Breakdown of sales in the first half and full-year business forecast
Revenue from each market in the first half of FY2018First half of FY2017 First half of FY2018
Operating income

Sales
Automobiles
Smartphones

153.7

Others

143.0

Total

16.1

235.4

15.7

197.2

10.2%

6.8

38.6

(growth rate)

19.1

31.9

3.0

7.1％

13.6%

18.6%

43.5

12.8

28.3%

81.5%

9.1

10.1

5.9%

7.1%

85.5

18.1

16.1%

46.9%

Results ofFY 2017
Net sales

Result of the firsthalf in FY2017（44.2%）

1,200

74.6

8292

17.4%

90

42.0%

7329.3%

6.9%

6.9%

7.7%

4.4%

5.8%

7.5%

6860

267

Digital home appliances

Other applications

Net income attributable toowners of parent

43.7

4.0%

5.1%

6.1%

Exchange rate Yen/USD

110.66106.00110.00Non-PCB

100

23

197

（3.7%） 46
38（7.4%）（6.1%）

33（31.9%）（28.9%）

200（5.3%）

24

154

235

0

300

39（4.5%）（7.3%）

3038（7.1%）

12（5.6%）（2.3%）

400

500

600

Sales composition by PCB specification

Revised plan Increase/decrease rate

1,180

48.0

Office equipment

By specification

1,085.4

Ordinary income（43.2%）FY2018114.6%

Operating income

Result of the firsthalf in FY2018(in 100 million yen)

Initial plan

Storage

142.3

9.2%

(in 100 million yen)

Smartphones（2.3%）

33.8%

56.7

Earnings forecast for FY2018

Automobiles(growth rate)

28.5

617.6

7.3%

By application

Operating income

14.5%

153.1

4.8%

532.1

(Operating margin)

267.3

6.8%

Sales

Operating income

Sales(Operating margin)

Sales composition by PCB application(in 100 million yen)

Increase/decrease

Double-sided PCB(in 100 million yen)

Four-layer PCB

Six layers or more

HDI PCB

Other PCB

Corporate ProﬁleNon-PCB
14

10.6%

Result of the first39
half in FY2018 （6.3%）

23.3%
87.5%

152（24.6%）

Result of the first 38
150
half in FY2017 （7.1%） （28.2%）

67.0%

0100

Established
CapitalStock Information

MEIKO ELECTRONICS CO., LTD.
November 25, 1975
12,888 million yen

Number of Shares Authorized

70,000,000 shares

Number of Shares Issued

26,173,971 shares(excluding treasury stock of 629,349 shares)

No. of Employees 12,106 (consolidated)(Japan: 811) (overseas: 11,295)
Outline of Business Design, manufacturing and sales ofPCBs and auxiliary electronics businessCorporate Proﬁle4,241

Number of Shareholders
Principal Shareholders

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

Name of shareholder

Yuichiro Naya

4,702

17.97

Japan Trustee Services Bank, Ltd.
(Trust Account)

2,133

8.15

JP Morgan Chase Bank 380634

740

2.83

President & CEO

Yuichiro Naya

Director and Senior Managing Executive Officer

Takahide Hirayama

Director and Senior Managing Executive Officer

Masakuni Shinozaki

Japan Post Bank Co., Ltd.

735

2.81

Director and Managing Executive Officer

Takahiro Matsuda

Director and Managing Executive Officer

Jyunya Wada

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

670

2.56

DirectorYoon Ho, Shin

Meiko Kosan Co., Ltd.

608

2.32

DirectorHajime Nakano

566

2.17

Audit & Supervisory Board Member (Standing)Hitoshi Iyomoto

Yuho, Ltd.

