48th Interim(From April 1, 2022 to September 30, 2022)

Securities code: 6787

Financial highlights
Net sales

81,710Consolidated balance sheet

million yen（in million yen）

4,641

Consolidated statement of income

At the end of the
End of FY2020 second quarterfor the ﬁscal year
(As of March 31, 2022)
under review(As of September 30, 2022)

AssetsCurrent assets

78,367103,090

Noncurrent assets

89,961

113,787

82,562

98,264954

7,614

Property, plant and equipment
Intangible assets

6,444

7,908

168,328

216,877

Current liabilities

73,027

102,573

Noncurrent liabilities

36,61539,648109,642

142,22245,464

51,245

12,88812,888

6,700

6,700

Retained earnings

28,061

33,836

Treasury stocks

Investments and other assets
Total assets
Liabilities

Total liabilities
Net assets
Shareholders equity
CapitalCapital surplus△2,186△2,180

Cumulative other comprehensive income

13,024

23,228Valuation diﬀerence on available-for-sale securities

4

8

△41

△107

13,17323,427

Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of deﬁned beneﬁt plans
Total net assets
Total liabilities and net assets

Net income attributable to owners of parent

Operating income

△112

△100

58,68674,655

168,328

216,877

million yen（in million yen）

6,419

Consolidated statement of cash ﬂows

million yen（in million yen）

First half of the
47th term(year to date)

First half of the
48th term(year to date)

First half of the
47th term(year to date)

First half of the
48th term(year to date)(April 1, 2021 to September 30, 2021)(April 1, 2022to September 30, 2022)(April 1, 2021 to September 30, 2021)(April 1, 2022to September 30, 2022)

Net sales

69,47081,710

Cost of sales

57,31069,189Gross proﬁt

12,16012,520

Selling, general and administrative expenses

6,610

7,879

Operating income

5,549

4,641

Non-operating income

357

4,595

Non-operating expenses

559

495

Ordinary income

5,347

8,741

Extraordinary income

120Extraordinary losses

728

213

Net income before income taxes

4,631

8,527

Income taxes

481

2,156

Net income

4,149

6,371

Net loss attributable to non-controlling interests

△40

△48

Net income attributable to owners of parent

4,190

6,419

Net cash generated from operating activities

2,344

2,327

Net cash expended in investment activities△4,726△21,483

Net cash generated from ﬁnancing activities

2,723

26,401The eﬀect of changes in the exchange rate on cash and cash equivalents

152

1,081

Cash and cash equivalents at the beginning of the period

12,121

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

12,615

18,777

Key points of the financial results●Consolidated balance sheet

・Total assets at the end of the second quarter under review increased 48,548 million yen fromthe end of previous fiscal year to 216,877 million yen.
・This is mainly attributable to increases of 8,326 million yen in cash and deposits, 7,093 million
yen in notes and accounts receivable-trade, 7,265 million yen in inventories, and 2,051 million
yen in other included in current assets, as well as an increase of 15,702 million yen in property,
plant and equipment and 6,595 million yen in goodwill included in noncurrent assets.
・Liabilities at the end of the second quarter under review increased 32,579 million yen from theend of previous fiscal year to 142,222 million yen.

・This is mainly attributable to a 27,328 million yen increase in short-term borrowings includedin current liabilities as well as a 1,149 million yen increase in long-term borrowings and a 1,762
million yen increase in net defined benefit liability included in noncurrent liabilities.
・Net assets at the end of the second quarter under review increased 15,968 million yen fromthe end of previous fiscal year to 74,655 million yen.
・This is mainly attributable to a 5,775 million yen increase in retained earnings and a 10,253
million yen increase in foreign currency translation adjustment.

