43rd Interim( From April 1, 2017 to September 30, 2017 )Securities code: 6787

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01 Interview with the President
05 Meiko news
07 Consolidated financial data
09 Global network
10 Corporate data
Back
Cover

Introduction to Shareholders’ memos/Introduction of Meiko website

Interview with the President

We will continue tothat provides the bestQ

1

Would you describe the business environment and operating
results during the first six months of the fiscal year under review?

In the automobile industry, one of the Meiko Group’s primarycustomer bases, sales to Japanese automakers in China wereencouraging. Besides, strong demand for PCBs in the

I would like to express my sincere gratitude to all

Japanese and European markets resulted in higher-than-pro-

shareholders and investors for their outstanding sup-jected orders. As a result, sales remained robust. Sales ofport for our business.

PCBs to the smartphone industry, another primary customer

I am pleased to take the opportunity of presenting

base of the Meiko Group, were strong, especially to Korean

our interim MEIKO REPORT for the 43rd fiscal term

smartphone manufacturers. Sales to Chinese smartphone(year ending March 31, 2018) to explain the business

manufacturers generally remained steady, despite a tempo-

conditions of this period and our future businessrary production cutback. Demand from the IT sector in-

strategy.

creased, mainly for PCBs used in high-end server SSDs.
President & CEO

Summary of consolidated operating results
for the first half of FY2017

Net sales
Operating income
Ordinary income
Net income (loss) attributable to owners of parent
Average exchangerate(JPY/USD)

01 MEIKO REPORTOur Guangzhou Plant in China currently has a capacity to

Yuichiro Naya( in 100 million yen )Results for the
first half of
FY2016

Results for the
first half of
FY2017

Net increase( decrease )Net increase( decrease ) rate

457.4

532.1

+74.7

+16.3%

26.6

38.6

+12.0

+45.1%+26.8+1,914.3%

+25.2

—

5.8%

7.3%

1.4

28.2

0.3%

5.3%

(3.8)

21.4

(0.8%)

4.0%

105.35111.26Highlights of the financial results
for the first half of FY2017

Year-on-year change

Net sales

1. Net sales grew steadily, increasing 16.3% year on year to total
53,200 million yen.
• Sales remained upbeat in the automobile and smartphonemarkets.
• Sales of HDI PCBs rose dramatically.

Profit

1. Operating income amounted 3,860 million yen, up 1,200 million
yen year on year.
2. Ordinary income totaled 2,820 million yen, up 2,680 million yen
year on year.
3. Net income attributable to owners of the parent amounted to2,140 million yen, up 2,520 million yen year on year.

meet needs as the PCB manufacturer
value and services.
produce 170,000 m2 of PCBs a month. Ninety percent of those

we are aggressively making investments there. Because we

PCBs are used for automobile applications. We have seen a

expect sales of smartphone PCBs to remain strong in Korea,

steady flow of through-hole PCB orders come in during the

we invested approximately 3,500 million yen during the first

first fiscal half. We are also looking at the possibility of boost-fiscal half of the year under review to boost production capac-

ing production of HDI PCBs for automobiles. Our Wuhan Plant

ity for HDI PCBs. As a result, the combined HDI PCB produc-2

has a monthly production capacity of 190,000 m and produc-tion capacity of the Vietnam and Thang Long Plants has been

es through-hole PCBs at its First Factory. Due to growing

increased by 40 percent.

sales, automotive PCBs now account for 60-70 percent of all

In Japan, the Yamagata Factory is now dedicated to produc-

PCBs produced there. The plant’s Second Factory produces

ing automotive products and has been operating around the

PCBs for smartphones. In response to strong sales of smart-

clock at full capacity. The Fukushima Factory also saw strong

phones made in China, we rapidly increased its production

sales in the amusement and industrial equipment markets.

capacity by about 20 percent with a 600-million-yen invest-

Combined, these factors increased net sales for the first fis-ment.

cal half 16.3% year on year to 53,200 million yen and operat-

Our operations in Vietnam are strategically important, anding income 45.1% year on year to exceed 3,800 million yen.

