47th Interim(From April 1, 2021 to September 30, 2021)

Securities code: 6787

Financial highlights
Net sales

69,470Consolidated balance sheet
End of FY2020(As of March 31, 2020)

million yen（in million yen）

Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

Noncurrent liabilities

66,33875,701
68,786927
5,987
142,040

75,94077,12770,063962
6,101
153,068

59,182

69,471
39,269108,740

Total liabilities
Net assets
Shareholders equity
CapitalCapital surplus
Retained earnings
Treasury stocks
Cumulative other comprehensive income

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

42,247
101,429
36,256
12,8886,464
17,648
△745
4,161
39
250
4,127
△255
192
40,610142,040

Consolidated statement of income
First half of the 46th term
(year to date)(As of September 30, 2021)

Liabilities
Current liabilities

5,549

At the end of the second quarter forthe ﬁscal year under review

AssetsCurrent assets

Net income attributable to owners of parent

Operating income

38,983
12,8886,700
21,317△1,923
5,190
36
△5
5,389
△229
153
44,327
153,068(April 1, 2020 to September 30, 2020)

million yen（in million yen）

Consolidated statement of cash ﬂows

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

First half of the 46th term
(year to date)(April 1, 2021 to September 30, 2021)

Net sales

53,23669,470

Cost of sales

46,49957,310Gross proﬁt

6,736

12,160

Selling, general and administrative expenses

4,921

6,610

Operating income

1,814

5,549

Non-operating income

445

357

Non-operating expenses

1,700

559

Ordinary income

4,190

560

5,347

Extraordinary income

212Extraordinary losses

290

728

Net income before income taxes

272

4,631

Income taxes

120

481

Net income

152

4,149

Net loss attributable to non-controlling interests

△42

△40

Net income attributable to owners of parent

194

4,190

(April 1, 2020 to September 30, 2020)

million yen（in million yen）
First half of the 47th term
(year to date)(April 1, 2021 to September 30, 2021)

Net cash generated from operating activities

1,308

2,344

Net cash expended in investment activities△5,702△4,726

Net cash generated from ﬁnancing activities

4,753

2,723

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

△108

152

Cash and cash equivalents at the beginning of the period

13,646

12,121

Net increase (decrease) in cash and cash equivalents
resulting from the change in scope of consolidation

229―

Cash and cash equivalents at the end of the period

14,126

12,615

Key points of the financial results●Consolidated balance sheet

・Total assets at the end of the second quarter under review increased 11,027 million yen fromthe end of previous fiscal year to 153,068 million yen.
・This is mainly attributable to increases of 493 million yen in cash and deposits, 4,836 million
yen in notes and accounts receivable-trade, and 3,681 million yen in inventories, included incurrent assets, as well as an increase of 1,276 million yen in property, plant and equipment
included in noncurrent assets.
・Liabilities at the end of the second quarter under review increased 7,311 million yen from theend of previous fiscal year to 108,740 million yen.

・This is mainly attributable to a 1,655 million yen increase in notes and accounts payable-trade

and an 8,718 million yen increase in short-term borrowings, included in current liabilities, aswell as a 3,209 million yen decrease in long-term borrowings included in noncurrent liabilities.
・Net assets at the end of the second quarter under review increased 3,716 million yen from theend of previous fiscal year to 44,327 million yen.
・This is mainly attributable to a 3,669 million yen increase in retained earnings, a 1,178 million
yen decrease due to acquisition of treasury stocks and a 1,261 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 2022.

Yuichiro Naya, President & CEO

Regarding the operating results in the first half

1st Half Results and Full-Year Outlook FY2021- Consolidated(in 100 million yen)

Diff.

%

FY21 2nd FY21
half
full-year
forecast forecast

695

163

30.5%

755

1,450

55

37

205.8%

65

120

53

47

854.3%

57

110

42

40 2052.5%

FY20 1st FY21 1sthalf results half results

532

Net sales

18

Operating income

3.4%

6

Ordinary income

1.1%

2

Net income

Year-on-year

8.0%
7.7%

0.4%

6.0%

Average FX rate
(JPY/USD)

106.30

Dividend per share

0 yen

8.6%

8.3%

7.5%

7.6%

49

90

6.5%

6.2%

110.12112

111.0620 yen20 yen40 yen

1st Half Results and Full-Year Outlook FY2021
Breakdown by Products Application(in 100 million yen)
FY20 1st half
results