521

1.99

Audit & Supervisory Board Member

Arifumi Sunada

Audit & Supervisory Board Member

Takashi Harada

Trust & Custody Services Bank, Ltd. (Security Investment Trust Account)

465

1.78

Seiichi Naya

435

1.66

Aﬃliated Companies
Yamagata Meiko Electronics Co., Ltd. Auxiliary electronics business
Meiko Tech Co., Ltd.
Auxiliary electronics business
Meiko Techno Co., Ltd.
Auxiliary electronics business
Meiko Electronics (Guangzhou Nansha) Co., Ltd. Auxiliary electronics business
Meiko Electronics (Wuhan) Co., Ltd. Auxiliary electronics business
Meiko Elec. Hong Kong. Co., Ltd. Auxiliary electronics business
Meiko Electronics Vietnam Co., Ltd. Auxiliary electronics business
Meiko Electronics Thang Long Co., Ltd. Auxiliary electronics business
Meiko Electronics America, Inc. Auxiliary electronics business
Meiko Electronics Europe GmbH Auxiliary electronics business(From April 1, 2018 to September 30, 2018)（2.3%）

107268（17.3%）

83211（15.6%）

20038（6.1%）（43.3%）（39.7%）

300

400

1238（7.1%）

500600

The Bank of New York Mellon (International)
Limited 131800*The Company owns treasury stock of 629,349 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)
Individuals and others 43.81%
Financial institutions 23.63%
Foreign institutions and others 22.00%
Other institutions

5.83%

Treasury stock

2.35%

Financial instruments business operators

Headquarters: 5-14-15 Ogami, Ayase, Kanagawa, 252-1104 Japan
Tel: 0467-76-6001 (main)
URL:
http://w w w .m eiko-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.

2.38%

Shareholders’ Information
Fiscal year

April 1 to March 31 of the following year

Annual shareholders’ Junemeeting
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

Address forsending mails

Contact

Tel: 0120-782-031

Stock exchange JASDAQ (Standard), Tokyo Stock Exchange
Method ofpublic notice

Securities code: 6787（2.3%）

Corporate data (As of September 30, 2018)

Name

44th InterimElectronic public notice in our official page
Official Page:
http:www.meiko-elec.com/ir/pa.shtml
In the event of an accident or otherunforeseen
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 to the left.

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 of the first half in FY2018.

President & CEO

Yuichiro NayaRegarding the operating results in the first half
We increased sales of automotive PCBs, our main sales target, and the number of PCB layers increased from four-layer to six to eightlayers. In addition, we increased sales of metal PCBs typical in the safe driving field (e.g., autonomous driving) and LED headlights. We
proactively worked on a policy to increase new project and prototype orders in response to these increasing demand trends. Moreover,sales of PCBs for smartphones have increased in both Korea and China. Together with this, we have also reliably moved forward withsales promotions on the PCBs for IoT modules and AI speakers that we have been focusing our attention on in this fiscal year to further
increase sales of HDI PCBs. On the other hand, the sense of uncertainty about the future, such an economic downturn, is gaining
strength due to the US-China trade friction.
Accordingly, as for the operating results in the first half of FY2018, net sales rose 8,545 million yen year on year to 61,758 million yen.
Regarding profit, as our factories continued to operate well, operating income was 5,674 million yen, ordinary income was 6,345 million
yen and net income attributable to owners of the parent was 5,331 million yen.

Regarding the forecast for the second half
As for the FY2018 full-year results, we have revised our full-year forecast in response to the favorable outcomes achieved in the firsthalf. Specifically, net sales were revised to be 120,000 million yen, operating income 9,200 million yen, ordinary income 9,000 million
yen and net income attributable to owners of the parent 7,300 million yen, respectively. There will be long holidays as usual in thesecond half of the fiscal year (e.g., the Anniversary of Founding and Spring Festival in China and the Tet Holiday in Vietnam). Thismeans that there will be an effect on sales due to the decrease in the number of working days. In addition to this, A negative impact on
the world economy due to the US-China trade friction in the second half of the fiscal year started to appear. Accordingly, we haveforecast sales of PCBs for automobiles and smartphones to be ou a safe side.

