FOR IMMEDIATE RELEASE
October 25, 2018
Consolidated Financial Results for the First Half of FY2018(April 1, 2018 to September 30, 2018)
FDK CORPORATION
Listing Code No. 6955 (Listing Stock Exchange: The Second Section of Tokyo Stock Exchange)
Address : Shinagawa Crystal Square Bldg., 1-6-41 Konan, Minato-ku, Tokyo 108-8212 Japan
Contact : CSR & Compliance Div.
E-mail: prir-tyo@fdk.co.jp
The Consolidated Financial Results is unaudited/U.S. GAPP is not applied

1. Consolidated Results for the Six-Months Period Ended September 30, 2018a. Consolidated Statements of Income
Yen(millions)
Six months
Six months
ended Sept. 30,
ended Sept. 30,
2017
2018
Net Sales
35,97736,362
Operating Profit
134
220
Ordinary Profit
4631
Profit (Loss) attributable to owner
(175)
390
of parent

Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings(6.26) yen- yen

13.90 yen
13.81 yen

Change (%)
1.1
63.9
-

(URL: http://www.fdk.com)

Yen(millions)
FY2017,
ended Mar. 31,
201873,129
666
78
(630)

(22.53) yen- yen

U.S.Dollars(millions)
Six months
ended Sept. 30,
2018$320.14
$1.94
$5.56
$3.43

12.24 cent12.16 centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)
Six months
ended Sept. 30,
201723,72012,25635,977

Yen(millions)
Six months
ended Sept. 30,
201823,824
12,53836,362c. Consolidated Financial Position

Total Assets
Net Assets
Owners' Equity
Capital Adequacy Ratio

Yen(millions)
As of March 31,
As of Sept. 30,
2018
2018
51,05452,936
4,293
5,788
4,289
5,784
8.4 %
10.9 %

Yen(millions)
FY2017,
ended Mar. 31,
2018
48,536
24,592
73,129U.S.Dollars(millions)
Six months
ended Sept. 30,
2018$209.76$110.39$320.14

d. Consolidated Statements of Cash FlowsYen(millions)

Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at End of Period

Six months
ended Sept. 30,
2017
1,432

Six months
ended Sept. 30,
2018
1,470

(1,030)(1,311)

402

561

4,463

4,504

(Notes for the Consolidated Operating Results (from 1.a to 1.d)
1. All amounts less than one million yen have been disregarded.
2. U.S. dollar amounts are translated from yen, for convenience only, at the rate of 113.58 yen=$1
3. The percentage in this statement presents rate of change compared with the same period last year.
4. FDK implemented a share consolidation (10 to 1) effective October 1, 2018.

2. Consolidated Financial Forecast for the fiscal year 2018 ending March 31, 2019
(Million of yen, except per share data)
FY2018Change from FY2017
FY2017
Net Sales
74,00073,1291.2 %Operating Profit
700
666
5.0
Ordinary Profit
200
78
156.1 %
Profit (Loss) attributable to owners of parent
100
(630)
-%
Basic Earnings (Loss) per Share
3.50 yen(2.25) yen
Note for the use of the above forecasted business results.
The financial forecast described above is based upon information available as of April 26, 2018.
3. Others(1) Material changes in significant subsidiaries during the period: No
Consolidated Subsidiaries
12 companies
Unconsolidated Subsidiaries (equity method applied)
3 companies
Affiliates (equity method applied only)
1 companies(2) Applying of specific accounting of the consolidated quarterly financial statements: No(3) Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standard: No
2) Changes in accounting policies other than ones based on revisions of accounting standard: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of issued and outstanding shares (common stock)1) Number of issued and outstanding shares at the end of fiscal year.
Sept. 30, 2018: 28,555,802 shares
March 31, 2018: 280,363,026 shares
2) Number of treasury stock at the end of each period
Sept. 30, 2018: 27,318 shares
March 31, 2018: 27,143 shares
3) Average number of shares in each period.
Sept. 30, 2018: 28,098,156 shares Sept. 30, 2017: 28,009,609 shares(Notes)1. FDK implemented a share consolidation (10 to 1) effective October 1, 2018.

