MEIKO
corporatereport 2023

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

Business Principles
We provide the best-ever products andservices for our customers throughMeiko’s manufacturing, thus contributing to
the creation of happiness in employees andsociety.

-Contents-

Our profile
We produce cutting-edge PCBs for automobiles, smartphones, IoT devices,
industrial equipment, etc. and design, develop, mount, and assemble electronic
devices on a global basis.
EMS
Electronic device development
and manufacturing
AI appliances
Amusement
Industrial equipment
etc.

15%
SSD
IoT modules

6%
Semiconductor
package substrates
Smartphones
Tablets

167.3

billion yen

billion yen
51%

Number of
employees

12,55316%
Automotive

Business Principles
History of Value Creation
Value Creation Process

Business Portfolio
PCB Business Topics
EMS Business Topics
Message from the
President & CEO
16 Outside Director’s Message

ESG Management
17
19
21
45

SSD

01

01
03
05

07
09
10
11

9.6

Net sales

Introduction

Value Creation

Operatingincome12%

Positioning of This Report

Medium-term Business Plan
Sustainability Policy
ESG Initiatives
Governance(Management Report)

Financial and Corporate Data
57
69

Financial and Non-financial Data
Meiko’s Global Network

Financial Information

Non-financial Information

Corporate Report
Publications

Securities Report
Convocation Notice
Company BrochureWEB

Corporate Website

The documents shown in the above table can be browsed on our website.
https://www.meiko-elec.com/english/

To the Readers of This Report◆Editorial Policy◆

This integrated report was issued for the purpose of deepening
the understanding of all stakeholders, including shareholders andinvestors, about our mid/long-term activities.
Going forward, we will continue our efforts to meet requests from all
stakeholders and have them deeply understand our business activities.

◆Applicable Period◆

April 1, 2022 to March 31, 2023

◆Coverage◆

Meiko Electronics Co., Ltd. and affiliated companies◆Caution Regarding Forecasts◆

This report mentions our future outlook and plans based on currently
available information.In particular, the PCB industry is faced witha variety of risks and uncertainties due to changes in raw material
prices, diverse customers’ market trends, changes in technologicaltrends, 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 forComprehensive Disclosure and Dialogue for Co-creation of Value・IIRC/
IIRC; International Integrated Reporting Framework
Task Force on Climate-related Financial Disclosures (TCFD)

02

MEIKO corporate report 2023

Introduction

Value Creation

History of Value Creation
Meiko will soon be marking the 50th anniversary of its establishment.
Over time, we have stably supplied high-quality PCBs.

2010

Going forward, we will continue to take on the challenge of cuttingedge PCBs, grow through challenging the evolution of electronics, andcontribute to society.

Financial andCorporate Data

ESG Management

2026
2026

1990
2020

1982
2000

1978

1974

1997

1975

03

1980

1985

1990

1995

*Trends in net sales
2000

2005

2010

2015

2020

2026

04

MEIKO corporate report 2023

Introduction

Value Creation

Net sales
167.3

Value Creation Process

Personnel

NatureSocial relations

Diverse human resources
Number of employees
12,553 (As of March 2023)

Environmental resources andmaterials required to provide
products and services
See pp. 67-68

Collaboration withstakeholders and local
communities
See pp. 39-44

Finance

ManufacturingIntellectual

Financial base required
to provide products andservices

Facilities and equipment
necessary to provide
products and services
See pp. 69-70

Accumulated knowledge,
skills and expertise

Economic
value

Risks and opportunities

OperatingincomeCustomers
Growth

9.6

Clean

SafetyWork Employees
satisfaction

Total amount of R&D expenses in
consolidated fiscal year under review
4,466 million yen across entire Group

SecuritySocietySocial significanceResolution of

Principles

social issues

Value we create
Smartphones

Telecommunications

Social value

billion yen

Business

rnal
Exte
nt
nme
o
r
i
v
en

Productsbillion yen

Sources of Competitive Advantage

Financial andCorporate Data

ESG Management

Smartfactories

Automobiles

Solar power
generation

AI

05

Design andmanufacturing of PCBs

Development and manufacturing ofelectronic devices

Design, manufacturing, research anddevelopment of PCBs to respond to theevolution of the world through technologicalinnovation and the new needs that arise
from this evolution.

We assist with the entire manufacturing
process from design to completion anddelivery of products with the technicalcapabilities and track record unique tothe top manufacturer of PCBs.

Mechatronic products

Imaging-related equipment

We realize the development andevolution of manufacturing processes
that resolve issues such as production
quality improvement, cost reduction,
workers’ safety, and human resource
management.

Design, manufacturing, softwaredevelopment, and system construction
for professional imaging equipmentthat contributes to society in facilities
for crisis management in response todisasters, incidents, accidents, etc.

06

MEIKO corporate report 2023

Introduction

Value Creation

ESG Management

Financial andCorporate Data

Business Portfolio
The Meiko Group creates products together
with clients as the best partner of each client,and continues our endeavor to become the best
manufacturer with comprehensive technologies tomeet each client’s demand.

EMS
Business

We offer comprehensive solutions

PCB
Businessfor realizing the tasks of outsourcing
processes including the design,
manufacturing, mounting, assembly,
and delivery of PCBs

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

Visual system
Business
We undertake the development andproduction of equipment and software
for solving onsite problems andtroubles with advanced technologies.

Mechatronics
Business
07

The multi-vision system developedby Meiko considerably helps grasp avariety of information.

08

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

EMS Business Topics

PCB Business Topics
Tendo Factory

EMS/electronic device development and manufacturing

The Tendo Factory is Meiko’s fifth

tiationdomestic PCB factory. Located in

Differenthe Town of Kahoku adjacent toCircuit andmechanicaldesignDevelopment
and design Software

Tendo City is our largest factory

development

in Japan, the Kahoku Factory.

PCB
manufacturing

AW designParts
procurement
andmounting

Product
assembly

Customers

Total solutions business thatspans ODM handling and inhouse product development

There, we mainly engage in the
production of automotive PCBs.At

Our EMS Business is characterized by the proposals we make for one-stop solutions that span

the Tendo Factory as well, we will

design/development and finished product assembly. We handle design and development inproduce automotive PCBs, through-line with customer needs, be they for electrical circuit, software or mechanical design. For

hole multilayered PCBs for high-the handling of the stages between PCB manufacturing and mounting/assembly, in Japan,

speed communications, and HDI PCBs. This factory was planned as an eco-smart factory.

we manufacture PCBs at our Kahoku and Tendo Factories and mount/assemble them at

For its energy, natural gas (LNG) will be used alongside a solar power generation system,

Meiko Embedded Technology in order to limit transport distances and complete the PCBs

making the Tendo Factory environmentally-friendly. The inside of the factory is designed soin Yamagata Prefecture to reduce lead times. At our Vietnam Factory (Thach That), a PCB

that conveyance is conducted using Automatic Guided Vehicle (AGV), with the insertion offactory and EMS factory have been built adjacent to each other within the same site, making

materials into production equipment performed by robots as well. Additionally, through linkage

the factory capable of one-stop solutions in every sense of the word. Normally, design,with an ERP that centralizes production equipment, we computerized materials input/output

development, PCB procurement and mounting/assembly require business dealings with anprocessing, inventory management, manufacturing instruction sheets, etc. to enable us toindividual supplier for each. Meiko, however, has a system in place that enables it to take on

reduce defects caused by human error. We will also realize the establishment of a high level ofcustomer needs in their entirety.

traceability. Through this endeavor, we anticipate a 30% improvement in production over our
preexisting factories. Eventually, the Tendo Factory will have triple the production capacity of
the Kahoku Factory.
Automation of production

Barcode imprinting

APP

Production information

Inspection information

Equipment information

Materials information

09

Mechatronics

CMOS sensor camera
modules

Embedded camera
modules

Small positional
information devices

Dot impact printers

Driver recognition
near-infrared camera

Various units
for construction
equipment

CPU LCD
application

Collision mitigation
systems

Multi-function printeroperation panels

Fingerprint
authentication units
Gait analysis sensors

Automation of traceability

Automation of logistics

Digital inventory
managementwith automatedwarehousing

Wireless
communication

Label printers

Data analysis/utilization

Order placement
stock-instock-out

Production andbuilding equipment
sensor application

Simplification of inspections
AOI systemutilizing AI

FA system

Automotive
sensorapplication

AGV
conveyance

Equipment management

Chemicals management

10

MEIKO corporate report 2023

Introduction

Value Creation

ESG Management

Financial andCorporate Data

Message from the President & CEO

Meiko contributes tosociety through "Challenge
the evolution of electronics
and achieve development
thus contribute to thesociety"President & CEO
Yuichiro Naya

11

12

MEIKO corporate report 2023

Introduction

Our social role and significanceOver time, we at Meiko Electronics Co., Ltd. have expanded our business base as well as
fulfilled our social responsibility through addressing SDG challenges based on our Business
Principles of “We provide the best-ever products and services for our customers throughMeiko’s manufacturing, thus contributing to the creation of happiness in employees andsociety.”

Value Creation

ESG Management

Financial andCorporate Data

tightening in Europe and the US, and sluggishness in demand because of the COVID-19
pandemic, we revised that plan for the period starting in Fiscal 2023 and ending in Fiscal
2026. As for the situation surrounding orders in the immediate term, while there has beena moderate trend of improvement, we believe there is a need for us to tackle measures forrecovering from delays in our plans.

We live as residents of the irreplaceable Earth. Our lives as those residents have become moresophisticated and comfortable over time. However, we believe that these lifestyles should not
be at the expense of global warming, ocean pollution, natural disasters, food problems, humanrights issues, and the depletion of natural resources around the world. Currently, the world
has been addressing such challenges, with rapid progress being made in endeavors aimed atrealizing a sustainable society such as green transformation (GX) and digital transformation(DX). Amid this situation, corporations are being called upon to fulfill a greater role.
While placing sustainable management at its core, based on its purpose of growing andcontributing to society through challenging the evolution of electronics, Meiko will continue
pushing forward with its contributions to the promotion of social innovation through theevolution of electronics and endeavoring to do its part to address social issues through its
business activities, including achieving carbon neutrality and efficiently using resourcesand energy to respond to climate change as well as addressing human rights and the way
employees work and preserving employment.
​

Business environment
We first publicly announced our Medium-term Business Plan in Fiscal 2022. However, due
to factors such as surge in energy prices triggered by Russia’s invasion of Ukraine, soaring
procurement prices resulting from progression in the yen’s depreciation caused by monetaryFirstly, in our leading products of automotive PCBs, in order to bolster orders for xEV PCBs,
we will expand orders from Japanese customers as well as endeavor to expand transactions
with European and US customers. For smartphone PCBs, in addition to expanding orders of
HDI PCBs for high-end smartphones, we will proceed to work on expanding sales of flexible
PCBs. In our EMS Business, our initiatives for M&As and so forth have yielded success inthe form of gradual growth in net sales. We are currently working on expanding sales fromautomotive transactions as we look towards further net sales growth. Additionally, it islooking increasingly like sales to customers in our PCB Business will gradually go up. In our
Semiconductor Package PCB Business, we have been preparing to produce FC-BGA PCBs at
our Ishinomaki Factory No.2 and memory package PCBs at our Vietnam Plant No.3. However,
we forecast that a delay in our plans of roughly one year will arise due to sluggish demand
for semiconductors. During this time as well, we have been pushing forward with the likes
of customer certifications and improvements to production preparations and yields at ourfactories.
To boost profitability, we are implementing automation and manpower-saving for the sake ofpromoting cost reduction measures and improving productivity. To give an example, at theTendo Factory that we completed construction on in October, we have made great strides
in automating production, and have successfully saved manpower by 30% over our existing
factories. At our existing factories, we are engaged in various measures with the aim of
improving productivity and yields.

Current Meiko headquarters

13

14

MEIKO corporate report 2023

Introduction

Environmental initiatives
As environmental issues grow increasingly serious, initiatives for responding to climate change
and transitioning to a decarbonized society are becoming important management challenges.
For that reason, we will set environmental targets and push forward with CO2 reductions as
we follow a roadmap. As our environmental targets, we have adopted the reduction of CO2
emissions per rate of consumption per production volume in Japan by 50% between Fiscal
2021 and Fiscal 2030 and the achievement of zero emissions by Fiscal 2050. Looking at a
breakdown of our CO2 emissions, the ratio of CO2 emissions from production activities (Scopes
1 & 2) is 42%. That from purchased products and services (Scope 3) is 58%. As the majorityof our Scope 1 and Scope 2 CO2 emissions are from the consumption of electric power, we
worked on reducing those emissions largely through cutting down on standby power andswitching production equipment to energy-saving devices.
One example of a concrete initiative in this regard is the design of the Tendo Factory, which
was completed in October, as a smart factory based on expertise on energy-saving. For Scope
3, to address a challenge present in our overall supply chain, we have been collaborating with
suppliers to promote initiatives to reduce CO2.

DX initiatives
At our preexisting factories, operators performed the moving of raw materials and workin process and input of production results. At our latest Tendo Factory, the moving of raw
materials and work in process is conducted with the use of AGV. Additionally, robots are
utilized to supply work in process to the production equipment. Production orders are optimized
using IT systems, and production results are automatically prepared based on movement datafrom production equipment. Also, we introduced IoT devices to monitor production equipment
and help improve productivity and reduce losses, and worked towards lowering the burden
on the environment through the likes of energy-saving and waste treatment. As a result, we
forecast productivity improvements of 30% over our existing factories. These initiatives haveenabled us to realize manpower-saving and are also serving to address the decline in theworking population as well as social issues such as the reform of the way employees work.
Furthermore, we have been conducting a myriad of initiatives for our existing factories, suchas performing task analysis using AI cameras developed in-house and pushing forward withproductivity and yield improvements. Presently, our core systems differ between Japan andoverseas. This presents a bottleneck when the site of work changes.We will go on to promote
DX with “integration” as a keyword from that standpoint as well.

Value Creation

ESG Management

Financial andCorporate Data

Human resource empowerment initiatives
Meiko leaves the operation of its overseas factories in the hands of local staff. Our ability
to do so is the result of establishing a cycle of dispatching local staff to Japan to study
manufacturing and having them engage in factory operation following their return. This cycle
has been in place since the startup of our Guangzhou Plant in 2000. Alongside the expansionof Meiko’s efforts to develop its businesses globally, more and more individuals representing a
number of nationalities are active in Japan as well. Be it Vietnam, China or Japan, our humanresources capable of working in any country have steadily grown in number. Going forward,
we will continue to further expand upon such initiatives.
In terms of recruitment, as the ratio of new graduates and mid-career hires is roughly 50%
each, there is no discrimination between the two categories. As such, a corporate climate
of working in a free environment is in place. While it goes without saying that employees
are properly called upon to demonstrate work skills, we do not discriminate against themwhatsoever on the basis of nationality or gender provided that they are capable. Given
our need to further advance our global business development efforts in a strategic fashion,
diversity could be considered an essential choice for our company. We strive to ensure thatdiverse human resources are able to fully demonstrate their abilities without discrimination
based on race, creed, religion, nationality, disability, or the like. We promote the creation of acomfortable working environment that is safe, secure, hygienic for all our employees, respects
their diversity, and allows them to develop.
As a result, with gender as an example, the ability for both men and women to approach
their work without worrying about their gender has become one of Meiko’s strengths. Such a
positive working environment is surely part of our company’s value. Of course, it is true that
there was a long way to go in terms of internal education to establish such an environment.
Unless we make a steady effort to bridge the gap of awareness among our employees,
diversity cannot be achieved. It is important to continue to make efforts to gradually change
the mindset of onsite workers until “diversity as a matter of course” can be achieved withoutworrying about various differences. If we aim for further improvement in work performance, weneed to reform the way we work, including telecommuting.
We are currently working on improvements in all areas to enhance the quality of our work. For
example, should productivity improve by 30%, we may be able to boost net sales up to double
the amount. In our eyes, that would enable us to sufficiently best our global competition withthe same headcount. In the future, we would like to motivate our employees to work harder,
and we would like to provide generous support, including salary consideration, to new hires
and other young employees.

