Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between
this translated document and the Japanese original, the original shall prevail.
[Summary]

Consolidated Financial Results for the Year Ended March 31, 2022 [IFRS]
May 13, 2022
Company Name:

Nihon Dempa Kogyo Co., Ltd.

Stock Exchange Listing: Tokyo Stock Exchange, Prime Market

Securities Code:

6779

Representative:

Hiromi Katoh, Representative Director and President

URL: https://www.ndk.com/en/index.html

Yuzuru Takeuchi, Senior Corporate Officer and General Manager of Administration Division Phone: +81-3-5453-6711
Contact:
Scheduled date of general shareholders' meeting:June 28, 2022

Scheduled date to file annual securities report:

June 28, 2022

Scheduled date to commence dividend payments:
June 29, 2022
Availability of supplementalry material on financial results: Yes
Holding of financial results briefing:

Yes (for securities analysts and institutional investors)(Amounts less than a million yen are omitted.)
1. Consolidated Financial Results for the Year Ended March 31, 2022 (April 1, 2021 - March 31, 2022)(1) Consolidated Operating Results(Percentages indicate year-on-year changes.)
Net income
Total
Income before
attributable to
Net sales
Operating income
Net income
comprehensive
income tax
ownersincomeof parent

Fiscal year ended% Million Yen

Million Yen% Million Yen% Million Yen% Million Yen% Million Yen%

March 31, 2022

45,408

15.8

5,180

82.2

4,920

89.8

5,455

176.1

5,455

176.1

6,485

98.3

March 31, 2021

39,195

(0.7)

2,844

-

2,592

-

1,976

-

1,976

-

3,270

-

Basic earnings
per share
Fiscal year ended
March 31, 2022

Return on equity
attributable toowners of parent

Diluted earnings
per share
Yen

Yen

278.01140.22

March 31, 2021
100.7061.27
Reference: Share of profit (loss) of investments accounted for using equity method
For the fiscal year ended March 31, 2022¥(81) million
For the fiscal year ended March 31, 2021¥(46) million(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021

Total equity

Million Yen

Million Yen

61,22063,054

20,037
13,552%

Ratio of income
before tax to total
assetsRatio of operating
income to net sales
%

%

32.5

7.9

11.4

20.9

4.4

7.3

Ratio of equity
Equity attributable toEquity attributable toattributable to owners
owners of parent
owners of parent
per shareof parent to total
Million Yen%

Yen

20,037
13,55232.7
21.5

1,021.08
690.58(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Fiscal year ended
March 31, 2022

Million Yen

Million Yen

Million Yen

Million Yen

4,560(2,326)(8,910)10,362

March 31, 2021

124

313

5,420

16,707

2. Dividends
Annual dividends per share

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
(Forecast)

1stquarter-end

2ndquarter-end

3rdquarter-end

Yen

Yen

Yen

Fiscalyear-end

Total

Yen

Yen

-

0.00

-

0.00

0.00

-

0.00

-

5.00

5.00

-

10.00

-

10.00

20.00

Ratio ofdividends toTotal cash
equityPayout ratio
attributable todividends(Consolidated)owners of(Total)parent(Consolidated)
Million Yen
%
%

-

98

1.8
9.8

(Note) The above chart concerns common stock dividends. Please see the "Dividends on Class A Shares" below for information regarding
dividends on class shares (unlisted) that have different rights from common stock issued by the Company.

0.6

3. Consolidated Financial Forecast for the Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)(Percentages indicate year-on-year changes)
Net income
Basic earnings
Income before
Net income
attributable to
Net sales
Operating income
income tax
for the period
per shareownersof parent
Six months ending
September 30, 2022
Fiscal year ending
March 31, 2023

% Million Yen

Million Yen% Million Yen% Million Yen% Million Yen%

Yen

24,2008.7

2,300(19.0)

2,100(19.3)

1,800(25.9)

1,800(25.9)

91.72

50,000

10.1

5,000

(3.5)

4,600

(6.5)

4,000

(26.7)

4,000(26.7)

203.83(1) Changes in significant subsidiaries during the period(Changes in "Specified Subsidiaries" accompanying changes in scope of consolidation): Yes[Newly included] - subsidiaries[Excluded] 1 subsidiary (Name: Suzhou NDK Co., Ltd.)(2) Changes in accounting policies and accounting estimatesi ) Changes in accounting policies required by IFRS: Yesii) Changes in accounting policies other than i ):Noneiii) Changes in accounting estimates:
None(3) Number of issued shares (Ordinary shares)
Number of issued shares at the end of the periodi)(including treasury shares)ii) Number of treasury shares at the end of the period
Average number of shares outstanding for theiii)
period(shares)March 31, 2022