Consolidated Balance Sheet
Millions of yen
FY2017
March 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

1H/FY2018
September 30, 2018

3,720
20,316
2,781
2,694
2,760
1,150
(105)
33,318

4,504
20,792
3,154
3,104
2,916
980
(107)
35,344

6,153
4,952
984
2,535
1,282
464
16,372
502

6,392
4,885
956
2,553
1,353
177
16,317
484

204
1
106
549
(0)
862
17,73651,054

206
2
95
486
(0)
790
17,592
52,936

15,23019,455
468
2,018
336
3,055
40,564

16,367
19,400
361
2,315
321
2,644
41,410

553
194
3,847
1,216
383
6,196
46,760

541
206
3,650
939
400
5,737
47,14828,301
22,968(45,539)
(47)
5,683

28,70923,377(45,148)
(47)
6,890

38
948
(2,380)(1,393)
4
4,293
51,05437981(2,176)(1,157)51
3
5,788
52,936

Consolidated Statement of Income
Millions of yen
1H/FY2017

1H/FY2018

April 17 - September 17

April 18 - September 18

Net sales

35,97736,362

Cost of sales

30,24030,709Gross profit

5,737

5,652

Selling, general and administrative expenses

5,603

5,432

134

220

Interest income

810Foreign exchange gains

9578

Gain on sales of non-current assets

7

13

Rent income

9

19

Other

34

68

Total non-operating income

68

690

Interest expenses

60

69

Share of loss of entities accounted for using equity method

31

57

Loss on sales of non-current assets

38

Loss on retirement of non-current assets

36

96

Other

32

54

Total non-operating expenses

198

278

4

631

Operating profit
Non-operating income

Non-operating expenses

Ordinary profit-

Extraordinary losses
Impairmant loss-

42

Total extraordinary losses

-

42

4

588

Income taxes-current

135

171

Income taxes-deferred

44

26

Total income taxes

180

198

Profit (loss)

(175)

390

Loss attributable to non-controlling interests

(0)

(0)

Profit (loss) attributable to owners of parent

(175)

390

Profit before income taxes

Consolidated Statement of Comprehensive Income
Millions of yen
1H/FY2017

1H/FY2018

April 17 - September 17

April 18 - September 18

(175)

390

6

(0)

Foreign currency translation adjustment

315

37

Remeasurements of defined benefit plans, net of tax

219

203

9

(4)

Other comprehensive income

550

236

Comprehensive income

375

626

375

626

(0)

(0)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities

Share of other comprehensive income of entities accounted for using equity method(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

Consolidated Statement of Cash Flows
Millions of yen
1H/FY2017

1H/FY2018

April 17 - September 17

April 18 - September 18

4

588

1,036

1,067

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss-

42

Increase (decrease) in net defined benefit liability

(161)

(196)

Increase (decrease) in allowance for doubtful accounts

(10)

1

Interest and dividend income

(9)

(22)

Interest expenses

60

69

Foreign exchange losses (gains)

(0)

(0)

-

12

Share issuance cost
Share of loss (profit) loss of entities accounted for using equity method

31

57

Loss (gain) on sales of property, plant and equipment

30

(13)

Loss on retirement of non-current assets

36

96

Decrease (increase) in notes and accounts receivable-trade

(376)

(279)

Decrease (increase) in inventories

(929)

(894)

Increase (decrease) in notes and accounts payable-trade

1,661

865

Increase (decrease) in accrued expenses

73

(27)

Other, net

201

308

Subtotal

1,647

1,676

9

22

Interest expenses paid

(67)

(67)

Income taxes paid

(156)

(160)

Net cash provided by (used in) operating activities

1,432

1,470

(1,214)(1,322)

Proceeds from sales of property, plant and equipment

241

22

Purchase of intangible assets

(62)

(13)

Purchase of investment securities

(2)

(2)

Other, net

64(1,030)(1,311)

1,060

(55)

(0)