Shareholder returns andcommunication with investors
Meiko views the improvement of profits for its shareholders as one of its priority management
challenges. For the time being, we will prioritize investment for expanding our corporate scale
and focus on growing our net sales and profit amounts. With a target dividend payout ratio of
15%, we will endeavor to increase dividend amounts as well as expand amounts of profit.
In corporate management, communication with shareholders and investors is indispensable.
Meiko conducts initiatives that incorporate management by arranging for opportunities for ourofficers to hear the opinions of shareholders and investors at shareholder’s meetings, financial
results briefings, individual interviews, and other forums.
Through the provision of PCBs, we at Meiko have made investments, expanded employment,
and stably delivered products bearing outstanding quality to our customers while
simultaneously paying taxes in countries where we have placed factories and making local
contributions in various ways. Going forward, we will keep on growing and contributing tosociety through challenging the evolution of electronics.

15

16

MEIKO corporate report 2023

Introduction

Value Creation

ESG Management

Financial andCorporate Data

Outside Director’s Message
Meiko formulated its five-year Medium-term Business Plan
based on our Business Principles of “We provide the bestever products and services for our customers throughMeiko’s manufacturing, thus contributing to the creationof happiness in employees and society,” and is currently
in the midst of that term.
Taking an objective, top-down view of the situation thecompany presently finds itself in, we see demand in theelectronic parts industry as continuing to be high despite
the likes of COVID-19 and issues with international affairs
rearing themselves. At the same time, unstable elements
are also present, such as how our line of business is
significantly affected by surging resource and energy
prices and how our production site presence in Vietnam
and China leaves us prone to the effects of economic
security. Further, we are currently in a situation where
we must bear in mind that the impact of exchange rates
yields performance values on paper that exceed ouractual ability.
Based on these conditions, Meiko is steadily taking the next steps to further grow the company
going forward, such as enhancing its domestic sites largely through its new Tendo Factory,organizing the roles of its various overseas sites, and revising its purchasing system, and ismaking progress towards the realization of the content set forth in its Medium-term Business
Plan.
Meiko’s Board of Directors has been formulating plans and discussing and examining individual
measures. As an Outside Director, I have participated in those discussions and examinations
while constantly being mindful of whether the results of specific matters of examination
would serve to benefit our shareholders and other stakeholders. I also make it a point tooccasionally provide opinions and recommendations that are difficult for internal members tooffer. Additionally, in situations outside meetings of the Board of Directors, through the likesof communication with the executive side, I work towards grasping the actual situation at thecompany for the sake of effective discussions and also provide verification and advice fromthe perspective of both sides on whether things that we are set to carry out as a matter ofBoard of Directors policy are moving towards realization.
Even in comparisons dating back to 2018 when I assumed the post of Director, Meiko’s
corporate governance system has been becoming stronger with each passing year. I believethat is manifesting itself not only in actions in the form of the formulation of our Medium-term
Business Plan as I mentioned above, but also in the matters that we have been disclosing
externally as ESG/CSR initiatives as well as in the changes in our officer makeup. At present,
Meiko has four Outside Directors and two Audit & Supervisory Board Members. At meetingsof the Board of Directors that they also attend, these members state their opinions from theirindividual specialized perspective or objective perspective that is a product of them beingoutside members. These opinions then form the basis of active discussion with the executiveside as well.
Going forward, while firmly maintaining an ideal stance as an Outside Director, I seek tocontinue confronting the internal and external challenges our company will likely face,particularly through the activities of the Board of Directors, and in doing so, keep on doing mypart for the further growth of the company and assisting with the realization of our purpose of
growing and contributing to society through challenging the evolution of electronics.
Outside Director

17

Nao Tsuchiya

18

MEIKO corporate report 2023

Introduction

We provide the best-everproducts and services for ourcustomers through Meiko’s
manufacturing, thus contributing
to the creation of happiness in
employees and society.

- Purpose -Automotive

Tablets

Smartphones

Semiconductor substrates

SSD
IoT modules

AI appliances/amusement
industrial equipment/etc

EMS
Electronic device development and manufacturing

Plan disclosed in May 2022

Challenge the evolution ofelectronics and achieve
development
thus contribute to the society

170.0

Exchange rate assumptions		Investment(Total from Fiscal 2022

Capital expenditure

22.6
9.8
5
36.5
(21.5%)

90 billion yen

Plan disclosed in May 2022
250.0

Plan following revisionin May 2023

205.0
167.3

270.0

86.0

91.2

(50.5%)(49.3%)

40.0

24.9
10.0
27.1

165.0
31.3
21.3
8.9
9
21.1

36.0

(44.0%)

Fiscal 2026

81.5

38.0
24.0
13.0

21.0

15.0

11.0
70

(12.2%)

28.0

40.0
25.0
15.0
25.0
32.0
(11.9%)

25.0
133.0
90.0

84.5

230.0

(47.4%)

112.0(49.3%)(48.7%)

Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026

Through-holemultilayered PCBs

HDI PCBs

Semiconductor package PCBs

Flexible rigid PCBs
Flexible PCBs

Heat dissipating/ highelectric current PCBs, etc

EMSElectronic device development and manufacturing

185.0
170.0

165.0

30.0

27.5
23.6

14.6
29
35
5
72.5

22.0

20.5

(42.6%)

17.0
32
50
45
75.8
(41.0%)

Plan following revisionin May 2023

250.0

230.0

30.0
50
15.0
30.0

90.0
(36.0%)

190.0
167.3

165.0

20.3
48
20
5

31.3

64.1
(38.3%)

20
40
9
56.5
(34.2%)

36.0
40
45
70
65.5

38.0
50
70
15.0

270.0
40.0
60
10.0
25.0

99.0
84.0

(38.5%)(35.2%)(34.5%)

15.0
9.6

19

37.3

20.3

(16.0%)(20.2%)

Plan disclosed in May 2022

190.0

185.0

Fiscal 2023

11.8
4.5

230.0

225.0

Fiscal 2022

23.2

167.3

270.0

03 Trends in Sales by Product Specification

Operating income

17.5

30.0

Fiscal 2022 Fiscal 2023

Overview of Medium-term Business Plan

15.5

17.0

190.0

110.0

Net sales

170.0

15.0

130yento Fiscal 2026)

01

25.0

185.0

Net sales
270 billion yen
Operating income
30 billion yen
Operating income margin
11.0％(Fiscal 2026)

250.0

Plan following revisionin May 2023

30.0

14.6

Management
Targets

Financial andCorporate Data

ESG Management

02 Trends in Sales by Product Application

Medium-term Business Plan
- Business Principles -Value Creation

Fiscal 2024

Fiscal 2025

Fiscal 2026

Fiscal 2022

9.0

Fiscal 2023

Fiscal 2024

Fiscal 2025

Fiscal 2026

76.0

79.5

(44.7%)(43.0%)

Fiscal 2022 Fiscal 2023

85.0
(34.0%)

Fiscal 2026

75.6

70.3

73.0

(42.2%)(42.7%)(38.4%)

81.0(34.4%)

90.0(31.5%)

Fiscal 2022 Fiscal 2023 Fiscal 2024 Fiscal 2025 Fiscal 2026

20

MEIKO corporate report 2023

Introduction

Classification

The Sustainability Promotion Conference, under the direct control of the President and chairedby the Director and Executive Officer in charge, is responsible for determining sustainabilityrelated policies, managing the progress of targets, and deliberating on measures to be taken.

E

Environment

Society● Promotion of social contribution● Promotion of occupational safety■ Administrative dept. placed at each site

● Promotion of health and safety● Promotion of diversity and human rights● Promotion of supply chain CSR

GGovernance

Identify social
issues

Step2

Incorporate SDGs

Step3
Step4
21

Assign an order ofpriority
Identify materiality

Promotion of and transition to energy-saving

Initiatives
for lowering
environmental
burdenAdoption of in-house solar power generation
Recycling and promotion of zero emissions
Suppression of CO2 emissions, waste and discharge volumes inmodules/package PCBs
Highly-functional (loss reduction) fine wiring technology

Realization of
innovation

Assistance with transition to high frequency for 5G/6G(Contracted high frequency measurement service)
Contribution to global health (Manufacturing of artificial（S)
Society

respirators)

Continuous
stable supply
throughbolstering supply
chain

（S)
Society

Establishment of Sustainable Procurement Guidelines
Conflict mineral surveys
Strengthening of our BCP

Establishmentof resilient
managementfoundation

Transformation of Yamagata business operation into second headquarters

Continuous reinforcement of compliance (Compliance Handbook)
Promotion of diversity & inclusion (D&I)
Establishment of environment that accommodates diverse ways ofDevelopment ofdiverse humanresources andreinforcement of
human capitalworking
Career Support Program
Employment of disabled persons
Participation in locally organized social welfare activities andResolution ofsocial issues
throughbusinesses● Promotion of public relations/IR

environment activity events
Donations to Parent-Child Bonds Development FundContribution to regional revitalization (Promotion of sports)

E Environmental initiatives

Implementation of measures following TCFD Recommendations
・Reduction of CO2 emissions per rate of consumption per production
Measures against global volume in Japan by 50% between Fiscal 2021 and Fiscal 2030
・Carbon neutrality by Fiscal 2050
warming・Promotion of energy saving (Per rate of consumption per production
volume: Electric power down 2.5%/year, fuel down 2.0%/year )・Adoption of in-house solar power generation● Promotion of compliance

Waste reduction● Promotion of information security

Utilization of water
resources■ Steps for identifying materiality

Step1

Priority issues related tointernal infrastructure

S<Chairperson>Director in charge
Members: Departments serving as points ofOffice of the President and CEO
Production HQ
Quality Assurance Dept.
Purchasing Dept.
General Affairs & Human Resources Dept.
Information Systems Group
Legal Compliance Dept.

Initiatives

Realization of environmentally-conscious highly-functional● Environmental promotion

Sustainability Promotion ConferenceGroup

Related SDGs

production process（G）
Governance● Promotion of TCFD
● Promotion of carbon neutrality

Various sites and departments of the Meiko（E)
Environment
Priority issues related to business activities

Sustainability Promotion System

contact

Materiality

Implementation of actions following TCFD Recommendations

Under the Business Principles, Meiko shores up the trust of stakeholders through sound, highly
transparent business administration and business activities harmonized with society and theenvironment, and actively conducts activities for sustainability to contribute to the sustainablegrowth of society and mid/long-term improvement in corporate value.

President & CEO

Financial andCorporate Data

ESG Management■Priority Issues and SDGs

Sustainability Policy

Board of Directors

Value Creation

Promotion of zero emissions 80% recycle rate by Fiscal 2030
Recycling (Recovery of copper, palladium, and gold)
Promotion of reuse Reduction of water use per rate of consumption
per production volume by 10% between Fiscal 2021 and Fiscal 2030

S

Ascertain and sort out

Engagement of
employees

Subdivide sustainability themes to tackle and mapthem into six elements pertaining to SDGs
Evaluate based on the two directions ofimportance to our business and importance to ourstakeholders/society
Identify based on discussions by management

Contribution to andvitalization of eachregionReinforcement ofmanagement system
Reinforcement of crisis
management system

Social initiatives

Promotion of diversity (Promotion of women’s participation andadvancement and promotion of overseas human resources)
Promotion of development of safe, comfortable working environment(zero occupational accidents)
Improvement of employees’ health (We are expected to be certified
as an excellent corporation in terms of health-oriented management)
Contribution to protection of nature and environment (Recycling
activities)
Contribution to regional vitalization (Promotion of sports andcontribution according to local needs)
Contribution to social welfare

G Governance

Establishment of management systems for supporting sustainablegrowthStrengthening of our BCP

Transformation of Yamagata business operationin to second headquarters

22

MEIKO corporate report 2023

Introduction■ GovernancePrevention of global warming
Meiko recognizes the issue of greenhouse gases as an extremely serious threat to ourirreplaceable planet. In order to promote associated initiatives, we recently revised our targets.
Having changed our annual reduction volume target from a rate of consumption per production
volume of -1.5％ to -2.5％ , as we aim to realize carbon neutrality by 2050, we will promote
improvements to productivity, the updating of equipment to that with higher efficiency, andother energy-saving measures and, in doing so, reduce CO2 emissions originating from energy.
In Fiscal 2022, we newly introduced solar power generation equipment for in-house
consumption at our Ishinomaki Factory.
Going forward, we will continue to assess all kinds of possibilities, including further energy
creation, changes to electric power contracts, and the utilization of non-fossil certificates, andconduct similar activities at overseas plants as well to promote global measures preventing
climate change. We will proceed to formulate further action plans and work towards theirrealization in order to elevate the speed of energy-saving efforts.

Environmental targets
With a view to achieving carbon neutrality by Fiscal 2050 and a 50% reduction in CO2emissions per rate of consumption per production volume in Japan between Fiscal 2021 andFiscal 2030 as our target, we will accelerate energy-saving measures as well as promote theintroduction of solar power generation for in-house consumption and other forms of energy
creation as we move forward. Additionally, we will tackle Scope 3 emissions as well in order toalso push forward with decarbonization in our value chain as a whole.

By Fiscal 2030

Other

By Fiscal 2050

Productivity improvements
Implementation of energy-saving measures

Technological innovation
Introduction of solar power generationequipment for self-consumption

Examination of storage cells, etc.

Sourcing of electric power from renewable energy
Transition to low CO2 emission fuelAssessment of carbon credits, etc.

CO2 emissions

Scope3634Kt

Scope1

39Kt

Scope2

418Kt

Scope37Kt

For CO2 emissions, Scope 1 and Scope 2 emissions emitted from the likes of production
activities are 4% and 38%, respectively. Given the particular importance of reducing power
consumption, we will endeavor to reduce CO2 emissions by introducing energy-saving
equipment and renewable energy. In addition to this, Scope 3 emissions not attributable todirect production activities account for 58% of the whole. Based on the fact that the majorityof these emissions are the result of the procurement of raw materials, etc., we will proceed to
endeavor to reduce CO2 emissions across our entire supply chain.

23

Financial andCorporate Data

As a supporter of the Task Force on
Climate-Related Financial Disclosures(TCFD), Meiko promotes initiatives aimed at
mitigating the impact of climate change.

