FOR IMMEDIATE RELEASE
July 28, 2010

Consolidated Financial Results for the First Quarter Ended June 30, 2010
(April 1, 2010 to June 30, 2010)

FDK CORPORATION(URL: http://www.fdk.com)
Listing Code No.6955 (Listing Stock Exchange: The Second Section of Tokyo Stock Exchange)
Address : Hamagomu Bldg. 5-36-11 Shimbashi, Minato-ku, Tokyo 105-8677
Contact : Corporate Communication Office, Business Strategy & Planning Department
E-mail: niida@fdk.co.jp
The Consolidated Financial Results is unaudited / U.S. GAPP is not applied

1.Consolidated Operating Results for the Three-Months Period Ended June 30, 2010
a. Consolidated Statements of Operations
Yen

Yen

(millions)(millions)

U.S.Dollars(millions)Three months

Three months

FY2009Three Months

ended June 30,

ended June 30,

ended March 31,

ended June 30,

2010

2009

2010

2010

Net Sales

24,91015,14868,447$283.07

Operating Income (Loss)

1,486

(31)

2,398

$16.89

875

(171)

1,582

$9.94

644

(256)

1,046

$7.32

2.97 yen(1.37) yen

4.98(3.38 cent)--

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

b. Consolidate Business Segment Information
Yen

Yen

(millions)(millions)(millions)Three months

Three months

FY2009Three months

ended June 30,

ended June 30,

ended March 31,

ended June 30,

2010

2009

2010

2010

-

Electronic Devices
Batteries
Total

10,05637,673

5,092

30,773

15,14868,447c. Consolidated Balance SheetYen(millions)
As of June 30,

As of March 31,

2010

2010

Total Assets

67,35164,515

Total Net Assets

3,430

3,258

Shareholders' Equity

4,376

Shareholders' Equity Ratio
Shareholders' Equity
Per Share

U.S.Dollars

4.2

3,732

%

(37.59) yen

4.1%(38.39) yen-

d. Consolidated Statements of Cash FlowsYen(millions)Three months

Three months

ended June 30,

ended June 30,

2010

2009

Net cash provided by(1,128)

936

(272)

(159)

1,373

(2,475)

7,089

5,779

operating activities
Net cash provided byinvesting activities
Net cash provided byfinancing activities
Cash and cash equivalents
at end of period
Consolidated Subsidiaries

16 companies

Unconsolidated Subsidiaries (equity method applied)- companies

Affiliates (equity method applied only)

1 companies(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 88yen=$1
3.Percentages in this statement present rate of change compared with the same period last year.

2. Others(1)Changes in significant subsidiaries during the period: No(2)Adoption of simplified accounting methods for quarterly reporting: Yes(3)Changes in accounting policies, procedures, and presentation, etc.
1)Changes resulting from revisions in accounting principles,etc.: Yes
2)Other changes: Yes(4)Number of shares outstanding (common stock)
1)Number of shares outstanding at end of period
June 30, 2010 : 217,505,884 shares

March 31, 2010: 217,505,884 shares

2)Number of treasury shares at end of period
June 30, 2010 : 219,757 shares

March 31, 2010: 218,916 shares3)Weighted average number of shares outstanding during three months ended June 30 of each year.
June 30, 2010 : 217,286,442 shares

June 30, 2009: 187,815,847 shares

Consolidated Balance Sheets
Millions of yen
Q1/FY2010
Jun 30, 2010
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
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Lease 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 noncurrent assets
Total assets
Liabilities
C
Current
t liabilities
li biliti
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Negative goodwill
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

FY2009Mar 31, 2010

7,096
23,590
3,421
3,269
2,243
249
2,724
(116)
42,4797,417
21,458
2,597
2,921
2,047
265
2,428
(113)
39,023

7,788
9,236
632
3,451
377
270
21,756
729

8,079
9,422
804
3,469
402
200
22,378
669

124
12
711
1,538
(0)
2,386
24,872

130
14
688
1,610
(0)
2,444
25,492

67,35164,51520,02225,267
293
223
2,666
341
3,199
52,01419,08823,794
325
230
2,310
433
2,853
49,036

