46th Report toShareholders(From April 1, 2020 to March 31, 2021)
Securities code: 6787

Financial highlights
Net sales

119,257
Consolidated balance sheet
End of FY2019(As of March 31, 2020)

Net income attributable to owners of parent

Operating income

million yen（in million yen）

6,657

Consolidated statement of income

At the end of this period

Previous period(year to date)(As of March 31, 2021)

Assets(April 1, 2019 to March 31, 2020)

Net sales

million yen（in million yen）

119,257

59,716

66,33869,52075,701

Cost of sales

98,733

101,732

62,997

68,786827

927

Gross proﬁt

16,745

17,524

Selling, general and administrative expenses

11,556

10,866

5,189

6,657

Non-operating income

760

795

Non-operating expenses

1,160

1,755

Ordinary income

4,789

5,697

Extraordinary income

3313

Extraordinary losses

1,855

641

Net income before income taxes

3,265

5,059

Income taxes

717

422

Net income

2,548

4,636

Net loss attributable to non-controlling interests

△37

△4

Net income attributable to owners of parent

2,586

4,640

5,696

5,987

129,237

142,040

Current liabilities

52,064

59,182

Noncurrent liabilities

44,691

42,247

Total liabilities

96,755

101,429

32,11636,256

12,88812,888Investments and other assets
Total assets
Liabilities

Net assets
Shareholders equity
Capital

6,464

6,464

13,15917,648172

Valuation diﬀerence on available-for-sale securities

△8

4,161

Deferred gains or losses on hedges

30

250

375

4,127

Capital surplus
Retained earnings
Treasury stocks
Cumulative other comprehensive income

Foreign currency translation adjustment
Remeasurements of deﬁned beneﬁt plans
Total net assets
Total liabilities and net assets

△396

△745
39

△255

△224
32,482

40,610129,237

142,040

Operating income

Previous period(year to date)(April 1, 2020to March 31, 2021)

115,479

Noncurrent assets
Property, plant and equipment

Consolidated statement of cash ﬂows

Current period(year to date)Current assets

Intangible assets

4,640(April 1, 2019 to March 31, 2020)

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

Net cash generated from operating activities

11,2407,853

Net cash expended in investment activities△14,937△9,489Net cash generated from (expended in) ﬁnancing activities

6,249

△618

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

△325

501

Cash and cash equivalents at the beginning of the period

11,41913,646

Cash and cash equivalents at the end of the period

13,646

12,121

Key points of the ﬁnancial results●Consolidated statement of income

Orders started to recover in the second quarter and have remained healthy sincethen. Sales declined year-on-year until the third quarter. Nevertheless, sales in thisfourth quarter were strong. As a result, we recorded our largest sales ever.
As a result, we posted net sales of 119,257 million yen (+3.3% year on year), up
3,777 million yen compared with the previous year. Concerning proﬁts and losses,
operating income was 6,657 million yen (+28.3% year on year), ordinary income
5,697 million yen (+19.0% year on year) and net income attributable to owners ofparent 4,640 million yen (+79.4% year on year)●Consolidated balance sheet

Total assets stood at 142,040 million yen, an increase of 12,802 million yen fromthe end of the previous consolidated ﬁscal year. This increase is mainly due to adecrease of 1,519 million yen in cash and deposits, an increase of 5,055 million yen
in notes and accounts receivable-trade, and an increase of 3,203 million yen in
inventories, which were all recorded under current assets. Factors behind theincrease in total assets also included an increase of 5,789 million yen in property,
plant and equipment, which was recorded under noncurrent assets.
Net assets totaled 40,610 million yen, an increase of 8,128 million yen from the endof the previous consolidated ﬁscal year, due primarily to an increase of 4,488 million
yen in retained earnings and an increase of 3,752 million yen in foreign currencytranslation adjustment.

Interview with the President

To our shareholders
I would like to express my sincere gratitude to all shareholders and investors for theoutstanding support.
The following is a report summarizing the operating results for the term ended March
2021.

Yuichiro Naya, President & CEO
Regarding full-year business results

Consolidated results for FY2020(in 100 million yen)

Net sales

1,193

38

3.3%

67

15

28.3%

57

9

19.0%

46

20

79.4%

Ordinary income

4.5%

5.6%

4.2%

4.8%

26

Net income attributable toowners of parent

Dividend per share

Increase/decrease rate

52

48

Average FX rate
(JPY/USD)

Increase/decrease

1,155

Operating income

2.2%

3.9%

108.93105.9330 yen20 yen

Revenue from each product in FY2020
Results for FY2019

前年比

Operating income

Sales

Operating income(Operating margin)(growth rate)(growth rate)

36

-11

7

6.9％

-2.1%

24.1%

288

21

39

3

7.3%

15.7%

16.7%

7

103

7.8%

-2

2

-27

4

1.2%

-14.2%

200.0%

20.8%

Sales

(Operating margin)