01 Environmental Strategy

Introduction of energysaving activities

ESG Management

Response to TCFD

ESG Initiatives

Activities to reduce CO2
emissions

Value Creation

We have strengthened our sustainability system to elevate our corporate value from thestandpoint of sustainability. Our President & CEO has final responsibility over management
decisions relating to sustainability issues. Recognizing the handling of these issues to be key
elements of our management strategy, we formulated our “Sustainability Policy” at the meetingof the Board of Directors held on October 25, 2021. To accompany that, in order to reinforce
response to climate change, we started up the Sustainability Execution Conference. This
Execution Conference, under the direct control of the President and chaired by the Directorand Executive Officer in charge, is responsible for functions such as determining sustainabilityrelated policies, managing the progress of targets, and deliberating on measures to be taken.
Furthermore, it cooperates with related departments to input those measures.
In addition to collecting and analyzing necessary data on the impact that risk and earnings
opportunities pertaining to climate change have on our business activities, earnings, etc. andappropriately making assessment reports on specific achievements to the Board of Directors,
the Sustainability Execution Conference conducts external disclosures based on the TCFD andother frameworks.The Executive Conference convenes four times per year.

■ Strategy
To correctly recognize risks and opportunities related to climate change, Meiko assesses
their impact on its business strategy, performs scenario analysis to proceed to apply them tothe formulation of business strategy, recognizes business risks and opportunities with highimportance based on shifts in its business environment accompanying climate change and its
impact, and pushes forward with action over the medium/long term.
More specifically, in terms of risk, we see the likes of the incurring of costs alongside carbon
offsetting, cost increases due to shifts from fossil fuels, greater R&D investment that boosts
energy-saving performance, and drops in corporate value and declines in orders caused
by delays in climate change countermeasures as opportunities, and as such establish new
methods and technologies for manufacturing to reduce our environmental burden, increase
our EV-compatible products, adapt to the growing market, and establish a global procurement
network.

▶ Identification of risks and opportunities
Under the 1.5℃ scenario heading towards a decarbonized society, mainly shift risks are called
into greater question. Under the 4℃ scenario, in which global warming progresses and outdoor
temperatures rise, physical risks are called into greater question. Even should progress be
made towards a decarbonized society such as that under the 1.5℃ scenario, it is conceivablepossibility that physical risks at the level under the 4℃ scenario may arise. We use the IEA
NZE scenario to analyze shift risks and opportunities and the RCP 8.5 scenario to analyze
physical risks and opportunities. We are also looking at actions to safeguard against physicalrisks at the level under the 4℃ scenario within a business environment in which we aim toachieve a decarbonized society at the level under the 1.5℃ scenario.
*Financial and strategic impact refers to the impact exerted on our operating earnings, shareprice, and costs as well as on our financial position. In assessing that impact, we quantify thefrequency of occurrence into three levels and the level of importance into five levels, classify
the class into five levels within that quantification so that a ranking is assigned based on anorder of priority, and assess risks and opportunities related to climate change. We assign a
degree of impact of “Large” out of “Small,” “Medium,” and “Large” to risks and opportunities
that fall under Class 4 or 5, the higher among the five levels, and assess them as being serious
risks and opportunities. In terms of the monetary impact on financial indicators, we combine
the below figures indicating levels with figures indicating the frequency of occurrence, andconsider those falling under “Large” among the three levels of “Small,” “Medium,” and “Large”
as serious risks and opportunities.

24

MEIKO corporate report 2023

Introduction▶ Risks and opportunities accompanying the “shift” to a low-carbon economy
Risk

Category

Policies
and legal
regulations

Period before
Degree ofEach Risk
ImpactEmerges

Opportunities and Response

1) Risk of incurring costs for offsetting CO2 Medium/
emissions.
long term2) Regulations for waste will be enforced in each
Short term
country, increasing costs.
3) Increase in costs due to the replacement of Medium/fossil fuel.
long term

Large 2) To procure renewable energy as much as possible4) Rapid increase of legal regulations in socialist Medium/countries because overseas ratio is high.
long term

Large1) To proceed with measures for saving energy andLarge reducing waste.

Largethrough in-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
and CO2-free power to achieve the target reduction of CO2
emissions.
*To promote the reduction of CO2 emissions in a planned
manner.
4) To monitor the legal regulations and measures in eachcountry.

1) The necessity of energy-saving measures will5) More energy-saving measures will be conducted andincrease, and the competition for energy-saving
Medium/more energy-saving products will be developed, and theperformance will intensify. As a result, costs for
Largelong term
demand for low-carbon technologies will grow. Accordingly,
R&D will increase and low-carbon technologies
business opportunities will increase (Establishment of new
Technology will be applied to existing products.
methods and technologies for manufacturing to reduce
2) Intensification of competition for knowledge,
environmental burden).
technologies, engineers, manufacturing
Short term Medium
equipment, etc. related to decarbonization, low6) To reduce loss by improving yield rate.
emission technologies, products, and so forth.
1) Due to the increase of electric components
7) To promote the reduction of CO2 emissions in a plannedand progress in the digitalization of automobiles Medium/
manner,Large
and other products, the supply of PCBs for long term
semiconductors will become insufficient.
8) To develop and offer products with a small environmental
burden,2) Manufacturers in other fields will enter thisMedium/market, and the orders from existing makers will
Large
long
term
9) To increase products compatible with EVs and adapt todecrease. Medium/long term Large
the growing market,3) Due to skyrocketing prices of materials with
Mediuma significant environmental burden, costs will
Large 10) To respond to the expansion of business opportunities
Marketterm
increase. Medium/long term Largedue to the increase of telecommunications speed following
the augmentation of data transmission volume and thegrowth of demand for semiconductor PKG,
4) Due to the lack of the ability to takeenvironmental measures, the number of orders Short term Large 11) To establish a global procurement network,
will drop (demand will weaken).
12) To reduce energy consumption in distribution by
improving loading ratios,

Reputation

1) Being low-carbon and environmentally Medium/friendly will become one of the requirements long term
for investment.
2) If a company falls behind in measuresagainst climate change, its corporate value
Medium/will decline, orders received will decrease, longterm
and the impact on management andrecruitment will become serious.

Large

Risk

Level ofLevel of
Importance Importance1) Disasters will become more serious (storm
and flood damage will become greater),
Medium/increasing the risks of suspension of factorylong term
operation, damage to assets, and employees’
difficulty in commuting.

Small2) The greater storm and flood damage will Medium/
disrupt the supply chain.
long term

Large1) The rise in air temperature will cause costs
Medium/Chronic for energy and the management of materials to long termincrease.

Large

Acute

Reductions:
02 CO2
Examples of Energy-Saving Initiatives
Reductions in electric power consumption through the updating of compressors and inverter control

For compressors, we updated our older-model low-efficiency equipment to high-efficiency
equipment and rebuilt our entire system for supplying pressurized air. We realize energysaving through the automatic selection of the optimal number ofunits in accordance with changes in air volume used and factory
operation rates when using multiple compressors. Additionally, as aresult of combining these with inverter compressors, energy-saving
properties have improved dramatically.

Guangzhou Plant

Fukushima Factory

Reductions in energy costs

Reductions in energy costs

CO2 emissions

CO2 emissions

262,000kWh/month reduced
132t-CO2

reduced1.8t-CO2

reducedFor adjusting the airflow of blower fans on concentrated dust collectors, we had originallyperformed operation by closing the valve. However, through enhancing efficiency andsupplying appropriate airflow by modifying inverter control, we lowered blower fan rotations
by roughly 20%, thereby achieving energy-saving.

Advanced PCB Center

Reductions in energy costs

1,940kWh/month reduced13) To appropriately disclose the progress of the plan for
reducing CO2 emissions,

Valve opening degree prior
to modification
Opportunities and Response1) To improve our BCP to cope with more serious disasters,
to stabilize business continuity (Maintenance of the supply chain,
the stable supply of energy, etc.).
2) To promote energy-saving plans.

Valve opening degree
following modification

CO2 emissions
0.8t-CO2 reduced

03 Solar Power Generation Initiatives
Solar power generation equipment for in-house consumption generating 383.68kW

3) To strengthen our efforts to acquire business in the anti-disaster system■ Ishinomaki Factory
At the Ishinomaki Factory (located in Ishinomaki City,
Miyagi Prefecture), we commenced the generation of
383.68kW in power using solar panels in March 2023,
achieving CO2 reductions of 214t-CO2 over the year that
followed.

■ Risk management

Meiko conducts company-wide risk management through its Risk Management and Compliance
Committee. However, for the identification of risks pertaining to sustainability and the narrowingdown of risks that should be responded to with priority, more detailed examinations are performedat meetings of the Sustainability Execution Conference. The narrowing-down of risks that should
be responded to with priority is conducted based on impact on the entire company, the impact that
corporate activities have on the environment and society, and the possibility of occurrence. For
response to these risks, we set medium-term targets whose progress is reported to the Board of
Directors to be assessed. This progress is also disclosed on our website.

We have formulated as our new targets a 50% reduction in CO2 emissions per rate of consumption
per production volume in Japan between Fiscal 2021 and Fiscal 2030, -2.5% for electric power
per rate of consumption per production volume, -2.0%/year for fuel per rate of consumption per
production volume, and carbon neutrality by Fiscal 2050. Going forward, we will promote energysaving as well as tackle forms of energy creation such as the introduction of solar power generation
for in-house consumption. Additionally, we will tackle Scope 3 emissions as well in order to also pushforward with decarbonization in our value chain as a whole.

25

3,700kWh/month reduced

Reduction of electric power consumption through control of blower fan rotations

In the future, we will define concrete scenarios and delve further to include impact on our finances.

■ Indicators and goals

Financial andCorporate Data

ESG Management

Large▶ “Physical” risks and opportunities due to climate change
Category/
AspectValue Creation

Solar Park Fukushima■ Fukushima Factory
Solar Park Fukushima, which commenced power
generation in 2015, currently generates power in therange of 3,025kW, with annual CO2 reductions of 1,650tCO2 (equivalent to the power consumption of 880 generalhouseholds). Together with the Ishinomaki Factory, Meikogenerates 3,409kW in solar power overall, and has reduced
CO2 by 1,864t-CO2 per annum.

26

MEIKO corporate report 2023

Introduction

Copper scrap: Introduction of recycling system
At our Vietnam Plant, we consign the disposal of copper scrap to a treatment vendor. This
copper scrap is internally pulverized and sorted and separated into high-grade copper powder(97%) and a small amount of resin powder waste to achieve the reuse of copper resources andreduction of waste. Moreover, we are currently examining alongside related manufacturers how
to reuse the resin powder waste as fuel as the second step in this process, and will continue
pushing forward with initiatives that do not waste resources.
Recovery of nickel plating catalyst activation palladium in electroless gold plating line
At the Thang Long Plant, we had been externally discharging palladium in nickel plating
catalysts from wastewater treatment equipment. In order to recover that precious metal
resource, we developed and utilized a dedicated recovery device with the use of chelating
resin and endeavored to recover over 99% of that resource, establishing a resource
circulation cycle in the process.

Activation renewal
waste liquid

Discharge

Storagetank

Financial andCorporate Data

ESG Managementof Environmental Burden through Changes
05 Reduction
to Copper Plating Process

04 Cyclical Use of Resources

Post-dip renewal
waste liquid

Value Creation

Resin
Tower
#1

Resin
Tower
#2

Utilization of water resources
In manufacturing PCBs, Meiko utilizes large amounts of water in its substrate cleaning
process. Up to this point, we had tacked the reduction of those amounts through means suchas managing water use for each piece of equipment and using RO water.*1
While a large number of our domestic factories have an abundance of groundwater, some of
our overseas plants suffer from a serious lack of water.Using global tools such as Aqueduct*2,
Meiko assesses water risk at each of its sites. As a result, we have found that none of ourbusiness establishments are located in areas judged to have high water risk. However, we
will continue to use the minimum necessary quantities of water to the extent that quality is notaffected as well as implement reuse systems for RO concentrated water in our endeavors toreuse wastewater.
*1: RO water: Water from which impurities are removed with the use of Reverse Osmosis (RO).
*2: Aqueduct: A water risk assessment tool developed by the World Resources Institute (WRI)

Preservation of Biodiversity[Basic Policy]
Meiko recognizes that biodiversity is an indispensable part of a sustainable society. To that
end, we have adopted a “Conduct Policy” shared across the Group from the dual aspectsof “business activities” and “social contribution activities,” under which we will proceed topromote a myriad of activities to preserve biodiversity.
[Conduct Policy]
１．
Clarify the relationship with ecosystems in our business activities and promote activities
that are considerate of biodiversity.
２．
Contribute to the formation of a society that nurtures biodiversity through cooperation withvarious stakeholders and educational activities.

In the manufacture of PCBs, copper plating constitutes an extremely important process.
Metallic copper cannot be directly deposited on the resin materials that make up PCBs. For
that reason, in general copper plating processes, “electroless copper plating” is used to dip
substrates in chemicals. The resulting chemical reaction is used to form conductive coating.
The environmental challenges present in this process were twofold. The first was the inclusionof metallic palladium in the catalysts. The second was the use of formalin, which exerts aconsiderable burden on the environment. Given that, as a new conductive coating formation
process to replace electroless copper plating, we introduced a new technology called “Black
Hole®.”
Through this process, conductive coating is formed using fine carbon black powder, without
the use of metal catalysts. Not only does this exclude precious and heavy metals from theprocess, but it also benefits the environment by excluding the environmentally-harmful
substances of formalin, cyanide, and fluoride. Another advantage of Black Hole® is that it isextremely simple and easy to handle even when compared to the electroless copper platingprocess. Compared to treatment devices for electroless copper plating, in addition to water
consumption being theoretically reduced by as much as 76%, waste liquid is reduced as well,indicating how environmentally-friendly the process is. At present, Black Hole® has been
introduced at the Vietnam Plant, and is scheduled to be successively expanded to other plants
as well.

Comparison between electroless copper plating and Black Hole®processes
Electroless copper plating process

Black Hole®processes

Microetching

Carbon treatment

Pickling

Conditioning

Pre-dip

Carbon treatment

Catalyst

Etching

Cleaning

Cleaning

Accelerator
Electroless copper plating
Comparison between electroless copper plating and Black Hole® treatment devices
D-PTH device(Electroless copper
plating)

Black Hole®
deviceBatch line (Vertical)

Horizontal line

Advantages to introducing Black Hole®
１．Lowers burden on the environment by excluding use of precious and heavy metals.
２．Lowers burden on the environment by excluding formalin, cyanide, and fluoride.
３．Reduces water consumption.
４．Reduces amount of waste liquid.

27

28

MEIKO corporate report 2023

Introduction

Development Geared towards Automatic
06 Technology
Driving and 5G/6G High-Speed Communications
Since the 2020s, automobiles have evolved rapidly. In Japan, Level-1 automatic driving(assisted driving) has become standard. In China, Europe, and the US automatically-driven
vehicles are on the roads in certain experimental cities, and it is predicted that in thenear future, fully-automatic driving will become increasingly popular.
Concurrently, technologies such as IoT, high-speed communications, cloud platforms, bigdata, and AI have also started to make their way into automobiles. Various ways of using
these technologies that go beyond driving control are being examined. A representative
example of such technologies are Telematics Control Units, or TCUs for short. TCUs aredevices that use a mobile network to conduct bidirectional communications between an
automobile and an external party.
This makes it possible for drivers to operate the vehicle’s engine or air conditioner from aremote location before they ride the vehicle. TCUs also automatically supply notification
to drivers if their vehicle is broken into or if another anomaly occurs. Furthermore,because data such as distance driven and battery status are automatically sent todealerships, it is possible to receive information on maintenance with optimal timing. TCU
functionality has been given practical application, such as being able to receive operator
support when getting into an accident, being harassed on the road, or encountering
another emergency.

