Toyopet⓳Shanghai Sales Oﬃce

Meiko Electronics America, Inc.

⓴Tianjin Sales Oﬃce

Meiko Electronics（Thailand）Co., Ltd.

Room 2201, 22nd Floor of Hua Ninginternational Plaza, South Building,
No. 300 Xuan Hua Road, ChangNing
Area, Shanghai, P.R. China

Sotetsu Line

Maruetsu⓫MEIKO TOWADA VIETNAM CO., LTD.
Plot C1+C2, Phuc Dien Industrial Zone,
Cam Phunc Commune, Cam Giang
District, Hai Duong Province, Viet Nam

WelciaHigashi-kashiwagaya
Park
Atsugi Way

Meiko Electronics Co., Ltd.
1974
Yuichiro Naya, President & CEO
5-14-15, Ogami, Ayase, Kanagawa,Japan 252-1104■Main business Design, manufacturing, and sale of PCBs,
etc., development and manufacturing ofelectronic, mechatronics, and imaging
related devices■Major products Double-sided, multi-layered through-hole
PCBs, HDI PCBs, flexible PCBs, rigid
flexible PCBs, high-current PCBs, heatdissipation PCBs, parts-embedded
PCBs, metal hardmasks, PCB inspection
equipment, imaging equipment, andimaging systems❽Wuhan Plant❶Headquarters: 5-14-15 Ogami,
Ayase, Kanagawa

Room 3502, Golden Crown Tower,
No. 20 Nanjing Road, Hexi District,Tianjin, P.R. China

2975 Scott Blvd., Suite 215
Santa Clara, CA 95054

55 Wave Place Bld., 10Fl.,
Wireless Rd., Lumpini, Pathumwan,
Bangkok, 10330

Guangzhou Sales Headquarters

Meiko Electronics Europe GmbH

Meiko Elec. Hong Kong. Co., Ltd.

Meiko Electronics India Pvt Ltd.

No. 2 Guangsheng Road, Western I
ndustrial District, Nansha Economic andTechnological Development Zone, Guangzhou,
Guangdong Province, P. R. China
Room 1616, 16th Floor of Tower I,
Metroplaza, 223 Hing Fong Road,
Kwai Chung, N. T. Hong Kong

Frankfurter Ring 193a, 80807,
Munchen, Germany

c/o Frontline Business Centre 14th Floor,
Tower 5B, DLF Epitome, DLF Cyber City,
Phase 3, Gurgaon, -122002, Haryana, India

54