(0)

Proceeds from issuance of shares acquisition rights-

55

Proceeds from issuance of shares resulting from exercise of shares acquisition rights-

800

Interest and dividend income received

Cash flows from investing activities
Purchase of property, plant and equipment

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Purchase of treasury shares

Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation

(385)

-

Repayments of finance lease obligations

(272)

(239)

Net cash provided by (used in) financing activities

402

561

Effect of exchange rate change on cash and cash equivalents

120

63

Net increase (decrease) in cash and cash equivalents

924

783

Cash and cash equivalents at beginning of period

3,538

3,720

Cash and cash equivalents at end of period

4,463

4,504

Consolidated Business Segment Information
Millions of yen
1H/FY2017 April 17 - September 17
Business Segments Reported
Total

Electronic
Devices

Batteries

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers

23,72012,25635,977-35,977

-

-

-

-

-

23,72012,25635,977-35,977

757

(623)

134

-

134

Adjustments

Consolidated
Statements

Intersegment
Total
Segment profit (loss)

1H/FY2018 April 18 - September 18
Business Segments Reported
Total

Electronic
Devices

Batteries

Net sales
Unaffiliated customers

23,824

Intersegment
Total
Segment profit (loss)

12,538-36,362--36,362--

23,824

12,53836,362-36,362

910

(690)

220

-

220

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
The business environment of the FDK Group (“FDK”) during the first half ended September 30, 2018 remained
uncertain condition, such as impacts on the global economy due to intensified trade friction between North America
and China, geopolitical risk, increase of material cost though the corporate profit and employment environment ofdomestic companies improved as well as personal consumption gradually improved in Japan.
Under these circumstances, FDK strived to develop new customers and expand sales in Japan and overseas using
the strengths of battery technology, electrical circuit technology and power electronic technology to integrate battery
solutions with electronic technology on the basis of batteries into new markets such as IoT, mobility and social
infrastructure, which are expected to grow greatly in the future in addition to conventional markets such as home
appliances, power supply back-up application and automotive accessories. And FDK continuously promoted
development of practical application technology of a small type All-Solid batteries for early sample shipment as wellas accelerated characteristic improvement of cathode material. On the other hand, in order to raise the funds for the
implementation of the growth strategy, FDK started capital increase by issuing share acquisition rights by third-party
allotment.
Regarding the business results for this period, sales of Battery business increased due to sales of Ni-MH batteries
and Alkaline batteries in consumer market remained steady as the first quarter, though sales of Ni-MH batteries andLithium batteries decreased in the industrial market.
Sales of Electronic Device business also increased due to sales of Coil devices and Signal Processing Modules for
LCD increased while Multi-layer power inductor decreased.
As a result, consolidated sales of this period ended September 30, 2018 was 36,362 million yen, increased by 384
million yen (1.1%) from the same period of last year.
With regard to profit and loss, the operating profit of this period was 220 million yen increased by 85million yen
from the same period of last year due to sales increase, material cost reduction and favorable impact of currency
exchange ratio, although profit was affected by increase of material cost. The ordinary profit in this period was 631
million yen increased by 627 million yen from the same period of last year and it was achieved by non-operating
income of 578 million yen as the foreign exchange gains. The profit attributable to owners of parent in this period
was 390 million yen (it was 175 million yen loss attributable for owners of parent in the same period last year).
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Ni-MH batteries decreased from the same period of last year, due to sales decrease of some of OEM
products in overseas market and products for industrial use, although sales of domestic and overseas retail market
were steady. Sales of Power Storage Systems was decreased from the same period of last year due to sales decreaseof back-up use for telecommunication equipment. Sales of Alkaline batteries increased from the same period of lastyear due to steady sales for internet and domestic retail market. Sales of Lithium batteries decreased from the same
period of last year due to the sluggishness of infrastructure market in Japan and overseas, although domestic sales ofsmoke detectors was steady.
As a result, sales for the Battery business was 23,824 million yen, increased by 103 million yen from the same
period last year.
1.3. Electronic Device Business
Sales of Coil devices increased from the same period of last year, due to steady sales for automotive use andindustrial equipment. Sales of Multi-layer Power Inductor products was decreased from the same period of lastyear, due to sales decrease for smart phone and integrated circuit application. Sales of Signal Processing Modules
for LCD increased from the same period of last year, due to steady sales for industrial equipment, touch panel, andlarge size LCD display. Sales of Switching Power Supply decreased from the same period of last year, due to sales
decrease of equipment for land-based digital television broadcasting facilities.
As a result, sales for the Electronic Device business was 12,538 million yen, increased by 281 million yen fromthe same period last year.

