FOR IMMEDIATE RELEASE
October 25, 2017
Consolidated Financial Results for the First Half of FY2017(April 1, 2017 to September 30, 2017)
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/Public & Investor Relations Dept., General Affairs & Personnel Div.
E-mail: skuma@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, 2017a. Consolidated Statements of Income
Yen(millions)
Six months
Six months
ended Sept. 30,
ended Sept. 30,
2016
2017
Net Sales
37,05635,977
Operating Profit (Loss)
(376)
134
Ordinary Profit (Loss)(689)
4
Loss attributable to owners
(892)
(175)
of parent

Amounts Per Share of Common Stock:
Basic Earnings
Diluted Earnings(3.19) yen- yen(0.63) yen- yen

Change (%)(2.9)-(URL: http://www.fdk.com)

Yen(millions)
FY2016,
ended Mar. 31,
201773,682(330)(697)(3,166)(11.30) yen- yen

U.S.Dollars(millions)
Six months
ended Sept. 30,
2017$319.11$1.19$0.04($1.55)(0.56) cent
- centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)
Six months
ended Sept. 30,
2016
24,55012,50537,056

Yen(millions)
Six months
ended Sept. 30,
201723,72012,25635,977c. Consolidated Financial Position

Total Assets
Total Net Assets
Shareholders' Equity
Shareholders' Equity Ratio

Yen(millions)
As of March 31,
As of Sept. 30,
2017
2017
49,132
51,885
4,638
4,647
5,969
6,139
8.0 %
9.0 %

Yen
(millions)
FY2016,
ended Mar. 31,
201749,40824,27373,682

U.S.Dollars(millions)
Six months
ended Sept. 30
2017$210.40$108.71$319.11

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,
2016
(344)

Six months
ended Sept. 30,
2017
1,432

(835)

(1,030)

(224)

402

3,948

4,463

(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 112.74 yen=$1
3. The percentage in this statement presents rate of change compared with the same period last year.

2. Consolidated Financial Forecast for the fiscal year 2017 ending March. 31, 2018
(Million of yen, except per share data)
FY2017
Change from FY2016
FY2016Net Sales
76,000%73,682
3.1
Operating Profit (Loss)
1,400
(330)
Ordinary Profit (Loss)
700
(697)
-%
Profit (Loss) attributable to owners of parent
400(3,166)-%Net Income (Loss) per Share
1.43 yen(11.30) yen
Note for the use of the above forecasted business results.
The financial forecast described above is based upon information available as of April 27, 2017.
3. Others(1) Changes in material subsidiaries during the period: Yes
Consolidated Subsidiaries
12 companies
Unconsolidated Subsidiaries (equity method applied)
3 companies
Affiliates (equity method applied only)
1 companies(2) Adoption of accounting procedures specific to the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and restatements
1) Changes in accounting policies due to the amendment of accounting standards: No2) Other changes in accounting policies: No
3) Changes in accounting estimates: No4) Restatement: No(4) Number of shares outstanding (common stock)1) Number of shares outstanding at the end of periods.
September 30, 2017: 280,363,026 shares
March 31, 2017: 280,363,026 shares
2) Number of treasury shares at the end of each period
September 30, 2017: 268,274 shares
March 31, 2017: 266,012 shares3) Weighted average number of shares outstanding in each period.
September 30, 2017: 280,096,092 shares September 30, 2016: 280,101,276 shares

Consolidated Balance Sheet
Millions of yen
FY2016
March 31, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
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
Non-controlling Interests
Total net assets
Total liabilities and net assets