FY21 1st half
results

Year-on-year

FY21 2nd half
forecast

Sales Operating income Sales Operating income Sales Operating income Sales(Operating margin)

9(Operating margin) (growth rate) (growth rate)

222

4.1%

Smartphones/
Tablets127

7.9%

AI appliances/
IoT/Amusement

50

2.0%

1

51 11.8%

0

5

10

348

29

Automotive

126

20

146 11.0% 15.0% 60.0%

164

11.6%

6

56

12.5%

16

19

6

1

5

19

2.0% 500.0%

Other PCBs

78

0.0%

97

5.2% 24.4%

EMS

55

-3.6%

53

-1.9%

-3.6%

55

163

37

Total

532

-2

3.4%

31
8.5%

5
‑
1
‑

18

(Operating margin)363

8.3％ 56.8% 222.2%

695

-1

-2

8.0% 30.6% 205.6%

FY21 full-year
forecast

Operating income Sales Operating income

1975(Operating margin)

60

711

8.4%

310

11.3%

107

12.1%

35
13
10

94

5.3%

191

5.2%

78

3.8%

131

1.5%

755

3

65
8.6%

1,450

2

120
8.3%

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

Net Sales

Operating
IncomeDemand increased for Advanced Driver-Assistance System (ADAS), EVs and 5G in theelectronic parts industry in the first half of the fiscal year. At the same time, vaccinations
against COVID-19 progressed worldwide. Therefore, there was recovery overall. On theother hand, there were operational restrictions due to the shortage of semiconductors andthe spread of COVID-19 variants in the ASEAN countries. Accordingly, the global supply
chain was disrupted. As a result, there was an impact such as an adjustment in the
production of automobiles and smartphones. Concerns about the resurgence of
COVID-19, restrictions on the supply of power in China and other uncertainties willcontinue to remain in the future.
Under these circumstances, our group temporarily adjusted our operation rate due tooperating restrictions requested by governments in August of this year in China andVietnam. Nevertheless, after that, all our factories returned to near full operation. Overall,
the trend has been favorable in terms of orders. This was due to demand for theaccumulation of parts inventory in preparation for a future increase in production. The
trend was especially favorable for automotive PCBs in terms of sales. Smartphone PCBs,
PCBs for AI appliances and IoT modules and the EMS business were affected by theshortage of semiconductors in the first quarter. However, the impact of that is being
weakening and there has been a trend for an increase in sales. Profits were favorable. Thatis due to the fact our factories continued to operate at a high rate against a backdrop offavorable orders and company-wide measures to reduce costs.

OperatingMarginRegarding the full-year forecast

We expect favorable results in our full-year forecast. Orders for automotive PCBs areaffected by the decrease in the production of automobiles due to the current shortage inelectronic parts and processed parts. However, there is increasing demand for ADAS and
EVs. In addition, we have a backlog of many orders at the present time. Therefore, we
expect to continue to operate at a full scale even in the second half of the year. Orders
have also been strong for smartphone PCBs, PCBs for AI appliances and IoT modules
and the EMS business. We expect an increase in procurement prices due to power
restrictions in China and resource price increases. However, we forecast operation offactories to remain at a high level. Accordingly, we have upwardly revised our full-year
earnings forecast indicating net sales of 145,000 million yen, operating income of 12,000
million yen, ordinary income of 11,000 million yen and net income attributable to owners ofparent of 9,000 million yen.

Efforts to enhance investments and improve profits55

15 1H 15 2H 16 1H 16 2H 17 1H 17 2H 18 1H 18 2H 19 1H 19 2H 20 1H 20 2H 21 1H 21 2H(forecast)Investment(100 million yen)
Depreciation(100 million yen)55

DE ratio
Equity ratio

Meiko Group is aggressively
striving its sustainable
activities to enhance the trustof all stakeholders through its
sound/transparent
management and businessactivities harmonizing thesociety and the environment,
thereby contributing to thesustainable development of thesociety and improving its
corporate value based on thephilosophy of Meiko Group.

We have been working to increase automation investment to improve productivity since2017 as an effort to improve profits. Moreover, we entered a once-in-a-century period oftransformation in the automobile field and a period of a significant increase in smartphonedemand in 2018. Accordingly, we reinforced the infrastructure in the Vietnam Factory withthe aim of strengthening automotive PCBs and smartphone PCBs. Unfortunately,
US-China trade friction surfaced from that year. In addition, the Chinese economy suffereda downturn and customers adjusted their inventories. Furthermore, COVID-19 started tospread as we entered 2019. This led to a global economic slowdown, so we were forced
to drop our profit margin. The economy gradually recovered in the previous fiscal year. Our
performance also greatly improved. We produced fruits of the expansion in our productcapacity with investment in the past.
We are proceeding with investment for module and package PCBs and investment in linewith the growth in demand upon evaluating cost-effectiveness in this term. We will invest
approximately 12 billion yen in Japan and overseas.

