49th Interim(From April 1, 2023 to September 30, 2023)

Securities code: 6787

Financial highlights
Net sales

86,216

Consolidated balance sheet

million yen（in million yen）

4,197

Consolidated statement of income

At the end of the
End of FY2022 second quarterfor the ﬁscal year
(As of March 31, 2023)
under review(As of September 30, 2023)

AssetsCurrent assets
Noncurrent assets
Property, plant and equipment
Intangible assets

91,905

105,371

110,489

125,343

95,537110,304

6,999

6,684

7,951

8,353

202,394

230,714

Current liabilities

73,67288,010Noncurrent liabilities

44,24644,709117,919

132,719

59,98164,329

Capital12,88812,888

Capital surplus

13,70013,700Retained earnings

35,56839,913

Treasury stocks

Investments and other assets
Total assets
Liabilities

Total liabilities
Net assets
Shareholders equity△2,176△2,172

Cumulative other comprehensive income

17,33926,473

Valuation diﬀerence on available-for-sale securities

13

58

54

△67

17,425

26,529Deferred 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

△154

△47

84,47597,994

202,394

230,714million yen（in million yen）

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

First half of the49th term(year to date)(April 1, 2022 to September 30, 2022)(April 1, 2023to September 30, 2023)(April 1, 2022 to September 30, 2022)(April 1, 2023to September 30, 2023)

Net cash generated from operating activities

2,327

10,531

Net cash expended in investment activities△21,483△12,711

Net cash generated from ﬁnancing activities

26,401

5,679

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

1,081

1,343

Cash and cash equivalents at the beginning of the period

10,45017,334

Cash and cash equivalents at the end of the period

18,777

22,177

18,777

22,177

81,71086,216

69,18972,327Gross proﬁt

12,52013,889Selling, general and administrative expenses

7,879

9,691

Operating income

4,641

4,197

Non-operating income

4,595

3,207

Non-operating expenses

495

645

Ordinary income

8,741

6,760

Extraordinary income

041

Extraordinary losses

213

56

Net income before income taxes

8,527

6,745

Income taxes

2,156

1,497

Net income

6,371

5,247

Net loss attributable to non-controlling interests

△48

24

Net income attributable to owners of parent

6,419

5,223

・Total assets at the end of the second quarter under review increased 28,319 million yen fromthe end of previous fiscal year to 230,714 million yen.
・This is mainly attributable to increases of 4,843 million yen in cash and deposits, 1,119 million
yen in notes and accounts receivable-trade, 3,021 million yen in electronically recordedmonetary claims, 2,083 million yen in inventories, and 2,255 million yen in other included incurrent assets, as well as an increase of 14,766 million yen in property, plant and equipment
included in noncurrent assets.
・Liabilities at the end of the second quarter under review increased 14,800 million yen from theend of previous fiscal year to 132,719 million yen.

（in million yen）

First half of the49th term(year to date)

Cost of sales●Consolidated balance sheet

Consolidated statement of cash ﬂows

million yen

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

Net sales

Key points of the financial results

5,223

・This is mainly attributable to a 6,824 million yen increase in notes and accounts payable-trade,a 5,417 million yen increase in short-term borrowings, a 1,374 million yen increase in current
portion of long-term borrowings included in current liabilities, as well as a 783 million yen
increase in long-term borrowings included in noncurrent liabilities.
・Net assets at the end of the second quarter under review increased 13,519 million yen fromthe end of previous fiscal year to 97,994 million yen.
・This is mainly attributable to a 4,345 million yen increase in retained earnings and a 9,104
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 2024.

Yuichiro Naya, President & CEO

1st Half Results of FY2023-Consolidated
FY22 1st half
results

FY23 1st half
results

817

Net sales

42

5.7%

4.9%

10.7%

7.8%

Average FX rate
（JPY/USD）

7.9%

6.0%

135.31142.61Dividend per share

27yen

27yen

87

Ordinary income

68

64

Net income

Increase/decrease Increase/decrease rate

862

46

Operating income

52

1st Half Results of FY2023
Breakdown by Products Application
FY22 1st half results

Automotive

PCB business

EMS business

Sales

Operating income(Operating margin)

Operating income(Operating margin)

417

28
6.7%

7
4.9%
0
2 0.0%
7
SSD and
48 14.6%
IoT modules
AI appliances/amusement/
3other products for
136 2.2%
industrial equipment