1H/FY2017
September 30, 2017

3,538
18,427
3,016
2,662
2,186
108
1,576
(40)
31,475

4,463
19,141
3,160
3,311
2,436
33
1,112
(30)
33,629

6,339
4,596
1,059
2,556
1,366
563
16,481
504

6,258
4,780
1,059
2,558
1,465
779
16,901
536

178
1
27
463
(0)
670
17,65649,132

189
1
32
594
(0)
818
18,25651,885

13,852
16,970
515
2,512
394
2,732
36,977

15,86018,030
517
2,655
302
2,869
40,236

809
227
4,291
1,817
369
7,515
44,493

787
203
4,129
1,504
377
7,002
47,23828,301
22,622(44,908)
(46)
5,969

28,301
22,968(45,083)
(46)
6,139

23
825
(2,896)(2,046)716
4,638
49,13229
1,151(2,676)(1,496)3
4,647
51,885

Consolidated Statement of Income
Millions of yen
1H/FY2016

1H/FY2017

April 16 - September 16

April 17 - September 17

Net sales

37,05635,977

Cost of sales

31,69530,240Gross profit

5,361

5,737

Selling, general and administrative expenses

5,738

5,603

Operating profit (loss)

(376)

134

10

8

Non-operating income
Interest income
Foreign exchange gains-

9

Rent income

11

9

Refunded gain of capital reduction with compensation

65

Other

41

42

Total non-operating income

128

68

Interest expenses

61

60

Foreign exchange losses

237

Share of loss of entities accounted for using equity method

58

31

Loss on sales of non-current assets

038

Loss on retirement of non-current assets

39

36

Other

44

32

Total non-operating expenses

441

198

Ordinary profit (loss)

(689)

4

Profit (loss) before income taxes

(689)

4

Income taxes-current

247

135

Income taxes-deferred

(58)

44

Total income taxes

189

180

Loss

(878)

(175)

13

(0)

(892)

(175)

-

Non-operating expenses

Profit (Loss) attributable to non-controlling interests
Loss attributable to owners of parent-

Consolidated Statement of Comprehensive Income
Millions of yen
1H/FY2016

1H/FY2017

April 16 - September 16

April 17 - September 17

(878)

(175)

2

6

(1,401)315

Remeasurements of defined benefit plans, net of tax

222

219

Share of other comprehensive income of entities accounted for using equity method

(53)

9

Other comprehensive income(1,230)550

Comprehensive income(2,108)375(2,114)

375

5

(0)

Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment(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/FY2016

1H/FY2017

April 16 - September 16

April 17 - September 17

Profit (loss) before income taxes

(689)

4

Depreciation and amortization

1,181

1,036

Cash flows from operating activities

Refunded gain of capital reduction with compensation(65)

Increase (decrease) in net defined benefit liability

(214)

(161)

Increase (decrease) in allowance for doubtful accounts

(33)

(10)

Interest and dividend income

(11)

(9)

Interest expenses

61

60

Foreign exchange losses (gains)

3(0)

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

58

31

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

(2)

30

Loss on retirement of non-current assets

39

36(1,714)(376)

Decrease (increase) in inventories

(701)

(929)

Increase (decrease) in notes and accounts payable-trade

1,345

1,661

Increase (decrease) in accrued expenses

35

73

Other, net

694

201

Subtotal

(14)

1,647

Interest and dividend income received

11

9Interest expenses paid

(61)

(67)

Income taxes paid

(281)

(156)

Net cash provided by (used in) operating activities

(344)

1,432

(973)

(1,214)

Proceeds from sales of property, plant and equipment

99

241

Purchase of intangible assets

(28)

(62)

Purchase of investment securities

(2)

(2)

Income by reduction of capital for a fee

65-

Other, net

3

6

(835)

(1,030)Net increase (decrease) in short-term loans payable

40

1,060

Purchase of treasury shares

(0)

(0)

-

(385)

Repayments of finance lease obligations

(264)

(272)

Net cash provided by (used in) financing activities

(224)

402

(599)

120

Net increase (decrease) in cash and cash equivalents(2,004)924

Cash and cash equivalents at beginning of period

5,952

3,538

Cash and cash equivalents at end of period

3,948

4,463

Decrease (increase) in notes and accounts receivable-trade-

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

Net cash provided by (used in) investing activities
Cash flows from financing activities

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

Effect of exchange rate change on cash and cash equivalents

Consolidated Business Segment Information
Millions of yen
1H/FY2016 April 16 - September 16
Business Segments Reported
Total