20,757,905

March 31, 2021

20,757,905

March 31, 2022

1,133,805

March 31, 2021

1,133,755

March 31, 2022

19,624,146

March 31, 2021

19,624,283(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Non-Consolidated Operating Results(Percentages indicate year-on-year changes)
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021
Fiscal year ended
March 31, 2022%
Million Yen
39,95933,407

Operating income
Million Yen%

Million Yen

Net income%

Million Yen

%

19.6

1,376

-

1,555

-

4,859

-

(4.2)

(2,183)-(1,808)-25-

Basic earnings per share

March 31, 2021

Ordinary income

Diluted earnings per share

Yen

Yen

247.63124.901.31

0.80(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2022
March 31, 2021
Reference: Equity
As of March 31, 2022
As of March 31, 2021

Net Assets

Equity-to-asset ratio

Net assets per share

Million Yen

Million Yen%

Yen

54,734
54,116

15,41810,50528.2
19.4

785.70535.36¥15,418 million¥10,505 million* This summary of the business results and the attached financial statements are unaudited.
* Explanation about appropriate use of consolidated financial forecast, other special notes
1. The Company is scheduled to hold a conference call on the full-year financial results on May 27, 2022, for securities analysts andinstitutional investors. The materials distributed will be posted on the Company's IR website promptly after the conference call.
2. Forward-looking statements in this document about our future performance are based on the information that are available to us at thetime of disclosure and certain assumptions deemed reasonable. Due to unforeseen circumstances, actual results may differ significantly
from such estimates.

(Reference) Dividends on Class A Shares
Dividends per share related to Class A Shares with different rights from those of common shares are as follows:
Annual dividends per share
Class A Shares
1st
2nd
3rd
Fiscalquarter-end
quarter-end
year-endquarter-end
Fiscal year ended
Yen
Yen
Yen
Yen
March 31, 2021
―
0.00
―
0.00
March 31, 2022―
0.00―
19,283.75
Fiscal year ending――――
March 31, 2023

Total
Yen
0.00
19,283.75―(forecast)(Note)The number of Class A Shares in issue is 5,000 shares; the total amount of dividends on the class shares is ¥96 million for the
fiscal year ended March 31, 2022. They were initially issued on August 5, 2020, all scheduled to be acquired in cash, andcanceled on May 26, 2022, based on the resolution made at the Board of Directors' meeting dated March 29, 2022. Hence, nodividends on Class A shares are expected to incur in the fiscal year ending March 2023.

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022

Table of Contents
1. Qualitative Information on the Financial Results for the Year Ended March 31, 2022 ････････････････ 2(1) Operating Environment and Results of Operations･･････････････････････････････････････････････ 2(2) Financial Condition･････････････････････････････････････････････････････････････････ 2(3) Cash Flow Analysis･････････････････････････････････････････････････････････････････ 3(4) Forecasts for the Year Ending March 31, 2023 ････････････････････････････････････････････ 3
2. Basic Concepts Regarding the Selection of Accounting Standards ･･･････････････････････････････ 3
3. Consolidated Financial Statements for the Year Ended March 31, 2022 ･･･････････････････････････ 4(1) Consolidated Statements of Financial Position ････････････････････････････････････････････ 4(2) Consolidated Statements of Comprehensive Income ･･･････････････････････････････････････ 5(3) Consolidated Statements of Changes in Equity ････････････････････････････････････････････ 6(4) Consolidated Statements of Cash Flows ･････････････････････････････････････････････････ 8(5) Notes Concerning Going Concern Assumption ････････････････････････････････････････････ 9(6) Notes to Consolidated Financial Statements ･･････････････････････････････････････････････ 9-1-Nihon Dempa Kogyo Co., Ltd. (6779) FY2022