29

534

Automobiles(in 100 million yen)

Results for FY2020

Operating income

Sales

523

5.4%

18

Smartphones/
tablets249

7.2%

AI appliances/
IoT/Amusement

86

8.1%

Others PCBs

190

-1.1%

163

0

116

0.0%

52

1,193

67

38

15

5.6%

3.3%

28.3%

EMS

96

0.0%

Total

1,155

4.5%

8

17

19.8%

0

20

Consolidated earnings forecast for FY2021

Net sales

Increase/decrease rate

1,193

1,350

157

13.2%

67

95

7.0%

28

42.7%

6.4%

30

52.7%

29

61.6%

5.6%

57
46

75

Average FX rate (JPY/USD)

3.9%

5.6%

105.93108.00

Dividend per share

20 yen40 yen(Net margin)

Net income per share

28.5%
56.5%
177.33 yen

32%44%
288 yen

Revenue forecast from each product in FY2021
Net sales Operating income

Net sales Operating income Net sales Operating income

36

523

Smartphones/
tablets
AI appliances/
IoT/Amusement

288

Others PCBs

163

EMS

116

Total

1,193

21

337

8

125

2

148

7.3%

103

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

6.4％

13.0%

5.6%

10.1％

17.0%

61.9%

10.4％

21.4%

62.5%

6.1％

-9.2%

350.0%

0.7％

28.4%

7.0％

13.2%

38

591

6.9%

7.8%
1.2%

0

149

67

1,350

0.0%
5.6%

Our group is expanding our customer services. We are proposing support in a wide
range of fields ranging from the manufacture of PCBs to development/design andmounting of PCBs. As part of our efforts, we make proposals according to atechnology roadmap we have prepared in light of mid- to long-term technologicaltrends based on the research and analysis of our group in the product development
stage of our customers. This allows us to accurately meet the needs of our customers.
Furthermore, in addition to the existing through PCBs and HDI PCBs in our productlineup, we provide a wide range of PCBs including flexible PCBs and module PCBs.
We will build a production system to stably respond to the extensive needs of ourcustomers – from mass-produced products to small lot production in large varieties in
the cutting-edge PCB field.

Year on year

Forecast for FY2021

Automobiles

Regarding the medium-term production strategy(in 100 million yen)

Results for FY2020(Operating margin)

We expect demand to grow in the electronic parts industry to which our groupbelongs thanks to the recovery in automobile production, the progress of theconversion to electrical components and the shift to 5G. Nevertheless, uncertainty
remains due to antagonism between the U.S. and China, the shortage ofsemiconductors, and the spread of COVID-19 again.
The outlook for performance will remain strong in terms of sales accompanied by theshift of automotive PCBs to HDI PCBs. In addition, we also anticipate an increase in
PCBs for 5G applications in regards to smartphone PCBs. Moreover, although we
expect material procurement costs to rise due to soaring resource prices, we areworking to further strengthen profitability. We are doing this by reviewing sales prices,
promoting group-wide cost reduction measures, and investing in plant automation andlabor saving.

Year on year

87

4.8%

(Ordinary income rate)

Net income attributable to owners of parent

Regarding the next term(in 100 million yen)
Increase/decrease(Operating margin)

Ratio of interest-bearing debt to net sales

0‑

Forecast for
FY2021

Ordinary income

Self-capital ratio

1

14.3%

Results for
FY2020Operating income

Regarding full-year business results
The electronic parts industry was impacted by COVID-19 in the first quarter of thisconsolidated fiscal year. This led to a significant fall in demand. However, the economy
started to recover and demand grew in the latter half of the second quarter. On theother hand, a sense of uncertainty continues about the spread of COVID-19 again andthe supply shortage for semiconductors.
Under these circumstances, orders we received started to recover in the second
quarter and have remained healthy since then. Sales declined year-on-year until thethird quarter. Nevertheless, sales in this fourth quarter were strong. As a result, werecorded our largest sales ever. As for the sales from each product, sales ofautomotive PCBs increased due to the recovery in automobile production and thetrend for electrification and the conversion to electrical components. However, theimpact of the slump in the first half of this fiscal year remained. Therefore, sales
decreased slightly year-on-year. Sales of smartphone PCBs increased greatly
year-on-year. This was against a background of a recovery in sales and the risingdemand for 5G (fifth generation mobile communication system). Sales of PCBs for
IoT/AI appliances and EMS business also remained strong. Against a backdrop of thepromotion of group-wide cost reduction measures and favorable orders, high operationof plants continued and profits grew. Nonetheless, a severe situation remains withsoaring material procurement costs due to the surge in price of copper, gold and otherresources. As another factor of profit increase, the exchange rate saw yen
depreciation at the end of the fiscal year in the dollar-yen exchange rate.