Sales composition
by PCB sales
By application :By product :Non-PCB 7.2％
PCB for otherapplications 7.3％
Digital home
appliances 2.3％
Office equipment
4.5％
Storage 5.6％
Smartphones 28.9％

Double-sided PCB
9%Net sales
532

Automobiles
44.2%

Non-PCB 7.1％
PCB for otherapplications
2.3％
HDI PCB 39.7％(in 100 million yen)

Four-layer PCB
31%

Four layers or more
15.6%

Double-sided PCB
7.1%

Net sales532(in 100 million yen)

Four-layer PCB
28.2%

MEIKO REPORT

02

Interview with the President

QQ

2 What is your outlook for the future?

3

What is your overall investment plan?

We completed our investments to increase the production

We need to incorporate cutting-edge technologies in ourcapacities of the Wuhan, Vietnam, and Thang Long Plants

PCBs for both automotive and smartphone applications. That

during this past fiscal half. The investment was primarily

is why we decided to make investments that would make thefor smartphone applications, and we expect sales to in-

Yamagata Factory and the Ishinomaki Branch Factory increase beginning in the third quarter. We also expect thatJapan, as well as the Vietnam Plant, ready for cutting-edge

ongoing strong demand will drive up sales of automotive

technologies.

PCBs. Demand for PCBs will grow in the short run as

The automobile market is transitioning to EVs across themore and more cars are equipped with electronic compo-

globe. While it is said that the number of parts used in auto-

nents and LED lamps. In the medium term there will bemobile production will decrease, use of PCBs is expected todemand for high-voltage PCBs for electric vehicles (EVs),

increase significantly in step with the transition to EVs and aas well as PCBs for cameras and radars used in autono-

growing number of parts for autonomous driving systems.

mous driving and collision avoidance systems. We cur-

Regarding PCBs for smartphones, we need to produce high-rently have a number of prototype projects underway ander resolution PCBs.

plan to start mass production in fiscal 2019. Now that all

Demand for heavy copper PCBs is increasing in applications

our factories are operating at full capacity, we havefor EVs, plug-in hybrid vehicles (PHVs), and related charging

reached the stage where we need to make the next moveequipment. We make heat dissipation PCBs for LED lamps

as we look toward the future.

and power supply units, for which heat dissipation is needed.

Consolidated financial prospectfor FY2017( in 100 million yen )FY2016Full-year results
Net sales
Operating income
Ordinary income
Net income (loss) attributableto owners of parent
Average exchange rate
(JPY/USD)

03 MEIKO REPORTFY2017
Initial plan

Revised plan

959.1

1,030

1,060

57.9

62

76

+18.1

6.0%

6.0%

7.2%

31.3%

YoY ( percentage increase )+100.9
10.5%

29.8

46

56

+26.2

3.1%

4.5%

5.3%

87.8%

17.7

36

45

+27.3

1.8%

3.5%

4.2%

154.7%

108.69110.00110.00

We will also work on producing high-frequency PCBs for milli-

our top management priorities and work to maintain stable

meter-wave radars used in autonomous driving systems.

dividends, while taking a comprehensive view of our financial

The modified semi-additive process (MSAP) is becoming

performance and other factors when distributing profits. To

the mainstream method for making PCBs applied insecure profits for shareholders in the future, we make it a ba-

next-generation smartphone models. MSAP is effective forsic policy to use internal reserves for investments needed to

manufacturing higher resolution PCBs, as well as the imped-

further strengthen and improve our operating base and to use

ance control needed for high-frequency PCBs. We decided

them for further business expansion.

to adopt MSAP for both automotive and smartphone PCBs in

Regarding distribution of the surplus for the fiscal year underorder to manufacture cutting-edge PCBs.

review, we decided to pay an interim dividend of 1 0 yen per

We will invest 2,000 million yen in the Yamagata Factory andshare in the light of our consolidated financial results, future

Ishinomaki Branch Factory to accelerate the manufacture ofprospects, etc. We will decide the year-end dividend once wecutting-edge PCBs in Japan. Outside Japan, we decided tohave a better picture of our performance over the comingbuild a third factory at the Vietnam Plant. Construction will be-months. In response to the support and expectations of

gin in April 2018 and take about a year. We plan to start produc-shareholders and all other stakeholders, the Meiko Group willing cutting-edge PCBs in 2019. Overall, we will invest US120

continue to do its utmost to carry out measures needed tomillion dollars over three years to match capacity with demand.

enhance corporate value and sustain growth.

