FOR IMMEDIATE RELEASE
April 27, 2006

FY2005 Consolidated Financial Results(April 1, 2005 to March 31, 2006)

FDK CORPORATION(URL: http://www.fdk.com)
Listing Code No.6955 (Listing Stock Exchange: The First Section of Tokyo Stock Exchange)
Address : Hamagomu Bldg. 5-36-11 Shimbashi, Minato-ku, Tokyo 105-8677
Date of the meeting of the Board of Directors to settle the consolidated accounts: April 27,2006
Parent Company : Fujitsu Limited (TSE:6702)
Contact : Corporate Communication Office, Business Strategy & Planning Department
E-mail: niida@fdk.co.jp
U.S. GAPP is not applied

1. Items Relevant to Preparation of Consolidated Financial Results(1)Changes in accounting methods: Yes
For the six consolidated subsidiaries whose accounting periods were different from FDK, provisional
settlement of accounting was made by using FDK's accounting period (from Apr. 1,2005 to Mar. 31, 2006)
and the following financial statement was prepared accordingly.
(2)Changes in scope of consolidation or application of equity method: Yes
1 excluded from consolidated account.
(3)Average number of shares in each year.
Ordinary shares - FY2005: 127,964,183 shares FY2004: 127,983,569 shares(4)Number of shares issued and outstanding at the end of fiscal year.
Ordinary shares - FY2005:127,954,662 shares FY2004: 127,972,977 shares
2.Consolidated Operating Results for the Fiscal Year 2005
a. Consolidated Results of Operations

Net Sales
Operating Income
Income(Loss) Before Income Taxes
and Minority Interests
Net Income (Loss)
Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings

Yen(millions)
FY2005
FY2004
118,109
100,441
967
1,542

Change(%)
17.6
-37.3

U.S.Dollars(millions)
FY2005$858.47$8.26(2,502)(3,326)(1,721)(2,713)-($14.71)($23.19)(26.00) yen-(21.20) yen--(22.22 cent)-(Notes)1.Figures in this report are rounded to the nearest million yen.
2. U.S. dollar amounts are translated from yen, for convenience only , at the rate of 117 yen = $1

b. Net Sales by Business Segment
Yen(millions)Electronic Component
Batteries
Total

FY200594,39423,715
118,109

FY200476,36824,073
100,441

Change(%)
23.6
-1.5
17.6

U.S.Dollars(millions)
FY2005806.78202.691009.48

c. Consolidated Financial Condition
Yen(millions)
Total Assets
Shareholders' Equity
Shareholders' Equity Ratio
Shareholders' Equity
Per Share

2006/3/31
76,6166,340
8.30%(36.42) yen

2005/3/31
71,366
1,234
1.70%(21.61) yen

d. Consolidated Statements of Cash FlowsYen(millions)
FY2005
Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents,End of Year

FY2004

3,352

3,254

(3,509)(3,034)(2,636)

(462)

7,577

9,876

Consolidated Subsidiaries
Unconsolidated Subsidiaries (equity method applied)
Affiliates (equity method applied only)

16 companies- companies
1 companies

3.Reference - FY2006 Consolidated Financial Forecast (April 1, 2006 - March 31, 2007)
Consolidated Earnings Forecast
Yen(million)
Change from FY2005(%)
Net Sales
129,000+9.22%
Operating Income
3,200+230.92
Net Income
200
Net Income per Share
1.56 yen-

Note for the use of the above forecasted business results.
The forecast described above is based upon information available as of the present time. Actual results
may differ largely from the forecast due to changing conditions, potential risks and other uncertainties.

Consolidated Statements of Operations

Yen (millions)

Net sales

FY2005

FY2004(Apr'05-Mar'06)(Apr'04-Mar'05)¥¥

118,109

100,441

Operating costs and expenses
Cost of sales

106,271

87,862

Selling, general and administrative expenses

10,871

11,037

117,142

98,899967

1,542Interest and dividend income

7566

Equity in earnings (losses) of affiliates, net

39

22

(641)

(721)

(2,942)(2,630)(3,469)(3,263)(2,502)(1,721)

Current

755

854

Deferred

45

28

800

882

(3,302)(2,603)

(24)

(110)

¥ ( 3,326)¥ ( 2,713)

Operating income (loss)
Other income (expenses)

Interest charges
Other, net

Income (loss) before income taxes and minority interests
Income taxes

Income (loss) before minority interests
Minority interests in income of consolidates subsidiaries

Net income (loss)

Consolidated Balance Sheets
Yen (millions)
31-Mar-06

31-Mar-05

AssetsCurrent assets
Cash and time deposit
Notes receivable-trade
Accounts receivable-trade
Inventories
Deferred tax assets
Other current assets
Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets
Building and structures
Other depreciable assets
Land
Construction in progress
Total tangible fixed assets
Intangible assets
Investments and long-term loans
Securities investments
Deferred tax assets
Other investments and long-term loans
Total investments
Total assets¥ 7,598976
29,677
9,252
161
2,897
(45)
50,516¥ 9,894968
23,072
7,991
82
3,792
(121)
45,678