Until several years ago, PCB technologies were
fully separated between those for automobiles andthose for smartphones (communications). Now,
due to the increase in demand for automobile
communications, the classification of thosetechnologies has become ambiguous. Meiko develops
PCBs that are compatible with 5G/6G high-speed
communications for automobiles by applying theexperience and knowledge that it has cultivatedin technology development for smartphone PCBs.
To give an example, in order to realize high-speed
communications, we are currently examining
processes for high-frequency materials for reducing
noise and transmission loss.
Moreover, for the purpose of lowering the costof high-priced high-frequency materials, we arealso moving forward with PCBs bearing a hybrid
construction that combines existing materials withhigh-frequency materials.

29

Value Creation

ESG Management

Financial andCorporate Data

Process and New Materials for Next07 Miniaturization
Generation Semiconductor Packages

Over the years, alongside the rapid evolution of electronics as seen in the likesof AI, cloud computing, big data, high-speed communications, and smart cars,
semiconductors have also continued to evolve. Meiko continues to promote“semiconductor package substrates” inside semiconductor parts as one of its new
business pillars.
Semiconductor package substrates serve to protect fine IC chips and play the role ofterminals that assist with the connection to PCBs. While they appear similar to PCBs,
the process that forms their circuit pattern and their product materials differ fromthose for PCBs.
For the process used to manufacture semiconductor package substrates, we haveintroduced a Semi-Additive Process, or SAP, in order to make the circuit pattern L/
S=10/10 micrometers or less. SAP as a process involves forming electrolytic layers
atop resin materials only on the areas where the circuit pattern requires them. This
process is well-suited to forming fine circuit patterns.

Additionally, we are also pushing forward with the developmentof new materials that are suitable for semiconductor package
substrates. As also touched upon in the discussion oftechnology development for automatic driving and 5G/6G
high-speed communications to the left, high-frequency
materials are needed in semiconductor package substrates
as well in order to reduce noise and transmission loss. Where
high-frequency materials are concerned, in addition to highfrequency grades of commonly-used epoxy resin, there are
numerous materials that are difficult to process, including
fluororesin such as Teflon, ceramic, and glass. These materials
necessitate a high level of technological prowess.
Given that, in addition to the examination of processes forvarious high-frequency materials, Meiko has also initiatedthe development of processes for “glass substrates.” Whileglass substrates pose an extremely high level of difficulty due
to their manufacturing process not being established, Meikoconducts research and development on them with the viewthat those substrates will be needed in future semiconductors.

30

MEIKO corporate report 2023

Introduction

08 Product Information
SDGs initiatives by technology development departments

Value Creation

Meiko’s technology development departments address global CO2 reduction requirements by carryingout initiatives that consist of the below. As measures for contributing to the environment, efforts topromote non-CO2-emitting options such as solar, wind, and natural power generation and hydrogenfuel instead of using fossil fuels have sped up further. The greatest technological contribution to suchinitiatives is how the enhancement of efficiency translates into a reduction of losses. Meiko has been
conducting development efforts centered on technology development aimed at improving energy
efficiency. We proactively tackle the development of structural technologies such as those to achievesmaller size and lightweightness and those for embedded part construction as well as technologies forboosting heat dissipation properties.
Sensors

Charging

Inverters

Chargers/
onboardchargers

Power MODs

Battery
management

Inverters/
converters

Controllers

V2X
・ 6G
/5G

copper plating.
smartphones Connection formation technology for coping with high current and improvement in heat dissipation
performance (Large-area cavity connection to electrodes of parts).
Technology for using materials with a thermal conductivity of 1W/mK or more to form inter-layer
tablets
connections, wiring, etc.

Copper inlay
PCBs

Automotive conductivity to widen their diameter and fix them to the inner walls of PCB through-holes by caulking

●

●

●

●

Technology for embedding a copper circuit with a thickness of up to 175 μm into PCBs through vacuum

Technology for applying pressure to copper inlay PCBs (copper blocks) with superior thermalthem (Copper inlay PCB caulk pressing).

Automotive Technology for combining LowDk (low-dielectric)/LowDf (low-loss) materials and general materials fortablets

PCBs (FR4) through vacuum hot pressing (Hybrid construction).

Automotive Can make wiring high-density by shortening the distance between the inter-layer connection holes
tablets

formed with laser processing.

Flexible PCBs

smartphones Technology for forming wiring on bendable substrates and making them lightweight.

Flexible rigid
PCBs

smartphones

Automotive

Technology for combining flexible PCBs and rigid PCBs through vacuum hot pressing.

FR4-FLEX

Automotive Process of cutting rigid substrates to a bendable thickness through machining (Boring to bend).

Mega
through-hole
PCBs

Automotive properties.

●

●

●

●

●

●

●

●

●

●

Reduces the consumption of organic materials and metal materials by downsizing
products: 10% down.
Saves energy through reduced inductance: 10% down.
Decreases solder consumption by embedding devices: 3% down.
ECopes with high current of EVs.CO2 reduced through EV popularization: 2% down.
Saves energy with mitigated semiconductor load through improved heat dissipation
efficiency: 5% down.

●

●

●

●

●

●

Copes with high current of EVs and chargers. CO2 reduced through EV
popularization: 3% down.
Saves energy with mitigated semiconductor load through improved heat dissipation
efficiency: 8% down.

●

●

●

●

●

●

Copes with high current of EVs and chargers. CO2 reduced through EV
popularization: 2% down.
Saves energy with mitigated semiconductor load through improved heat dissipation
efficiency: 4% down.

●●

Realizes lower cost of high frequency-compatible PCBs and improves multi-layer
stackup support and wiring freedom.

●●

Makes automobile substrates higher-density in order to sophisticate electronic
vehicular control: 5% down.
Reduces amount of materials used through downsizing substrates with Any
structuring: 10% down.

●

Saves energy through increased lightweightness: 10% down.
Substitutes for wire harness, etc. due to reduced thickness: 10% down.

●

●

●

Effects●●

Process of applying heavy copper plating to through-holes only in order to boost heat dissipation●

Reduces materials used through downsizing: 2% down.
Reduces parts through connector-less design: 10% down.

●

Reduces materials used through downsizing: 5% down.
Reduces parts through connector-less design: 10% down.

●

●

●

●

●

●

Increased the tolerable amount of current and heat dissipation by two or more times
with heavy copper plating on through-holes only.
Downsizes substrates.

MSAP

Package
PCBs

Process of forming wiring patterns through pattern plating by using ultra-thin copper foil as a conductive
layer.

●

●

●

●

●

Reduces the consumption of organic materials and metal materials by downsizing
PCBs with fine wiring: 10% down.

SAP

Package
PCBs

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

●

●

●

●

●

Reduces the consumption of organic materials and metal materials by downsizing
PCBs with fine wiring: 10% down.
Does not contain copper foil: 5% down.

Low-elasticity
resin
aluminumbased PCBs
Metalbase heatdissipation
PCBs

31

Electronic
controlTechnology for embedding electronic parts into PCBs through vacuum hot pressing.

Automotive hot pressing.

HDI/
Any
Layer

Power trains/
motorsAutomotive Technology for forming laser-processed connection holes on internal part electrodes and connecting with

Heavy
copper PCBs

High
frequency
Millimeterwave PCBs

AIP

内蔵基板

Computers Communications

Domain PCs/
HPCs

Embedded
device PCBs

Characteristic Processes

Cameras/
CMOS

部品

Examples ofApplication

Millimeterwave/LIDAR

Items Developed

Financial andCorporate Data

ESG Management

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

Automotive
Industrial
equipment

Metal-base substrates consisting of a special high heat-dissipating insulated resin material, a copper
circuit, and base metal fused with high-pressure pressing equipment.

●

●

●

●

●

●

●

●

●

Significant improvement in product life as a result of improving long-term reliability byinhibiting solder cracks caused by insulating heat dissipation resin with low elasticity,●

Improvement in reliability with limited warpage on ceramic substrates: 50% down.
Low height and light weight through reduction in parts and materials due tointegrated structure.
Reduced power consumption by limiting power loss through improved power supply
conversion efficiency: 50% down.

32

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

09 Quality Assurance Initiatives
Quality for reliability and safety

Objective evaluations for securing reliability and safety (design review)

While securing the reliable and safe quality of products, we will improve their attractivenessand follow our Business Principles of “providing the best-ever products and services for ourcustomers.” We examine each element of the lifecycle of each product from the viewpointsof reliability and safety, take measures for improving or upgrading our products, and deliverproducts to customers.

We carry out design reviews (DR) to define design quality at the stages of designing anddeveloping new products before mass-production. In the DR system of the Meiko Group, risks
are assessed to rank them, and processes in the development phase are systematized foreach rank.

We strive to optimize QCDS (Service), which have trade-off relationships with each other,through communication with customers to realize attractive quality and satisfy requests from
customers.

At the execution stage, the production design, technology, and quality assurance divisions
spearhead a review of changed points and past trouble, a discussion of products’ toleranceof risks and the feasibility of manufacturing, and efforts to take improvement measures forpreventing the recurrence of past trouble, etc. to meet requests from clients.

Quality policy
Meiko is committed to contributing to society by supplying customers with products that arebacked by world class technology and guaranteeing the highest level of satisfaction, resulting
in improved company profits and employee well-being.

Product lifecycle

Phase of receiving
requests

Therefore, we always set quality goals to continuously improve the quality of our operations aswell as our products by ensuring the management cycle in every process of work. Needless tosay, we will comply all statutory and regulatory requirements.

【1】Stage of receiving
requests from clients
Stage of developing
element technologies

Moreover, we establish the fulfillment of legal and regulatory requirements as a given.
Demanded
specs/items

The slogan encapsulating the “Meiko Electronics Co., Ltd. Quality Policy” is as follows.

Ensuring quality that meets customer expectations
and instills confidence

Moreover, we conduct analysis emphasizing customer-oriented processes (COPs), examine
quality at the design and development stages, carry out global quality assurance activities, andimplement external process management to meet requests from customers. Furthermore, weare promoting initiatives to improve quality by continuously enhancing our quality management
system.

■ Status of certification of ISO 9001/IATF 16949 at manufacturing bases

33

Headquarters

Advanced
PCB Center

Fukushima
Factory

〇

〇

〇

〇

〇

To acquire
IATF in
2024

〇

〇

〇

－

Ishinomaki
Factory

ISO9001_2015

〇

〇

〇

〇

IATF16949_2016

－

－

－

－

－

Vietnam

Wuhan
Plant

Tendo
Factory
To acquire
IATF in
2024

China
Guangzhou
Plant

KahokuFactory【7】Use stage

Design review
Determination of materials
and structures

Procurement of materials

The products of the Meiko Group are used by a broad range of customers in the field ofelectronic devices. In particular, the importance of quality of in-vehicle products is growing
further. Accordingly, we adopted the Automotive Process Approach (APA), which is an
obligatory requirement of the International Automotive Task Force (IATF) 16949, in addition to
the quality management system based on ISO 9001: 2015.

Certifications【6】Mass-production
stage

Actual use
phase

Reliability check■ M-QMS (Meiko Quality Management System)

Yamagata Meiko Electronics【2】Stage of preparing for production【3】Stage of designing production processes【4】Trial production stage【5】Stage of shifting to mass-production

Manufacturing
phase

Process design

Initiatives to meet customers’ requestJapan

New points/changedpointsDevelopment phase

Thach That Thang Long
Plant
Plant

Quality of procured materials (measures for securing quality in external processes)
The quality, characteristics, and reliability of PCBs are
significantly affected by the quality of their raw materials andsecondary materials for processing them.
As procurement becomes global, it becomes necessary to
procure materials with globally unified quality. In order tosatisfy clients’ requests, it is important to propose materials
suited for their products and secure the quality of procured
materials.
We distribute the “Quality Control Standards for Business
Partners” formulated by the Meiko Group to have our business
partners understand and follow the quality control and change
management items in the quality management system of the
Meiko Group.

文書番号：MPQS

Confidential

取引先様のための品質管理基準書（Rev３）

株式会社メイコー
品質保証本部

In addition, we regularly audit the business operations ofbusiness partners to check whether they follow our standards
and maintain/secure quality.

34

MEIKO corporate report 2023

Introduction

ESG Management

Financial andCorporate Data

10 Intellectual Property (IP) Strategy

11 Supply Chain

As a corporation that continues to challenge the evolution of electronics, Meiko places
importance on IP as assets for its future management. We aim to leverage IP in promoting our
R&D activities and endeavoring to improve our corporate profit.

In order for both Meiko and its supply chain to fulfill their corporate social responsibility (CSR),
we work to elicit our business partners’ understanding of Meiko’s basic stance with respect toprocurement activities.

Positioning of IP strategy
We view business strategy, R&D strategy and IP strategy as our strategic trinity. We formulate
and execute our R&D strategy based on our business strategy and convert the positive
outcomes gained through our R&D activities into rights. This cycle ties into the creation of
the competitive advantage of our businesses over other companies and brings forth products
bearing high profitability. Under our IP strategy, we promote the conversion of IP in growthareas under our business strategy into rights in order to realize that cycle. Additionally, in linewith the globalization of our business, we also aggressively promote the conversion of IP torights in key markets and production areas overseas in addition to those in Japan.

Business strategy
R&D strategy

IP strategy

IP promotion system
Meiko will promote the creation of PCB inventions for automotive equipment, semiconductor
packages/modules, and high-frequency equipment, which constitute future growth areas.
To that end, we regularly administer IP training by experts to our engineers to help them
master basic knowledge of IP and enhance their inventing skills. Additionally, to maintain ourcompetitive advantage over other companies, we aggressively apply for structural patents andendeavor to conceal our processes and knowhow.

IP management system
We have established an Employee Invention Committee to verify the validity of inventions when
they are made and upon the renewal of patents. Also, when inventions are made, the inventing
department conducts an investigation of prior applications. Simultaneously, the patent
management department monitors whether that investigation is being properly conducted.

Invention incentives
Meiko has an invention incentive system for employee inventors in place. Monetary incentives
are paid to employee inventors when the invention is made and upon the application of apatent. Moreover, when patents converted to rights are applied at the time of mass-production,
a commensurate monetary incentive is disbursed. Through this system, we endeavor toelevate the motivation of our engineers to invent.

35

Value Creation

Basic Procurement Policy
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 Meikobelieve 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, andselect business partners through a comprehensive assessment of quality, delivery punctuality,
price, and management and business continuity in case of an accident and a disaster aswell as UN’s SDGs (human rights, equality, environment and partnership). In this way, we arestrongly emphasizing CSR practices within our supply chain.