Year on year

Results for Results for
FY2019FY2020

68
49

34

22

13

-15

9

33

1

157

95

2

13
5
7
1

-

28

42.7%

Results and forecast for each product
Automobiles

Smartphones/tablets

AI appliances/IoT

Amusement

Storage

Forecast for
FY2021

591

Results for
FY2020523

288

Results for
FY2019

534

249

0

200

(in 100 million yen)
Office equipment

337

400

600

Digital home appliances

40 70
20 11 149
105 2740 82
32 13 116
71 28
55 80
26 15 96
60 40
800

Others PCBs

EMS businessResults and forecast for each spec
Double-sided PCB

Four-layer PCB

1,350

Forecast for 44
FY2021

1,193

Results for
51 227
FY20201,155

Results for
FY2019 65

1,000 1,200 1,400

0Six-layer or more

257

263
200

HDI PCB

Heat dissipation board

251

507

222

450
600

800

Others PCBs2
30 149
11

606

224

400

Flexible PCBs and others27
25 116
16
13
29
16 96
14
1000

1200

EMS

1,350
1,193

1,155
1400

1600

Special Feature

Initiatives for a reform of manufacturing
Our group is promoting manufacturing reforms under the theme of “EcoSmart Factory.” Our efforts for this include the replacement of production workwith robots, the automation of logistics inside plants, and a conversion to
one-line and in-line incorporating production facilities and inspection equipment.
Furthermore, we are monitoring and taking disaster prevention measures byutilizing IoT for production facilities. At the same time, we have further
strengthened energy saving in production facilities and the recycling of waste to
reduce our environmental burden while ensuring the stable operation of plants.
We have also increased solar power generation in our Japanese pilot plant as
an effort to reduce CO2. Together with these efforts, we are working to switch
to a production system using biomass power generation and other renewableenergies.

PCB Market Forecast
DX boosts PCB market expansion for high-speed communication
Expected growth drivers

Smartphone Sales

Large-sized
PackageSubstrates

Communication Carrier
Server5G

Small cell
2020

2021

2022

2023

Light Vehicle Sales

2024

2025

CPE

Wi-Fi

Connected car

2021

2022

2023

2024

Heavy CopperPCB
Heat DissipatingBoard

Smartphone: Growing demand of module PCB along withthe shift to 5G
Automotive:

2025

Accelerating high -end PCB due to vehicle
electrification and autonomous driving

Medium-Term Production Strategy

Meiko will accelerate its improvement and strengthening efforts for manufacturing,
challenging the cutting-edge fields and expanding the products portfolio,
aiming for stable supply to customers and extension of services based on the expertiseto meet customer’s requirements.
Extend customer services

Strengthen manufacturing

MLB

HDI

R&D

China

FPC

Japan

Eco
Smart
Factory

Manufacturing

Vietnam
PKG

Challenge to cutting - edge field

DesignMounting

Balance of production sites

Capacity Expansion for Production Sites

Regarding dividends
Our company recognizes the increase of profits for shareholders as animportant managerial mission. For the time being, we will prioritize investment toexpand the business scale of the Company and focus on increasing sales. In linewith this, we are looking to increase profits and dividends. We anticipate an
improvement in business results in the next fiscal year. Accordingly, we assume
that we will enjoy our highest-ever profit level. In response to this, we expect ourannual dividend to be 40 yen per share. In addition, we plan to acquire up to600,000 of our own shares. In this way, we are striving to enhance shareholder
returns.

Becoming one of the global PCB leaders in module PCBs in addition toautomotive and smartphone businesses
Core Business

Automotive

CAPEX Highlights(in 100 million yen)

Strategic investment areas:Cutting-edge products for automobile/smartphone and 5G/module products
Amortization cost

- PCB

New Core Business

Smartphone

Heat Dissipation

HDI

ModuleAny Layer

Memory/Sensor

Plan for module production
capacity expansion

Subtractive
MethodIn order to live up to the support and expectations from stakeholders,
including shareholders, we will implement various improvement measures withutmost effort, to improve our performance and corporate value. We would
appreciate your continued support and encouragement.

CAPEX

RF Module
Any Layer

RF Module
Low Transmission Loss

EV/HEV

2020

HDI

Domain ECU

Wi-Fi router
Total Sales
volumeOne of the financial challenges facing our group is a reduction in ourinterest-bearing debt. Interest-bearing debt remained almost at the same level
due to investment in the construction of our third plant in Vietnam in the fiscal
year ended March 31, 2019 and the fiscal year ended March 31, 2020.
However, we reduced interest-bearing debt by curbing investment andincreasing profits in the fiscal year ended March 31, 2021, and will continue
the same efforts for the fiscal year ending March 31, 2022.

