48th Report toShareholders(From April 1, 2022 to March 31, 2023)
Securities code: 6787

Financial highlights
Net sales

167,276
Consolidated balance sheet
End of FY2021(As of March 31, 2022)

Net income attributable to owners of parent

Operating income

million yen（in million yen）

9,575

Consolidated statement of income
Previous period(year to date)

At the end of this period(As of March 31, 2023)

Assets(April 1, 2021 to March 31, 2022)

million yen（in million yen）

151,275

167,276

78,36791,90589,961

110,489

Cost of sales

123,880

141,260

82,562

95,537954

6,999

Gross proﬁt

27,39426,015

6,444

7,951

Selling, general and administrative expenses

14,13916,440168,328

202,394

Operating income

13,255

9,575

2,090

3,268

Investments and other assets
Total assets
Liabilities
Current liabilities

73,02773,672

36,61544,246109,642

117,919

45,46459,981

12,88812,8886,700

13,700Retained earnings

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

13,024

17,3394Noncurrent liabilities
Total liabilities
Net assets
Shareholders equity
CapitalCapital surplus

Cumulative other comprehensive income

Valuation diﬀerence on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Non-controlling interests
Remeasurements of deﬁned beneﬁt plans
Total net assets
Total liabilities and net assets

Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income

1,631
11,212

12

42

1,694

583
10,672

Income taxes

1,175

1,887

13

Net income

11,436

8,784

Net loss attributable to non-controlling interests

△14

△62

11,451

8,847

△41

54

13,173

17,425

△112

△154

197

7,154

58,68684,475

168,328

202,394

Net income before income taxes

Net income attributable to owners of parent

Key points of the financial results●Consolidated statement of income

1,050
14,294

12,612Extraordinary losses

We have not experienced a full-scale recovery due to the impact of the continued decrease inproduction of automobiles caused by the shortage in semiconductors of automotive PCBs. Sales ofsmartphone PCBs fell far below our initial forecast due to intensified competition with Chinese PCB
manufacturers in addition to sluggish demand. Overall, the addition of Meiko Embedded Products tothe scope of consolidation and the contribution of the depreciation of the yen over the full-year
meant that sales increased year on year. However, profit decreased year on year due to the reduced
operation ratio.
As a result, we posted net sales of 167,276 million yen (+10.6% year on year), up 16,001 million
yen from the previous consolidated fiscal year. In terms of profit, we posted operating income of
9,575 million yen (-27.8% year on year), ordinary income of 11,212 million yen (-21.6% year on year)
and net income attributable to owners of parent of 8,847 million yen (-22.7% year on year).

Previous period(year to date)(April 1, 2022 to March 31, 2023)

Net sales

Noncurrent assets
Property, plant and equipment

Consolidated statement of cash ﬂows

Current period(year to date)Current assets

Intangible assets

8,847

million yen（in million yen）
Current period(year to date)(April 1, 2021 to March 31, 2022)(April 1, 2022 to March 31, 2023)

Net cash generated from operating activities

13,975

15,714

Net cash expended in investment activities△11,785△29,042△4,73019,961The eﬀect of changes in the exchange rate on
cash and cash equivalents

869

250

Increase (decrease) in cash and cash equivalents△1,671

6,884

Cash and cash equivalents at the
beginning of the period

12,121

10,450Cash and cash equivalents at the end of the period

10,45017,334

Net cash generated from/expended
in ﬁnancing activities●Consolidated balance sheet

Total assets stood at 202,394 million yen, an increase of 34,065 million yen from the end of theprevious consolidated fiscal year. This increase is mainly due to an increase of 6,884 million yen in
cash and deposits, an increase of 1,929 million yen in electronically recorded monetary claims, andan increase of 2,861 million yen in inventories, which were all recorded under current assets. Factors
behind the increase in total assets also included an increase of 12,975 million yen in property, plantand equipment and an increase of 5,999 million yen in goodwill, which were recorded undernoncurrent assets.
Net assets totaled 84,475 million yen, an increase of 25,788 million yen from the end of the previous
consolidated fiscal year, due primarily to an increase of 7,000 million yen in capital surplus, anincrease of 7,506 million yen in retained earnings, an increase of 4,251 million yen in foreign currencytranslation adjustment, and an increase of 6,956 million yen in non-controlling interests.

Interview with the President

To our shareholders
I would like to express my sincere gratitude to all shareholders and investors for the outstanding support.
The following is a report summarizing the operating results for the term ended March 2023.