502
2
7,747
3,415
239
11,907
63,921

66
546
3
7,778
3,605
220
12,221
61,25728,301
22,622(46,506)
(40)
4,376

28,301
22,622(47,151)
(40)
3,732

4
(1,548)(1,543)
597
3,430

5
(45)
(1,033)(1,073)599
3,258

67,35164,515

Consolidated Statements of Income
Millions of yen
Q1/FY2009

Q1/FY2010

Apr'09-Jun'09

Apr'10-Jun'10

Net sales

15,14824,910

Cost of sales

13,374

20,519Gross profit

1,774

4,390

Selling, general and administrative expenses

1,805

2,904

(31)

1,486

Interest income

55

Amortization of negative goodwill-

189

Foreign exchange gains

28-

Rent income

7

8

Other

58

51

Total non-operating income

98

254

73

59

-

399

Stock issuance cost

53-

Loss on retirement of noncurrent assets

3

48

Other

95

63

Total non-operating expenses

226

570

(159)

1,170

Gain on sales of subsidiaries and affiliates' stocks

39-

Total extraordinary income

39-

Loss on retirement of noncurrent assets-

174

Business structure improvement expenses

51

-

-

120

51

294

(171)

875

Income taxes-current

64

246

Income taxes-deferred

7

(18)

Total income taxes

71

228

-

646

13

2

(256)

644

Operating income (loss)
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses

Ordinary income (loss)
Extraordinary income

Extraordinary loss

Other
Total extraordinary loss
Income (loss) before income taxes

Income before minority interests
Minority interests in income
Net income (loss)

Consolidated Statements of Cash Flows
Millions of yen
Q1/FY2009

Q1/FY2010

Apr'09-Jun'09

Apr'10-Jun'10

Net cash provided by (used in) operating activities
Income (loss) before income taxes

(171)

875

Depreciation and amortization

531

893

Equity in (earnings) losses of affiliates

43

14

Increase (decrease) in provision for retirement benefits

(59)

(31)

Increase (decrease) in allowance for doubtful accounts

06Interest and dividends income

(5)

(6)

Interest expenses

73

59

Foreign exchange losses (gains)

729

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

(3)

(1)

Loss on retirement of noncurrent assets

3

222

Loss (gain) on sales of stocks of subsidiaries and affiliates

(39)

-

Stock issuance cost

53

-

-

(189)

Amortization of negative goodwill
Decrease (increase) in notes and accounts receivable-trade70(2,815)(399)(1,572)

Increase (decrease) in notes and accounts payable-trade

105

1,741

Increase (decrease) in accrued expenses

(311)

(333)

Other, net

1,172

320

Subtotal

1,073

(785)

Decrease (increase) in inventories

Interest and dividends income received
Interest expenses paid

5

6

(57)

(53)

Income taxes paid

(85)

(295)

Net cash provided by (used in) operating activities

936(1,128)

Payments into time deposits

(3)

(3)

Proceeds from withdrawal of time deposits

10

3

Purchase of property, plant and equipment

(312)

(242)

Net cash provided by (used in) investing activities

Proceeds from sales of property, plant and equipment

875

Purchase of intangible assets

(3)

(109)

Purchase of investment securities

(1)

(0)

Proceeds from sales of investment securities

-

5

150

-

Proceeds from sales of stocks of subsidiaries and affiliates
Other, net

(7)

0

(159)

(272)

(13,225)

1,497

(109)

(73)

Proceeds from issuance of common stock

10,999-Payments for issuance of common stock

(53)

-

Purchase of treasury stock

(0)

(0)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable

Repayments of finance lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(85)

(50)

(2,475)

1,373

(26)

(293)

Net increase (decrease) in cash and cash equivalents(1,724)(321)

Cash and cash equivalents at beginning of period

7,504

7,411

Cash and cash equivalents at end of period

5,779

7,089

Consolidated Business Segment Information
Millions of yen
Q1/FY2009 Apr'09-Jun'09
Electronic
Materials

Batteries

Total

Elimination

Consolidated-

15,148Net sales
Unaffiliated customers

10,056

Intersegment
Total

5,092

15,148

-

-

-

-

-

10,056

5,092

15,148-15,148

(135)