Smartphones/
Tablets
Semiconductor
package

Total

745

45
6.0%

Total

Sales

13 0.0％ 430

28
6.5%

0

142

7
4.9%
0
0.0%
7
14.6%
4
2.1%

142
2
48
59
72

1
1.7%
1
1.4%

45

5.5%

-4

-9.6%

-19

-22.7%-12-18.6%(in 100 million yen)
FY23 1st half results

Operating income(Operating margin)Sales(in 100 million yen)

Year on year

195
817

46
5.7%

PCB business

EMS business

Operating income
Sales (Operating margin)

Operating income(Operating margin)

452

28
6.2%

Sales

Operating income(Operating margin)

20 5.0％ 472

29
6.1%

Sales

1

4
3.5%
-4
2 -200.0%
4
36 11.1%
6
109 5.5%

128

714

148

4
3.5%
-4
2 -200.0%
4
36 11.1%
3
92.3% 237 3.8%

115

38
5.3%

Total

115

4
2.7%

862

42
4.9%

2nd Half and Full-Year Outlook of FY2023-Consolidated (in 100 million yen)
FY2023

Forecasted diﬀerence from outlook

2nd half outlook Full-year outlook
Net sales
Operating income

868

1,730

58

100

48

116

6.7%

Ordinary income

5.5%
4.7%

Increase/decrease

1,650
90

5.8%

5.5%

6.7%

4.8%

5.4%

3.8%

80

93

41

Net income

Initial forecast

62

Average FX rate
（JPY/USD）

135 138.80

130

Dividend per share

28円

50円

55円

Increase/decrease rate

80

4.8%

10

11.1%

36

45.0%

31

50.0%

2nd Half and Full-Year Outlook of FY2023(in 100 million yen)
Breakdown by Products Application
FY23 2nd half outlook
PCB business

EMS business

FY23 full-year outlook

Total

Total

Operating income(Operating margin)

Automotive

455

Smartphones/
Tablets35
7.7%

130 10.8%

130 10.8% 245

245

Semiconductor package

2 -300.0%

2 -300.0%

4

14
-6

51

4
7.8%

AI appliances/amusement/
other products forindustrial equipment

86

6

7.0%

Total

724

53
7.3%

SSD and
IoT modules

1

33 3.0％ 488

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

EMS business

Sales

Sales

Operating income
Sales(Operating margin)

PCB business

36
7.4%
14
-6

907

63
6.9%

18
7.3%
-10
4 -250.0%887 9.2%
12

Sales

Operating income
Sales(Operating margin)

Operating income(Operating margin)

2

65
6.8%

53 3.8％ 960

87

18
7.3%
-10
-250.0%
8
9.2%

434

4.4%

9
3.1% 1,730

100
5.8%

51

4
7.8%

111

4

3.6%

197

10

5.1%

6.2%

239

2.9%

144

5
3.5%

868

58
91
1,438 6.3%
6.7%

292

195

7

19

Regarding the operating results in the first half of FY2023
In the first half of the fiscal year under review, the electronic parts industry
saw a recovery in global automobile production volume as supply chain
disruptions due to component shortages started to subside, but the consumer
market remained sluggish due to continued global inflation and the slowdownof the Chinese economy, and demand did not recover fully. Additionally, withthe rise of geopolitical risks, the future outlook is becoming increasingly
uncertain.
Despite these circumstances, we saw an increase of orders for automotive
PCBs, and sales remained strong accordingly. In the field of smartphone PCBs,
orders for high-end models and flexible PCBs increased, and there were signsof bottoming out of sales. In the EMS business, commissioned development
business remained stable. In terms of production, our factory operating raterecovered in line with increased orders, and operating income is increasing due
to cost reduction, investment control, and other measures, as well as theimpact of foreign exchange rates, but results were lower than those in the same
period of the previous fiscal year due to operating costs for new factories, etc.
As a result, we posted net sales of 86.2 billion yen (+5.5% year on year), up
4.5 billion yen compared with the same period in the previous fiscal year.
Concerning profits and losses, operating income was 4.2 billion yen (-9.6% year
on year), ordinary income was 6.8 billion yen (-22.7% year on year) and net
income attributable to owners of parent was 5.2 billion yen (-18.6% year onyear).