Yuichiro Naya, President & CEO

Consolidated results for FY2022/Forecast for FY2023(in 100 million yen)

Results for
FY2021Results for
FY2022

Year on year Forecast forYear on year

Increase/decrease rate

Increase/decrease rate

Net sales

1,513

1,673

10.6%

Operating income

133

Ordinary income

143

FY2023

1,650

-1.4%

90

-6.0%

80

-28.7%

62-29.9%

96 -27.8%

8.8%

5.7%

5.5%

6.7%

4.8%

112 -21.6%

9.5%

Net income attributableto owners of parent

115

7.6%

5.3%

88 -22.7%

3.8%

Average FX rate
(JPY/USD)

113

136

130

Revenue from each product application in FY2022/Forecast for FY2023 (in 100 million yen)
Results for FY2021

Results for FY2022

Sales

Operating income(Operating margin)

Sales

Operating income(Operating margin)

Automotive

732

845

Smartphones/
tablets
Semiconductor
package

332

63
8.6%
39
11.7%

SSD and
IoT modules

68

AI appliances/amusement/
other products for industrial equipment

EMS/development andmanufacture of electronic devices

255
126
1,513

Total

‑
11
16.2%
17
6.7%
3
2.4%
133
8.8%

271
5
100
249
203
1,673

Results for FY2023

Sales

Operating income(Operating margin)

60
815
7.1％
11
211
4.1%
0
9
0.0%
10
89
10.0%
16
213
6.4%
-1
313
-0.5%
96
5.7% 1,650

46
5.6%
14
6.6%
-7
-77.8%
13
14.6%
14
6.6%
10
3.2%
90
5.5%

Net sales by product specification
Through multi-layered PCBs

HDI PCBs

Rigid ﬂexible PCBs/Flexible PCBs

(in 100 million yen)

Semiconductor package PCBs

Heat dissipation/Large current/Other PCBs

EMS/Development and manufacture of electronic devices

9
Forecast for
FY2023

703

565

40
313
20

1,650

5
Results for
FY2022756

641

Results for
FY2021

677

634

0

200

400

600

20 203
48
30

126
46

800 1,000 1,200 1,400 1,600

1,673
1,513

Regarding business results in FY2022
Amid the slowdown in the economy and business conditions
due to global inflation and rising interest rates, the electronic partsindustry in this consolidated fiscal year was affected by the slump
in economic and production activities due to COVID-19 in China
and the soaring energy prices against the backdrop of the situationin Ukraine. In addition, component shortages and global supply
chain disruptions continued throughout the year.
Under these circumstances, our group did not achieve full-scale
recovery of orders for automotive PCBs due to the continued
decrease in production of automobiles because of the shortage ofsemiconductors. Sales increased year on year partly due to thecontribution of the depreciation of the yen. In terms of smartphone
PCBs, the number of orders we received decreased significantly.
That was because competition with Chinese smartphone PCB
manufacturers has intensified in addition to the sluggish demand
for smartphones. Sales were affected by smartphone production
adjustments in the second half of the fiscal year. That resulted insales greatly lower than initial forecast. Sales of other products
were generally the same as in the previous fiscal year. Overall, theaddition of Meiko Embedded Products, Ltd. to the scope of
consolidation and the contribution of the depreciation of the yenover the full-year meant that sales increased year on year.
However, in terms of profit, although we strived to reduce costs
company-wide, profit decreased year on year due to the reduced
operation ratio.
As a result, we posted net sales of 167,276 million yen (+10.6%
year on year), up 16,001 million yen from the previous consolidated
fiscal year. In terms of profit, we posted operating income of 9,575
million yen (-27.8% year on year), ordinary income of 11,212 million
yen (-21.6% year on year) and net income attributable to owners ofparent of 8,847 million yen (-22.7% year on year).

Regarding the next term
In the electronic parts industry in which our group operates
business, we forecast an expansion in demand forhigh-performance electronic components in various fields. Those
fields include automated driving represented by automobiles andhigher performance communications devices used for the control.
Regarding the outlook for performance of our group in the next
term, we expect that automotive PBCs continue to drive overallsales. However, we predict that we will be affected by sluggish
demand for smartphones and intensifying competition for orders for
smartphones made by Chinese manufacturers. Accordingly, we
expect sales to inevitably decline despite our efforts to focus on
high-performance models. Meiko Embedded Products, Ltd. will be
subject to consolidation for the full year, so we expect sales toincrease in our EMS business. Demand in the cutting-edge
automotive PCBs, semiconductor package PCBs andcommunication module PCBs will rise in the future. Therefore, wehave completed the construction of the Tendo Factory and arepreparing to start full-scale production in our Ishinomaki FactoryNo. 2 and Vietnam Plant No. 3. We will strive to make our new

factories and plants profitable at an early stage. We then work
toward the reinforcement of the production system to develop themas a pillar of our company’ s business. Furthermore, we will improve
profitability by enhancing productivity through efforts to automate
factories and plants, save labor, and achieve yield improvement. We
have determined our outlook for business as follows based on theabove.
Net sales