Q

We look forward to your continued support and encourage-

4

Please give a message to shareholders.

ment in the future.

At Meiko, we make returning profits to shareholders one of

Future outlook

Overall• Sales to remain strong in both automobile and smartphone markets• Continue to work on enhancing productivity and yield • Cut fixed costs and SG&A expenses • Save labor
Investments• Increase investments in Japan to accelerate production employing cutting-edge technologies• Construct a factory in Vietnam to produce cutting-edge PCBs for automotive and smartphone applications
Concerns• Rising material costs
MEIKO REPORT04

MEIKO NEWS

Overseas Capital Investment: Third Factory in Vietnam
There is a growing need for factories employing cutting-edge technologies in the automobile andJapan

Vietnamsmartphone markets, which are our key markets. In response to those needs, we decided to build
a third factory at our Vietnam Plant where we will mass produce cutting-edge PCBs.

Construction of a Factory for Cutting-edge PCBs for Automotive and Smartphone Applications to Begin in April 2018
Automotive
High-frequency
High-voltage
High heat dissipation
Smartphone
MSAP
Impedance controlled
Investment
overview

Completion of construction

Total investment amount

Total floor area

April 2018

April 2019

US120 million dollars over 3 years

46,000m2

We plan to invest US120 million dollars in the Vietnam Plant’s third factory over three years. Construction of the factorybuilding will start in April 2018 and the first line will begin operation in the first half of 2019. Meanwhile, we will moveahead with a plan to expand the line in the light of demand for cutting-edge PCBs.

Change of factory names

05 MEIKO REPORT

Start of construction

We changed the names of factories due to construction of the third factory.
The EMS factory has been renamed the First Factory and the existing PCB factory the Second Factory.

Domestic Capital Investment:
Yamagata Factory and Ishinomaki Branch Factory
Demand for cutting-edge PCBs is increasing in the Japanese automobile and smartphone markets as well. Responding to thisgrowing demand we decided to invest 2,000 million yen to begin mass production at factories in Japan.

Strengthening Factories in Japan and Accelerating Production of PCBs Employing Cutting-edge Technologies
Mainly used for manufacturing general automotive products, the Yamagata Factory only produces cutting-edge PCBs in smalllots. Strengthening its production capacity for the Japanese cutting-edge PCB market has been an ongoing issue at the MeikoGroup. Because the market is expected to really take off in FY2018, and also to respond to growing needs for producing cutting-edge PCBs at our location in Japan, we decided to build a mass-production facility in Japan. We will make investments on
the Yamagata Factory and the Ishinomaki Branch Factory that are in step with the PCB market segment.
These investments will be made ahead of construction of the Vietnam Plant’s Third Factory and should facilitate its rapid launch.

Market segment

Type of PCB
High-frequency
PCB

Automotive
Yamagata Factory

Millimeter-wave radars

Heat dissipation

LED lamps

PCB

Power supply units

High-voltage
PCB

Smartphone

Application

MSAP PCB

EVs, PHVs, charging equipment

High-resolution PCBs
Impedance controlled PCBs

Ishinomaki Branch Factory

MEIKO REPORT

06

Consolidated financial data

Net sales

Consolidated balance sheet

53,212FY2017 Interim

Full-year

million yen( in million yen )End of FY2016

At the end of the second quarterfor the fiscal year under review( As of March 31, 2017 )( As of September 30, 2017 )Assets( in million yen )120,000( forecast )Current assets

54,40056,271

Noncurrent assets

49,17753,19845,75549,853

Property, plant and equipment

60,000Intangible assets
Investments and other assets
Total assets0
2014/3

2015/3

2016/32017/3Operating income/Operating margin3,864

Full-year
Full-year

million yen(%)( forecast ) 8( in million yen )

8,000
4,000

4

0

0

-4,000-4

2014/3

2015/3

2016/32017/3

2018/3

Net income*/Net margin

2,140

million yen

Current liabilities

45,00445,85230,03332,156

Total liabilities

75,03878,008

Net assets

26,17027,844

Capital12,88812,888

Capital surplus

11,745

11,745Retained earnings

1,932

3,606

Treasury stocks

(396)

(396)

Cumulative other comprehensive income

2,112

3,617

Valuation difference on available-for-sale securities

85

56

Deferred gains or losses on hedges

58

(17)

Foreign currency translation adjustment

2,437

4,015

Remeasurements of defined benefit plans

(469)

(437)

Shareholders’ equity

257—

Total net assets

28,54031,461

Full-year

Total liabilities and net assets

103,578

109,469( forecast )

5
0

0

-5

-6,000-10
2015/3

2016/32017/3*Net income represents profit attributable to owners of parent.