■ Basic Purchasing Policy１

We will conduct procurement activities optimized for our global production in accordance with the Action Guidelines forPurchasing Deals,

２

We will conduct smooth, fair, appropriate procurement activities based on closer communication and strengthened
cooperation with our business partners,

３

We will promote the strengthening of environmental measures (chemical substances/green procurement),

４

We will conduct procurement activities that are considerate of international standards regarding human rights, safety, health,and labor conditions and of laws, ordinances, and regulations in various countries and regions.

■ Action Policy for Purchasing Deals
１

We will purchase from business partners that constantly maintain a recognition of “Quality first,” understand the quality policyof Meiko Electronics Co., Ltd., aggressively engage in quality assurance, and are capable of accurately providing materials,
etc. that conform with quality standards.

２

We will purchase from business partners that endeavor to procure environmental preservation-conscious materials withpriority and are capable of proactively promoting the development of materials, parts, etc. with a limited environmental
burden.

３

We will purchase from business partners that are able to flexibly respond to changes in market needs, possess outstanding
technological and development prowess, consistently cope with technological innovations, and are globally competitive.

４

We will purchase from sincere, passionate business partners that make proactive proposals, including those for the mutual
elevation of technological prowess, improvement of quality, and reinforcement of product power.

５

We will purchase from business partners that are able to accommodate globally-competitive pricing and designated delivery
dates.

６

We will purchase from business partners that are able to swiftly and fully deal with situations such as when trouble occurs.

７

We will purchase from business partners that comply with and enforce related laws and ordinances (including the antitrust
laws, commercial laws, subcontracting laws, foreign exchange laws, personal information protection laws, work safety andhealth laws, and copyright laws of various countries and regions), social norms, information security, etc.

８

We will purchase from business partners that fulfill their social responsibility with respect to human rights and labor (bypreventing child and forced labor and discrimination).

９

We will purchase from business partners that enforce risk management for the sake of ensuring business continuity and have
no issues with stable supply to Meiko Electronics Co., Ltd.

10 We will purchase from multiple business partners out of consideration of business continuity.
will conduct procurement activities optimized for our global production in accordance with the Action Guidelines for
11 We
Purchasing Deals.

36

MEIKO corporate report 2023

Introduction

Value Creation

ESG Management

Financial andCorporate Data

Promotion of corporations’ social responsibility in sustainable supply chain

Procurement policy based on ESG management

In addition to control of greenhouse gas emissions, waste reduction, and management ofspecified 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 and recommend green procurement,
and also request that distribution and sales activities be undertaken in an environmentallyfriendly manner. We strengthen initiatives to minimize procurement risk caused the likes ofnatural disasters and epidemics and conduct surveys on conflict minerals and young worker
employment as well as environmental compliance surveys that accommodate the updated
editions of REACH Regulations and so forth.

Under our Business Principles, we put together social issues from our mid/long-term vision
with the ESG (environment, society, and governance) framework, and will engage in businessactivities for the purpose of attaining the SDGs that are considered important for our
stakeholders by utilizing our strengths.

■ Requests to our business partners
１ Comply with laws and ordinances and respect international organizations.

1Fair, 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 and the information security system for preventing the leakage of confidential andpersonal information shall be strengthened.

3Entertainment and gifts from business partners shall be permitted to the extent that would normally beconsidered 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 younglabor.

２ Respect workers’ human rights in light of international human rights standards.
Implement initiatives to keep workers’ injuries accompanying their duties and physical or mental

３ illnesses to a minimum and put a hygienic work environment in place.

Aggressively tackle resource depletion, climate change, environmental contamination, andEnvironmental measures (green procurement)
In accordance with the “Standards for the Environment,” we encourage environmentallyfriendly purchasing and procurement activities together with our business partners.

４ other global environment issues as well as be conscious of regional environmental issues while

We confirm laws and regulations (RoHS Directive, ELV Directive, and REACH Regulations) and the content of environmentallyhazardous substances to encourage the procurement of compliant products and maintain and improve the environmental
quality of our products.

５ Conduct business activities based on a high level of ethics in addition to legal compliance.

① RoHS Directive

EU restriction on the use of certain hazardous substances in electrical and electronic equipment② ELV Directive

A directive adopted by the EU to reduce the environmental burdens of end-of-life vehicles③REACH Regulation

EU law for protecting people’s health and the environment④JIG（1-R）

Legally controlled substances specified in the CSCL guidelines concerning the disclosure of information regarding
chemical substances contained in electrical and electronic equipment

considering the health and safety of the people of the region involved.

Ensure the safety and quality of the products and services offered and provide accurate
６ information.

1

７ Prevent leaks of confidential and personal information and strengthen information security.
Conduct preparations that make it possible to resume production activities early on in order to
８ fulfill that business partner’s responsibility to supply in cases where the business partner or the
suppliers thereof are afflicted by a large-scale natural disaster, etc.
Conduct activities that are conducive to contributing to the development of international and9 regional society.

⑤Customer standards

2

We encourage the signing of the Memorandum on Environmental Protection and Guarantee of Non-Use of Environmentally
Hazardous Substances to ensure environmental protection together with our business partners. We are pursuing the signingof this Memorandum and Guarantee with our major business partners, including manufacturers to whom we outsource
processing.

3

We strive to reduce the discharge of industrial waste and encourage the use of this waste as a valuable resource byrecycling it or using it in other ways together with our business partners.

Establish company-wide policies and systems and action guidelines, education, and other10 mechanisms for expanding CSR, and administer them appropriately and adequately.

Meiko issued “Responsible Corporate Conduct Guidelines” that include trends in CSR, related
requests by international society, and so forth. Within those guidelines, explanations areprovided on CSR items universally or individually requested of each corporation as well assummarized items.
In Meiko’s “Responsible Corporate Conduct Guidelines Check Sheet,” we set forth questions
for each item so that our business partners can perform a self-diagnostic. We ask our business
partners to carry out that self-diagnostic and inform us of the results.
Internal controls and compliance for measures concerning purchasing and procurement
Meiko undertakes smooth operations with its business partners by complying with the following
rules on purchasing and procurement activities.
We carry out enhanced appropriate, perpetual transactions with our business partners byundertaking internal training and confirming compliance in relation to adherence to customs
regulations, laws, ordinances, and social norms of 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.

37s
Busines OICE
r's V
PartneShengyi Technology Co., Ltd.
Group Sales Center
Senior General Manager of Sales
Dong Hong wei

We have benefited from a business relationship with and the patronage of Meiko
Electronics Co., Ltd. for twenty years. I would first like to take this opportunity to
express my gratitude for that.
As a pioneer in China’s copper clad laminate industry, Shengyi Technology espouses
industry as the value of our corporation’s existence and sustainable development as its
philosophy, and sees the promotion of advancements in the electronics industry as theduty of our corporation. As a responsible corporation, we concern ourselves with the
public benefit and forward development of society, and conserve energy and resources
out of consideration of the environment.
We also concern ourselves with our employees, and are careful to enable them topartake in the positive outcomes of our corporation’s growth. We firmly maintain the
sharing of those positive outcomes by society, our shareholders, and our employees.
We constantly ensure that our customers and vendors are able to partake in the profits
resulting from our growth.

38

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

12 Disaster Prevention and Risk Management
Implementation system for disaster prevention measures
In accordance with our “Fire Prevention
Management Regulations,” we establish a
Disaster Prevention Response Headquarters
made up of Directors, Audit & Supervisory
Board Members, and other members, assign
an organization and personnel specialized indisaster prevention at each site, and share
relevant information across the entire Group.
In this and other ways, we are strengthening
our initiatives geared towards the prevention of
accidents.

Disaster Prevention Slogan at the Meiko Group

１．Protecting our factories and plants on our own
2.Zero accidents
３．Multiple forms of safety against
latent hazard sources

Work safety and disaster prevention activities
Audits are conducted twice a year for disasterprevention and once a month for work safety toevaluate the management status for safety, disasterprevention, and the environment from a point ofview unified across the company. Outstanding areas,
etc. are then spread across the entire Group in ourefforts to enhance our level.

We also conduct fire prevention monitoring at all times largely with the use of IoT devices, andcommunicate information swiftly when an anomaly occurs.

Activities aimed at lowering disaster prevention risk

With “Protecting our factories and plants on our own” as its policy, the Disaster Prevention
Response Headquarters sets out to establish multiple forms of safety rather than a single
safety measure to prevent factory and plant accidents before they occur, thoroughly instill its
policy, and promote ongoing activities.

Board of Directors
Disaster Prevention Response Headquarters

Manufacturing Div.
Disaster Prevention Response Headquarters ConferenceGroup Work Safety and Health Committee

Fire Prevention Management Regulations

Work Safety and Health Committee Regulations■ Conducts audits twice per year
Fire Prevention Management Regulations

・Expansion of examples of incidents and work accidents to all
factories and plants and elimination of similar risks
・Overseas and domestic sites and fire prevention coaching activities
・Verification of disaster affliction risk utilizing hazard maps andemergency response drills
・Holding of nighttime evacuation drills

Risk
assessments

Company-wide standards related to disaster prevention were put inplace and guidelines were established at Meiko Engineering System(MES)

Audits pertaining todisaster prevention

・Enlightenment efforts for disaster prevention awareness spreadthrough conducting of internal audits on disaster prevention
・Promotion of monthly inspection patrols by top members of factories
and plants

ReportCooperation

Risk Management and Compliance Committee

Disasterprevention
improvement
activities■ Conducts audits once per month

Various sites and departments of the Meiko Group■ Administrative dept. placed at each site

[Number of Accidents per Quarter between 2020-2023]

IoT

×Disasterprevention
measuresIndex

2020 1st

39

Vietnam Plant Disaster
Prevention Center

Down 56%

2nd

3rd

4th 2021 1st 2nd 3rd 4th 2022 1st 2nd 3rd 4th40

MEIKO corporate report 2023

13

Introduction

Creation of a Comfortable Working Environment

In line with the idea that “the greatest asset of a company is its human resources,” we focus
on the creation of a comfortable working environment that is safe, secure, hygienic for all our
employees, respects their diversity, and supports them to develop.

Respect for diversity
We respect human rights and strive to recruit, evaluate, and treat our employees without
discrimination on the basis of race, creed, religion, nationality, age, gender, disability, and otherattributes, so that they are able to show their true abilities.

Value Creation

Promotion of women’s participation and advancement
As a result of aggressively recruiting female human resources, our employment of female
employees as a percentage of the total number of employees exceeded 20% for the first timein Fiscal 2020, rising as high as 24% in Fiscal 2022 due to us keeping up those recruitment
efforts. The number of female employees at Meiko has also been trending upwards year afteryear, exceeding 200 in Fiscal 2022.
We will continue to actively recruit women and put energy into the promotion of female
employees to managerial positions.
Number of female employees
200

200

170

In addition, we train and utilize non-Japanese personnel, based on the intra-company transfer
system and programs for improving skills. Nine employees from Chinese and Vietnameseplants are working in Japan based on the intra-company transfer system, and eight employees
from the Vietnamese Plant are working at Fukushima Factory based on corporate programsfor improving skills. Furthermore, sixteen Vietnamese workers managed by a supervisingorganization for improving skills are scheduled to work at the 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, thenumber of Japanese expatriates working in local subsidiaries has been decreasing year by
year due to an increase of non-Japanese managers. Currently, that number is 48.

■ Initiatives for employing disabled people

150

131

117

120

Trend in number of female managers
40

40

31

164

38

38

39

33

26

130
20

100

50

0

Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022

0

Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022

Meiko Daycare Center “Nobikko”
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 the company. The facility is
located adjacent to the Headquarters, allowing employees to work safely with their children
by their side.Having adopted “carefully nurturing power that will grow in abundance within afamily atmosphere” as its daycare philosophy, the facility aims to realize daycare that engages
each individual child while flexibly accommodating work patterns.

We continue to proactively promote initiatives for employing disabled people. At present,
nineteen such individuals work at our company. To have disabled people work with us fora long time after joining our organization, we focus on putting a workplace environment
conducive to doing their jobs in place. This includes conducting follow-up interviews with those
employees and preliminary education to other employees in their department of affiliation.

Since opening, it has been used by sixteen employees, including those seeking temporary daycare.
Going forward, we will continue to support a balance between work and childcare as we endeavor todevelop human resources.

In addition to creating opportunities though which disabled persons can make significant
contributions, Meiko will keep up its efforts so that it can serve as a bridge between thoseindividuals and society.

■ Human resource development

Trends in the statutory number and actual number of disabled employees
20
18
16
14

17

17

18

18

19

14

10

Actual number ofdisabled employees(Met target)

8
6
4
2
0

Statutory number ofdisabled employees
Actual number ofdisabled employees(Short of target)

1241

Persons

Persons■ Allocation and exchanges of global human resources
We recruit desirable personnel, including new graduates and mid-career workers, regardlessof nationality. As of March 2023, there are 39 non-Japanese employees recruited in Japan,
including Chinese and Vietnamese nationals.

Financial andCorporate Data

ESG Management

Fiscal 2022

Fiscal 2023

Fiscal 2024

Human resource development and career paths
We provide job-class-specific training programs
aimed at extracting the potential ability of individual
employees and cultivating human resources who willachieve our Business Principles in a mid/long-term
vision.

Job
grade

Job title

Job-class-specific educationand training

6～

Managerial
position

Self-enlightenment support

5

AssistantManager

Tests prior to appointment tomanagerial position

4

Supervisor

Training for newly-appointed
managers

We assist employees from prospective ones to3Assistant Managers with the enhancement of their・Mid-level employee training
skills and knowledge to match their individual job
General・Follow-up training
2・New employee trainingclass. For managerial personnel, we provide self1
enlightenment support with the purpose of autonomous
career-building. Furthermore, in the job-class-specific Prospective employees Prospective employee training
training, directors give a lecture titled “Lecture for
Meiko’s leaders and managers” to directly convey ideal human resources for our company toemployees.
In addition, as a support for our employees to engage in voluntary self-development, ourcompany pays incentives for obtaining skill certifications and bears a part of employees’
expenses for language study and e-learning. Additionally, in order to train employees atoverseas plants as part of efforts to develop human resources of the Meiko Group, we utilize
the intra-company transfer system and programs for improving skills.

42

MEIKO corporate report 2023

Introduction

ESG Management

Financial andCorporate Data

■ Career paths■ Initiatives for work safety and health

For technical positions, we have employees gain experience onsite with greater proximity to the
manufacturing frontlines with the intention of having them master knowledge, skills, and knowhow.
At the stage where employees have properly outfitted themselves with knowledge and experience,a hearing is conducted with them on “what they want to do” to examine their career with the
expectation they will tackle their work with autonomy and demonstrate leadership.

Based on the Industrial Safety and Health Guideline, we aim to develop a working environment
in which all employees can work in a physically and mentally safe manner with peace of mind
and exert their respective abilities to a sufficient degree. In addition to the work safety andhealth committee for each base, which is set forth in the Industrial Safety and Health Act, weorganized the group industrial safety and health committee, which is superior to the safety andhealth committee, to manage the entire corporate group.