Plan announced in May 2022
From FY2022 to FY2026 CAGR of net sales: 10.1%

9,000 million yen

Ordinary income

8,000 million yen

Net income attributable to owners of parent

6,200 million yen

Revision to the medium-term business plan
There was a large divergence from our plan due to the decreased
production of automobiles and sluggish demand for smartphones in
FY2022, which is the first year of the medium-term business planannounced in May 2022. Demand is weak even in our forecast for
FY2023, so we have reviewed the medium-term business plan.
We have revised sales due to the recent slump in demand.
However, we expect to exceed our targets in FY2025 and FY2026.
In terms of the breakdown by product, we expect demand forautomotive PCBs to be used for EVs and automatic driving torapidly increase.
To meet such demands, we are proceeding with preparations tostart full-scale production in the Tendo Factory in FY2024. We
expect an increase of 23 billion yen (+20.9%) compared to our initial
target in FY2026, which is the final year of the plan. The ratio ofsales of PCBs for smartphones and tablets will gradually decline.
However, we forecast an increase in sales of flexible PCBs in
addition to HDI PCBs for motherboards. We started trial productionof semiconductor package PCBs after expanding our Vietnam Plant
No. 3 and Ishinomaki Factory No. 2. We have assumed that it willtake time to see a recovery in semiconductor demand in themedium-term business plan. Accordingly, we have postponed ourplan to increase production in the Tendo Factory, which will be thesecond stage of investment. We have revised our sales plan to 25
billion yen and our total amount of investment in the medium-termbusiness plan to 90 billion yen. We expect that sales of SSD/IoT
PCBs and PCBs for AI appliances/amusement/industrial equipment/
other products will be in line with our initial targets. We expect salesof the EMS business to increase by 10 billion yen in the final fiscal
year compared with the initial plan as the sales from Meiko
Embedded Products, Ltd. will fully make a contribution. We set theexchange rate against the dollar at 122 yen in our initial plan, but wehave set it at 130 yen in our revised plan.
We have assumed that there will be a full-scale recovery indemand in FY2024 in the revised medium-term business plan.
Accordingly, we predict our factory operating rate to gradually
recover from that point onward. In FY2026, we will work to achieve
profitability at an early stage in our investment projects and to
improve profitability with productivity improvements towardachieving operating margin of 11% as we initially targeted.

Our company recognizes the increase of profits for shareholders as animportant managerial mission. For the time being, we will prioritize
investment to expand the business scale of our company and focus on
increasing sales and profit. We set a payout ratio guideline at 15%, andshall work toward increasing dividends in step with the expansion of profit.

(in 100 million yen)

Revised plan
From FY2022 to FY2026 CAGR of net sales: 12.7%
Net sales

Operating income

2,500

1,700

165,000 million yen

Operating income

Shareholder return

Overview of the medium-term business plan

1,850

2,300

2,250
1,900

1,673 1,650

205

175

155

EBITDA

2,050

2,700

300

275

236

220
150
96

90

FY2022

FY2023

FY2024FY2025

FY2026FY2022

FY2023

FY2024FY2025

FY2026

237

277

320

363

413

193

191

275

365

414

From FY2022 to FY2026 Total investment: 100 billion yen

From FY2022 to FY2026 Total investment: 90 billion yen

Medium-term business plan/Variation in sales by product application
Smartphones/ Semiconductor package SSD and IoT modules
tablets

Automotive(in 100 million yen)AI appliances/amusement/
other products for industrial equipment

2,700

2,500

2,300

300

1,700
146

250

1,850

1,673

300

232

226
98

118

45

5
373
365 （20.2%）（21.5%）
912
860（50.5%）（49.3%）

Forecast for Forecast for
FY2022
FY2023

380

1,900

150

170

EMS/development andmanufacture of electronic devices

203

400
（16.0%）

1,650

360

313

249
100

210

110

213

240
130
150

400
250
150

250

320
（11.9%）
280
70（12.2%）

5
89
250
9
271
（16.2%） 211 （13.2%）（12.8%）
1,330
1,120 （49.3%）
900（48.7%）
845
815 （47.4%）