Regarding the full-year forecast
Although the initial full-year forecast called for the drop in sales and profit
from the previous fiscal year, we have revised the forecast as the businessenvironment has been improving recently.
In terms of sales, in the PCB business, we expect a full-fledged recovery inautomobile production to contribute to sales of automotive PCBs, and we also
anticipate the launch of EV projects from European and the U.S. customers,
resulting in net sales of 90.7 billion yen, up 9.2 billion yen (+11.3%) from theinitial forecast of 81.5 billion yen. The forecast sales of smartphone PCBs
increased 3.4 billion yen (+16.1%) from the initial forecast of 21.1 billion yen to24.5 billion yen due to orders for high-end smartphones. Regarding PCBs for
SSD and IoT modules, the sales of IoT module PCBs are expected to expand,
but due to the sluggish SSD market, the initial forecast of 8.9 billion yen wasrevised downwardly by 200 million yen (-2.2%) to 8.7 billion yen. Looking at
sales by product specification, the sales of flexible PCBs are expected to
expand. In the EMS business, projects for automotive applications are
expected to expand, but the demand for projects for home appliances and
HDDs is sluggish, resulting in net sales of 29.2 billion yen, down 2.1 billion yen(-6.7%) from the initial forecast of 31.3 billion yen. In terms of profit, we expect
an increase in profit due to a larger number of orders and higher factory
operating rates, coupled with cost reduction and productivity improvement.
Accordingly, compared to the initial forecast, we have increased net sales by
8 billion yen (+4.8%) to 173 billion yen, operating income by 1 billion yen

(+11.1%) to 10 billion yen, ordinary income by 3.6 billion yen (+45.0%) to
11.6 billion yen, and net income attributable to owners of parent by 3.1
billion yen (+50.0%) to 9.3 billion yen.

1st Half Results and 2nd Half Outlook of
FY2023 by Product Speciﬁcation
Through hole PCBHDI PCB2(0.2%)

393

289(45.3%)(33.3%)↑2(0.5%)Net sales increased significantly in the second half of FY2021, reaching
81.8 billion yen. Although we have gradually increased net sales sincethen, demand during this period was affected by the sharp rise in pricesof resources triggered by the conflict in Ukraine in 2022 and the significant
slump in demand in the global economy caused by the COVID-19
pandemic. As a result, sales in the PCB business remained flat, while the
EMS business contributed to sales expansion due to M&A and otherfactors. Operating income, on the other hand, reached 7.7 billion yen,achieving an operating margin of 9.4% in the second half of FY2021, but
remained around 5% thereafter due to a slowdown in sales growth and asluggish factory operating rate. In the first half of the fiscal year underreview, demand has been gradually recovering and factory operating rate
is improving. In the second half, we expect a further recovery trend, andoperating margin is expected to recover to 6.7%.
As the new factories gradually begin operations, we will strive to expand
sales of automotive PCBs and semiconductor package PCBs, and further
improve operating margin.

- 2( - 0.7%)↑

FY2023 1H
results

291(45.4%)(33.8%)FY2022 2H
results304(44.6%)(35.5%)FY2022 1H
results3(0.4%)(45.9%)(41.2%)Net sales

Operating income

818

8.0%

7.3%

5.7%

57
39

4.0%

564

36

32

34

FY20182H

FY2019
1H

2.0%

0.0%

FY2017
1H

Investment amount(100 million yen)

FY20172H

96

FY20181H150

18
FY2020
1H

500

77
5.7%

55

6.7%

5.8%
4.9%

49

46

58

42

141

FY2021
1H

FY2021
2H

144

213

FY2022
1H

FY20222H

174

FY2023 FY2023
1H
2H forecast

193

200

133

DE ratio

1.4

1.7

2.0

1.7

1.1

0.9

206
0.8

30.0%

27.8%

25.1%

28.6%

34.7%

38.2%

41.1%

Progress of new businesses■Situation of Tendo Factory
Tendo Factory was built as a factory that mainly manufactures automotive PCBs.
Construction was completed in October 2023, and we are currently undergoingcustomer certification, with production scheduled to begin in April 2024. Tendo
Factory is our first eco-smart factory designed to automate production and save 30%of energy compared to our existing factories.
■Situation of Ishinomaki Factory No. 2
Ishinomaki Factory No. 2 produces FC-BGA PCBs using the SAP method. We
have received customer approval and are ready to begin production, but due to therecent slump in demand for semiconductors, production has been delayed by abouta year and mass production is scheduled to begin in October 2024.
■Situation of Vietnam Plant No. 3
Vietnam Plant No. 3 is a plant that produces memory package PCBs using theMSAP method. We have received customer approval and are ready to begin
production, but due to the recent slump in demand for semiconductors, production
has been delayed by about a year and mass production is scheduled to begin in April
2024.

Shareholder return
Our company recognizes the increase of profits for shareholders as an importantmanagerial mission. For the time being, we will prioritize investment to expand thebusiness scale of our company and focus on increasing sales and profit. We set a
payout ratio guideline at 15%, and shall work toward increasing dividends in step withthe expansion of profit.

