47th Report toShareholders(From April 1, 2021 to March 31, 2022)
Securities code: 6787

Financial highlights
Net sales

151,275
Consolidated balance sheet
End of FY2020(As of March 31, 2020)

Net income attributable to owners of parent

Operating income

million yen（in million yen）

13,255

Consolidated statement of income
Previous period(year to date)

At the end of this period(As of March 31, 2022)

Assetsmillion yen（in million yen）

(April 1, 2020 to March 31, 2021)(April 1, 2021 to March 31, 2022)

Net sales

119,257

151,275

66,33878,367

Noncurrent assets

75,701

89,961

Cost of sales

101,732

123,880

68,78682,562927

954

Gross proﬁt

17,52427,394

5,987

6,444

Selling, general and administrative expenses

10,866

14,139142,040

168,328

Property, plant and equipment
Investments and other assets
Total assets
Liabilities
Current liabilities
Noncurrent liabilities
Total liabilities

59,18273,02742,24736,615

101,429

109,642

36,25645,464

12,88812,888

Net assets
Shareholders equity
Capital

6,464

6,700

Retained earnings

17,64828,061

Treasury stocks

Capital surplus△745△2,186

Cumulative other comprehensive income

4,161

13,024

Valuation diﬀerence on available-for-sale securities

39

4

250

△41

Foreign currency translation adjustment

4,127

13,173Remeasurements of deﬁned beneﬁt plans

△255

△112

Deferred gains or losses on hedges

Total net assets
Total liabilities and net assets

40,61058,686142,040

168,328

6,657

13,255Non-operating income

795

2,090

Non-operating expenses

1,755

1,050

Ordinary income

5,697

14,294Extraordinary income

312Extraordinary losses

641

1,694

5,059

12,612

Income taxes

422

1,175

Net income

4,636

11,436

Operating income

Net income before income taxes

Net loss attributable to non-controlling interests
Net income attributable to owners of parent

Consolidated statement of cash ﬂows

Current period(year to date)Current assets

Intangible assets

11,451

△4

△14

4,640

11,451

Previous period(year to date)million yen（in million yen）
Current period(year to date)(April 1, 2020 to March 31, 2021)(April 1, 2021 to March 31, 2022)

Net cash generated from operating activities

7,853

13,975

Net cash expended in investment activities△9,489△11,785

Net cash generated from ﬁnancing activities△618△4,730The eﬀect of changes in the exchange rate on
cash and cash equivalents

501

869

Cash and cash equivalents at the beginning of the period

13,646

12,121

Change in cash and cash equivalents following
a change in the scope of consolidation

229―

Cash and cash equivalents at the end of the period

12,121

10,450Key points of the financial results●Consolidated statement of income

Regarding the orders received, the impact of the decrease in the production of automobiles andsmartphones was seen in the second half of the term. In regard to sales, the wallet share ofautomotive PCBs expanded in addition to lasting growth in demand brought about by vehicle
electrification. Revenues were favorable owing to company-wide measures for cost reduction andyield improvement while all plants kept up operation at a high utilization rate. In addition, as foreign
currency exchange was influenced by the depreciation of the yen, sales and profit in this consolidated fiscal year were the largest in our history.
As a result, we posted net sales of 151,275 million yen (+26.8% year on year), operating income of
13,255 million yen (+99.1% year on year), ordinary income of 14,294 million yen (+150.9% year onyear) and net income attributable to owners of parent of 11,451 million yen (+146.7% year on year).

