NEWS RELEASE

June 14, 2019
FDK CORPORATION
President: Yoichi Ohashi
Code: 6955 Second Section, TOKYO
Contact: Yoshiharu Hirano, General Manager,
CSR & Compliance Div.
(Tel: +81-3-5715-7400)

Announcement of Transfer of Equity Interest in Equity Method Affiliate
and an Extraordinary profit

FDK CORPORATION (“FDK”) made the resolution in board meeting today to transfer its whole equity interest in NANJING
JINNING SANHUAN FDK CO., LTD. (“NANJING JSF”)
1. Reason for Transferring Equity Interest
As a “Smart Energy Manager” that combines battery technology, circuit technology and power electronics technology andglobally contribute to society with technology that efficiently uses electric energy, FDK group provides service and value tocustomers.
By this transfer of whole equity interest in NANJING JSF, FDK proceeds the “Selection and concentration” of its Electronic
Device business and proceeds the improvement of its company value.
2. Overview of the Equity Method Affiliate to be transferred (NANJING JINNING SANHUAN FDK CO., LTD.)
As of March 31, 2019(1) Company Name

NANJING JINNING SANHUAN FDK CO., LTD.

(2) Location

Nanjing Economic & Technological Development Zone, Nanjing, Jiangsu, China(3) Title and name of representative

Yu Wanlin, President(4) Business description

Manufacturing and Sales of Ferrite core and Coil device(5) Capital

RMB 325,944,000 (JPY 5,371 million)(6) Date of establishment

May, 2004(7) Equity ratio

FDK:33.4%
Nanjing Jinning Electronics Group Co., Ltd.: 36.0%
Beijing Zhong Ke San Huan Hi-tech Co., Ltd.: 30.6%(8) Relationship with FDK

Capital relationship

FDK invests 33.4% of shares of Equity Method
Affiliate.

Personal relationship

FDK dispatch the officer.

Business relationship

FDK purchases the products of NANJING JSF.

(9) Financial results of NANJING JSF for three (3) fiscal years
Fiscal year

FY2016FY2017FY2018Net Assets

JPY 773 million

JPY 665 million

JPY 334 million

Total Assets

JPY 4,290 million

JPY 2,445 million

JPY 1,287 million

Net Sales

JPY 2,155 million

JPY 2,488 million

JPY 1,603 million

Operating Profit

JPY -384 million

JPY -388 million

JPY -172 million

Ordinary Profit

JPY -422 million

JPY -255 million

JPY -182 million-1-NEWS RELEASENet ProfitJPY -422 million

JPY -255 million

JPY -182 million* Capital converted to Japanese Yen is by the exchange rate as of end of FY2018.
* The amount of financial results are converted to Japanese Yen by the exchange rate in each fiscal year.
3. Overview of the Assignees
As of March 31, 2019(1)

Company Name

Magsuper (Dong Guan) Corp.

(2)

Location

Lianping District, Dalingshan Town, Dongguan Guangdong, China(3)

Title and name of representative

Zhao Liwen, Chairman(4)

Business description

Manufacturing and Sales of Magnetic materials(5)

Relationship with FDKCapital relationship

Not applicable

Personal relationship

Not applicable

Business relationship

Not applicable

Applicable item to related party

Not applicable

4. Status of Transferring Equity Interest(1)

Equity ratio before transferring

FDK: 33.4%(2)

Transferred equity

Whole equity of FDK(3)Transferred priceRMB 500,000 (Approximately JPY 8 million)(4)

Equity ratio after transferring

FDK: 0%5. Schedule(1)

Date of resolution in board meeting

June 14, 2019(2)

Date of agreement

June 14, 2019

6. Future prospect(1) FDK will continue the business with NANJING JSF and provide the products to FDK’s customers.
(2) In the financial results for the year ending March 31, 2020, a gain on sales of investments in capital of subsidiaries andassociates of approximately JPY 300 million as an extraordinary profit will be recorded due to this transfer of equity
interest, but the time and amount of the accounting are under investigating minutely. Regarding the impact toconsolidated business result by this transfer, FDK included to the business forecast (consolidated basis) for the FY2019
announced on April 26, 2019.

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