We have career paths available for “specialist” human resources who seek to master a specialization
as well as those available for “generalists” who wish to experience various departments and have
involvement in a wide range of work within technical areas. Through evaluation meetings within
departments and HR meetings, we also have hearings with employees to gauge whether there has
been any change in “what they want to do” as the situation calls for it. As the final step, specialist
human resources grow into “professional” human resources and generalist human resources into
“management human resources,” and each aim to elevate themselves to a position equivalent to a
management specialist.
Moreover, based on the inclination and suitability of the employee, they may make a career change inthe midst of their career.
Grade 1 - Grade 3

Grade 3 - Grade 5

Grade 6 and up

1st to 3rd year
(up to age 25)
New/young employees

4th to 9th year (age 26 to 31)
Mid-level employees: I
ndependent employees
Veteran employees: Leaders

10th year and beyond(age 32 and older)
Position equivalent tomanagement specialist

Technical
positions

Specialist

Departmental/
HR interviews

Generalist

Management

Placing importance on a balance between work and family, we engage in a myriad of initiatives
for the purpose of boosting employee happiness and productivity. Firstly, by offering flexible
shifts through a flexible time system and work with shortened hours, we enable employees todo their job according to their own schedule. In turn, this makes it possible for employees toalleviate their household burden in the form of childcare and nursing care and reduce theirstress.
Furthermore, when employees take childcare or nursing care leave, we provide them with thesupport they need and help them make a smooth return to work. Additionally, through training
and our Career Support Program, we promote skill enhancement and career development.

Work
Flexible time system
Work time intervals

The group industrial safety and health committee engages in preventing the occurrence ofwork accidents across the group largely by sharing details of work accidents and the causesof their occurrence at each site as well as initiatives for preventive activities at each site.

～Industrial Safety and Health Guideline～
In line with the concept that “the greatest asset of a company is its humanresources,” at Meiko Group we focus on the creation of a working environmentthat is safe and secure for the mental and physical health of all our employees, andallows them to fully demonstrate their individual capabilities.

1. We will comply with the regulations and in-house rules related to industrial health andsafety 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 is aware of industrial safety and healthinitiatives as we endeavor to improve awareness of safety and health.

4.

We will endeavor to actively support the maintenance and improvement of the mental
and physical health of our employees.

Professional

Departmental/
HR interviews■ Support with achieving balance between work and family

43

Value Creation

Childcare

Nursing careChildcare leave
Childcare leave upon giving birthWork with shortened hours toaccommodate childcare
Exemption of overtime work
Limitations on overtime work
Child nursing leave

Nursing care leave
Work with shortened hours toaccommodate nursing care
Exemption of overtime work
Limitations on overtime work
Nursing care leave

Treatment

Multi-purpose

Work accommodating rehabilitation

Reserve paid work leave■ Initiatives for health management and promotion
We declared health-oriented management to proactively enhance the health of employees
through group-wide efforts. For the sake of maintaining and promoting employee health, wehave been aggressively pushing for specific health guidance following the implementation oflegally-mandated health checkups. In Fiscal 2022, the implementation rate for such guidance
was 65%. (Published by the Ministry of Health, Labour and Welfare; target value of 45% orhigher)We have also been implementing health education through e-learning as well as counselinginterviews with clinical psychologists at the request of employees or their workplace as part ofour employee mental care efforts.
In addition, we have also
been carrying out activities
that employees can casuallytake part in, such as walking
campaigns and health challenges
for which participants can set
their own goals, in our endeavors
to enhance employee awarenessof health promotion.

Health-oriented Management Declaration“We provide the best-ever products and services for ourcustomers through Meiko’s manufacturing, thus contributing
to the creation of happiness in employees and society.”
Meiko declares the Health Initiative in order to realize its
Management Philosophy by fostering a corporate culture thatenables employees to work smiley and actively with healthboth in mental and physical.

44

MEIKO corporate report 2023

Introduction

Value Creation

ESG Management

Financial andCorporate Data

14 Contributions to Local Communities
We encourage social contributions by our Headquarters and group companies to build close
relationships with local communities.
We will continue to actively participate in social welfare activities, environmental activities,
and other events organized by the local governments in the various areas. At the same time,
we will fulfill our responsibility as a good corporate citizen by encouraging social contribution
activities in each local community.

01

Introduction of EV buses

At our Guangzhou Plant, we changed
employee shuttle buses to EV buses.
This served to considerably curb
exhaust gas and noise when runningcompared to the original buses.

02

At our Wuhan Plant, we cooperated with thefrontlines of epidemic prevention (by providing
assistance with PCR testing ten times for a
total of 195 individuals) in development zone
manufacturing parks.

Conducting of factory and plant tours

The Meiko Group regularly conducts factoryand plant tours.
In the manufacturing industry to come, we
believe that offering factory and plant tours
and other forms of experiential value is vitalfor the sake of sustainable industry.

04

45

Onsite blood donation activities

As a “blood donation supporter,” we lend our cooperation toregular blood donation activities twice a year. While we had
temporarily suspended that cooperation due to the COVID-19
pandemic, we resumed it in December 2022.

Cooperation with frontlines of epidemic prevention

03

05● Local high school students at the ● Elementary and junior high school
Ishinomaki Factory
students at the Vietnam Plant

SDG workshops

06

Support for holding of private sports competitions for local communities

We endeavor to do our part topromote health by proactively
promoting various sports andconducting activities that
contribute to local communities
and society.

07

Assistance with issue of poverty

Recognizing that addressing poverty is a major
issue, we endeavor to do our part to resolvethat issue with the aim of creating “No one left
behind” lifestyles through activities to assist
people in vulnerable positions.

08

Cleanup activities

We offered SDG experiences to children in collaboration with
Montedio Yamagata and The Faculty of Science and Engineeringat Yamagata University.

We autonomously conduct environment beautification
activities in areas such as those around and near ourfactories and plants.

Through these experiences, children pursue SDGs familiar tothem while enjoying themselves.

We also proactively take part in the likes of cleaning
activities organized by local communities.

46

MEIKO corporate report 2023

Introduction

Value Creation

ESG Management

Financial andCorporate Data

Governance (Management Report)(From left)

47

Upper row:

Kotomi Ejiri, Outside Auditor / Takahiro Matsuda, Senior Corporate Auditor		

Nao Tsuchiya, Outside Director / Hiroshi Miyauchi, Audit & Supervisory Board Member

Middle row:

Shigeru Naya, Director / Yosuke Nishiyama, Outside Director / Toshifumi Kobayashi, Outside Director		

Takashi Harada, Outside Director / Yoon Ho, Shin, Director

Lower row:

Atsushi Sakate, Director and Senior Managing Executive Officer / Junya Wada, Director and Senior Managing Executive Officer		Yuichiro Naya, President & CEO / Masakuni Shinozaki, Director and Senior Managing Executive Officer		Yoshihito Kikyo, Director and Managing Executive Officer

48

MEIKO corporate report 2023

Introduction

Value Creation

Status of securing of independent Outside Directors

01 Corporate Governance
Basic approach
Our basic management policy is to work towards sustainable growth and the improvementof our medium/long term corporate value to respond to the trust placed in us by all our
stakeholders as a global company that provides the very best in value and services.
In order to ensure the transparency, soundness, and efficiency of our management with a viewto achieving that policy, we position the reinforcement of our corporate governance system as
one of our key management issues. As a company with a Board of Auditors, Meiko reinforces
the supervision of business execution by its Board of Directors and the Board of Auditors.
Simultaneously, our Board of Directors endeavors to build an effective corporate governancesystem through means such as delegating authority to Directors and Executive Officers
and conducting the efficient execution of business through swift decision-making related tobusiness operation.

Meiko has four independent Outside Directors and two independent Outside Auditors. We
maintain a ratio of independent Outside Directors in our Board of Directors of 1/3 in principle
to ensure that proper contributions are made to governance at Meiko and advice on model
corporate conduct is given.
In order to ensure fairness and transparency in its management, Meiko has set forth standards
for determining the independence of its Outside Directors and Outside Auditors. As our Outside
Directors and Outside Auditors satisfy our standards for determining independence and the
independence standards set forth by the Tokyo Stock Exchange, we have notified the Tokyo
Stock Exchange that they are independent officers.

■ Composition of Board of Directors
Ratio of non-executive Directors
Non-executive
Directors
5

Corporate governance system
As a company with the Board of Auditors, Meiko has a Board of Directors, Board of Auditors,
and accounting auditors in place. As for Directors and Auditors, we invite Outside Directors
and Outside Auditors who are highly independent from and have no special stake in ourmanagement, and reinforce our audit and supervision functions for management. The Board of
Directors is comprised of eleven Directors, four of whom are Outside Directors. The Board ofAuditors consists of three Auditors, two of whom are Outside Auditors.
We disclose the status of compliance with the Corporate Governance Code on our website.

■ Corporate Governance System at Meiko

Executive
Directors
6

５/11
/11
45%

Appointment/Dismissal

President & CEO
ReportInstruction

Report<Audit Function>

Whistle-blowing reporting contact

Outside Law Office

Whistle-blowing

Audit

Internal Audit
OfficeAccounting Auditor

Internal audits
Internal control audits

Executive divisions, affiliatedcompany employees, etc.

Internal audits
Internal control audits■ Board of Directors

The Board of Directors consists of eleven Directors, including four Outside Directors. The
Board of Directors is responsible for specific consideration, discussion, and decision-making
on Group-wide management strategies and issues, as well as for supervising the execution ofbusiness by each Group company. In addition, the introduction of an executive officer systemseparates management decision-making from business execution and realizes flexible decisionmaking. Moreover, we have established an internal control system and a risk and compliancemanagement system to create an environment that enables us to conduct aggressive
management while recognizing and minimizing risk.

■ Board of Auditors

49

The Board of Auditors, consisting of three Auditors that include two 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 Auditors, who have experience in theelectronic parts industry and a high level of expertise and insight in law, engage in in-depth
discussions from an independent and objective perspective. The Board of Auditors verifies
the appropriateness and legality of accounting and accounting-related internal controls byattending important meetings such as the meetings of Board of Directors and the Management
Committee, collaborating with accounting auditors and the Internal Audit Office, and conducting
audits of internal departments and affiliated companies.

FemaleInternal
Directors
7

Ratio of outside officers (Outside
Directors and Outside Auditors)

Male

Outsideofficers
6

1/11
8%

Officers

Composition

Number who are female officers(Ratio)Number who are independent
officers

Fiscal 2020

Fiscal 2021

Fiscal 2022

6

6

6

12

11

11

1
(8.3%)

1(9.1%)

1(9.1%)

4

4

4

19

14

16

3

3

3

2

2

2

12

12

12

15
1
(6.7%)

Number of Directors

Board ofDirectors

Composition

Number who are female
Directors(Ratio)Number who are independent
Outside Directors

Number of meetings held

Board ofAuditorsComposition

Internal
officers
8

6/14
42%

■ Status of Board of Directors and Board of Auditors

Board of Auditors
Cooperation

Audit

Executive Officers
and Division Heads
Risk Management and Compliance
Administrative Section

OutsideDirectors
4

Number of officers
Appointment/Dismissal

Instruction

Composition of Outside Directors

4/11
36%

Board of Directors
ReportRatio of female Directors

Item

Shareholders’ Meeting

Risk Management andCompliance Committee

Financial andCorporate Data

ESG Management

Number of auditors

Number of who are independent
Outside Auditors
Number of meetings held

142
(14.3%)

142(14.3%)■ Fiscal 2022 Board of Directors Results
Number of days meetings held
Average number of agenda

15
3.4 agenda/mtg.

Average time of meeting per day

1 hr. (Longest mtg. was 2.2 hr.)In our aim to strengthen corporate governance
Description of initiatives
The current business environment of Fiscal year
Election of female Director (Nao Tsuchiya)
the electronics parts industry reflects
2018
tumultuous change as characterized
Introduction of stock-based remuneration planby the accommodation of ever-evolving
Introduction of evaluations of effectiveness of
2021
Board of Directors
technology and products, shifting
Change to upper limit of number of Directors
customer needs, and various changes(from 10 to 15)
in our external environment.We areElection of female Auditor (Kotomi Ejiri)
2022
strengthening corporate governance toaccommodate such changes in a timely and appropriate fashion, and are endeavoring to makeswift management decisions and bolster audit supervision on an ongoing basis.

We will also proactively accommodate the requests for the further sophistication of
governance in the Tokyo Stock Exchange Prime Market and continue to pursue further
initiatives as we move forward.

50

MEIKO corporate report 2023

Introduction

Value Creation

Policy on cross-shareholdings

Evaluations of effectiveness of Board of Directors■ Regarding evaluations of effectiveness of Board of Directors
With the aim of assessing the extent to which our Board of Directors is fulfilling the roles
expected of it, analyzing the results in order to extract issues and link them to improvements,
and tie those efforts into the sophistication of our governance, similar to the last fiscal year,
we conducted an analysis and evaluation of the effectiveness of our Board of Directors. Below
is an overview of the analysis and evaluation results from Fiscal 2022.

１．Overview of evaluation process
A questionnaire survey to evaluate the effectiveness of the Board of Directors wasadministered to all Directors and Auditors, including Outside ones. The results were thenreported and discussed at the meeting of the Board of Directors on May 29, 2023.

２．Results of evaluation
Timing of implementation

Evaluation of effectiveness of Board of Directors(overall)February-March 2023

Size/composition

Evaluators
Directors and Auditors (14 in total)

Handling of issues

4

Meeting
frequency

3

Meiko holds shares whose holding has been judged by the company to contribute to theimprovement of its corporate value over the medium/long term. The meaning of those holdings
is verified by the Board of Directors once a year. Elements such as the business-based
relationship with the investment destinations are verified as well. For shares with a deficient
meaning of holding them, we push forward with selling the shares while taking the impact on
the market, etc. into consideration, and endeavor to reduce our cross-shareholdings.
The verification of cross-shareholdings for Fiscal 2022 was conducted at the meeting of theBoard of Directors held in April 2023.

■Trends in status of cross-shareholdings (consolidated)
Fiscal year

1

Administration of questionnaire to
all evaluators
Evaluation and analysis of questionnaire
results and extraction of issues by
Board of Directors Administrative Section

Internal
Control

Monitoring
function

Four-step evaluation and free-form
method for each question
1. Composition ofBoard of Directors

AgendaProvision of information

Evaluation items

Nature ofremarks

0

4. Agenda

2. Meeting frequency

5. Role asdecision-making body

3. Nature of remarks

6. Provision of information

Decision-making[Evaluation items: 4 being the highest evaluationand 1 being the lowest evaluation]

7. Management supervisionfunction ofBoard of Directors
8. Internal controls
9. Handling of previous issues

３．Analysis of results and handling of issues▶ All results came to an average evaluation of 3 or higher. The content of the evaluations
could be considered generally favorable.
▶ This fiscal year, there were multiple investment projects that were significant from theperspective of management. While the Board of Directors endeavored to fully understandthe projects, including conducting preliminary explanations of them, and succeeded in
obtaining resolutions, one future challenge is the need to consider a mechanism that extends
to the enhancement of preliminary explanations and a review process.
▶ To prevent scandals, ongoing initiatives are needed.

2020

Amount booked on Consolidated Balance Sheet(million yen)Amount of consolidated net assets(million yen)Amount as a percentage ofconsolidated net assets (%)

2021

2022

268

222

228

40,61058,68684,475

0.7

0.4

0.3

Officer remuneration2

Implementation procedures

Financial andCorporate Data

ESG Management■ Basic policy
For Director remuneration, a remuneration system linked with shareholder interests is used
to ensure the system sufficiently functions as an incentive that facilitates the continuous
improvement of corporate value. Our basic policy on officer remuneration is to adopt proper
standards based on the responsibility of each Director upon determining their individual
remuneration.
Remuneration of executive Directors is comprised of basic remuneration and bonuses. That for
Outside Directors is, in principle, made up of basic remuneration in consideration of the dutiesof those Directors.