1. Qualitative Information on the Financial Results for the year Ended March 31, 2022
(1) Operating Environment and Results of Operations
The world economy during the first half of the reporting period (April to September 2021) was on a recovery trend, withlarge-scale monetary easing and aggressive government spending implemented in major countries, whereas the prolonged
turmoil in the supply chains due to the shortages of procuring parts such as semiconductors and the resurgence of the
COVID-19 infections cast a shadow over the momentum of recovery. In 2022, in addition to the United States ’ movetoward monetary tightening aiming to curb inflation, new uncertainty factors have emerged about the future of the world
economy, such as Russia’s invasion of Ukraine and the city lockdowns by the ‘zero-COVID’ policy in China.
In the automotive and smartphone markets, the Company’s primary business domains, the shortage of semiconductors
and other parts, and China ’ s zero-COVID policy have affected the production of the finished car and smartphone
manufacturers. In spite of such unfavorable circumstances, the orders from Tier 1 customers, i.e., manufacturers who
supply parts to finished car manufacturers, have remained high in the automotive applications, which account for nearly
half of the sales, with the consolidated net sales for the fiscal year under review increasing over 20% year on year. In themobile communications applications, which account for nearly 20% of the sales, consolidated net sales for the fiscal year
under review have increased only slightly year on year due to declined sales of TCXO (Temperature Compensated Crystal
Oscillators), although sales of 76.8MHz crystal units with built-in thermistors for 5G smartphones increased steadily. In
industrial equipment applications, which represent nearly 10% of the sales, the sales to major Chinese communicationequipment manufacturers declined due to tighter export restrictions imposed by the U.S. government. Reflecting increased
demand from 5G base stations in the United States and other countries, however, net sales for the fiscal year under review
declined only slightly year on year. Sales for consumer and IoT applications also increased compared with the previous
year.
As a result, consolidated net sales for the fiscal year under review recorded ¥ 45,408 million, a 15.8% increase year on
year.
Concerning income and losses, net income improved in automotive applications, reflecting a significant increase insales. In addition, the sales increase of 76.8MHz crystal units with built-in thermistors for 5G smartphones significantly
contributed to better profitability. In other operating income, the Group recorded government grant income of ¥ 1,136
million, which had been granted from the Suzhou Municipal government earlier, upon completion of factory transfer to theconsolidated subsidiary (Suzhou NDK Co., Ltd.) in Suzhou, China. The Company recorded ¥492 million expenses in otheroperating expenses associated with Niigata NDK’s business termination. As for the losses on buildings, machinery, andinventories incurred from the flood damages the factories in Malaysia suffered due to heavy rains on December 18, 2021,
the impact on the results of operations was insignificant since they were covered by insurance. The factories in Malaysia
have resumed full production since April 2022. We have also recorded income taxes-deferred of ¥ (1,665) million byrecording long-term deferred tax assets of ¥1,917 million.
Consequently, in the fiscal year under review, the Company reported an operating income of ¥ 5,180 million, an 82.2%
increase from the previous year; income before income taxes of ¥ 4,920 million, an 89.8% increase year on year; and net
income of ¥ 5,455 million, 176.1% increase year on year.
The Company had recorded a total of ¥ 4,405 million in the previous fiscal year for gain on sales and gain from theremeasurement of subsidiary shares for having sold a 51% stake of NDK SAW devices Co., Ltd., which was a whollyowned subsidiary. The Company also had recorded business restructuring expenses of ¥1,118 million in the previous year.
(2) Financial Condition
As at the fiscal year-end (March 31, 2022), total assets stood at ¥ 61,220 million, a ¥ 1,833 million decrease from theprevious fiscal year-end, reflecting the following factors: a decrease of ¥ 6,344 million in cash and cash equivalents; anincrease of ¥ 1,362 million in trade receivables; an increase of ¥ 1,656 million in inventories and an increase of 1,418
million in deferred tax assets. Total liabilities amounted to ¥41,182 million, an ¥8,319 million decrease from the previous
fiscal year-end, owing mainly to an ¥8,447 million decrease in loans and borrowings, a ¥1,315 million increase in tradeand other payables, and a ¥1,205 million decrease in advances received in other current liabilities. Equity attributable tothe owners of the Company stood at ¥20,037 million, a ¥6,485 million increase, due to increased comprehensive income.
As a result, the ratio of equity attributable to the owners of the Company was 32.7%, 11.2 percentage points higher thanthe previous fiscal year-end of 21.5%.