8,625
9,652
4,471
195
22,943

9,086
9,259
4,393
58
22,796

695

724

238
109
2,115
2,462

120
230
1,818
2,168

¥ 76,616¥ 71,366¥ 173
28,81328,159
1,444
292
4,336
63,217¥ 276
21,08929,916
7,506
452
3,226
62,465

1,162
5,237
102
6,501

2,306
4,749
78
7,133

558

534

22,756
17,167(33,145)
22
(435)
(25)
6,340

19,256
13,635(29,893)16(1,759)(21)
1,234¥ 76,616¥ 71,366

Liabilities, minority interests and shareholders' equity
Current liabilities
Notes Payable-trade
Account payable-trade
Short-term borrowings
Current portion of long-term debt
Accrued income taxes
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Accrued retirement benefits
Other long-term liabilities
Total long-term liabilities
Minority interests in consolidated subsidiaries
Shareholders' equity
Common stock
Capital surplus
DeficitUnrealized gains (losses) on securities, net of taxes
Foreign currency translation adjustments
Treasury stock
Total shareholders' equity
Total Liabilities, minority interestsand shareholders' equity

Consolidated Statements of Cash Flows
Yen (millions)
FY2005

FY2004(Apr'05-Mar'06)(Apr'04-Mar'05)¥ ( 2,502)¥ ( 1,721)

3,470

3,846

Equity in earnings of affiliates, net

(39)

(22)

(Increase) decrease in receivable-trade(4,954)

4,604(Increase) decrease in inventories

(815)

891

Increase (decrease) in payable-trade

5,657(3,401)Other, net

3,992

761

Cash generated from operations

4,809

4,958

Interest paid

(658)

(731)

75

66

Income taxes paid

(795)

(752)

Other, net

(79)

(287)

3,352

3,254

(3,415)(2,934)

Proceeds from sales of tangible fixed assets

309

373

Purchase of intangible assets

(27)

(54)

Other, net

(376)

(419)

(3,509)(3,034)7,000-

Proceeds from long-term debt

1

646

Repayment of long-term debt

(6,727)(8,559)

Increase (decrease) in short-term borrowings(2,923)

7,527

13

(76)

(2,636)

(462)

494

96

Net increase (decrease) in cash and cash equivalents(2,299)(146)

Cash and cash equivalents at beginning of year

Cash flows from operating activities
Income (loss) before income taxes and minority interests
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities
Depreciation and amortization

Interest and dividends received

Net cash provided by operating activities

Cash flows from investing activities
Purchase of tangible fixed assets

Net cash used in investing activities

Cash flows from financing activities
Proceeds from issuance of new common stock

Other, net
Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

9,876

9,098

Increase in cash and cash equivalents from change of consolidated accounting
period of consolidated subsidiaries-

440

Increase in cash and cash equivalents from new consolidation-

660

Decrease in cash and cash equivalents due to exclusion from consolidation

Cash and cash equivalents at end of year

-

(176)

¥ 7,577¥ 9,876

Consolidated Statements of Shareholders' Equity
Yen (millions)
31-Mar-06

31-Mar-05¥ 19,256¥ 19,256

Increase from capital stock issued

3,500

-

Ending balance

22,756

19,256¥ 13,635¥ 13,635

3,500

-

32

-

17,167

13,635¥ ( 29,893)¥ ( 27,023)

74-

Increase in earnings from addition of consolidated companies-

67

Net increase(decrease) in deficit from change of consolidated accounting period of
consolidated subsidiaries

-

(224)

Net income(loss)(3,326)(2,713)Ending balance(33,145)(29,893)

¥ 16

¥ 12

Net increase in unrealized gain(loss) on securities

6

4

Ending balance2216¥ ( 1,759)¥ ( 1,662)

Net increase in foreign currency transaction adjustment

1,324

(97)

Ending balance(435)(1,759)¥ ( 21)¥ ( 15)Net decrease(increase) Treasury stock

(4)

(6)

Ending balance

(25)

(21)

Common Stock:
Beginning balance

Capital Surplus:
Beginning balance
Increase in capital surplus from capital stock issued
Other
Ending balance

Retained Earnings(Deficit)
Beginning balance
Increase in earnings from change of overseas subsidiary's functional currency

Unrealized Gain(loss) on Securities,net of taxes:
Beginning balance

Foreign Currency Translation Adjustments:
Beginning balance

Treasury Stock:
Beginning balanceConsolidated Business Segment Information
Yen (millions)Electronic Materials

Net Sales

Unaffiliated Customers
Intersegment
Total

FY2005

FY2004(Apr'05-Mar'06)(Apr'04-Mar'05)¥ 94,394
94,394(445)¥ 76,368
76,368(331)

Operating Income

23,71523,715
1,412

24,07324,073
1,873

Elimination

Net Sales
Operating Income

-

-

Total

Net Sales
118,109
118,109967

100,441
100,441
1,542

Operating Income (Loss)
Batteries

Net Sales
Unaffiliated Customers
Intersegment
Total

Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)