1,100（44.0%）（50.5%）（49.4%）
Forecast for
FY2026

Forecast for Forecast for Forecast for Forecast for Forecast for
FY2022
FY2023
FY2024FY2025
FY2026

Plan announced in May 2022

Revised plan

Medium-term business plan/Variation in sales by product specification (in 100 million yen)Through multi-layered PCBs

HDI PCBs

Semiconductor package PCBs

Rigid ﬂexible PCBs/
Flexible PCBs

Heat dissipation/
Large current/Other PCBs

EMS/development andmanufacture of electronic devices

2,700

2,500
2,300

300

1,700
146

29 35

50
100

1,850

300

170

32

50

5

45

758
725 （41.0%）（42.6%）

795
760（44.7%）（43.0%）
Forecast for Forecast for
FY2022
FY2023900（36.0%）

850（34.0%）

380

1,900
1,673
203

48 20

5

1,650
20 40

9

70

60
100
250

150

360
40 45

313

50 70

400

990
840 （38.5%）（35.2%）

641
655（38.3%） 565 （34.5%）（34.2%）

900
810
730
703
756
（31.5%）（45.2%）（42.7%）（38.4%）（34.4%）

Forecast for
FY2026

Plan announced in May 2022

Forecast for Forecast for Forecast for Forecast for Forecast for
FY2022
FY2023
FY2024FY2025
FY2026

Revised plan

Dividends
FY202145yen
Interim: 20 yen
Year-end: 25 yen

FY2022

FY2023 (forecast)Interim: 27 yen
Year-end: 28 yenInterim: 25 yen
Year-end: 25 yen

55yen

50yen

We are taking a number of measures for improvement with utmost efforts to elevate our performance and corporate value in order to live up to the
support and expectations of our shareholders and all other stakeholders. We would appreciate your further kind support and encouragement fromnow on as well.

MANAGEMENT VOICE

Hiroshi Miyauchi

Outside Audit & Supervisory
Board Member

VOL.

14

I was elected at the General Meeting of Shareholders in June 2020 as COVID-19 was beginning to
spread and the environment surrounding companies was changing completely. I have been performing myduties as an Outside Audit & Supervisory Board Member since then. I focused on conducting online audits
on aﬃliated companies and departments in Japan and overseas, exchanging opinions and giving advice inthe previous ﬁscal year.
Politics, the economy and society are undergoing an upheaval amid changes in the natural environment
such as global warming, the invasion of Ukraine, problems between the U.S. and China, the depreciationof the yen, low interest rate policies, inﬂation, soaring material and transportation expenses, a shortage ofsemiconductor ICs, an acceleration in the pace of the electriﬁcation of automobiles, and the stagnation of
the smartphone industry. Consequently, conditions remain extremely harsh for corporate management
and business activities. Even under such circumstances, it is important to link the upfront investments wehave been making with results in a timely manner and to cultivate our strengths without being content
with the status quo.
I will strive to further improve business feasibility and corporate value with the aim of realizing sustainable and appropriate internal controls together with the executive management so as to meet the expectations of all our stakeholders. I ask for your continued support.

Corporate data (As of March 31, 2023)
Corporate Proﬁle

Stock Information

MEIKO ELECTRONICS CO., LTD.
November 25, 1975
12,888 million yen
11,889 (consolidated)(Japan: 1,264) (Overseas: 10,625)
Outline of Business Design and manufacturing andsales of PCBs and auxiliaryelectronics business

Number of Shares AuthorizedName
Established
CapitalNo. of Employees

Number of Shares Issued

Common stock: 70,000,000 sharesFirst bond-type stock: 100 shares

Common stock: 25,780,069 shares(excluding treasury stock of 1,023,251 shares)

First bond-type stock: 70 shares

Number of Shareholders

Common stock: 5,724
First bond-type stock: 1

Shareholders’ Information
Fiscal year

Transfer agent

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo,
100-8233 Japan

Transfer office

Sumitomo Mitsui Trust Bank, Limited Stock
Transfer Agency Dept. 1-4-1 Marunouchi,
Chiyoda-ku, Tokyo, 100-8233 Japan
Sumitomo Mitsui Trust Bank, Limited
Stock Transfer Agency Dept.
2-8-4 Izumi, Suginami-ku, Tokyo,
168-0063 Japan