Regarding the investment plan
We planned to invest 12 billion yen in this fiscal year. We invested 9.9 billion yen on an inspection basis in the first half of the fiscal year.
We are looking to expand the size of our investment in the second half of the fiscal year. Accordingly, we plan to invest 15 billion yen in
the full fiscal year. Our main investments are intended for an increase in the floor space of the third factory that produces advanced
PCBs and the No.1 factory to reinforce our flexible PCBs and EMS business in Vietnam. In Japan, we have invested in advanced PCBs
in the automotive field in our Yamagata Factory and Ishinomaki Branch Factory. Together with this, we have constructed the second
factory at our Fukushima Factory. In addition to investment in advanced PCBs and labor-saving/automation in other factories, we areimproving our production capacity and quality by replacing old facilities. We will proactively support the increase in demand for PCBs in
the future through such investment. We will work on improving our profit ratio while further improving productivity and quality by
utilizing such investments. In particular, support for the advanced automotive field represented by autonomous driving and support forthe mass-production of PCBs for high-end smartphones that are starting to be compatible with 5G are investments that will form thecore of our strategy in future.
In response to the support and expectations of shareholders and all other stakeholders, Meiko Group will continue to do its utmost to
carry out measures needed to enhance corporate value and attain excellent performance. We look forward to your continued supportand encouragement in the future.

Increase of production capacity

Consolidated financial data

We originally planned to invest 12 billion yen in this fiscal year. However, we have increased this to 15 billion yen byadding 3 billion yen as an effort to respond to demand trends and improve our profit ratio.

Net sales

Progress of construction in Vietnam

61,758 million yen

High frequency

05,674 million yen

No.1 factoryNo.2 factory

Smartphones

Plan to increase production capacity in Vietnam
2018
Through-hole PCB
for automobile

40201980(Unit: 1,000 m2 per month)

2020

120

2021

HDI PCB

70

75

80

85

FPC

20253545

Start of mass-production in July 2019
Domestic investment

Solar Park Fukushima

Construction of the second factory
We held the Fukushima second factory completion ceremony onNovember 9.

We will invest 3 billion yen in factories in Japan in this fiscal year. In addition to Fukushima Factory, we will introduce advanced automotive PCB
production facilities and start mass-production in our Yamagata Factory and Ishinomaki Branch Factory. We are proactively working to reinforce
our production capacity by accelerating automation and labor-saving in all our factories as additioual initiatives.

MANAGEMENTV O I C EVOL.

5Director and Managing
Executive Officer

Takahiro Matsuda

2017/3

With stable demand in the PCB industry, our sales of through-hole PCBs with six or more layers increased in the ﬁrst half ofFY2019 against a backdrop of favorable demand for automotive PCBs in body and power train systems. In addition, althoughsales of smartphone PCBs slowed down overall, sales of HDI PCBs increased against a backdrop of increased demand inemerging countries (e.g., ASEAN nations and India).
A reduction in demand is expected in the second half of the ﬁscal year. This is due to the impact of the long holidays (e.g., theAnniversary of Founding and the Spring Festival in China and the Tet Holiday in Vietnam) and the impact on the Chinese economy due to a US-China trade friction. Nevertheless, we will proactively work on supporting an increase in production in ourfactories in Vietnam and Japan. We will do this by achieving high quality and highly productive factories through an increase in
the smartness of the Vietnam third factory and all other factories, by starting mass-production earlier through accelerating thepace at which we develop new products, and by supporting an expansion in the automotive market and demand in advanced
ﬁelds. Moreover, our manufacturing departments are making improvements by working on various eﬀorts as an initiative toimprove our proﬁt ratio. We have also launched an innovative productivity improvement project between indirect departments
and are striving to improve the productivity of them.
We would appreciate your continuous support.

5,331 million yen

2018/3

2019/3Current assets

56,36960,11953,94660,342

49,73255,075

210

249

4,003

5,016

110,316

120,461

Current liabilities

48,92449,004

Noncurrent liabilities

28,34938,342

Total liabilities

77,27487,346

Intangible assets(forecast)（％）

8.0

5,000

4.000
2015/3

2016/32017/3

2018/3-4.0
2019/3■ FY2018 Interim ■■ Full-year● ● Full-year(in million yen)(forecast)

6,000
0-6,000
2015/3

2016/32017/3

2018/3

Total assets
Liabilities

Net assets

29,63829,426

Capital12,88812,888

Capital surplus

11,745

6,464

Retained earnings

5,400

10,470Treasury stocks

Shareholders’ equity

△396

△396

Cumulative other comprehensive income

3,403

3,687

Valuation difference on available-for-sale securities

21110

Deferred gains or losses on hedges

298

304-10Foreign currency translation adjustment

3,5123,768

Remeasurements of defined benefit plans△428△397（％）

12,000-12,000(As of September 30, 2018)

Noncurrent assets
Property, plant and equipment■ FY2018 Interim ■■ Full-year● ● Full-year

Net income*/Net margin

150

We are working to accelerate the speed at which we develop new products and to prepare
a timely mass-production to meet the needs of our customers.