(2) Analysis of Financial Condition
2.1 Status of Assets, Liabilities and Net Assets
Total assets at the end of first half in FY2018 increased by 1,882 million yen (3.7%) from the end of the previous
fiscal year to 52,936 million yen. Current assets increased by 2,026 million yen (6.1%) from the end of the previous
fiscal year to 35,344 million yen. Non-current assets decreased by 144 million yen (-0.8%) from the end of theprevious fiscal year to 17,592 million yen. The principal causes for increased current assets were a 783 million yen
increase in cash and deposits, a 476 million yen increase in notes and accounts receivable-trade, a 372 million yen inmerchandise and finished goods and a 410 million yen increase in work in process
Total liabilities at the end of first half in FY2018 increased by 387 million yen (0.8%) from the end of the previous
fiscal year to 47,148 million yen. Current liabilities increased by 846 million yen (2.1%) from the end of theprevious fiscal year to 41,410 million yen. Non-current liabilities decreased by 458 million yen (-7.4%) from theend of the previous fiscal year to 5,737 million yen. The principal cause of increased current liabilities was a 1,136
million yen increase in notes and accounts payable-trade. The principal cause of decreased non-current liabilities
was a 277 million yen decrease in long-term accounts payable and a 197 million yen decrease in net defined benefit
liability.
The interest-bearing debt decreased by 174 million yen from the end of the previous fiscal year to 20,302 million
yen.
Total net assets at the end of first half in FY2018 increased by 1,494 million yen (34.8%) from the end of theprevious fiscal year to 5,788 million yen. The main factors for the increase in total net assets were a 390 million
yen increase in retained earnings by posting a profit attributable to owners of parent and a 408 million yen increasein capital stock and capital surplus by posting a resulting from exercise of share acquisition rights.
2.2 Cash Flow Condition
Cash flows from operating activities increased by 1,470 million yen from the beginning of this fiscal year due toan increase in cash and cash equivalents (“cash”) by posting an increase in profit before income taxes, impairment
loss and increase in notes and accounts payable-trade, though was a decrease in cash by posting an increase in increase
in inventories (Cash flows from operating activities for the last fiscal year increased by 1,432 million yen from the
beginning of the last fiscal year).
Cash flows from investment activities decreased by 1,311 million yen from the beginning of this fiscal year due toa decrease in cash by posting a purchase of property, plant and equipment (Cash flows from investment activities forthe last fiscal year decreased by 1,030 million yen from the beginning of the last fiscal year).
Cash flows from financing activities increased by 561 million yen from the beginning of this fiscal year due to aincrease in cash by posting a proceeds from issuance of shares resulting from exercise of share acquisition rights(Cash flows from financing activities for the last fiscal year decreased by 402 million yen from the beginning of thelast fiscal year).
As a result, the balance of cash and cash equivalents on September 30, 2018 was 4,504 million yen, an increase of
783 million yen from the beginning of this fiscal year.

3. Forecast for the Fiscal Year Ending March 31, 2019
The ordinary profit and the profit attributable to owners of parent have already exceeded consolidated forecasts forthis fiscal year.
However, FDK has not changed its business forecast which was announced on April 26, 2018, because it isnecessary to make sure of the trend of battery sales in the third quarter which will reach the peak demand phase in
the consumer market in addition to the large impact of foreign exchange rates.
We will announce the revision promptly if it will be necessary in the future, by doing our best to collect various
information including market trends.