-2-

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022(3) Cash Flow Analysis
Cash flow activities for the fiscal year under review were as follows:
Net cash provided by operating activities totaled a positive ¥4,560 million, ¥4,436 million higher than the previous fiscal
year. Negative factors entailed an increase of ¥ 1,186 million in inventories, ¥ 1,157 million from government grantincome, and an increase of ¥764 million in trade receivables. Positive factors included income before income tax of ¥4,920
million and depreciation and amortization of ¥2,974 million.
Net cash used in investing activities was a negative ¥2,326 million, ¥2,640 million lower than a year earlier. Negative
factors included expenditures of ¥2,406 million for purchase of property, plant and equipment.
Net cash used in financing activities totaled a negative ¥ 8,910 million, ¥14,331 million lower than the previous fiscal
year, reflecting ¥ 25,284 million in proceeds from long-term loans and borrowings and negative ¥ 32,555 million in
repayment of long-term loans and borrowings.
Accordingly, the balance of cash and cash equivalents on a consolidated basis at the end of the fiscal year under review
amounted to ¥10,362 million, a decrease of ¥6,344 million from the end of the previous fiscal year.
(4) Forecasts for the Year Ending March 31, 2023
The Company will start the New Medium-Term Management Plan (the New MTMP) for the fiscal year 2022 ending
March 2023 through the fiscal year 2024 ending March 2025 (FY2022-FY2024). In the New MTMP, we expect higher
demand for high-precision, high-reliability crystal devices, one of our strengths, with a prospect of full-fledged demand forthe high-speed communication standard "5G" and an increase of ADAS (Advanced Driver Assistance System) devices
loaded in cars. We will make aggressive capital investments by responding to these opportunities. In terms of our
financials, we will compress borrowings steadily and propel ourselves toward constructing a sound financial structure.
Regarding the forthcoming year's business environment, higher uncertainty is anticipated in the outlook of the global
economy, with Russia’s invasion of Ukraine and China’s zero-COVID policy. In particular, there are concerns about theconfusion of the logistics network due to the lockdown in Shanghai City and declined demand in the smartphone market in
China.
Even in these circumstances, in automotive applications, in particular, demands from the Tier 1 manufacturers are still
strong despite the foreseeable effect of the city blockage in Shanghai. On condition that the lockdown in the City is liftedin the second quarter, we expect a year-on-year increase in the full-year sales. In mobile communications applications,sales in China’s smartphone market are expected to remain low. In contrast, further sales increase in 76.8MHz crystal units
with built-in thermistors is expected in the market as a whole, along with the shift to higher-frequency 5G smartphones. In
addition, sales of ultra-compact crystal units are expected to increase for the 5G smartphones and wearable device
applications.
For the next fiscal year, profits are expected to increase year on year, excluding the grant income and other special
factors, despite income-reducing factors such as higher parts prices and fixed costs. With regard to fixed costs, along withthe completion of the structural reform we had been working on since 2018 and the shift to the growth phase, we plan toincrease investment in human resources, facilities, and systems.
For the outlook of the consolidated business results in the next fiscal year, we forecast net sales of ¥50,000 million (up10.1% year on year), operating income of ¥5,000 million (down 3.5% year on year), income before income taxes of ¥4,600
million (down 6.5% year on year), and net income of ¥ 4,000 million (down 26.7% year on year). The exchange rate is
assumed to be ¥115 to the U.S. dollar.
Forward-looking statements about our future performance are based on the information available to us at the time of
disclosure and certain assumptions deemed to be reasonable. Due to unforeseen circumstances, actual results may differ
significantly from such estimates.

2. Basic Concept Regarding the Selection of Accounting Standards

The Group has applied International Financial Reporting Standards (IFRS), global standards of accounting, from thefiscal year ended March 31, 2010, to improve international comparability of consolidated financial statements and enhancefinancial reporting quality and management efficiency.

-3-

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022

Financial Statements(1) Consolidated Statements of Financial Position(Millions of yen)March 31, 2021

March 31, 2022

AssetsCurrent assets:
Cash and cash equivalents

16,707

10,362

Trade receivables

10,924

12,287

Inventories

10,134

11,790788

3Income taxes refundable
Others

2,961

3,531

Total current assets

41,51537,974

16,44016,791

176

167

Investments accounted for using the equity method

2,844

2,762

Other financial assets

1,024

1,039

Deferred tax assets

498

1,917

Non-current assets:
Property, plant and equipment
Intangible assets

OthersTotal non-current assets
Total assets

553

566

21,53823,24563,054

61,220

2,101

1,261

Liabilities
Current liabilities:
Loans and borrowings
Lease liabilities

466

407

7,334

8,650

Derivative liabilities

331

466

Provisions

321

687

609

953

Trade and other payables

Income taxes payable
Others

1,870

714

Total current liabilities

13,035

13,141Loans and borrowings

31,63024,022

Lease liabilities

1,525

1,443

Non-current liabilities:

Deferred tax liabilities
Employee benefits
Provisions
Deferred government grants
OthersTotal non-current liabilities

492

0

2,411

2,140

157

163

9

31

239

239

36,46628,04049,501

41,182

Share capital

5,596

5,596

Share premium

5,515

5,515

Other components of equity

(773)

201

Total liabilities
EquityEquity attributable to owners of the Company

Retained earnings

3,213

8,724

Total equity attributable to owners of the Company

13,552

20,037

13,552

20,03763,054

61,220Total equity
Total liabilities and equity-4-

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022(2) Consolidated Statements of Comprehensive Income(Millions of yen)

Year Ended
March 31, 2021
39,195Net salesYear Ended
March 31, 2022
45,408

Cost of sales

32,61632,898Gross profit

6,579

12,509Selling, general and administrative expenses

5,495

6,565

Research and development expenses

1,613

1,500

Other operating income

4,772

1,909

Other operating expenses

1,398

1,172

Operating income

2,844

5,180

Financial income

346

360

Financial expenses

552

539

Share of loss of investments accounted for using the equity method

(46)

(81)

2,592

4,920

Income before income tax
Income tax expenses

615

(535)