Electronic
Devices

Batteries

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers

24,55012,50537,056-37,056

-

-

-

-

-

24,55012,50537,056-37,056652(1,028)

(376)

-

(376)

Adjustments

Consolidated
Statements

Intersegment
Total
Segment profit (loss)

1H/FY2017 April 17 - September 17
Business Segments Reported
Total

Electronic
Devices

Batteries

Net sales
Unaffiliated customers

23,720Intersegment
Total
Segment profit (loss)

12,256-35,977--35,977--

23,72012,25635,977-35,977

757

(623)

134

-

134

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, 2017, remained
uncertain condition, such as the increasing uncertainty in overseas economics by geopolitical risks especially in North
America, Europe and East Asia though the corporate profit and employment environment of domestic companies
improved as well as personal consumption gradually improved in Japan.
Under these circumstances, FDK has strived to develop the business in the industrial market for the potential
glowing with expanding of IoT and mobility like automotive, housing, ICT and also strived to develop new customers
in the global market, expand the sales volume of Ni-MH batteries for industrial use, Lithium batteries for smoke
detector in domestic market and Multi-layer power inductors for smart phones. And FDK accelerated thedevelopment of Cathode Material with High Energy Density for All-Solid Lithium-Ion Batteries which wasdeveloped in the previous term and FDK promoted development of practical technology for early sample shipment.
For consumer business, FDK strived to expand sales of FUJITSU Brand Alkaline batteries which was improved its
performance in previous term, and also strived to expand sales volume of Alkaline batteries and Ni-MH batteries for
OEM and private brand products.
To accelerate the development of business models with batteries as the core for growth, FDK merged FDK EnergyCo., Ltd. a subsidiary of alkaline batteries manufacturer in this period in order to expand battery business with speedy
judgment of management and mutual utilization of management resources of each business unit as Alkaline batteries,
Ni-MH batteries and Lithium batteries.
As for Battery business result in the first half, sales was decreased because of the decrease of Alkaline batteries for
OEM and for consumer business in North America market though the sales of Lithium batteries increased for smart
meter and smoke detector, also Ni-MH batteries business in the industrial market were stable and sales was almost
same as the same period of last year. As for Electronic Device business result, sales of Signal Processing Modules
for LCD and DC-DC Power Module decreased from the same period last year, though sales of Coil devices, Multilayer Power Inductor were stable and almost same as the same period of last year. As a result, consolidated sales ofthe first half ended September 30, 2017 was 35,977 million yen, decreased by 1,078 million yen (-2.9%) from thesame period last year.
With regard to profit and loss in the Battery Business, profit was increased by sales increase of Ni-MH batteries
and Lithium batteries, as well as favorable impact of currency exchange ratio although profit was affected by sudden
increase of material cost in this period. And in the Electronic Device business, loss decreased due to sales increasingof Multi-layer Power Inductor and Toner as well as the fixed cost reduction by impairment treatment of fixed assets
implemented in the previous term. As a result, the operating profit was 134 million yen (it was 376 million yen
operating loss in the same period of last year). The ordinary profit was 4 million yen (ordinary loss was 689 million
yen in the same period last year). The loss attributable to owners of parent in the first half ended September 30,
2017 was 175 million yen (it was 892 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 Alkaline batteries was decreased from the same period last year due to sales decrease of OEM products
and taking time of sales contribution of newly released product though the batteries for internet sales and private
brand business sales increased. Sales of Ni-MH batteries were stable and almost same as the same period of lastyear due to steady sales of industrial use such as backup application of emergency light, although sales of consumer
use decreased in overseas market. Sales of Power Storage Systems was almost same as the same period of last year
due to steady sales of communication equipment backup use. Sales of Lithium batteries increased from the same
period last year, due to steady sales for next generation smart meters and smoke detectors in domestic market. Salesof Production Manufacturing Machineries and Equipment business was almost same as the same period of last year
due to steady sales of component assembly equipment for automobile.
As a result, sales for the Battery business was 23,720 million yen, decreased by 829 million yen from the same
period last year.