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 first half of the term ending March 2023

Yuichiro Naya, President & CEO

1st Half Results and Full-Year Outlook FY2022-Consolidated(in 100 million yen)

FY22 1st FY22 2nd FY22 full-year FY22 initial
FY21 1st
forecast
half results half results half forecast forecast
Net sales

695

817

963

1,780

1,700

Operating income

55

46

69

115

155

58

145

145

51

115

122

137.7

122

8.0%

5.7%

7.2%

7.7%

10.7%

6.0%

53

Ordinary income

87

42

Net income

64

attributable to owners of parent

6.0%

7.9%

5.3%

Average FX rate
(JPY/USD)

110.12135.31

140

6.5%
8.1%

29

348

Automotive
Smartphones/
Tablets

16

35
113

EMS/electronic
device development
and manufacturing

142

4.9%

‑

2

0.0%

48

14.6%

3

8.6%

8

-1

55

695

0

5

0.0%

9

101

15.8%

3

0.0%

7

53

17.0%

6

46

4

0

16
9

3.6%

5

230

2.5%

69

963

5.7%

22

250

5.3%

158

1.4%

817

8.0%

7.0%

0

-1

72

-1.9%

314

15

114

63
7.2%

7.6%
8.7%

2.2%

(Operating margin)

880

172

3

136

7.1%

53

Total

7

11.0%

Semiconductor
package
SSD and
IoT modules

6.7％

FY22 full-year
forecast
Operating income

Sales

35

463

7.2%

(in 100 million yen)

FY22 2nd half
forecast
Operating income
Sales(Operating margin)

28

417

8.3%

146

AI appliances/amusement/
other products
for industrial
equipment

FY22 1st half
results
Operating income
Sales (Operating margin)

8.5%

6.5%

1st Half Results and Full-Year Outlook FY2022
Breakdown by Products Application
FY21 1st half
results
Operating income
Sales(Operating margin)

9.1%

2.2%
6.5%

Net Sales, Operating Income and Operating Margin(in 100 million yen)

Net Sales

Operating Income

Operating Margin
818

5.8%

27

553

532

502

457

7.3%

6.2%

31

6.5%

39

618
9.2%

564

9.4%

532

8.0%

7.3%

57

5.8%

5.7%

36

34

32

963

817

695

661

591

571

3.2%

3.4%

18

18

77

49

69

5.7%

55

7.2%

46

Investment (100 million yen)
Depreciation (100 million yen) 55
DE ratio
Equity ratio

FY17

FY18

FY19

FY20

FY21

FY22

1st Half Results and 2nd Half Outlook FY2022 by Product Specification(in 100 million yen)Through PCB

HDI PCB

Flex rigid/ﬂexible PCBs

Heat dissipation board

Package3（0.3%）
22（2.3%）

FY2022
2H forecast

414（43.1%）↑40（10.7%）

FY2022 1H

374（45.9%）↑18（5.1%）

FY2021 2H

356（43.5%）↑35（10.9%）

FY2021 1H

321（46.3%）

158（36.3%）↑13（3.9%）4（0.5%）
8（1.0%）

337↑−13（−3.7%）2（0.2%）

20（2.4%）73（8.9%）（42.8%）
7（1.0%）
14（2.0%）283（40.7%）

13（1.3%）（8.8%）

4（0.5%）
8（1.0%）

350↑67（23.7%）（16.4%）

72（41.2%）

OthersEMS

3（0.3%）

350

18（2.2%）53（7.6%）
17（2.4%）The production of final products continued to decrease due to disruptions to the global
supply chain in the electronic parts industry in the first half of the fiscal year. At the sametime, concerns about an economic slowdown spread due to rising prices of commodities
caused by the increase in resource prices and policies of hiking interest rates, which led toincreased uncertainties in the future. Under these circumstances, as we managed toalleviate a decrease in orders, we were able to achieve an increase in orders, althoughslightly. The sales of automotive PCBs continued to be affected by the decrease inautomobile production. Together with this, the sales of smartphone PCBs wereconsiderably bearish due to the economic downturn in China and sluggish demand inEurope owning to the situation in Ukraine. In terms of production, our factory operating
rate declined, so we promoted measures such as cost reductions and curbs on
investment. Despite such efforts, operating income was negative compared with the same
period in the previous fiscal year. However, we hit record highs in net sales, ordinary
income and net income attributable to owners of parent for the first half of the fiscal year
due to the depreciation of the yen. As a result, we posted net sales of 81,710 million yen(+17.6% year on year), up 12,239 million yen compared with the same period in theprevious fiscal year. Concerning profits and losses, operating income was 4,641 million
yen (-16.4% year on year), ordinary income was 8,741 million yen (+63.4% year on year)
and net income attributable to owners of parent was 6,419 million yen (+53.2% year onyear).