Net sales

Macro Cell

Low TransmissionLoss
Mid/multilayer

optical line

Improvement of financial balance

Net sales

Meiko’s target

Multilayer
Memory Package PCB

4GCapacity expansion for production sites and capital investment
The sales of our group have been driven by the two pillars of our PCB
business; namely, automotive PCBs focused on through PCBs and thesmartphone field centered on HDI PCBs. Recent ordering trends continue to be
extremely favorable. Therefore, we have been expanding production by investing
to eliminate bottlenecks in our existing plants. We expect demand in the field ofcommunication modules and memory modules using module PCBs to growrapidly in the near future. We are investing in a production line with the MSAP
method at our third plant in Vietnam to turn this field into the third pillar of our
PCB business. We plan to start production this fall. In addition to this, we aredeveloping module PCB production systems in Japan and China with the aim of
becoming one of the leading manufacturers in the world.
Going forward, we have received many orders. Accordingly, expanding
production capacity will be an issue. For that reason, we will continue toincrease production including the construction of new plants.

for PCB market

RF/Antenna

Vietnam Plant #3

SAP

M-SAP

Ishinomaki
Factoryin Japan
2020

2021

2022

Manufacturing Reform Plan
《 Highest Productivity 》

2023

2024

2025

《 Disaster Control 》

Disaster Control Centerin Vietnam

Robotization

CAPEX

CameraIoT, AI utilization
Visualization

Automation

Eco Smart Factory

Sensing
・IoT utilization
・Internal audit
enhancement

Oneline , Inline

Logistics automation

Environment

Disaster Control《 CO2 reduction and resource recycling 》
CO2 zero emission plan for pilot plant in Japan

FY2017
Research and Development Costs

FY2018FY2019FY2020

FY2021
forecast

Solar
power
Co2
emission

2020

Energy saving

Solar
power

Energy saving

Highestproductivity

High quality

Solar
power

CO2
Zero emission

Loss reduction

Co2
emission

Renewableenergy2023

2030

Au/ Pd collection

Recycle of copper
waste materials

Zero disaster

MANAGEMENT VOICE

Toshifumi Kobayashi
Outside Director

VOL.

10

I have been performing my duties as an Outside Director since November 2020. The environment
surrounding us in the COVID-19 pandemic has made us perform our business administration in a
new and innovative manner. The conversion to the Web, the switch to electric vehicles, the moveto high-speed transmission, decarbonization and other major trends are also opportunities toexpand the market through new ﬁelds and new technologies. Under this environment, it is very
important that the Company comes together as one to further improve the corporate strengths inproduction, technology, marketing and quality we have accumulated so far. Currently, we haveestablished a course of action and are steadily working on it under strong leadership. We havealso established a global competition system.
I will work to enhance corporate value while focusing on the importance of ESG in the future. As
an Outside Director, I will give opinions and make proposals. Through this, I will work to grow the
Company and contribute to stakeholders.
I ask for your continued support in the future.

Corporate data (As of March 31, 2021)
Corporate Proﬁle

Stock Information

MEIKO ELECTRONICS CO., LTD.
November 25, 1975
12,888 million yen
13,721 (consolidated)(Japan: 861) (Overseas: 12,860)
Outline of Business Design and manufacturing andsales of PCBs and auxiliaryelectronics business

Number of Shares Authorized

70,000,000 shares

Number of Shares Issued

26,173,893 shares

Number of Shareholders

4,744

Name
Established
CapitalNo. of Employees(excluding treasury stock of 629,427 shares)

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
Director
Director
Audit & Supervisory Board Member (Standing)
Audit & Supervisory Board Member
Audit & Supervisory Board Member

Yuichiro Naya
Takahide Hirayama
Masakuni Shinozaki
Takahiro Matsuda
Junya Wada
Yoon Ho, Shin
Nao Tsuchiya
Yosuke Nishiyama
Toyohiko Tsuyuki
Takashi Harada
Takayuki SatoAﬃliated 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.
Guangzhou Speed Trading 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
Auxiliary electronics business

Fiscal year

Yuichiro Naya

4,703

18.06

Custody Bank of Japan, Ltd. (Trust Account)

1,997

7.67

CLEARSTREAM BANKING S.A.

1,458

5.60

PICTET AND CIE (EUROPE) S.A.

1,333

5.12

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

1,280

4.91

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

1,031

3.96

Meiko Kosan Co., Ltd.

608

2.34

Yuho, Ltd.

521

2.00

STATE STREET BANK AND TRUST COMPANY 505019

450

1.73

Seiichi Naya

435

1.67

**The Company owns treasury stock of 759,506 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 38.36%
Financial institutions 21.19%
Foreign institutions and others 30.58%
Other institutions

5.20%

Financial instruments business operators

1.84%

Treasury stock

2.83%

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 JASDAQ (Standard), 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.