■Amount of remuneration, etc. of Directors (Fiscal 2022)
Total amount of remuneration,etc.

Number of eligible officers

Directors(excluding Outside Directors)

169 million yen

8

Auditors(excluding Outside Auditors)

12 million yen

2

Outside officers

30 million yen

7

Officer category

Based on the above analysis results, Meiko will proceed to tackle the following key points.
1) Create a mechanism for significant projects that extends to the enhancement of
preliminary explanations and posterior reviews.
2) Consciously promote checks of overseas subsidiaries as part of ongoing initiatives toprevent scandals.

51

52

MEIKO corporate report 2023

Introduction■ Fields of experience and specialization of Directors and Auditors
Our officers, whether internal or outside, engage in management based their knowledge,
experience, and advanced insight in their respective fields.
For Internal Directors, a “ 〇 ” has been placed in fields where those Directors have knowledge
and experience. For outside officers and Senior Corporate Auditors, following discussion witheach officer, a “ ● ” has been placed in fields in which each officer should utilize their expert
viewpoints and advanced insight to the fullest extent and, in particular, fields in which they are
expected to contribute to Meiko’s management.

53

Masakuni
Shinozaki

Director and Senior
Managing Executive
Officer

Executive

○

Junya
Wada

Director and Senior
Managing Executive
Officer

Executive○

Atsushi
SakateDirector and Senior
Managing Executive
Officer

Executive○

Yoshihito
Kikyo

Director and Managing
Executive Officer

Executive

Shigeru
Naya

Director and Executive
Officer

Executive

Yoon Ho,
Shin

Director

Nonexecutive

NaoTsuchiya

Director

Nonexecutive

Outside/independent

YosukeNishiyama

Director

Nonexecutive

Outside/independent

TakashiHaradaDirector

Nonexecutive

Outside/independentToshifumi
Kobayashi

Director

Nonexecutive

Outside/independent

Takahiro
MatsudaSenior Corporate
AuditorKotomi
Ejiri

Audit & Supervisory
Board Member

Outside/independent

HiroshiMiyauchiAudit & Supervisory
Board Member

Outside/independent

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○
○

Industry○

Technology R&D

Accounting

○

Sales

Executive

Global Experience

President & CEO

Knowledge

Yuichiro
Naya

Manufacturing and

社外 / 独立

Finance and業務執行Legal Affairs

Company

Risk Management

Position in the

Corporate

Name

Management

Expertise and Experience

●
●

●

●

●
●

●

ESG Management

Financial andCorporate Data

02 Internal Controls
Our system for corporate governance includes the election of Outside Directors as well as theplacement of Auditors as a corporate monitoring function, accounting auditors, and the Internal
Audit Office for ensuring fair management and a high level of transparency.
Internal controls, as part of corporate governance, are essential for ensuring increased
management efficiency and the fairness of all company activities. The effectiveness of Meiko’s
internal controls is evaluated, and the results of these evaluations are used to make further
improvements. This is our mission to fulfill our corporate social responsibility, and we, as the
Meiko Group, will promote these activities.

Basic Policy on Internal Control System
Our Board of Directors passes resolutions and seeks to refine and administer the following
aspects of our system (Basic Policy on Internal Control System) for ensuring proper operationsin accordance with the Companies Act and Ordinance for Enforcement of the Companies Act.
● “Basic Policy on Internal Control System”
１．A system for ensuring compliance within the Meiko Group
２．A system for the storage and management of information for
the execution of duties by the Board of Directors
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 the Auditors with their duties
７．A system for reporting to Auditors
８．A system for ensuring the effective execution of audits by Auditors

Monitoring through internal audits
The Internal Audit Office has been established as the internal audit division to monitor theeffectiveness of internal controls by conducting internal audits of Meiko and the Group
companies, and to ensure that information on the results is shared with Auditors.

Internal controls concerning financial reporting●●

Value Creation

●
●

●

●

●

●

●
●
●

■ Internal controls of the Meiko GroupInternal Audit Office

Board of Directors

Board of Auditors

・Assistance in improving
internal controls, preparing
for evaluations, and creating
reports

・Passing resolutions on
internal control policies
・Passing resolutions on the
improvement/promotion ofinternal controls

・Audit and validation of theeffectiveness of internal
controls●
President & CEO・Operations and directions concerning internal controls・Confirmation of the effectiveness and coordination ofinternal controls

Group companies’ departments responsible for
implementing internal controls

Meiko has developed a policy,
procedures, and methods forevaluating its internal controls, theframework of valuations, the scopeof evaluations, and evaluation
schedules, and has set a framework
for evaluations led by management.
In line with those policies and plans,
we evaluate the effectiveness ofinternal controls that impact our
financial reporting on a consolidated
basis, and state the results in ourInternal Controls Report.

54

MEIKO corporate report 2023

03

Introduction

Risk Management and Compliance Management
SystemBasic Policy on control system for risk management and compliance management system● Based on our “Risk Management and Compliance Management Regulations,” we haveestablished a “Risk Management and Compliance Committee” whose members include
Directors and Auditors. This Committee ascertains serious risks that Meiko and its subsidiaries(collectively, the Meiko Group) may face upon continuing their businesses and ensuring theirstable development, and conducts activities such as formulating policies, measures, and annual
plans that pertain to risk management.								●Should an unforeseen situation arise or should it recognize signs of serious risks manifestingthemselves, the Committee establishes an Emergency Headquarters headed by the President
to conduct comprehensive crisis management and endeavor to prevent damage fromspreading.
●Based on the “Risk Management and Compliance Management Regulations,” the Committee
formulates, implements, and monitors compliance measures and annual activities that concern
the Meiko Group, analyzes and verifies compliance violations, and provides guidance andsupervision on promoting the devising and implementation of measures to prevent recurrence
based on the results of that analysis and verification.
● The Committee links up with the Group Work Safety Committee and Disaster Prevention
Response Headquarters (a meeting body) to foster a climate conducive to working healthilyand energetically within a safe and secure workplace environment and endeavor to promotemanagement aimed at creating a mentally and physically healthy organization.

■ Corporate Governance at MeikoBoard of Directors
President & CEO
Emergency Headquarters● Risk management and compliance promotion

Value Creation

ESG Management

Compliance promotion activities■ Dissemination and penetration of compliance

Meiko positions compliance as a key issue in its management. ompliance is also an absolutely
necessary element in order for us to fulfill our responsibility as a member of society and keepon operating our businesses into the future while meeting the trust and expectations placedon us by customers, shareholders, investors, business partners, local communities, and our
employees.
											In order to boost recognition of the “Corporate Conduct Charter of the Meiko Group” andthe “Code of Conduct of the Meiko Group” as well as elements such as changes in laws,
ordinances, social ethics, and values, and ensure their dissemination and penetration, we
prepared a “Compliance Handbook” and put an environment in place for all employees toreceive the associated education and training that we conduct.

■ Compliance education

Through e-learning, we roll out our “Compliance Handbook,” conduct education on impropriety
and legal amendments, and so forth. In addition to distributing our compliance email magazine
featuring illustrations, etc. every month, we introduce compliance practices addressing familiar
themes on our internal website on a monthly basis.

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, we will investigate the case and facts, and if we confirm an
act that is subject to whistle-blowing, we will immediately implement corrective measures andrecurrence prevention measures.
We also formulated whistle-blowing regulations so that no whistle-blowers, individuals
cooperating in investigations, or others will suffer detrimental treatment, and if there is anyone
who has unfairly treated or harassed whistle-blowers or the like or anyone who is involved
with whistle-blowing for work reasons and has obtained information on whistle-blowing
discloses it without any reasonable grounds, disciplinary action will be taken in accordancewith in-house rules.

■ Helpline Flow
Whistle-blower

Risk Management and Compliance Committee
Committee Administrative Section

Whistle-blowing reporting contact
Accident risk

Group Work Safety and
Health Committee

Business management risk

Procurement risk

Internal Reporting
Contact ①

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

Disaster Prevention Response
Headquarters Conference

Environmental risk

Information risk

Financial andCorporate Data

Personnel risk

Finance risk

Administrative Section Chief

Audit & Supervisory Board Member

Legal risk

Labor risk

Committee Chairperson*The items stated under risks to businesses, etc. are not inclusive of all risks faced by the Meiko Group.

All employees

Various sites and departments of the Meiko Group● Administrative dept. placed at each site

55

Risk Management and Compliance Committee

BCP

Employee awareness surveys

Based on its “Basic BCP Policy,” Meiko identifies large-scale disaster risks that affect its
business continuity, such as earthquakes, floods, and other natural disasters as well as fires,
infectious diseases, and cyber-attacks; sets forth policies to prepare for instances when crisis
occurs; and tackles initial response and countermeasures.

Every other year, we administer an “employee awareness survey” through an external
research agency to gauge the effects of our activities to promote that awareness.

When a large-scale disaster strikes, in order to strive to restore the supply of products
to customers at an early stage while placing the highest priority on human life, we haveestablished mechanisms to verify the safety of our employees and address risks such as
equipment failure.

It is stated in Meiko’s Corporate Charter that we refuse to have anything to do with any
antisocial forces, including gangsters. We work in close cooperation with external dedicatedinstitutions such as the police and the National Center for Removal of Criminal Organizations
to resolutely eliminate antisocial forces.

Eliminating antisocial forces

56

MEIKO corporate report 2023

Introduction

Financial andCorporate Data

ESG Management

04 Information Security

05 Dialogue with Shareholders.

We recognize that the protection of customer information, business information, technologicalinformation, intellectual property and other confidential information that we hold and its
appropriate application constitutes an extremely important measure in conducting our businessactivities.

We accept the valuable feedback gained through dialogue with our stakeholders such as
customers, employees, shareholders, investors, business partners, and local communities withsincerity, reflect it in our management and business activities and, in doing so, create newvalue and do our part to realize a sustainable society.

Through the establishment and operation of an Information Security Management System (ISMS)
based on the ISO/IEC 27001 international certification standard, we address ever-changing
threats by reinforcing adequate risk management and information security measures.

■ Information Security Management
Regulations

To ensure the prevention of information leaks andother forms of information security, we have set
forth a framework for measures that we shouldtake as a company in the form of the “Information
Security Management Regulations,” which we fully
disseminate across Meiko.

■ Personal Information Protection
Regulations

To comply with the Act on the Protection of
Personal Information and handle personal
information appropriately, we have adopted the“Personal Information Protection Regulations.”
Based on these regulations, we handle information
with particular care.

■ Information security education

To facilitate the improvement of our employees’ IT
literacy and information security awareness, every
year, we implement information security education
through e-learning and tests on the degree ofunderstanding.

■ Drill against targeted e-mail attacks
To help reinforce crisis awareness with respect
to information security, we conduct drills thatsimulate the experience of receiving a targeted
attack over email multiple times a year to spreadawareness of how to appropriately respond to
suspicious emails and call for attention to suchthreats.

■ Implementation of vulnerability
diagnostics
Since 2021, we have been performing yearly
diagnostic tests through an external agency toidentify whether there are any vulnerabilities
in our internal networks, OS, middleware, Web
applications, etc. We swiftly address newlydiscovered vulnerabilities through means such as
replacing network equipment and updating our OS
and firmware.
We are also examining the introduction of tools
to gather and provide notification of vulnerability
information in real time.

57

Value Creation

Stakeholders● Information Security Policy ●Based on our Business Principles, we implement
measures to strengthen our information security
system in order to protect our customer
information and information assets from threatsthat include fraudulent access, disasters, criminal
acts, and cyber-attacks. We also take steps
to raise awareness about information security
amongst management and employees.
Considering that the above-mentioned
information security risks as a form of the risks
we may face, we have set out the following
policies on information security and declare that,in line with our Business Principles, all membersof management and employees should devote
concerted efforts to implementing these policies.
1. We pursue continuous improvement in our
information security system.
2. We provide every protection for our
information assets and continuously enhance ourinformation management function.
3. We comply with laws, ordinances, and norms
and fulfill social responsibilities.
4. We conduct continuous education and training
for management and employees.
5. We swiftly respond to a problem as soon as it
occurs and conduct risk management practices.

● Activities related to information security ●At Meiko, we receive important informationfrom customers. We therefore recognize theimportance of information security. Since ourinitial certification in 2006, we have beensuccessively extending the coverage ofcertification as we endeavor to reinforce ourinformation management system.
January 2006 : The Information System Divisionof our Headquarters obtained BS7799-2
certification.
October 2009 : Four applicable departments atthe Wuhan Plant in China obtained certification.
December 2010 : Six applicable departments
at the Guangzhou Plant in China obtained
certification.
December 2016 : Coverage in Japan extended.
September 2017 : Three applicable departments
at the Vietnam Plant obtained certification.
November 2018 : Coverage in Japan extended.
June 2020 : Coverage at the Vietnam Plant
extended.
May 2021 : The Thang Long Plant obtained
certification.
October 2022 : Coverage in Japan extended.

Customers

Dialogue policy

Means of dialogue◆ Routine sales activities
Meiko endeavors to ascertain customer
needs through technology exchange◆ Customer satisfaction
sessions and other forms of communication. surveys
Through these activities, we address
customer issues and requests and, in doing ◆ Exhibitions and seminars
so, work towards building bonds of trust◆ Technology exchangeover the long term.
sessions◆ Annual policy briefings

Employees

We seek to be the kind of company where
each and individual employee can keep on
growing with a sense of satisfaction in thecourse of their day-to-day work.
We promote bidirectional communication
with a view to fostering such a climate.

◆ Employee training◆ Internal portal site/
newsletter◆ Helpline/consultation
contact◆ Labor-management
discussions

We endeavor to disclose information to
our shareholders and investors in a timely, ◆ Financial results briefings
impartial, and accurate manner.
◆ Meetings with investors
Shareholders and Additionally, in order to facilitatecontinuous growth and the improvement of ◆ Shareholders’ meetings
investors
our corporate value over the long term, we◆ Website (IR/investor
proactively endeavor to hold constructive
information)
dialogue with our shareholders andinvestors.
We hold briefings on our procurement
policy to share our management andbusiness policies with our suppliers, ask
them to respond to CSR evaluations andBusiness partners
audits conducted using our “Responsible
Corporate Conduct Guidelines Checklist,”
and work together with them to build asupply chain that fulfills CSR.

◆ Business partner policy
briefings◆ Surveys and audits ofbusiness partners◆ Factory and plant tours

We endeavor to build bonds of trust withmembers of local communities hroughLocal communities social contribution activities that include
factory and plant tours and sports andvolunteer activities.