07 MEIKO REPORT

109,469

(%)

6,000

2014/3

103,578

Full-year( in million yen )-12,000

3,161

Noncurrent liabilities

Non-controlling interests

FY2017 Interim

183

3,202

Liabilities

2018/3

FY2017 Interim219

2018/3-15

Key points of the financial results• Consolidated balance sheet

Total assets stood at 109,469 million yen, an increase of 5,891 million yen from the end of
the previous consolidated fiscal year. This increase is mainly due to a decrease of 1,606 million yen in cash and deposits, an increase of 2,215 million yen in notes and accounts receivable-trade, and an increase of 1,790 million yen in inventories, which were all recorded undercurrent assets. Primary factors behind the increase in total assets also included an increaseof 4,098 million yen in property, plant and equipment.
Total liabilities amounted to 78,008 million yen, up 2,970 million yen from the end of the previous consolidated fiscal year. This rise is mainly due to an increase of 3,630 million yen in notes
and accounts payable-trade, a decrease of 2,876 million yen in short-term loans payable, a decrease of 2,389 million yen in the current portion of long-term loans payable, and an increase ofConsolidated statement of income( in million yen )Consolidated statement of cash flows

First half of the 42nd term First half of the 43rd term
( year to date )( year to date )( April 1, 2016 to Sept. 30, 2016 )( April 1, 2017 to Sept. 30, 2017 )Net sales

45,741

53,212

Cost of sales

38,053

43,958Gross profit

7,688

9,253

Selling, generaland administrative expenses

5,024

5,389

Operating income

2,663

3,864

Non-operating income

472

261

Non-operating expenses

2,993

1,306

142

2,819

Extraordinary income—

0

Extraordinary losses

59

162

Net income (loss)
before income taxes

82

2,657

Income taxes

458

545

Net income (loss)

(376)

2,112

Profit (loss) attributable tonon-controlling interests

7

(28)

Profit (loss) attributable toowners of parent(383)

Ordinary income

2,140

2,511 million yen in other current liabilities, all of which were recorded under current liabilities. Another factor behind the increase in total liabilities was an increase of 2,327 million yen in long-termloans payable, which was recorded under non-current liabilities.
Net assets totaled 31,461 million yen, an increase of 2,920 million yen from the end of the previous consolidated fiscal year, due primarily to an increase of 1,673 million yen in retained earnings
and an increase of 1,578 million yen from foreign currency translation adjustments.

• Consolidated statement of income

The consolidated statement of income shows net sales increasing 7,470 million yen (or 16.3%)
year on year to total 53,212 million yen. Operating income totaled 3,864 million yen (up 45.1%
year on year), ordinary income 2,819 million yen (compared to 142 million yen in the same periodof the previous fiscal year), and net income attributable to owners of the parent 2,140 million yen( in million yen )First half of the 42nd term First half of the 43rd term
( year to date )( year to date )( April 1, 2016 to Sept. 30, 2016 )( April 1, 2017 to Sept. 30, 2017 )Net cash generated
from operating activities

3,453

6,759

Net cash expended
in investment activities(1,169)(4,336)

Net cash generated
from financing activities(1,853)(4,280)The effect of changes
in the exchange rate on cash
and cash equivalents

(947)

248

Net increase (decrease)in cash and cash equivalents(517)(1,609)Cash and cash equivalents
at the beginning of the period

19,312

17,196

Cash and cash equivalents
at the end of the period

18,795

15,586(compared to a negative 383 million yen in the same period of the previous fiscal year).