●Consolidated balance sheet

Total assets stood at 168,328 million yen, an increase of 26,288 million yen from the end of theprevious consolidated fiscal year. This increase is mainly due to a decrease of 1,671 million yen in
cash and deposits, an increase of 6,245 million yen in notes and accounts receivable-trade, and anincrease of 7,610 million yen in inventories, which were all recorded under current assets. Factors
behind the increase in total assets also included an increase of 13,775 million yen in property, plantand equipment, which was recorded under noncurrent assets.
Net assets totaled 58,686 million yen, an increase of 18,075 million yen from the end of theprevious consolidated fiscal year, due primarily to an increase of 10,413 million yen in retained
earnings, a decrease of 1,441 million yen resulting from the acquisition of treasury stocks, and anincrease of 9,046 million yen 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 term ended March 2022.
Yuichiro Naya, President & CEO

Regarding full-year business results

Consolidated results for FY2021（in 100 million yen）
Year on year

Results for
FY2020Results for
FY2021

1,193

1,513

67

133

57

143

46

115

105.93113.06

Net sales
Operating income

5.6%

Ordinary income

9.5%

3.9%

Average FX rate
（JPY/USD）

Increase/decrease rate

Increase/decrease rate

26.8%

1,700

12.4%

99.1%

155

16.9%

150.9%

145

1.4%

146.7%

122

6.5%

8.8%

4.8%

Net income attributableto owners of parent

7.6%

9.1%
8.5%
7.2%

122.00

Revenue from each product in FY2021
Results for FY2020

Automotive

523

Smartphones/tablets

288

SSD and IoT modules

70

AI appliances/amusement/
other products for industrial equipment

196

EMS

116

Total

1,193

332

86

365
5
98

12.8%
17
7.2%
3
2.4%
133
8.8%

126
1,513

77
8.7%
44
12.1%
-6
-120.0%
15
15.3%
21
9.3%
6
4.1%
155
9.1%

860

‑
11

237

Operating income
growth rate

Sales

63
8.6％
39
11.7%

732

‑
9
12.9%
1
0.5%
0
0.0%
67
5.6%

Forecast for FY2022

Operating income(Operating margin)

Sales

36
6.9%
21
7.3%

Semiconductor package（in 100 million yen）

Results for FY2021

Operating income(Operating margin)

Sales

Year on year

Forecast for
FY2022

226
146
1,700

Medium-term earnings forecast
CAGR from FY2021 to FY2026: 10.6%

CAGR from FY2017 to FY2021: 8.7%

2,500

（in 100 million yen）
Sales
Operating income
CAPEX
Amortization

1,085

1,513

EBITDA

96
58

118

89

63

107
69

52

67

2,050

1,850

275

1,189 1,155 1,193

220

158
75

1,700

2,250

133
118

205 200

200
175

155

74

81

82

236
200

103

180
138

127

115

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025

FY2026

133

152

118

141

213

237

277

320

363

413

Average CAPEX: 12,000 million yen

Medium-term business plan:
Sales forecast by product application（in 100 million yen）

1,513
126(8.3%)

237(15.7%)86(5.7%)332(21.9%)

732(48.4%)
Results for
FY2021146(8.6%)98(5.8%)1,850

250(10.0%)300(12.0%)170(9.2%)
232(12.5%)5(0.3%) 118(6.4%)

365(21.5%)

373(20.2%)

860(50.5%)

912(49.3%)

Results for
FY20222,500
300(12.0%)

1,700
226(13.3%)

Average CAPEX: 20,000 million yen

Results for
FY202345(2.4%)150(6.0%)

400(16.0%)

1,100(44.0%)

Results for
FY2026EMS
AI appliances/amusement/
other products for industrial equipment