◆ Holding of monozukuri(manufacturing) classes◆ Participation in andsponsorship of local
community events◆ Cleanup and othervolunteer activities

58

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

Financial and Non-financial data
Financial and non-financial summary[Finance]■Profit/loss situation

Unit

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Net sales

Million yen

95,911

108,542

118,910

115,479

119,257

151,275

167,276

Operating income

Million yen

5,788

7,457

8,926

5,189

6,657

13,255

9,575

%

6.0

6.9

7.5

4.5

5.6

8.8

5.7

Million yen

2,981

4,795

8,610

4,789

5,697

14,294

11,212

%

3.1

4.4

7.2

4.1

4.8

9.5

6.7

Million yen

1,767

4,373

6,743

2,586

4,640

11,451

8,847

%

1.8

4.0

5.6

2.2

3.9

7.6

5.3

Total assets

Million yen

103,578

110,316

120,655

129,237

142,040

168,328

202,394

Net assets

Million yen

28,54033,04233,58732,482

40,61058,68684,475

Earnings per share (EPS)

Yen

54.14

160.34257.6598.81

177.33444.23338.94Book-value per share (BPS)

Yen

882.84

1,071.37

1,283.24

1,233.61

1,551.93

2,281.09

2,736.07

Return on assets (ROA)

%

1.7

4.0

5.8

2.1

3.4

7.4

4.8

Return on equity (ROE)

%

6.2

14.3

20.2

7.9

12.8

23.2

13.0

Return on invested capital (ROIC)

%

6.1

9.1

8.9

4.6

6.0

10.8

4.5

Amount of capital investment

Million yen

3,123

9,559

15,765

11,836

10,715

14,38817,423

EBITDA

Million yen

11,296

13,273

15,207

11,77614,14521,28919,728

Research and development expenses

Million yen

742

816

1,041

1,211

1,427

3,074

4,466

Yen

10

20

35

30

20

45

55

Persons

10,677

11,64011,89912,232

13,721

13,637

11,889

Kt

467

524

425

461

466

509

457

Power consumption

MKWh

502

538

580

628

611

680

626

Water consumption

K㎥

10,706

10,774

10,58910,072

10,52911,065

9,535

Operating income margin
Ordinary income
Ordinary income margin
Profit attributable to owners of parent
Ratio of net income■Financial situation■Management indicators■OtherDividends per share[Non-financial]
Number of employees at the end of the term

CO2 emissions

59

60

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

Consolidated Balance Sheet(Unit: million yen)

AssetsConsolidated fiscal
year under review

Consolidated fiscal
year under review

Fiscal 2021

Fiscal 2022

Current assets

Liabilities

Consolidated fiscal
year under review

Consolidated fiscal
year under review

Fiscal 2021

Fiscal 2022

Current liabilities

Cash and deposits

10,69917,583

Notes and accounts payable -trade

24,31922,794

Notes receivable - trade

1,102

1,481

Short-term borrowings

28,166

29,663

Accounts receivable - trade33,65534,507

Current portion of long-term borrowings

5,961

7,200

Electronically recorded claims

10,238

9,928

Lease obligations

213

196

Work in process

8,073

7,043

Income taxes payable

984

1,020

Raw materials and supplies

11,457

15,658Provision for bonuses

1,064

1,200

Accounts receivable - other

1,117

1,100

58

54

Other

1,197

1,852

Other

12,258

11,543

Allowance for doubtful accounts

△164

△171

Total current liabilities

73,02773,672

Total current assets

78,36791,90532,266

38,466

Lease obligations

392

268

Provision for retirement benefits for directors

215

215

Provision for share awards

114

172

Provision for share awards for directors

24

36

2,717

4,125

883

961

36,61544,246109,642

117,919

Share capital

12,88812,888

Capital surplus

6,700

13,700Retained earnings

28,06135,568Treasury shares△2,186△2,176

Total shareholders’ equity

45,46459,981

4

13

△41

54

Foreign currency translation adjustment

13,173

17,425Remeasurements of defined benefit plans

△112

△154

Total accumulated other comprehensive income

13,024

17,339197

7,154

58,68684,475

168,328

202,394

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

53,491

58,512

Accumulated depreciation△27,847△32,056

Buildings and structures, net

25,643

26,455

Machinery, equipment and vehicles

114,369

125,217△73,276△80,465

41,09244,752

Land

2,445

2,553

Lease assets

2,844

2,713

△1,208△1,443

1,636

1,269

Construction in progress

9,925

18,314

Other

6,833

9,718

△5,014△7,526

1,819

2,191

82,562

95,537

954

6,999

2,554

3,038

552

1,188

Deferred tax asset

1,841

1,873

Other

1,518

1,883

Allowance for doubtful accounts

△22

△31

Total investments and other assets

6,444

7,951

89,961

110,489

168,328

202,394

Accumulated depreciation
Machinery, equipment and vehicles, net

Accumulated depreciation
Lease assets, net

Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loan receivable

Total non-current assets
Total assets

61(Unit: million yen)

Provision for bonuses for directors

Non-current liabilities
Long-term borrowings

Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Deferred gains or losses on hedges

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

62

MEIKO corporate report 2023

Introduction

Value Creation

Consolidated Statement of Income

Consolidated Statement of Comprehensive Income（Unit: million yen）

（Unit: million yen）

Consolidated fiscal
year under review

Consolidated fiscal
year under review

Fiscal 2021
11,436

Fiscal 2022
8,784

Valuation difference on available-for-sale securities△34

8

Deferred gains or losses on hedges

△292

96

Foreign currency translation adjustment

9,065

4,271

Remeasurements of defined benefit plans

143

△42

8,882

4,334

20,318

13,11920,314

13,1624△43

Consolidated fiscal
year under review

Consolidated fiscal
year under review

Fiscal 2021
151,275

Fiscal 2022
167,276

Cost of sales

123,880

141,260

Gross profit

27,39426,015

Selling, general and administrative expenses

14,13916,440Operating income

13,2559,575Interest income

48

190

Dividend income

1594Compensation income

62

380

1,497

2,002

Comprehensive income attributable to owners of parent

465

600

Comprehensive income attributable to non-controlling interests

2,090

3,268

642

1,002

-

341

407

286

1,050

1,631

14,294

11,212Gain on sale of non-current assets

2

1

Gain on sale of investment securities

9-

Gain on liquidation of subsidiaries and affiliates

-

41

12

42

Loss on sale and retirement of non-current assets

524

218

Loss on disaster

116

60

0

4

Business restructuring expenses

226

300

Loss related to COVID-19

646

-

Other

181

-

1,694

583

Profit before income taxes

12,612

10,672

Income taxes - current

1,347

1,866

Income taxes - deferred

△ 171

20

Income taxes

1,175

1,887

Net income

11,436

8,784

△ 14

△ 62

11,451

8,847

Net sales

Non-operating income

Foreign exchange gains
Other
Total non-operating income

Financial andCorporate Data

ESG Management

Net income
Other comprehensive income

Total other comprehensive income
Comprehensive income(Breakdown)

Non-operating expenses
Interest expenses
Stock issuance cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary losses

Loss on sales of investment securities

Total extraordinary losses

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

63

64

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

Consolidated Statement of Changes in Shareholders’ Equity
Previous consolidated fiscal year (From April 1, 2021 to March 31, 2022)

Consolidated fiscal year under review (From April 1, 2022 to March 31, 2023)(Unit: million yen)

Shareholders’ equity

Shareholders’ equity
Share
capitalBalance at beginning of current
period12,888

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity6,464

17,648△745

36,256

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity12,8886,700

28,061△2,18645,464

3,500

3,500

7,000

△3,500

3,500

-

Share
capitalBalance at beginning of current
periodChanges of items during period

Changes of items during period

Issuance of new stock

-

-

-

Issuance of new stock

Transfer from share capital to surplus

-

-

-

Transfer from share capital to surplus

Dividends from surplus△1,038△1,038Dividends from surplus

Profit attributable to owners ofparent11,451

11,451

Profit attributable to owners ofparent△1,596△1,596

Acquisition of treasury shares

△0

△0

155

391

Disposal of treasury shares

1010

Acquisition of treasury shares

236

Disposal of treasury shares
Net changes of items other thanshareholders’ equity during period
Total changes during period
Balance at end of period-

236

10,413△1,441

9,207

12,8886,700

28,061△2,18645,464

Valuation differDeferred gains orence on availablelosses on hedges
for-sale securities

Balance at beginningof current period

39

250

Foreign currencytranslation
adjustment

4,127

Remeasurements Total accumulatedof defined benefit other comprehensive income
plans

△255

4,161

Noncontrollinginterests

192

Total changes during period
Balance at end of period

Total net
assets△1,340

8,847

8,847

7,000

7,506

10

14,516

12,88813,70035,568△2,17659,981

Valuation differDeferred gains orence on availablelosses on hedges
for-sale securities

40,610
Balance at beginningof current period

Issuance of new stock-

Transfer from sharecapital to surplus-

Dividends fromsurplus△1,038

Profit attributable toowners of parent

11,451

Acquisition oftreasury shares△1,596

Disposal of treasury
shares

―Accumulated other comprehensive income

Changes of items
during period

391

Net changes of items
other than shareholders’equity during period

△34

△292

9,046

143

8,862

4

8,867

Total changes during
period

△34

△292

9,046

143

8,862

4

18,0754△41

13,173△112

13,024

197

58,686

Balance at end of
period△1,340Net changes of items other thanshareholders’ equity during period

Accumulated other comprehensive income

65(Unit: million yen)4

△41

Foreign currencytranslation
adjustment

13,173Remeasurements Total accumulatedof defined benefit other comprehensive income
plans

△122

13,024

Noncontrollinginterests

197

Total net
assets58,686

Changes of items
during period

7,000

Issuance of new stock
Transfer from sharecapital to surplus-

Dividends fromsurplus△1,340

Profit attributable toowners of parent

8,847

Acquisition oftreasury shares△0

Disposal of treasury
shares10

Net changes of items
other than shareholders’equity during period

8

96

4,251

△42

4,315

6,956

11,271

Total changes during
period

8

96

4,251

△42

4,315

6,956

25,7881354

17,425△154

17,3397,154

84,475

Balance at end of
period66

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

Consolidated Statement of Cash Flows(Unit: million yen)Previous consolidated
fiscal year

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 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
Stock issuance cost
Foreign exchange losses (gains)

Loss (gain) on sale and retirement of property, plant and equipment

Loss (gain) on sale of investment securities
Loss (gain) on liquidation of subsidiaries and affiliates

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)
Cash flows from operating activities

67

Fiscal 2021

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(Unit: million yen)Previous consolidated Consolidated fiscal
fiscal year
year under review

Consolidated fiscal
year under review

Fiscal 2022

10,672
9,795
358
△7
△109
△7
58
11
△95
△284
1,002
△63
341
△1,142
217
4
△41
60
300
1,053
2,213
△5,182
123△765
83
18,596257△1,082257△300△1,82015,714

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

Proceeds from liquidation of subsidiaries and affiliates

Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Net increase (decrease) in short-term loans receivable

Payments of long-term loans receivable

Proceeds from collection of long-term loans receivable
Other

Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of common stock
Proceeds from stock issuance to non-controllingshareholders
Repayments of lease obligations
Purchase of treasury shares
Proceeds from disposal of treasury shares
Dividends paid
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Fiscal 2021

Fiscal 2022

△11,834
4
△138
△104
-

△18,856
3
△249
△277
5
450

-

△9,312

29
159△11,78574△1,109191
37△29,042

6,195△8,304-552
13,910△6,564
6,685

-

6,972

△359
△1,2220△1,038△4,730△254△02△1,34019,961869

250△1,671
12,121
10,4506,884
10,45017,33498

68

MEIKO corporate report 2023

Introduction

Value Creation

2016

2017

Financial andCorporate Data

ESG Management

Environment data

Category

Unit

2020

2021

2022

Applicable scope

27

36

37

36

35

38

41

39

Scope2

Kt

440

488

511

389

426

428

468

418

Scope3

Kt

-

-

-

-

-

-

687

641

1 Purchased goods and services

-

-

-

-

-

-

611

532

2 Capital goods

-

-

-

-

-

-

29

71

3 Fuel- and energy-related activities

-

-

-

-

-

-

24

22

4 (upstream)

Transportation and distribution

-

-

-

-

-

-

0

0.02

5 Waste generated in operations

-

-

-

-

-

-

1.3

1.3

6 Business travel

-

-

-

-

-

-

0

0.002

7 Employee commuting

-

-

-

-

-

-

6.4

6.2

9 (downstream)

Transportation and distribution

-

-

-

-

-

-

15.5

7.2

10 Processing of sold products

-

-

-

-

-

-

0

0

discharge

69

2019

Kt

Atmospheric

Water
resources

2018

Scope1

GHG emissions

Energy2015

Consolidated

NOX emissions

t

110

121

125

31.1

25.4

27.8

21.4

20

Consolidated

Dust emissions

t

6.6

7.3

8.6

2.73

2.94

2.54

1.65

0.9

Consolidated

PRTR matter emissions

t

3.8

4.2

4.3

4.2

3.1

4.2

5.3

4.3

Consolidated

Power consumption

MKWh

502

538

569

580

628

611

680

626

Consolidated

Fuel oil consumption

Kℓ

4,120

4,836

4,283

4,320

5,015

5,634

6,493

7,219

Consolidated

Natural gas consumption

K㎥

10,209

9,937

10,581

10,388

9,139

9,924

10,916

8,379

Consolidated

Gasoline consumption

Kℓ

86

96

92

93

72

71

170

184

Consolidated

Solar power generation

MKWh

3.2

3.7

3.8

3.7

3.8

3.7

3.6

3.6

Consolidated

9,884

10,706

10,774

10,58910,072

10,52911,065

9,536

Consolidated

Water consumption

K㎥

70

MEIKO corporate report 2023

Introduction

Value Creation

Financial andCorporate Data

ESG Management

Meiko’s Global Network
5 4

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

7

Cooperation by production bases has made it possible to manufacture and sellhigh-quality products in a highly efficient way. We have developed a network forswiftly delivering high-quality products to customers.

6

8

3
1
2
2

5

1

3

4

15
16

14

6
7
10 10
8
11 9
9
12
12

11 13
13

71

Manufacturing and development bases
Sales bases

Domestic manufacturing anddevelopment bases

Overseas manufacturing anddevelopment bases

Domestic sales bases

Domestic sales bases

1 Advanced PCB Center

9 Guangzhou Plant

1 Mito Sales Office

6 Tianjin Sales Office

2 MEIKO Research and Development Center

10 Wuhan Plant

2 Omiya Sales Office

7 Shanghai Sales Office

3 Fukushima Factory

11

3 Tokyo Sales Office

8 Guangzhou Sales Department

4 Tendo Factory

12 Thang Long Plant (Vietnam)

4 Nagoya Sales Office

9 Meiko Elec. Hong Kong. Co., Ltd.

5 Kahoku Factory

13

5 Osaka Sales Office10

Overseas Sales Headquarters

6 Ishinomaki Factory

11

Greater China Sales Department

7 Meiko Embedded Products, Ltd.

12

Meiko Electronics Vietnam Sales office

8 Meiko Embedded Technology, Ltd.

13

Meiko Electronics (Thailand）Co., Ltd.

14

Meiko Electronics India Pvt Ltd.

15

Meiko Electronics Europe GmbH

16

Meiko Electronics America, Inc.

Vietnam Plant
MEIKO TOWADA VIETNAM., LTD.

72

Challenge the evolution of electronics
and achieve development
thus contribute to the society