1,976

5,455

Remeasurement of defined benefit plan
Financial assets measured at fair value through other comprehensive income
Income tax relating to items that will not be reclassified

459
96
(116)

54
67
(4)

Subtotal

439

117

914

709

Net income for the period
Other comprehensive income
Items that will not be reclassified to profit or loss:

Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Cash flow hedges

7

18

Income tax relating to items that may be reclassified

(66)

184

Subtotal

854

912

1,294

1,029

3,270

6,485

1,976

5,455

3,270

6,485

Other comprehensive income for the period, net of income tax
Total comprehensive income for the period
Net income attributable to:
Owners of the Company
Total comprehensive income attributable to:
Owners of the Company(Yen)
Earnings per share:
Basic earnings per share

100.70278.01

Diluted earnings per share

61.27

140.22-5-

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022(3) Consolidated Statements of Changes in Equity(Millions of yen)

Share premium

Additional
paid-in
capitalShare Capital

10,649Balance at April 1, 2020
Total comprehensive income for the period
Net income
Other comprehensive income
Remeasurement of defined benefit plan
Net change in financial assets measured at fair value
through other comprehensive income
Exchange differences on translation of foreign operations
Cash flow hedges

Treasuryshares5,859

Total
share premium(2,790)3,068-

Total comprehensive income for the period
Transactions with owners, recorded directly in equity
Issuance of shares
Share issuance costs
Transfer from share capital to share premium
Transfer from share premium to retained earnings
Changes in treasury shares, net
Total transactions with owners
Balance at March 31, 2021
Total comprehensive income for the period
Net income
Other comprehensive income
Remeasurement of defined benefit plan
Net change in financial assets measured at fair value
through other comprehensive income
Exchange differences on translation of foreign operations
Cash flow hedges

-

-

2,500

2,500
(67)
7,553
(7,538)(7,553)(5,053)
5,596

2,446
8,305

-

-

(0)
(0)
(2,790)

2,500
(67)
7,553
(7,538)
(0)
2,446
5,515
-

Total comprehensive income for the period
Transactions with owners, recorded directly in equity
Changes in treasury shares, net
Total transactions with owners
Balance at March 31, 2022

-6-

-

-

-

-

5,596

8,305

(0)
(0)
(2,790)

(0)
(0)
5,515

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022(Millions of Yen)

Other components of equity
Financial assets
Exchangemeasured at fairdifferences onvalue throughtranslation ofotherforeigncomprehensive
operations
incomeBalance at April 1, 2020
Total comprehensive income for the period
Net income
Other comprehensive income
Remeasurement of defined benefit plan
Net change in financial assets measured at fair value
through other comprehensive income(128)(1,563)

Total comprehensive income for the period
Transactions with owners, recorded directly in equity
Issuance of shares
Share issuance costs
Transfer from share capital to share premium
Transfer from share premium to retained earnings
Changes in treasury shares, net
Total transactions with owners
Balance at March 31, 2021
Total comprehensive income for the period
Net income
Other comprehensive income
Remeasurement of defined benefit plan
Net change in financial assets measured at fair value
through other comprehensive income

847

(39)

(715)

Transactions with owners, recorded directly in equity
Changes in treasury shares, net
Total transactions with owners
Balance at March 31, 2022

(1,716)(6,652)

5,349

5,349

-

1,976

1,976

1,976

-

350

350

350

88

88

88

7

847
7

847
7

847
7

7

943

2,327

3,270

3,270

7,538

(18)

(773)

7,538
3,213

5,000
(67)
(0)
4,932
13,552

5,000
(67)
(0)
4,932
13,552

-

5,455

5,455

5,455

-

54

54

54

62

62

62

18

893
18

893
18

893
18

18

975

5,510

6,485

6,485

-

201

‐
8,724

(0)
(0)
20,037(0)(0)
20,037

62
893

Exchange differences on translation of foreign operations
Cash flow hedges
Total comprehensive income for the period

(25)

847
88

62

893

23

178

-7-

Attributableto owners of
the Company

Total othercomponentsof equity

88

Exchange differences on translation of foreign operations
Cash flow hedges

Retainedearnings

Cash flow
hedgesTotal equity

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022(4) Consolidated Statements of Cash Flows(Millions of yen)

Year Ended
March 31, 2021

Year Ended
March 31, 2022

Operating activities:
Income before income tax

2,592

4,920

Depreciation and amortisation

3,104

2,974

Gain on sales of property, plant and equipment

(4)

(15)

Impairment losses
Share of loss of investments accounted for using the equity method
Government grant income

328
46
(13)

246
81
(1,157)

Gain on sales of shares of subsidiary(2,665)-Gain from remeasurement relating to application of the equity method(1,740)-Decrease/(increase) in trade receivables

(802)