1.3. Electronic Device Business
Sales of Coil devices increased from the same period last year, due to steady sales for automotive use and LED
lighting. Sales of Multi-layer Power Inductor products was increased from the same period last year, due to steadysales for smart phone and integrated circuit application for industrial equipment. Sales of Ceramic products
decreased from the same period last year due to the sluggishness in digital camera market. Sales of DC-DC Power
Module decreased from the same period last year due to the sales decrease for server, storage, network equipment.
Sales of Signal Processing Modules for LCD decreased from the same period last year, due to sales decrease forLarge size LCD display although sales for touch panel was steady. Sales of Switching Power Supply was almost
same as the same period of last year due to steady sales for semiconductor manufacturing equipment.
As a result, sales for the Electronic Device business were 12,256 million yen, decreased by 249 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 of FY2017 increased by 2,753 million yen (5.6%) from the end of the previous
fiscal year to 51,885 million yen. Current assets increased by 2,153 million yen (6.8%) from the end of the previous
fiscal year to 33,629 million yen. Non-current assets increased by 599 million yen (3.4%) from the end of theprevious fiscal year to 18,256 million yen. The principal causes for increased current assets were a 924 million yen
increase in cash and deposit, a 713 million yen increase in notes and accounts receivable-trade and a 649 million yen
increase in work in process. The principal cause for increased non-current assets were a 420 million yen increasein property, plant and equipment.
Total liabilities at the end of first half of FY2017 increased by 2,744 million yen (6.2%) from the end of the previous
fiscal year to 47,238 million yen. Current liabilities increased by 3,258 million yen (8.8%) from the end of theprevious fiscal year to 40,236 million yen. Non-current liabilities decreased by 513 million yen (-6.8%) from theend of the previous fiscal year to 7,002 million yen. The principal cause of increased current liabilities were a 2,007
million yen increase in notes and accounts payable-trade and a 1,060 million yen increase in short-term loans payable.
The principal cause of decreased non-current liabilities were a 313 million yen decrease in long-term accounts
payable – other.
The interest-bearing debt increased by 1,039 million yen from the end of the previous fiscal year to 19,334 million
yen.
Total net assets at the end of first half of FY2017 increased by 8 million yen (0.2%) from the end of the previous
fiscal year to 4,647 million yen. The main factors for the increase in total net assets were a 713 million yen decreasein non-controlling interests by posting a payments from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation, a 346 million yen increase in capital surplus and a 325 million yen increasein foreign currency translation adjustment.
2.2 Cash Flow Condition
Cash flows from operating activities increased by 1,432 million yen from the beginning of this fiscal year due toan increase in cash and cash equivalents (“cash”) by posting an increase in notes and accounts payable-trade, increasein depreciation and amortization, though was a decrease in cash by posting an increase in inventories (Cash flows
from operating activities for the last fiscal year decreased by 344 million yen from the beginning of the last fiscal
year).
Cash flows from investment activities decreased by 1,030 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 835 million yen from the beginning of the last fiscal year).
Cash flows from financing activities increased by 402 million yen from the beginning of this fiscal year due to anincrease in cash by posting a short-term loans payable, though was a payments from changes in ownership interestsin subsidiaries that do not result in change in scope of consolidation (Cash flows from financing activities for the last
fiscal year decreased by 224 million yen from the beginning of the last fiscal year).
As a result, the balance of cash and cash equivalents on September 30, 2017 was 4,463 million yen, an increase of
924 million yen from the beginning of this fiscal year.

3. Forecast for the Fiscal Year Ending March 31, 2018
Regarding the consolidated business forecast for fiscal year 2017, FDK is necessary to investigate the consumer
market trend of the third quarter as the most demand period for battery business as well as the extension of purchaseorders from the first half to the second half of fiscal year 2017 for both batteries and electronic products in theindustrial market. Therefore FDK has not changed its business forecast, which was announced on April 27, 2017.
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.