Dividends
FY2021

FY2022

45yen

55yen

Interim: 20 yen
Year-end: 25 yen

Interim: 27 yen
Year-end: 28 yen

400

300

200

100

FY2020
2H

107

121

8.0%

EBITDA

Equity capital ratio

152

18
FY2019
2H

120

800

600

49

3.4%

1000

900

868

862

856

817

9.4%

5.8%

3.2%

(in 100 million yen)

700

532
7.3%

6.5%

6.0%

591

571

9.2%

817

695

661

618
553

532

↑39(4.8%)20(2.4%)

Operating margin

14.0%

10.0%

856

72
(8.8%)

16.0%

12.0%

↑6(0.7%)19(2.2%)2(0.2%)

Trends of net sales, operating income, etc.
18.0%

862

131
(15.3%)

8(1.0%)

337↑6(0.7%)148(17.1%)

4(0.5%)- 33( - 9.8%)↑

374

EMS

868

7(0.8%)

12(1.4%)382↑8(2.1%)2(0.2%)

5(0.6%)- 13( - 4.3%)↑↑9(2.4%)

Others13(1.5%)144(16.6%)

4(0.5%)
19(2.2%)391

Package2(0.2%)

25(2.9%)FY2023 2H
forecast

Trends of net sales and operating income(in 100 million yen)Heat dissipation board

Flex rigid/ﬂexible PCBs

FY2023 (forecast)

55yenInterim: 27 yen
Year-end: 28 yen

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

0

MANAGEMENT VOICE

Kotomi Ejiri
Audit & Supervisory
Board Member

VOL.

15

I was appointed at the General Meeting of Shareholders in June 2022 and have been performing myduties as an Outside Audit & Supervisory Board Member. In October 2023, I witnessed thecompletion of Tendo Factory, a state-of-the-art smart one designed while pursuing automation andmanpower saving, and I am keenly aware that our company is in a position to lead the PCB industry
from now on.
As an independent Outside Audit & Supervisory Board Member with such important responsibilities,
I will make every eﬀort to establish corporate governance, foster and ensure the awareness ofcompliance with laws and regulations, and achieve balanced and sustainable growth through audits
and eﬀective management of the Board of Directors, so that our shareholders and otherstakeholders will truly feel glad to have been involved with Meiko.
Although the business environment is expected to change at a dizzying pace, I would appreciate
your continued support.

Corporate data (As of September 30, 2023)
Corporate Proﬁle

Stock Information

MEIKO ELECTRONICS CO., LTD.
November 25, 1975
12,888 million yen
12,004 (consolidated)(Japan: 1,305) (Overseas: 10,699)
Outline of Business Design and manufacturing andsales of PCBs and auxiliaryelectronics business

Number of Shares AuthorizedName
Established
CapitalNo. of Employees

Common stock: 70,000,000sharesFirst bond-type stock:100shares

Number of Shares Issued Common stock:25,780,069shares（excluding treasury stock of 1,023,251shares）
First bond-type stock:70shares

Common stock: 4,334
First bond-type stock:1

Number of Shareholders

Shareholders’ Information
Fiscal year

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

Principal Shareholders
Executives

President & CEO
Director and Senior Managing Executive Officer
Director and Senior Managing Executive Officer
Director and Senior 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

Yuichiro Naya

4,704

18.25

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

4,033

15.65

Custody Bank of Japan, Ltd. (Trust Account)

2,553

9.91

945

3.67

CLEARSTREAM BANKING S.A.
BNP PARIBAS SECURITIES SERVICES LUXEMBOURG/JASDEC/FIM/LUXEMBOURG FUNDS/UCITS ASSETS

635

2.46

Meiko Kosan Co., Ltd.

608

2.36

Yuho, Ltd.

521

2.02

Seiichi Naya

405

1.57

Sumitomo Mitsui Banking Corporation

377

1.46

STATE STREET BANK WEST CLIENT ‒ TREATY 505234

293

1.14

*The Company owns treasury stock of 1,023,251 shares and is excluded from theabove principal shareholders.The percentages for the total number of issued
shares have been calculated after excluding treasury stock.

Aﬃliated Companies
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 Towada Vietnam Co., Ltd.
Meiko Electronics America, Inc.

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

Name of shareholder

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

Shareholding Structure (Common Stock)
Individuals and others 35.04%
Financial institutions 32.32%
Foreign institutions and others 21.96%
Other institutions

5.77%

Financial instruments business operators

1.09%

Treasury stock

3.82%

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

Address forsending mails

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•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.