(764)

Decrease/(increase) in inventories

2,945(1,186)

Decrease/(increase) in accounts receivable - other

(245)

137

Decrease/(increase) in consumption tax/value-added tax receivables

(102)

(29)

Increase/(decrease) in trade payables

263

620

Increase/(decrease) in accrued expenses

(895)

44
(131)

Increase/(decrease) in accrued bonus

155

Decrease/(increase) in derivative assets

49-

Increase/(decrease) in derivative liabilities

307

150

(1,837)

131

Increase/(decrease) in provisions
Decrease/(increase) in other operating assets

(70)

(606)

Interest and dividend income

(86)

(79)

Interest expense

521

479

Interest and dividends received

86

79
(435)

Interest paid

(387)

Income tax refunded/(paid), net

(903)

(81)

Other, net

(522)

(820)

Net cash provided/(used in) by operating activities

124

4,560

(2,256)(2,406)

Investing activities:
Purchase of property, plant and equipment
Purchase of intangible assets

(19)

(30)

Purchase of other financial assets

(8)

(8)

Proceeds from sales of property, plant and equipment

10

27

Proceeds from sales of shares of subsidiary resulting in change in scope of
consolidation

3,293

-

Purchase of investments accounted for using the equity method

(710)

-

Proceeds from sales of other financial assets

3

101

Other, net

(1)

(10)

Net cash provided by/(used in) investing activities

313(2,326)

4,932-

Financing activities:
Proceeds from issuance of shares
Proceeds from long-term loans and borrowings-

25,284

Repayment of long-term loans and borrowings-(32,555)

Net increase/(decrease) in short-term loans and borrowings

1,059(1,200)

Repayments of lease liabilities

(571)

(438)

(0)

-

Cash dividends paid
Purchase and sales of treasury shares, net
Net cash provided by/(used in) financing activities

(0)

(0)

5,420

(8,910)Net increase/(decrease) in cash and cash equivalents

5,857(6,677)

Cash and cash equivalents at beginning of year

10,06016,707788

332

16,707

10,362Net effect of currency translation on cash and cash equivalents
Cash and cash equivalents at end of period-8-

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022(5) Notes to Going Concern Assumption
Not applicable(6) Notes to Consolidated Financial Statements for the Year Ended March 31, 2022 (Condensed)
1. Basis of Preparation(a) Changes in Accounting Policies
Accounting policies applied for the first time in the fiscal year ended March 31, 2022
The amendments shown in the table below had no or no material effect on the Group's financial position or
results of operations.
Amendments to Standards

Date of Application

IFRS 9, IAS 39, IFRS 7, Interest Rate Benchmark Reform
IFRS 4 and IFRS 16- Phase 2

Effects on Consolidated
Financial Statements

April 1, 2021

No material effect(Note) Interest Rate Benchmark Reform - Phase 2
As part of the interest rate benchmark reform based on the recommendations of the Financial Stability Board(FSB), LIBOR (the London Inter-Bank Offered Rate) was permanently suspended as of the end of December
2021. The amendments necessitated the contracts referencing LIBOR to be replaced with those using analternative benchmark rate. In October 2021, the Group completed the replacement from LIBOR to TIBOR(Tokyo Inter-Bank Offered Rate). In addition, the Company fully repaid these existing loan contracts on March
31, 2022, refinancing them with syndicate loans and received the loan deposits from the banks on the same day.
Hence, the amendments have no effect on the Group’s consolidated statement of financial position as at March
31, 2022, and no material effect on the consolidated comprehensive income for the year then ended.
(b) Change in Classification(Consolidated Statements of Cash Flows)"Decrease/(increase) in other operating assets", which was included in "Others" in "Operating activities" for the
fiscal year ended March 31, 2021, is separately presented for the fiscal year ended March 31, 2022, to improve
the presentation clarity of the consolidated financial statements.
Reflecting this change, comparative consolidated statements of cash flows for the fiscal year ended March
31, 2021 have been reclassified.
As a result, "Others" of ¥(592) million in "Operating activities" for the fiscal year ended March 31, 2021 isreclassified as "Decrease/(increase) in other operating assets" of ¥(70) million, and "Others" of ¥(522) million.
2. Segment Information(a) General Information
The main activities of the Group are the integrated manufacture and sale of quartz crystal units, crystal
devices, ultrasonic transducers and synthetic quartz crystals, and there are no separate operating segments.
Therefore, the Group has a single reportable segment.
(b) Information about Products and Services
Net sales by type of products are as follows:Year Ended
March 31, 2021
AmountQuartz crystal units
Crystal devices
OthersTotal

25,476
10,322
3,396
39,195(Millions of yen)

Year Ended
March 31, 2022

Composition
(%)