Consolidated Geographic Segment InformationJapan

Yen (millions)
FY2005

FY2004(Apr'05-Mar'06)(Apr'04-Mar'05)

Net Sales
Unaffiliated Customers
Intersegment
Total¥ 57,434
10,70068,134(474)¥ 57,191
10,89568,086424

56,65620,991
77,647
2,522

38,314
19,951
58,265
1,653

1,710
8
1,718
(70)

2,267
2,267
(96)

Operating Income

2,309
73
2,382
61

2,669
63
2,732
63

Elimination

Net Sales
Operating Income(31,772)(1,072)(30,909)
(502)

Total

Net Sales
118,109
118,109967

100,441
100,441
1,542

Operating Income (Loss)
Asia

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income
North America

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income
EuropeNet Sales
Unaffiliated Customers
Intersegment
Total

Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)Net Overseas Sales by Customer's Geographic Location

Asia
North America
Other countries
Total

Yen (millions)
FY2005

FY2004(Apr'05-Mar'06)(Apr'04-Mar'05)¥ 59,046
5,205
5,525
69,776¥ 40,387
6,041
6,232
52,660Business Performance and Finances
Business Performance Overview
In the relatively stable economic environment, electronics device market which is the coremarket for the FDK Group, was increased demand for devices on digital equipment such as LCD
TVs, mobile phones, PCs thanks to the recovery of consumer spending in Japan, though the pricepressure from electronics companies was increased and soaring crude oil prices affected raw
material prices.
In this circumstance, the FDK Group enhanced production innovation, put management
resources in LCD business, reconstructed a subsidiary aimed at the effective operation of entire
business, and proceeded the selection and concentration of promising products in terms of theutilization on FDK’s competitive material technologies.
Consolidated net sales were 118,109 million yen, increased 17.6 % from the last fiscal year due
to the sale increase of new products such as backlight inverter modules for LCDs. Operating
income, however, was 967 million yen, decreased 37.3 % from the last fiscal year. Loss before
income taxes and minority interests was 2,502 million yen, due to the increased cost beard by theearly introduction of new products and the soaring raw material cost. Consolidated net loss was
3,326 million yen. This was the result of post in other expenses of 2,163 million yen generated
losses from the depreciation on fixed assets, the reorganization of the subsidiary, the disposal ofunderperforming businesses and so on.
Divisional sales overview would be reported as follows.

Electronic Component Business
Module System Division
Sales of timing control boards for LCDs were largely increased from the last fiscal year due tothe increased orders from companies in China and Taiwan. Sales of backlight inverter modules
for LCDs were highly appreciated on the large LCD use in the market and were increased by theorders from companies in Korea. Sales of hybrid modules for PDPs and switching power supplies
were decreased from the last fiscal year. As for switching power supplies, Senpai series, newstandard DC-DC converter models for non-isolated point of load(POL) were developed andconducted marketing activities globally for manufacturers of servers, storages, networking
equipment, and so on.
As a result of the above factors, net sales of this division were 70,611 million yen of 40.0%
increase from the last fiscal year.
Component Division
Sales of coil devices were much increased from the last fiscal year, due to the increased sales oftransformers for backlight inverter modules, as they were highly appreciated on the large LCD
use in the market. Sales of multilayer power chip inductors were increased from the last fiscal
year due to the extensive sales efforts and expansion of product lineup for the mobile phonemarket. Sales of stepper motors were increased in compact models for digital cameras andcamera phones and in-vehicle models but decreased in OA equipment use models from the last
fiscal year. Sales of ferrite products were decreased from the last fiscal year due to the transfer

of this business to the newly established JV (equity method affiliate) in China last fiscal year.
As a result of the above factors, net sales of this division were 23,783 million yen of 8.2%
decrease from the last fiscal year.
As a result, net sales of the electronic component business were 94,394 million yen of 23.6%
increase from the last fiscal year.

Battery Business
FDK has been strived to develop new products and technologies to offer safe, high performance,
environment-friendly and high-quality batteries to customers.
In domestic market, FDK strengthened sales promotion of the core products such as thehigh-performance alkaline battery “G series” and the world best performance alkaline battery “GPlus”, though price competition was intensified by the inflow of low price alkaline batteries fromoverseas. Slow sales in North America affected FDK’s overall battery business As a result, net
sales of battery business were 23,715 million yen, decreased 1.5 % from the last fiscal year.

Cash Flow Condition
Cash flows from operating activities increased to 3,352 million yen due to the increase of theliquidation of receivables and the increase in payable-trade, though there were some decrease
due to the temporally increase in receivable-trade, increased inventories by the increased sales,
and the allocation of loss before income taxes and minority interests.
Cash flows from investing activities increased to 3,509 million yen as a result of investment on
the manufacturing facilities, primarily on a module system business for LCDs.
Cash flows from financing activities decreased to 2,636 million yen as a result of theredemption of borrowing, though 7,000 million yen was accrued by the issuance of new shares.
As a result, balance of cash and cash equivalents at the end of the fiscal year was 7,577 million
yen, decreased 2,299 million yen from the beginning of the fiscal year.