Initiatives for sustainability

Board of Directors
President and CEO
Sustainability Execution Conference
Chairman: Director and Senior Managing Executive Officer in charge
Members: All relevant departments

We will review our existing CSR promotion structure to build a mechanism to strengthen
efforts to address climate change and social issues, and to draft, disseminate, executeand evaluate specific target setting and strategies.
The Sustainability Promotion Committee is responsible for sustainability-related policy
decisions, target progress management and measure deliberation functions under thechairmanship of the Senior Managing Executive Officer as an organization directly
controlled by the President.
Furthermore, we are incorporating measures into environment, society, productdevelopment, human rights, education, public relations and investor relations, and otheractivities in cooperation with related departments. We will also continue to proceed byevaluating our achievements and then reporting as appropriate to the Board of Directors.

Future strategies
We have set production of automotive PCBs and smartphone PCBs as the main pillar of our business that drives our performance.
We hereby convey the growth strategy for automotive PCBs and module and package PCBs that form our third pillar.

Growth strategy for automotive PCBs

Automobile software and maps as communication functions are being
updated, the number of vehicles equipped with ADAS as a safe driving function
is increasing, and electrification is progressing as an environmental measure in
the automobile field. PCBs are required for each function. In addition, theinstallation of ADAS will be compulsory from new vehicles sold in 2022 andonwards. Accordingly, we expect an increase in demand for PCBs for sensing toassist driving and PCBs used in autonomous driving applications. The evolution
to a centralized ECU that integrates these applications is also graduallyprogressing. Therefore, we forecast there will be great demand for PCBs in the
future.
We have decided to build an advanced factory for cutting-edge automotive
PCBs in Tendo City, Yamagata Prefecture to capture this demand. This will be
an important factory to capture the needs of customers as a model factory in theadvanced automotive PCB field. We plan to divide investment into two phases.
We will invest 10 billion yen in the first phase to build a factory with aproduction capacity of 10 billion yen. We will then invest a further 10 billion yen in
the second phase to add a line with a production capacity of 10 billion yen. This
will give us a factory with annual sales of 20 billion yen when it is completed. In
addition, we will improve the factory that will handle the development of PCB
technology, the development and manufacturing of automation facilities, and the
EMS business in Japan.

Automotive PCB Technology Roadmap
Environment
Autonomous
EV/FCV

PCB

Connected
onnecteY2025

ADAS Mandatory (ʻ22)

Y2021

China, Japan 100%
(Include HEV)UK 100%IEA,EU,CA 100%

Y2023

Y2025

5G Penetration
Penet

4G TCU Market
4ket G
Growthth(Larger Size PCB)

(10-12L AnyLayer PCB)

Millimeter-wave

Fusion Sensing Increase

ADAS(100GHz HF material)(Hybrid High Frequency PCB)

(Sensor)Centralized ECU

Domain Integrated ECU(E/E Architecture)(Stacked Microvia, Impedance controlled PCB)Electriﬁcation

ABS, EPS & LED Headlamp Increase(Power Device)

Y2035

US 50%(incl
50%(include PHV)

China Level-3 50%(Communication
Module)

ADAS

Y2030

(Computer Board)

800V Application(Heat Dissipation,
Higher Voltage PCB)

(Heat Dissipation, FR-4 Flex PCB)New Yamagata Factory

Growth strategy for module and package PCBs

Higher resolution is required for PCB specifications and the demand is risingin the module and package PCB field. This is due to the higher speed, moreadvanced integration and lower power consumption of ICs as well as theminiaturization of electronic parts equipped on them. We are also seeing an
increase in inquiries from customers. We have so far been producing these
PCBs in our Ishinomaki Factory and Thang Long Factory. We have been
establishing a line dedicated to module and package PCBs in our Vietnam
Factory#3 with the aim of improving technical specifications and productivity
since the previous fiscal year. In the next term, we will start full-scale operation.
The module and package PCB field will continue to be an attractive market asa growth field in the future. At the same time, as advanced integration
progresses, we will make additional investment and develop this as a pillar of ournext-generation business.
Module/Package Substrate Business Expansion（Billion JPY）