65.0
26.3
8.7
100.0

-9-

Amount31,162
10,062
4,183
45,408

Increase/(decrease)

Composition
(%)

68.6
22.2
9.2
100.0

Amount

5,685
(260)
787
6,212

Change
(%)

22.3
(2.5)
23.2
15.8

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022(c) Information about Geographical Areas
Sales by geographical areas and non-current assets other than financial instruments, deferred tax assets, postemployment benefit assets, and rights arising under insurance contracts are as set out below. Sales bygeographical areas are categorised by country or area of customers, and non-current assets are based on thegeographical location of the assets.
Sales and non-current assets for the years ended March 31, 2021 and 2022 were as follows:(Millions of yen)
China

U.S.A

Germany

Korea

Net sales

Japan
6,950

14,749

3,606

3,961

2,290

Non-current assets

11,699

3,123

78

-

-

2022
Net sales

Japan

China

U.S.A

Germany

Korea

8,453

15,779

4,169

2,344

2,125

1,218

1,158

10,16445,408Non-current assets

11,272

3,875

55

-

-

-

-

1,800

17,0032021

Mexico Hungary
822
-

398
-

Mexico Hungary

Others

Total

6,416

39,195

1,729

16,631(Millions of yen)

OthersTotal(d) Major Customers
Not applicable
3. Impairment Losses
Property, Plant and Equipment
The Group categorizes assets or groups of assets by company and business location based on the smallest groupof assets that generates cash inflows largely independent of the cash inflows of other assets or groups of assets(the "cash-generating unit" or "CGU"). Idle assets which are not expected to be used in the future are grouped
The Group booked impairment losses in the fiscal year under review for the increased building demolition costsof Niigata NDK Co., Ltd. due to fluctuations in estimates and for the dormant machinery and others of Suzhou
NDK Co., Ltd. The impairment losses were recorded in "Other operating expenses" in the consolidated
statements of comprehensive income.
Impairment losses for the year ended March 31, 2021 and 2022 were as follows:(Millions of yen)
2021

2022

Location

Asset/Assetgroup

Category

AmountLocation

Niigata NDK Co., Ltd.
(Niigata, Japan)

Crystal units/
Crystaloscillators

Land,
Building,
Machinery,
etc.

328

Niigata NDK Co., Ltd.
(Niigata, Japan)

Crystal units/
Building, etc.
Crystaloscillators

328

Suzhou NDK Co., Ltd.

Machinery,

Total

Asset/Assetgroup

Category

Amount242

Idle assets
3Note: The recoverable amount of the asset group was
etc.
(Suzhou, China)
measured at value in use or fair value less costs of
Total
246
disposal. Value in use was calculated using theNote: The recoverable amount of the asset group was
discounted present value of future cash flows. The premeasured at fair value less costs of disposal. The fair
tax discount rate used in the calculation was 9.0%. The
value less costs of disposal was based on the estimatedfair value less costs of disposal was based on theamount on disposal after deducting the costs of
estimated amount on disposal after deducting the costs ofdisposal.
disposal.

- 10 -

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022

4. Selling, General and Administrative Expenses
for the years ended March 31,
Personnel expenses
Depreciation and amortisation
Commissions
Shipping charges
Travel
WelfareTax and dues
Repair expenses
Others
Total

2,781
451
428
697
73
121
216
99
625
5,495

(Millions of yen)
2022
3,200
466
628
838
86
138
203
102
901
6,565

977
204
295
136
1,613

(Millions of yen)
2022
931
210
240
116
1,500

26
121
2,665
1,740
218
4,772
2
328
83
5
790
189
1,398

(Millions of yen)
2022
24
1,212
405
267
1,909
30
246
44
131
250
404
65
1,172

2021

5. Research and Development Expenses
for the years ended March 31,
Personnel expenses
Depreciation and amortisation
Materials
OthersTotal

2021

6. Other Operating Income and Expenses
for the years ended March 31,

2021

Rental income*Government grant income**
Insurance claim income***Gain on sales of shares of a subsidiary
Gain from remeasurement relating to application of the equity method
Other income
Total other operating income
Loss on disposal of PPE
Impairment losses of PPE
Depreciation of temporarily idle fixed assets
Settlement for products sold
Structural reform expenses****Loss due to accident*****
Other expenses
Total other operating expenses* Rental income mainly comes from renting part of the factories of our subsidiaries for the year ended March 31,
2022 and 2021.
** Government grant income includes ¥1,136 million recognized in the second quarter of the fiscal year underreview for the grants received from the municipal government of Suzhou, China. Also, benefits obtained fromnational and local public entities for employment and investments in facilities and low-interest loans using the
Bank of Japan lending system were recognized during the period over which the related expenses wererecognized.
*** Insurance claim income is for the damaged inventories in the factories of Asia NDK Crystal SDN. BHD.
and NDK Quartz Malaysia SDN. BHD. suffered due to flooding from heavy rains in Malaysia in December
2021.
**** Structural reform expenses mainly include special retirement benefits for employees at Niigata NDK Co.,
Ltd. and specialists fees related to factory closure based on the structural reform.
***** Loss on disposal of inventory in the above factories affected by the flooding in Malaysia in December
2021.