We have completed construction of a building of
our Fukushima Factory and have started to bringin facilities. We plan to produce mainly PCBs forFA equipment and IoT equipment there.

2016/3

10,000M-SAP
Construction of the third factory

2015/3(in million yen)

-5,000At the end of the second quarterfor the fiscal year under review

AssetsOperating income/Operating margin

No.3 factoryHigh heat dissipation

End of FY2017

Investments and other assets

Expansion of the No.1 factory(in million yen)

(As of March 31, 2018)

60,000Automobiles

Consolidated balance sheet(forecast)

120,000

Expand the FPC and EMS factory
to increase production capacity

Large current■ FY2018 Interim ■■ Full-year(in million yen)

10-20
2019/3

Total net assets
Total liabilities and net assets

33,042

33,114

110,316

120,461*Net income represents net income attributable to owners of parent.

Consolidated statement of income(in million yen)

Consolidated statement of cash ﬂows

First half of the 43rd term First half of the 44th term
(year to date)(April 1, 2017 to Sept. 30, 2017)

53,212

61,758

Cost of sales

43,95850,339Gross proﬁt

9,253

11,418Selling, general and administrative expenses

5,389

5,744

Operating income

3,864

5,674Non-operating income

261

1,641

Non-operating expenses

1,306

970

Ordinary income

2,819

6,345

Extraordinary income

01

Extraordinary losses

162

129

2,657

6,217

Income taxes

545886

Net income

2,112

5,331

Loss attributable to non-controlling interests△28―

Net income attributable to owners of the parent

2,140

5,331

Net income before income taxes

Key points of the financial results

First half of the 43rd term First half of the 44th term

(year to date)(April 1, 2018 to Sept. 30, 2018)

Net sales●Consolidated statement of income
Sales of through-hole PCBs of six or more layers have increased against a background ofdemand for body and power train systems in the automotive PCB field. They have also
increased due to lively demand from customers in the smartphone field. As a result, as forthe consolidated performance of the second quarter of the fiscal year under review, net
sales were 61,758 million yen (up 16.1% year-on-year), operating income 5,674 million yen(up 46.8% year-on-year), ordinary income 6,345 million yen (up 125.1% year-on-year) andnet income attributable to owners of parent 5,331 million yen (up 149.1% year-on-year).

(in million yen)(year to date)(April 1, 2017 to Sept. 30, 2017)(year to date)(April 1, 2018 to Sept. 30, 2018)

Net cash generated from operating activities

6,759

6,900

Net cash expended in investment activities△4,336△9,153

Net cash expended in ﬁnancing activities△4,280△774

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

248

153

Net increase (decrease) in cash and cash equivalents△1,609△2,873

Cash and cash equivalents at the beginning of the period

17,19615,190Cash and cash equivalents at the end of the period

15,586

12,316●Consolidated balance sheet
Total assets stood at 120,461 million yen, an increase of 10,145 million yen from the end of theprevious consolidated fiscal year. This increase is mainly due to a decrease of 2,870 million yen in
cash and deposits, an increase of 3,709 million yen in notes and accounts receivable-trade, and anincrease of 2,501 million yen in inventories, which were all recorded under current assets. Factors
behind the increase in total assets also included an increase of 5,342 million yen in property, plantand equipment, which was recorded under noncurrent assets.
Net assets totaled 33,114 million yen, an increase of 72 million yen from the end of the previous
consolidated fiscal year, due primarily to a decrease of 5,281 million yen in capital surplus following
the acquisition of class-A preferred stocks, an increase of 5,070 million yen in retained earnings andan increase of 256 million yen from foreign currency translation adjustment.