• Consolidated statement of cash flows

Net cash generated from operating activities was 6,759 million yen (compared to 3,453 million yen
in the same period of the previous fiscal year). Net cash expended in investment activities was
4,336 million yen (compared to 1,169 million yen in the same period of the previous fiscal year).
This was due primarily to a cash outflow totaling 3,882 million yen for the acquisition of property,
plant and equipment. Net cash used in financing activities was 4,2 8 0 million yen (compared to1,853 million yen in the same period of the previous fiscal year). This is primarily attributable to cash
outflows resulting from a net decrease of 3,076 million yen in short-term loans payable and repayment of long-term loans payable totaling 7,358 million yen along with a cash inflow from long-termloans payable totaling 7,276 million yen.

MEIKO REPORT

08

Global Network

Meiko’s production and sales systems thatmeet global customer needs
Production Base

メイコーヨーロッパ（Meiko Electronics Europe GmbH）

Sales Bases

Shanghai Sales Office

R&D Base

Affiliated Companies

メイコーアメリカ（Meiko Electronics America, Inc.）

Tianjin Sales OfficeWuhan Plant( Meiko Electronics (Wuhan) Co., Ltd.)●Guangzhou Plant●( Meiko Electronics (Guangzhou Nansha) Co., Ltd.)■ ●Guangzhou Sales Headquarters●

Yamagata Factory( Yamagata Meiko Electronics Co., Ltd.)■ ▲Bangkok●
Representative
OfficeVietnam Factory▲( Meiko Electronics Vietnam Co., Ltd.)Thang Long Factory( Meiko Electronics Thang Long Co., Ltd.)

Meiko Elec. Hong Kong. Co., Ltd

Ishinomaki Branch Factory( Yamagata Meiko Electronics Co., Ltd.)■●

Overseas Sales Department■

Omiya Sales Office
Meiko Tech Yokohama Branch Office
Nagoya Sales Office●▲●Osaka Sales Office

■

■

▲●
■●
●
▲
◆

Fukushima
Factory

M.D. Systems Co., Ltd.

Meiko Tech
Osaka Head Office

Kanagawa Factory
Headquarters
1st Sales Dept.
2nd Sales Dept.

Meiko Techno Co., Ltd.
MDS Circuit Technology, Inc.

High-Performance
PCB Sales Dept.
FPC Sales Dept.
EMS Sales Dept.
Research andDevelopment Dept.

MANAGEMENTV O I C E
VOL.

3

Takahide Hirayama
Director and Senior Managing
Executive Officer

09 MEIKO REPORT

We achieved 50 billion yen in net sales for the first half of FY2017. Net sales for the year are expected to exceed
100 billion yen, topping the FY2016 net sales figure of 95 billion yen. This fiscal year, to boost sales, we have moved
ahead with structural reforms we initiated last fiscal year focusing on our two overseas factories in China andVietnam. We have worked on improving their productivity and yield with the aim of enhancing production capacity
and increasing production (sales). Current market trends indicate that the automobile industry is rapidly transitioning
to autonomous and electric vehicles. In the automotive business, which accounts for about 50% of our sales, thebulk of the production increase is made up of vehicles equipped with electronic components. The result is that evenmore PCBs are being produced for use in these components, including those employing new technologies.
The smartphone business, which is another key source of our earnings, has seen growth trends in the untapped
smartphone markets of emerging economies, despite declining growth of the global smartphone market. Useof PCBs in these large emerging markets is also expected to rise. To meet this growing demand, we decided tobuild a new PCB factory in Hanoi, Vietnam, which will boost production. Having warm relations with Japan anda hardworking people, Vietnam is a great place for our business to grow. As we move ahead in taking our PCB
business to new heights, we look forward to your continued support. Thank you.

Corporate Data ( As of September 30, 2017 )Corporate Profile

Stock Information

Name

MEIKO ELECTRONICS CO., LTD.