115

1,780

7.2%

Regarding the operating results in the first half963
↑146（17.9%）

817↑−1（−0.1%）818↑123（17.7%）

695

Regarding the full-year forecast
Our full-year forecast is improving compared with the business environment in the firsthalf of the fiscal year. Nevertheless, we expect the uncertainty to continue. Orders aregradually recovering for our mainstay of automotive PCBs and smartphone PCBs in the
PCB business. We announced the acquisition of NEC Embedded Products, Ltd. in July inthe electronic device business. We changed the name of the company to Meiko
Embedded Products, Ltd. to be included as a consolidated subsidiary in the second halfof the fiscal year. Net sales were the same as our initial target of 170 billion yen, whileraising them to 178 billion yen with the addition of the planned sales of Meiko Embedded
Products of 8 billion yen. In terms of operating income, our operating margin dropped due
to a decline in our factory operating rate with a decrease in demand in the first half of the
fiscal year. However, our factory operating rate is expected to gradually improve with therecovery in orders in the second half of the fiscal year. Therefore, we forecast a rise inoperating margin. In terms of expenses, we are striving to reduce costs at each of ourfactories. We are continuing capital investment for package PCBs which will be our corebusiness in the future. However, we have reduced capital investment in other areas.
Accordingly, we have revised investment amount downward from 22 billion yen in our
initial plan to 20 billion yen. We expect operating income in the second half to rise 50%
compared with the first half of the fiscal year to 6.9 billion yen and then to reach 11.5
billion yen for the full-year as a result of taking those measures. We expect ordinary
income to be 14.5 billion yen and net income attributable to owners of parent to be 11.5
billion yen as we originally targeted.

Investment on the package PCBs
We are investing in the SAP method in our Ishinomaki Factory and the MSAP method in
our Vietnam Factory No. 3 for package PCBs which will be our main product in the future.
We are making good progress at present. We are preparing for the shipment of prototypes
by the end of the fiscal year.

Introduction to EMS/electronic device development and manufacturing
We have been working on the development and manufacturing of EMS/electronic devices for many years. We have turned Meiko Embedded Products,
which develops electronic devices, and Meiko Embedded Technology, which produces electronic devices, into consolidated subsidiaries in October inorder to strengthen our competitiveness.

EMS businessWe have promoted business focused on mass-production in our two Vietnam factories up to now. As Meiko Embedded Technology started operation in
October, we are now employing a two-prong production structure in Japan and Vietnam. That has achieved support for the development of prototypes inJapan in addition to the conventional mass-production we have been engaged in the past. It has also become possible to perform EMS business whichfurther suits customer needs.

Factories

Hanoi, Vietnam

No. of production lines

Features

EMS Production Dept.,
Vietnam FactoryThis factory employs a one-stop production structure adjacent to the PCB factory mainly
centered on automotive projects. It is capable of supporting clean rooms in both themounting and assembly lines. It can also flexibly respond to high-density mounting anddust-free assembly which require protection against dust.

SMT: 16 lines
Meiko Towada
Vietnam Co., Ltd.

Hai-duong, Vietnam

SMT: 11 lines

This factory engages in the wireless and communications equipment-related mounting andassembly. It has various types of communications inspection devices. Accordingly, it iscapable of responding to requested functional and characteristic inspections. It employs aone-stop structure for PCBs by supplying them from our factories in Vietnam.

Meiko Embedded Development and design departments responsible for circuit design, software design andTechnology
mechanism design are stationed and this factory is capable of assembly and mounting of
Nanyo City, Yamagata

SMT: 6 lines

prototypes as well as mass-production of them. It employs a one-stop structure for PCBs
by utilizing our factories in Japan.

Electronic device development and manufacturing businessWe produce FA equipment in the Industrial Automation System Division and video equipment in the Visual System Division in our head office as ourelectronic device development and manufacturing business. In addition, Meiko Automation in Vietnam has contributed mainly to the automation of our PCB
factories. In October, Meiko Embedded Products, which has been undertaking various contract development projects, joined our group, and we havefurther strengthened the utilization of IoT technologies which take advantage of imaging analysis and sensors based on AI. We will enhance the synergy
effect with our existing FA equipment manufacturing to promote the conversion of our PCB factories to smart ones, to expand external sales of theadvanced FA products.