- 11 -

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022

7. Financial Income and Expenses
for the years ended March 31,

70
16
186
45
10
16
346
521
7
22
552

(Millions of yen)
2022
54
24
251
13
15
1
360
479
4
―
54
539

2021
¥1,976 million¥1,976 million
19,624,283 shares
12,626,891 shares
32,251,174 shares¥100.70¥61.272022¥5,455 million¥5,455 million
19,624,146 shares
19,283,746 shares
38,907,892 shares¥278.01¥140.222021

Interest income
Dividend income
Foreign exchange gains, net
Gain on valuation of other financial assets
Gain on valuation of derivatives
OthersTotal financial income
Interest expenses
Loss on valuation of other financial assets
Loss on valuation of derivatives
OthersTotal financial expenses
8. Earnings per Sharefor the years ended March 31,
Net income attributable to ordinary shareholders
Net income adjustment for the period
Net income used for calculation of diluted earnings per share
Weighted-average number of ordinary shares outstanding
Effect of dilutive securities (Class A shares)
Weighted-average number of diluted ordinary shares outstanding
Basic earnings per share
Diluted earnings per share

Note: Basic earnings/loss per share is calculated by dividing the net income/loss for the period attributable toordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
9. Events after the Reporting Period
Issuance of Ordinary Shares and Disposal of Treasury Stock
The Company's Board of Directors passed resolutions on March 29, 2022, to conduct the issuance of new shares,
disposal of treasury stock, and secondary offering of shares, with a view to secure the funds for growth necessary
to achieve the future growth strategies under the New Medium-Term Management Plan, and also to further
strengthen the financial base after the redemption of the Class A Shares. After undergoing the prescribed
procedures, the issue price, disposal price, selling price, etc., were determined on April 7. The offering of shares
scheduled to be conducted through the shelf registration was completed on April 14, 2022.
The financing methods are as follows:- 12 -

Nihon Dempa Kogyo Co., Ltd. (6779) FY2022

The total issue/disposal price, i.e., the amount paid in from the (a) Issuance of new shares through public
offering and (b) Disposal of treasury stock through a public offering combined, was ¥4,014 million (domestic ¥1,723 million, overseas ¥2,290 million) as at April 14, 2022.
In addition, regarding (d) Issuance of New Shares through Third-Party Allotment in the chart above, theCompany was notified on May 6, 2022, that the underwriter (SMBC Nikko Securities Inc.), the allottee, willsubscribe for a part of the shares scheduled to be issued as follows: Number of new shares issued: 102,600 shares Total amount to be paid in: ¥121 million
The above amount was paid in full on May 10, 2022.
NDK intends to allocate, in accordance with the growth strategies under the New Medium-Term Management
Plan, the raised funds to capital expenditures aimed at increasing production capacity to respond to the demand
increase for crystal devices, mainly in automotive applications and 5G-related handsets, and will make efforts toenhance its medium-to-long-term corporate value and shareholder value by strengthening its profit base andfinancial base.
Please see the notice "Re: Issuance of New Shares, Disposal of Treasury Stock and Secondary Offering of
Shares and Reduction of Amounts of Capital Stock and Legal Capital Surplus Concurrently with Issuance of New
Shares" announced on March 29, 2022; "Re: Determination of Issue Price, Disposal Price and Selling Price, Etc.
and Reduction of Amounts of Capital Stock and Legal Capital Surplus Concurrently with Issuance of New Shares"on April 7, 2022; "Re Withdrawal of Shelf Registration Statement Regarding Issuance of New Shares andDisposal of Treasury Stock" on April 14, 2022; and "Re: Determination of Number of New Shares to be Issued by
Capital Increase through Third-Party Allotment" on May 6, 2022.
10. Additional Information
Acquisition and Cancellation of Class A Shares
The Company plans to acquire and cancel all the Class A shares in exchange for cash (total acquisition price:6.25 billion yen) from Japan Industrial Solutions Fund II (the Class Shareholder) on May 26, 2022, based on the
resolution passed at the Board of Directors meeting held on March 29, 2022. The cash to be paid for each Class A
share increases as the actual acquisition date is delayed. Therefore, we believe that early redemption andcancelation of the entire Class A shares will contribute to strengthening our financial structure.
Please see the notice "Re: Acquisition and Cancellation of Class A Shares" announced on March 29, 2022.

- 13 -