Meiko Electronics : Released Financial Statements for the Third Quarter of the Fiscal Year Ending March 2017

Quarterly Consolidated Financial Statements‌‌‌

Included in the Quarterly Report

Meiko Electronics Co., Ltd.

and its consolidated subsidiaries

For the third quarter and nine months ended December 31, 2016

(ENGLISH TRANSLATION)

NOTE:

This document is an excerpt translation of the Quarterly Report ("Shihanki Houkokusho") of Meiko Electronics Co., Ltd. (the "Company"), for the third quarter and nine months ended December 31, 2016, 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 February 13, 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 third quarter (October 1, 2016 - December 31, 2016), and those for the nine months ended December 31, 2016, 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, 2016	December 31, 2016		December 31, 2016
Assets
Current assets
Cash and deposits	¥	19,532	¥	18,178	$	156,047
Notes and accounts receivable-trade	21,759	*2	25,315	*2	217,317
Merchandise and finished goods	3,855	5,026	43,144
Work in process	3,263	3,562	30,579
Raw materials and supplies	4,497	4,902	42,083
Other	2,448	2,085	17,893
Allowance for doubtful accounts	(24)	(188)	(1,613)
Total current assets	55,330	58,880	505,450
Non-current assets
Property, plant and equipment
Buildings and structures, net	21,016	19,945	171,219
Machinery, equipment and vehicles, net	21,135	19,343	166,047
Land	1,488	1,488	12,776
Construction in progress	1,735	1,439	12,350
Other, net	5,360	5,845	50,178
Total property, plant and equipment	50,734	48,060	412,570
Intangible assets	213	233	2,001
Investments and other assets	*1	3,328	*1	3,242	*1	27,830
Total non-current assets	54,275	51,535	442,401
Total assets	¥	109,605	¥	110,415	$	947,851

Thousands of
Millions of yen			U.S. dollars
March 31, 2016	December 31, 2016		December 31, 2016
Liabilities
Current liabilities
Notes and accounts payable-trade	¥	11,605	*2	¥	14,595	*2	$	125,291
Short-term loans payable	*4	12,613	*4	10,400	*4	89,280
Current portion of long-term loans payable	*4	11,746	*4	12,756	*4	109,499
Income taxes payable	147	345	2,965
Provision for bonuses	495	238	2,040
Other	5,384	*2	8,332	*2	71,529
Total current liabilities	41,990	46,666	400,604
Non-current liabilities
Long-term loans payable	*4	32,254	*4	29,177	*4	250,471
Provision for directors' retirement benefits	239	239	2,052
Net defined benefit liability	2,287	2,402	20,621
Other	4,071	3,722	31,943
Total non-current liabilities	38,851	35,540	305,087
Total liabilities	80,841	82,206	705,691
Net assets
Shareholders' equity
Capital stock	12,889	12,889	110,640
Capital surplus	19,745	11,745	100,832
Retained earnings	(7,660)	950	8,158
Treasury shares	(396)	(396)	(3,403)
Total shareholders' equity	24,578	25,188	216,227
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	32	25	217
Deferred gains or losses on hedges	(337)	41	352
Foreign currency translation adjustment	4,476	2,916	25,022
Remeasurements of defined benefit plans	(246)	(210)	(1,799)
Total accumulated other comprehensive income	3,925	2,772	23,792
Non-controlling interests	261	249	2,141
Total net assets	28,764	28,209	242,160
Total liabilities and net assets	¥	109,605	¥	110,415	$	947,851