Principal Shareholders（Common stock）

Executives

President & CEO
Director and Senior Managing Executive Officer
Director and Senior Managing Executive Officer
Director and Managing Executive Officer
Director and Managing Executive Officer
Director and Executive Officer
Director
Director
Director
Director
Director
Audit & Supervisory Board Member (Standing)
Audit & Supervisory Board Member
Audit & Supervisory Board Member

Yuichiro Naya
Masakuni Shinozaki
Junya Wada
Atsushi Sakate
Yoshihito Kikyo
Shigeru NayaYoon Ho, Shin
Nao Tsuchiya
Yosuke Nishiyama
Takashi Harada
Toshifumi Kobayashi
Takahiro Matsuda
Hiroshi Miyauchi
Kotomi Ejiri% of shares held

Yuichiro Naya

4,703

18.25

The Master Trust Bank of Japan, Ltd. (Trust Account)

3,804

14.76

Custody Bank of Japan, Ltd. (Trust Account)

2,229

8.65

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD ‒HONG KONG PRIVATE BANKING DIVISION ‒ CLIENT ACCOUNT

1,216

4.72

CLEARSTREAM BANKING S.A.

1,012

3.93

BNP PARIBAS SECURITIES SERVICES LUXEMBOURG/JASDEC/FIM/LUXEMBOURG FUNDS/UCITS ASSETS

820

3.18

Meiko Kosan Co., Ltd.

608

2.36

Yuho, Ltd.

521

2.02

Seiichi Naya

405

1.57

Sumitomo Mitsui Banking Corporation

377

1.46

*The Company owns treasury stock of 1,023,251 shares and is excluded from the above principal shareholders.
The percentages for the total number of issued shares have been calculated after excluding treasury stock.

Aﬃliated Companies
Yamagata Meiko Electronics Co., Ltd.
Meiko Tech Co., Ltd.
Meiko Techno Co., Ltd.
Meiko Embedded Products, Ltd.
Meiko Embedded Technology, Ltd.
Meiko Elec. Hong Kong. Co., Ltd.
Meiko Electronics (Guangzhou Nansha) Co., Ltd.
Meiko Electronics (Wuhan) Co., Ltd.
Guangzhou Sipide Trading Co., Ltd.
Meiko Electronics Vietnam Co., Ltd.
Meiko Electronics Thang Long Co., Ltd.
Meiko Electronics America, Inc.
Meiko Towada Vietnam Co., Ltd.
Meiko Electronics America, Inc.

Number of shares held
(thousands of shares)

Name of shareholder

Auxiliary electronics business （First bond-type stock）
Number of shares held
Name of shareholder% of shares held
(thousands of shares)
Auxiliary electronics business70
100.00
Auxiliary electronics business Development Bank of Japan Inc.
Auxiliary electronics business
Shareholding Structure (Common Stock)
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics businessIndividuals and others 39.09%
Auxiliary electronics business
Financial institutions 30.35%
Auxiliary electronics business
Auxiliary electronics business
Foreign institutions and others 20.81%
Auxiliary electronics business
Other institutions
5.77%
Auxiliary electronics business
Financial instruments business operators
1.16%
Auxiliary electronics business
Treasury stock
3.82%
Auxiliary electronics business

Headquarters: 5-14-15 Ogami, Ayase, Kanagawa, 252-1104 Japan
Tel: 0467-76-6001 (main)
URL:
https://www.meiko-elec.com/
Notes on Forecasts
The information in this report contains future forecasts, such as the plans and business results of the Company.
These forecasts are based on information available at the time when these forecasts were made and certain
preconditions that the Company believes to be reasonable. Please note that actual business results may differ fromthe forecasts herein due to a variety of factors.

April 1 to March 31 of the following year

Annual shareholders’ June
meeting
Record dateYear-end dividends: March 31
Interim dividends: September 30

Address forsending mails

Contact

Tel: 0120-782-031

Stock exchange Prime Market, Tokyo Stock Exchange
Method ofpublic noticeElectronic public notice in our official page
Official Page:
https://www.meiko-elec.com/ir/pa.shtml
In the event of an accident or other
unforeseen
eventsthat
prevent
publication of the electronic public notice,
it will be published in The Nikkei.

Enquiries concerning shareholdings•Shareholders who need to update information onshareholdings, including change of address andmethod of receiving dividends, are advised to contact
the securities companies where securities accounts
are held.
•Shareholders who do not have accounts withsecurities companies and need to process paymentsof dividends are advised to contact Sumitomo Mitsui
Trust Bank, Limited Stock Transfer Agency Dept. asstated above.