SSD and IoT modules
Semiconductor package
Smartphones/tablets
Automotive

Turmoil was observed in the electronic parts industry in this consolidated
fiscal year as the shortage of semiconductors and worldwide disruption of
the supply chain led to a decrease in the production of final products suchas automobiles. A sense of uncertainty is lingering due to adjustments inthe production caused by lockdowns as a measure to prevent the spreadof the novel coronavirus and increase in production costs brought about by
rising prices of raw materials, energies, etc. stemming from the situation in
Ukraine, etc.
Amid such situation, orders received by our group were impacted by the
reduced production of automobiles and decrease in the production ofsmartphones caused by the lockdown in China in the second half of theterm. In regard to sales, demand continued to grow due to the expansionof the wallet share of automotive PCBs in addition to the increasing
demand due to vehicle electrification. The wallet share of smartphone PCBs
also grew and sales of other products increased as well. Revenues werefavorable owing to company-wide measures for cost reduction and yield
improvement while all plants kept up operation at a high utilization rate. In
addition, as foreign currency exchange was influenced by the depreciationof the yen, sales and profit in this consolidated fiscal year were the largest
in our history.
As a result, we posted net sales of 151,275 million yen (+26.8% year onyear), up 32,018 million yen compared with the previous year. Concerning
profits and losses, operating income was 13,255 million yen (+99.1% year
on year), ordinary income was 14,294 million yen (+150.9% year on year)
and net income attributable to owners of parent was 11,451 million yen(+146.7% year on year).

Regarding the next term

In the electronic parts industry in which our group operates business, an
expansion of demand is projected for various purposes, due to the shift toEVs and vehicle electrification as well as the progress of IoT allowing various
devices to connect to the Internet. On the other hand, we need to further
reinforce the BCP system as an initiative for maintaining the supply chain in
response to the rising prices of raw materials and energy, the lockdown in
China, etc. will present a challenge.
Regarding the outlook for performance of our group in the next term, we
expect an expansion in the sales of smartphone and telecommunication
modules and the EMS Business while automotive PBCs will continue todrive the overall performance. Moreover, we decided to expand investmentin the Tendo Factory, the Ishinomaki Factory No. 2 and the Vietnam Plant
No. 3 in order to respond to the expansion in demand as the demand forautomotive PCBs and semiconductor package and module PCBs is goingto grow. We shall work toward the reinforcement of the production system
to develop it as a pillar of our company’ s business through suchinvestment. Furthermore, we will improve profitability by investing in plant
automation and labor saving as well as achieving yield improvement.

Outline of the Medium-term business plan

Our company holds up the philosophy of “Providing the best products
and services to customers, and happiness for employees and society
through manufacturing” and is proceeding with business development instep with our ambition of “Challenge and contribute to the evolution ofelectronics.” This time, we formulated a medium-term business plan thatwill end in FY2026. Regarding the outline of the plan, we set goals of net
sales of 250 billion yen, operating income of 27.5 billion yen and net income
attributable to owners of parent of 21.8 billion yen. In comparison withFY2021, this means an increase of 100 billion yen in net sales and a nearly
two-fold growth of operating income. We shall invest a total of 100 billion
yen in the equipment in 5 years to respond to the increase in demand fromour customers.
While we are projecting a balanced growth with smartphones and tablets,
semiconductor packages, SSD and IoT modules, EMS, etc. alongsideautomotive purposes in this medium-term business plan, we decided toreinforce automotive PCBs and semiconductor package PCBs among the
aforementioned. As further rapid expansion of the market is expected in thisfield, we formulated a plan to boost the operating margin from 8.8% to 11%
by engaging in intensive investment and working toward the strengtheningof our organization by pursuing the improvement of profitability.
As outlined above, we shall boost profitability, achieve further growth andswitch to solid financial standing by pursuing an increase in profit, and strive
to improve our corporate value in accordance with the medium-termbusiness plan.

Initiatives for automotive PCBs
Please let us explain the major fields for achieving the planfor FY2026. The first is automotive PCBs. Technology trends
are starting to undergo significant changes due to automatic
driving, shift to EVs, etc. Regarding simple automatic driving,
basic functions such as running, stopping and turning used tobe controlled by respective ECUs. When it comes to practical
automatic driving, the need for coordinating the functions ofrunning, stopping and turning arose. For this, an ECU needs tohave multiple functions and will eventually become an
automatic driving computer. Furthermore, as the need for
coordination with other cars arises, PCBs for high-speed
communication will also become necessary. Apart from this,the shift of automobiles to EVs is also going to progress. Thismeans that technologies required for PCBs will change. Our
company has a lineup of PCBs to respond to all kinds of thesechanges and has a system ready for developing technologies
necessary from now on and challenging and contributing to theevolution of electronics.