Established

November 25, 1975

Number of Shares Authorized ( Common Stock ) 70,000,000 shares( Class-A preferred Stock )50 shares

Capital12,888 million yen

Number of Shares Issued

No. of Employees

10,798 (consolidated)(Japan: 766) (overseas: 10,032)

Outline of Business

Design and manufacturing and sales of
PCBs and auxiliary electronics business( Common Stock ) 26,174,012 shares( excluding treasury stock of 629,308 shares )( Class-A preferred Stock )50 shares( Common Stock )( Class-A preferred share )Principal Shareholders

5,303
1

Number of Shareholders( Common Stock )Executives

( As of June 27, 2017 )Number of Shares held % of shares held
( thousands of shares )Name of Shareholder

Yuichiro NayaYuichiro Naya

4,702

18.0

Director and Senior Managing Executive Officer

Takahide Hirayama

Director and Senior Managing Executive Officer

Masakuni Shinozaki

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

1,412
921

5.4
3.5

Director and Managing Executive Officer

Takahiro Matsuda

The Bank of New York Mellon(International) Limited 131800

622

2.4

Director and Managing Executive Officer

Jyunya Wada

Meiko Kosan Co., Ltd.

608

2.3

Director

Yoon Ho, Shin

Goldman Sachs International

565

2.2

Director

Hajime Nakano

Yuho, Ltd.

521

2.0

Audit & Supervisory Board Member ( Standing )Hitoshi Iyomoto

Audit & Supervisory Board Member

Arifumi Sunada

BBH Boston Custodian For Japan Equity
Premium Fund Of Credit Suisse Univer 620373

480

1.8

Audit & Supervisory Board Member

Takashi Harada

Haruyuki Naya
Seiichi Naya

454
445

1.7
1.7

President & CEO*The Company owns treasury stock of 629,308 shares and is excluded from the above
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. Manufacturing of PCBs
Meiko Tech Co., Ltd.

Sales of PCBs

Meiko Techno Co., Ltd.

Auxiliary electronics business

Meiko Electronics (Guangzhou Nansha) Co., Ltd.

Manufacturing and sales of PCBs

Meiko Electronics (Wuhan) Co., Ltd.

Manufacturing and sales of PCBs

Meiko Elec. Hong Kong. Co., Ltd.

Sales of PCBs

Meiko Electronics Vietnam Co., Ltd.

Manufacturing and sales of PCBs

( Class-A preferred Stock )Number of Shares held % of shares held
( thousands of shares )Name of Shareholder

Chiiki Chukakukigyo Kasseika Fund

50

100.0

Shareholding Structure ( Common Stock )Individuals and others

50.4%

Foreign institutions and others 19.8%
Financial institutions

17.7%

Meiko Electronics Thang Long Co., Ltd. Manufacturing of PCBs

Other institutions

5.6%

Meiko Electronics America, Inc.

Sales of PCBs

Financial instruments business operators

4.2%

Meiko Electronics Europe GmbH

Sales of PCBs

Treasury stock

2.3%
MEIKO REPORT

10

Shareholders’ Information
April 1 to March 31 of the following year

Fiscal Year

Method ofpublic notice

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

Contact

Tel : +81-3-3323-7111

Stock exchange

JASDAQ ( Standard ), Tokyo Stock Exchange

Enquiries concerning shareholdings:• Shareholders who need to update information onshareholdings, including change of address and method ofreceiving dividends, are advised to contact the securities
companies where securities accounts are held.
• Shareholders who do not have accounts with securities
companies and need to process payments of dividends areadvised to contact Sumitomo Mitsui Trust Bank, Limited, as
stated to the left.

The Company’s
websiteTOP page
For our latest IR information, news releases, and other information including details on our products and CSR activities,
please visit the Company website. You can visit theCompany website to find other useful information as well.
メイコー

検索

h t t p : / / w w w. m e i k o - e l e c . c o m /Headquarters
URL:

Electronic public notice in our official page
Official Page:
http:www.meiko-elec.com/ir/pa.shtml
In the event of an accident or other unforeseen
events that prevent publication of the electronic
public notice, it will be published in The Nikkei.

5-14-15, Ogami, Ayase, Kanagawa, 252-1104, Japan
Tel: 0467 (76) 6001 (switchboard)
http: //w w w. me iko-e le c.c om/

Notes on Forecasts
The information in this report contains future forecasts, such as the plans and business results of theCompany. These forecasts are based on information available at the time when these forecasts weremade and certain preconditions that the Company believes to be reasonable. Please note that actual
business results may differ from the forecasts herein due to a variety of factors.