Sites

Departments/Companies

Features

The department makes advanced value-added proposals
Head Oﬃce,
Industrial Automation from the development and manufacturing to after-sales
services of automation equipment, IoT systems and software.
System Division

Ayase City, Kanagawa

Visual System
Division

The department develops, manufactures and sells video
equipment for business use. These have been adopted in multiple
areas including local government’s disaster response
headquarters, police general command systems, firefighting
disaster prevention systems, road traffic control, and systems formonitoring social infrastructure such as railways and airports.

Meiko
Automation

This company designs and manufactures AGV and otherautomatic transportation equipment including the automationequipment in our PCB factories.

Meiko
Embedded
Products

The company makes products with advanced technologies,
high quality and high reliability through contract development
and manufacturing service business and contract
manufacturing service business for electrical and electronic
devices.

Hanoi, Vietnam

Yonezawa City, Yamagata

Regarding dividends
Our company recognizes the increase of profits for shareholders as an important managerial mission. We increased the interim dividend by 2 yen per
share to 27 yen. That is because we posted record high net income attributable to owners of parent. In order to live up to the support and expectations
from stakeholders, including shareholders, we will implement various measures with utmost effort, to improve our corporate value and achieve sustainablegrowth. We would appreciate your continued support and encouragement.

MANAGEMENT VOICE

VOL.

13

I am focusing my eﬀorts on R&D and launching the mass-production of PCBs which emphasize heatdissipation in the Power Electronics Headquarters. The problem of heat generation in electronic
devices is becoming more serious year-by-year. It is becoming diﬃcult to develop high-performance
products without solving the problem. We have announced Mega Through Hole, an original technology from our company, to disspate heat generation by using the structure of the PCBs. It is currently
welcomed by many of our customers and we are preparing for the mass-production of this product in
the future. In addition, we are developing a metal base PCBs made with insulating heat dissipationmaterials that has an industry-leading thermal conductivity of 16 W/m・k. It is now being applied in
Shigeru Naya
Director

inverters and other applications. We will strive to contribute extensively to society by developing PCB
technologies used in highly eﬃcient power supply control. I ask for your continued support.

Corporate data (As of September 30, 2022)
Corporate Proﬁle

Stock Information

MEIKO ELECTRONICS CO., LTD.
November 25, 1975
12,888 million yen
12,228 (consolidated)(Japan: 923) (Overseas: 11,305)
Outline of Business Design and manufacturing andsales of PCBs and auxiliaryelectronics business

Number of Shares Authorized

70,000,000 shares

Number of Shares Issued

25,780,139 shares

Number of Shareholders

6,706

Name
Established
CapitalNo. of Employees(excluding treasury stock of 1,023,181shares)

Principal Shareholders

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

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.

Yuichiro Naya

4,703

18.24

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

3,475

13.48

Custody Bank of Japan, Ltd. (Trust Account)

1,564

6.06

CLEARSTREAM BANKING S.A.

1,012

3.92

946

3.67

810

3.14

608

2.35

Yuho, Ltd.

521

2.02

Seiichi Naya

405

1.57

Sumitomo Mitsui Banking Corporation

377

1.46

THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD ‒HONG KONG PRIVATE BANKING DIVISION ‒ CLIENT ACCOUNTBNP PARIBAS SECURITIES SERVICES LUXEMBOURG/JASDEC/FIM/LUXEMBOURG FUNDS/UCITS ASSETS
Meiko Kosan Co., Ltd.

*The Company owns treasury stock of 1,023,181 shares and is excluded from theabove principal shareholders. The percentages for the total number of issued
shares have been calculated after excluding treasury stock.

Shareholding Structure (Common Stock)Aﬃliated Companies
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business
Auxiliary electronics business

Fiscal year

Individuals and others 39.80%
Financial institutions 26.68%
Foreign institutions and others

21.50%

Other institutions

5.86%

Financial instruments business operators

2.32%

Treasury stock

3.81%

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
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

Number of shares held
% of shares held
(thousands of shares)

Name of shareholder

Executives

Shareholders’ Information

Address forsending mails

Contact

Tel: 0120-782-031

Stock exchange Prime Section, 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.