Module/Package PCB Technology Roadmap
IC Package Trend
Lead
dd-Frame

PBGA

FC
FC-CSP
FC-

Discrete IC

MemoryFEM

Smartphone
Edge Device

Competitor

30

PCB

PackageType

20

Vietnam100Ishinomaki
Y21

Y22

Y23

Y24

Y25

Memory/Sensor

Circuit
Formation

FC-BGAFCFC

From PBGA/FC-CSP to FC-BGA

Y2021(Fine,Large I/O)

Automotive MPU
PC, Gaming

FC-BGA Capacity Expansion

Y2023

PBGA

Network
ServerY2025

PBGA / FC-CSP(Memory/FEM)(Application Expansion)

MSAP （L/S=25/25um）

MSAP（L/S=20/20um）

SAP Development

SAP Production

Total Thickness < 0.1mm

X-section of PBGA Substrate

RF/Antenna/Automotive

We will invest 16 billion yen in total including investment in previous fiscal years
in the Vietnam Factory#3. We will invest 5 billion yen in the Ishinomaki Factory#2.
As you can see in the graph above, we are aiming to achieve sales of over 20
billion yen in 2025 in terms of growth with this investment.

Ishinomaki Second Factory
Factory #2
Factory #1

Vietnam Third Factory

Factory #3

Factory #1
Factory #2

Regarding dividends
We decided to pay interim dividends of 20 yen per share in this fiscal year. As for the year-end dividends, we plan to pay 20 yen per share.
In order to live up to the support and expectations from stakeholders, including shareholders, we will implement various measures with utmost effort, toimprove our corporate value and achieve sustainable growth.
We would appreciate your continued support and encouragement.

MANAGEMENT VOICE

Atsushi Sakate
Director and Managing
Executive Oﬃcer

VOL.

11

We were greatly aﬀected by various external factors in the ﬁrst half of the ﬁscal year ending March 31,
2022. Nevertheless, we were able to achieve great results thanks to the eﬀorts of all our employees.
We are currently considering the formulation of a mid- to long-term growth strategy that looks at Meikoﬁve and ten years in the future from the viewpoint of the Manufacturing Division. We have increased thenumber of customers by leveraging our large capacity mainly in our overseas factories. However, the electronics industry after the COVID-19 pandemic is also showing signiﬁcant changes. To respond quickly tothese changes, we are strengthening our business in Japan in consideration of local production for local
consumption and enhancing our module and package PCB business that is a cutting-edge ﬁeld to deal
with the signiﬁcant increase in demand for semiconductors as telecommuting is becoming more common.
There is probably no other company that can supply such an extensive lineup ‒ from general throughsubstrates to heat dissipation boards, HDI PCBs, FPCs, and module and package PCBs ‒ from Japan,
China and elsewhere in Asia in this PCB industry.
Our goal is to provide services to satisfy all these electronics-related customers. We are conﬁdent thatthese services will lead to a further leap forward for Meiko in the future.
Our entire company will continue working together as one to tackle these missions under this policy inthe future. We look forward to your continued support.

Corporate data (As of September 30, 2021)
Corporate Proﬁle

Stock Information

MEIKO ELECTRONICS CO., LTD.
November 25, 1975
12,888 million yen
13,103 (consolidated)(Japan: 877) (Overseas: 12,226)
Outline of Business Design and manufacturing andsales of PCBs and auxiliaryelectronics business

Number of Shares Authorized

70,000,000 shares

Number of Shares Issued

25,871,947 shares

Number of Shareholders

5,024

Name
Established
CapitalNo. of Employees(excluding treasury stock of 931,373shares)

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 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

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.

Yuichiro Naya

4,704

18.18

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

2,432

9.40

Custody Bank of Japan, Ltd. (Trust Account)

1,717

6.63

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

1,250

4.83

CLEARSTREAM BANKING S.A.

1,013

3.91

Meiko Kosan Co., Ltd.

608

2.35

BANQUE PICTET AND CIE SA

600

2.32

Yuho, Ltd.

521

2.01

Seiichi Naya

435

1.68

Sumitomo Mitsui Banking Corporation

377

1.46

*The Company owns treasury stock of 931,373 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

Fiscal year

Individuals and others 39.85%
Financial institutions 26.05%
Foreign institutions and others 23.00%
Other institutions

5.55%

Financial instruments business operators 2.08%
Treasury stock

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.

3.47%

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 First 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.