High density and high frequency

Downsizing

HDI PCBs (LVH Stack structure)

Heat dissipation

FR-4Flex structure (Semi Flex)

Heavy copper (Cu) structure●Electricity wiring layer
made of heavy copper
6L penetration
Inner layer: 105μm

Copper inlay (Cu-Inlay) structure●Heat dissipation for components through copper inlays●Use of FR-4.0, 4.1 in bending●ECUs controlling LVH connection●Built in small, space-saving size

●Saving wiring space thanks to high-density wiring●LowDk/Df materials

Picture of a copper inlay surface

AnyLayer structure

MegaTH structure

Embedded devices●Heat dissipation basedon thick plating of
selectable TH plating
MegaTH

Metal base structure●High density wiring based on AnyLayer connection●Reduction of wiring area by embedding●Saving wiring space with AnyLayer connection

components in PCB●LowDk/Df materials●Improvement of heat dissipation eﬃciency●Heat dissipation through the metal base structure

by embedding heat-generating components

Aluminumin the heat dissipation side

Cu

Entering the field of semiconductor package PCBs
While semiconductor package PCB manufacturers are
increasing investment in cutting-edge package PCBs with the
expansion in demand for semiconductors as the background,
our company has decided to enter the field of small-sizedpackage PCBs.
In Japan, we are establishing a system for producing
package PCBs using the SAP method at the Ishinomaki
Factory No. 2, and then we are planning to expand the
production with the second-phase investment at the Tendo
Factory. In Vietnam, we have established a system for the
production of package PCBs using the MSAP method at theVietnam Plant No. 3 and our next plan is to start production at
the Quang Minh Plant No. 2.

Japan

Vietnam

SAP method

MSAP method

FCBGA package

Pursuing ﬁne wires
of about 1.0 mm

Memory package
Pursuing thinnessof about 90 μm

Production system

Our company offers a one-stop service for PCBs, including development, design, manufacturing and mounting. When breaking down the regions where
PCBs are currently produced, China accounts for 55%, Vietnam for 35% and Japan for 10%. Events that obstruct the continuance of business, such as thenovel coronavirus, natural disasters and international conflicts, have been observed in recent years and the decentralization of production sites presents achallenge. In this medium-term business plan, we shall pursue the decentralization of production areas by reinforcing the production capability in Japan and
Vietnam. By the last term of the medium-term business plan in FY2026, China will have accounted for 40%, Vietnam for 42% and Japan for 18%. As thescale of the market in China is large, products shall be locally produced and locally consumed according to demand, which is expected to grow, while theplants in Vietnam will meet the demand centered on remarkably growing India and ASEAN regions as well as in Europe and America and Japan will have asystem for responding to cutting-edge business projects.
In this fiscal year, we commenced the construction of new plants in Tendo City, Yamagata Prefecture and Quang Minh, Hanoi, Vietnam.
Business outline of the Tendo Factory in Yamagata Oﬃce

Business outline of the Quang Minh Plant No. 2

Location

Tendo City, Yamagata Prefecture

Location

Quang Minh Industrial Park, Hanoi

Site area

About 65,000㎡

Site area

About 63,000㎡

Total ﬂoor area

About 25,000㎡

Total ﬂoor area

About 20,000㎡

Investment

About 15 billion yen/About 25 billion yen

Contents of businessCutting-edge automotive PCBs, the plant for mass
production of PKG, function as a center for the developmentof PCB technologies, and development and manufacturing of
automation equipment in Japan

Shareholder return
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 aim to achieve a payout ratio of 15%, andshall work toward increasing dividends in step with the expansion of profit.

