Meiko Electronics : Released Financial Statements for the First Quarter of the Fiscal Year Ending March 2018

Quarterly Consolidated Financial Statements‌‌‌

Included in the Quarterly Report

Meiko Electronics Co., Ltd.

and its consolidated subsidiaries

For the first quarter and three months ended June 30, 2017

(ENGLISH TRANSLATION)

NOTE:

This document is an excerpt translation of the Quarterly Report ("Shihanki Houkokusho") of Meiko Electronics Co., Ltd. (the "Company"), for the first quarter and three months ended June 30, 2017, filed with the Director of the Kanto Local Finance Bureau of the Ministry of Finance of Japan pursuant to the Financial Instruments and Exchange Act of Japan on August 10, 2017. Please note that the quarterly consolidated financial statements in this document are a translation of the reviewed quarterly consolidated financial statements presented in Japanese. The translation of the quarterly consolidated financial statements and notes has NOT been audited by KPMG AZSA LLC, who reviewed the original Japanese figures. The Company provides this translation for your reference and convenience only without any warranty as to its accuracy. In case of any discrepancy between the translation and the Japanese original, the latter shall prevail. The final decision and responsibility for investments rests solely with the reader of this document.

Financial Information
1	Basis of preparation of the quarterly consolidated financial statements
The quarterly consolidated financial statements of the Company are prepared in accordance with the "Ordinance on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements" (Cabinet Office Ordinance No. 64 of 2007).
2	Review reports
The quarterly consolidated financial statements of the Company for the first quarter (April 1, 2017 - June 30, 2017), and those for the three months ended June 30, 2017, were reviewed by KPMG AZSA LLC, pursuant to Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act of Japan.

1 Consolidated Financial Statements
(1) Consolidated Balance Sheets
Meiko Electronics Co., Ltd. and its consolidated subsidiaries
Thousands of
Millions of yen		U.S. dollars
March 31, 2017	June 30, 2017	June 30, 2017
Assets
Current assets
Cash and deposits	¥	17,422	¥	16,931	$	151,227
Notes and accounts receivable-trade	22,035	23,803	212,605
Merchandise and finished goods	4,550	4,629	41,341
Work in process	3,390	3,701	33,054
Raw materials and supplies	4,587	4,962	44,318
Other	2,434	2,108	18,836
Allowance for doubtful accounts	(17)	(167)	(1,496)
Total current assets	54,401	55,967	499,885
Non-current assets
Property, plant and equipment
Buildings and structures, net	19,050	18,941	169,177
Machinery, equipment and vehicles, net	18,540	18,690	166,934
Land	1,488	1,488	13,293
Construction in progress	1,117	3,589	32,060
Other, net	5,560	5,708	50,977
Total property, plant and equipment	45,755	48,416	432,441
Intangible assets	220	217	1,937
Investments and other assets	*1	3,202	*1	3,279	*1	29,289
Total non-current assets	49,177	51,912	463,667
Total assets	¥	103,578	¥	107,879	$	963,552

Thousands of
Millions of yen		U.S. dollars
March 31, 2017	June 30, 2017	June 30, 2017
Liabilities
Current liabilities
Notes and accounts payable-trade	¥	13,195	¥	15,127	$	135,112
Short-term loans payable	*3	12,292	*3	12,775	*3	114,101
Current portion of long-term loans payable	*3	12,323	*3	12,349	*3	110,299
Income taxes payable	210	241	2,156
Provision for bonuses	547	298	2,659
Provision for directorsʼ bonuses	40	－	－
Other	6,398	8,722	77,902
Total current liabilities	45,005	49,512	442,229
Non-current liabilities
Long-term loans payable	*3	23,893	*3	22,858	*3	204,165
Provision for directors' retirement benefits	239	217	1,941
Net defined benefit liability	2,699	2,732	24,399
Other	3,202	3,403	30,396
Total non-current liabilities	30,033	29,210	260,901
Total liabilities	75,038	78,722	703,130
Net assets
Shareholders' equity
Capital stock	12,889	12,889	115,117
Capital surplus	11,745	11,745	104,912
Retained earnings	1,932	2,060	18,404
Treasury shares	(396)	(396)	(3,541)
Total shareholders' equity	26,170	26,298	234,892
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	85	105	935
Deferred gains or losses on hedges	59	(14)	(129)
Foreign currency translation adjustment	2,438	2,983	26,640
Remeasurements of defined benefit plans	(470)	(454)	(4,051)
Total accumulated other comprehensive income	2,112	2,620	23,395
Non-controlling interests	258	239	2,135
Total net assets	28,540	29,157	260,422
Total liabilities and net assets	¥	103,578	¥	107,879	$	963,552