Notice Regarding Posting of Other Operating Expenses,Difference between Consolidated Financial Forecasts and Results for the Six Months Ended September 30, 2019,
and Revision of Consolidated Financial Forecasts for the Year Ended March 31, 2020
and Revision of Dividends Payment Forecasts
November 8, 2019
Company Name
Representative
Person in charge
for inquiries

Nihon Dempa Kogyo Co., Ltd.
Hiromi Katoh, Representative Director and President(Code 6779 Tokyo Stock Exchange, 1st Section)
Michio Aoyama, Corporate Officer and General Manager of Administration Division(Phone: +81-3-5453-6709)

Nihon Dempa Kogyo Co., Ltd. (hereinafter "NDK") announced that the Board of Directors has resolved at the meeting held today to post
impairment losses as other operating expenses. NDK also informs here the difference between consolidated financial forecasts announced on May
10, 2019 and results for the six months ended September 30, 2019.
In addition, taking recent business trend into consideration, NDK announces revision of consolidated financial forecasts for the full year ended
March 31, 2020 which was announced on May 10, 2019, and revision of dividends payment forecasts as follows.
1. Posting of Other Operating Expenses
1,884 million yen is posted as impairment losses due to the sales decrease at the mobile markets anticipated in the future which have been
unprofitable.
2. Difference between Consolidated Financial Forecasts and Results for the Six Months Ended September 30, 2019
Net Sales

Operatingincome

Income before
income tax

Net income attributableto ownersof the parent

Net income
for the period

Basic earnings
per share

Million Yen

Million Yen

Million Yen

Million Yen

Million YenYen

Previous Forecast (A)20,300

(500)

(650)

(700)

(700)

(35.67)

Result (B)19,825(2,718)(2,790)(2,796)(2,796)(142.51)(475)(2,218)(2,140)(2,096)(2,096)

(2.3)

----

21,218

(494)

(715)

(753)

(753)

Increase/(Decrease)（B-A）
Increase/(Decrease)in percentage(%)(Reference)
Six Months
Ended September 30, 2018(38.41)[ Reason for differences ]NDK has almost achieved the plan to reduce fixed costs by transferring its production line among factories including the transfer of small-mass
production line for mobile communications from its Sayama factory to its Hakodate factory. Sales, however, mainly for automotive and industrial
equipment fell below the forecasts which lead to the reduction of profit below forecasts as well. In addition, as mentioned above, impairment losses
were posted. As a result, difference between consolidated financial forecasts and results for the six months ended September 30, 2019 occurred.

3. Revision of Consolidated Financial Forecasts for the Year Ended March 31, 2020
Net Sales

OperatingincomeIncome before
income tax

Net income attributableto ownersof the parent

Net income forthe period

Basic earnings
per shareMillion Yen

Million Yen

Million Yen

Million Yen

Million Yen

Yen

Previous Forecast (A)42,500600

200100100

5.10

Revised Forecast (B)39,800(6,400)(6,700)(7,000)(7,000)(356.69)

Increase/(Decrease)（B-A）
Increase/(Decrease)in percentage(%)(2,700)(7,000)(6,900)(7,100)(7,100)

(6.4)

----

(56)

(251)

(251)

(Reference)
The YearEnded March 31, 201942,498406(12.80)[ Reason for differences ]Also in the second half of the year, sales mainly for automotive and industrial equipment are anticipated to remain sluggish. Accordingly, sales
are expected to stay slightly higher than the first half of the year.
Additionally, as announced today by the “Notice Regarding Implementation of Structural Reforms, ” NDK will post approximately 700 million
yen for costs such as special retirement benefits incurred by offering voluntary early retirement at the non-consolidated company (parent company)
and approximately 2 billion yen of expense incurred by factory relocation of Suzhou NDK Co., Ltd. (Suzhou City, Jiangsu Province, China), one of
our consolidated subsidiaries, as other operating expenses. As a result, NDK announces revision of consolidated financial forecasts for the full year
as above.
4. Revision of Dividends Payment Forecasts
Annual dividends per share
Second quarter-end
Previous Forecast
announced on May 10, 2019
Revised Forecast
The year ended
March 31, 2020 (Result)
The year ended
March 31, 2019 (Result)Fiscal year-end
Yen

Total
Yen

undecided

Yen
undecided

0.00

0.00

0.00

0.00

0.00
0.00

[ Reason for differences ]Regarding dividends payment forecasts for fiscal year-end, the outlook of dividend payment had been undecided. However, in view of theconsolidated financial forecasts for this fiscal year, NDK regrets to inform that dividends are not expected to be paid.
Notes:
The above forecasts on our future performance are based on the information currently available and certain assumptions we consider
reasonable. Due to unforeseen circumstances, actual results may differ materially from such estimates.
END