Investment
Contents of business

About 10 billion yen
Package and module PCBs, andcutting-edge HDI PCBs

Dividends
FY202020yen
Interim: 0 yen
Year-end: 20 yen

FY2021

FY2022 (forecast)Interim: 20 yen
Year-end: 25 yen

Interim: 25 yen
Year-end: 25 yen

45yen

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 andexpectations of our shareholders and all other stakeholders. We would appreciate your further kind support and encouragement from now on as well.

MANAGEMENT VOICE

Yoshihito Kikyo

Director and Managing
Executive Oﬃcer

VOL.

12

While the coronavirus crisis did not completely subside and diﬃcult management conditions including
the shortage of semiconductors and the rise in the prices of raw materials and energies continued
throughout the term ended March 2022, fortunately we were blessed with customers and able to record
the largest sales and proﬁt in our history, also thanks to the eﬀorts of all our staﬀ.
Our reorganization for joining the Prime Market in the new system was approved in April and weannounced our ﬁrst medium-term business plan for 5 years in May.
From now on, we shall make sure to continue investment both in Japan and overseas and develop
semiconductor package PCBs into one of the pillars for new business in addition to cutting-edge automotive and smartphone PCBs. Moreover, we will pursue our ambition, Challenge and contribute to the evolution of electronics, based on the strategy of boosting the EMS Business and striking a good balancewith multiple applications.
Furthermore, we will reinforce our IR activities as a company in the Prime Market, making sure that all
our investors and stakeholders suﬃciently understand our growth strategy and working toward the maximization of our corporate value.
We would appreciate your kind and continued support.

Corporate data (As of March 31, 2022)
Corporate Proﬁle

Stock Information

MEIKO ELECTRONICS CO., LTD.
November 25, 1975
12,888 million yen
13,629 (consolidated)(Japan: 855) (Overseas: 12,774)
Outline of Business Design and manufacturing andsales of PCBs and auxiliaryelectronics business

Number of Shares Authorized

70,000,000 shares

Number of Shares Issued

25,780,277 shares

Number of Shareholders

4,337

Executives

Principal Shareholders

Name
Established
CapitalNo. of Employees

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 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
Takahiro Matsuda
Atsushi Sakate
Yoshihito Kikyo
Shigeru NayaYoon Ho, Shin
Nao Tsuchiya
Yosuke Nishiyama
Takashi Harada
Toshifumi Kobayashi
Toyohiko Tsuyuki
Takayuki Sato
Hiroshi Miyauchi

Aﬃliated Companies
Yamagata Meiko Electronics Co., Ltd.
Meiko Tech Co., Ltd.
Meiko Techno Co., Ltd.
Meiko Electronics (Guangzhou Nansha) Co., Ltd.
Meiko Electronics (Wuhan) Co., Ltd.
Meiko Elec. Hong Kong. Co., Ltd.
Meiko Electronics Vietnam Co., Ltd.
Meiko Electronics Thang Long Co., Ltd.
Meiko Electronics America, Inc.
Meiko Electronics Europe GmbH
Meiko Towada Vietnam Co., Ltd.

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(excluding treasury stock of 1,023,043 shares)

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

Name of shareholder

Yuichiro Naya

4,703

18.25

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

2,951

11.45

Custody Bank of Japan, Ltd. (Trust Account)

2,204

8.55

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

1,025

3.98

CLEARSTREAM BANKING S.A.

1,012

3.93

Meiko Kosan Co., Ltd.

608

2.36

Yuho, Ltd.

521

2.02

Seiichi Naya

405

1.57

Sumitomo Mitsui Banking Corporation

377

1.46

JP MORGAN CHASE BANK 385632

314

1.22

*The Company owns treasury stock of 1,023,043 shares and is excluded from theabove principal shareholders. The percentages for the total number of issued
shares have been calculated after excluding treasury stock.

Individuals and others 35.91%
Financial institutions 27.55%
Foreign institutions and others 25.58%
Other institutions

5.51%

Financial instruments business operators

1.63%

Treasury stock

3.82%

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.

Fiscal year

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

Address forsending mails

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

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

Shareholding Structure (Common Stock)

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

Shareholders’ Information•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.