103

(31)

-

(31)

Operating income (loss)

Consolidated Geographic Segment Information
Millions of yen
Q1/FY2009 Apr'09-Jun'09
Japan

North
America

Asia

EuropeTotal

Elimination

Consolidated-

15,148Net sales
Unaffiliated customers

7,811

6,816

Intersegment

170

349

15,148

907

1,463

15

7

2,393

(2,393)

-

Total

8,719

8,279

186

356

17,541(2,393)

15,148Operating income (loss)

(128)

162

(6)

(1)

26

(57)

(31)

Net Overseas Sales by Customer's Geographic Location
Millions of yen
Q1/FY2009 Apr'09-Jun'09

Total sales to foreign customers

Other
Countries

North
America

Asia

6,179

522

Total

770

Consolidated net sales
Percentage of sales to foreign customers
to consolidated net sales

7,471
15,148

48.4%

4.7%

4.4%

57.5%

Consolidated Business Segment Information
Millions of yen
Q1/FY2010 Apr'10-Jun'10
Business Segments Reported
Electronic
Batteries
Materials

Total

Ajustments

Consolidated
Statements
of income

24,910Net sales
Unaffiliated customers

14,280

10,63024,910

-

-

-

-

-

-

Total

14,280

10,63024,910-24,910

Segment income (Operating Income)

1,260

226

1,486

-

1,486

Intersegment

Business Results(1) Analysis of Consolidated Business Results
1. Overview
The business environment of the FDK Group (hereinafter called “FDK”) during the firstquarter that ended June 30, 2010 continued to be a severe situation due to the economic crisis in
Europe which was triggered by the Greece debt crisis, although there was a trend towards a
gradual recovery in the Asian economy.
Under these circumstances, FDK focused on its battery business and promoted a variety ofactivities to create great synergies among its many technologies, such as electronic materials,
electronic devices, batteries, etc., as were defined in the mid-term business plan (START10). In
addition, cost reductions were put in place.
As for FDK’s business results, net sales were 24,910 million yen, a substantial increase of 9,761
million yen from the same period last year. The increase was due to the addition of Ni-MH andlithium battery sales, which were transferred to FDK in the previous fiscal year. Operating
income was 1,486 million yen, an improvement of 1,517 million yen from the same period lastyear. The increase was a result of the business structural reform worked on the previous year andwhich improved profitability in the electronic device business and added the battery businesses.
Income before income taxes was 875 million yen, an improvement of 1,046 million yen from thesame period last year. By posting 294 million yen as extraordinary loss, which included loss onretirement of fixed assets, net income was 644 million yen.
The divisional sales overview is as follows.

2. Battery Business
Sales of alkaline batteries increased from the same period last year due to a sales increase in
OEM products and the implementation of sales activities for the “Fujitsu Alkaline Battery G. D.
R Series” and OEM products. For Ni-MH batteries we engaged in extensive sales activities fortheir broad range of applications, such as shavers, electronic power tools, electronic bicycles andso on, which brought good results. For lithium batteries we conducted extensive sales activities
for cylindrical-type batteries used in the electronic meter, emergency device and security gizmo
markets and for coin-type batteries used in the mobile phone, notebook computer and digital
camera markets.
As a result, sales for the battery business were 14,280 million yen.

3. Electronic Device Business
Sales of coil devices increased from the same period last year due to the large increase in sales
for industrial machinery, while the sales of transformers for liquid crystal displays (LCDs)
and automobiles grew steadily. Sales of piezoelectric components increased from the same
period last year due to a steady increase in sales of ultrasonic motors. Sales of multilayer
power inductors decreased from the same period last year due to a production adjustment ofmobile phones. Sales of toner increased from the same period last year due to a recovery from asluggish market. Sales of optical devices decreased from the same period last year due to a
decline in market need for new submarine cable settlements. Sales of signal processing modules
for LCDs increased from the same period last year due to an increased orders from the market
recovery.
As a result, sales for the electronic device business were 10,630 million yen.

4. Forecast for the First Half and Full Year of Fiscal Year Ending March 31, 2011
Please refer to the “Announcement of the Revised Financial Forecast” announced on July 28,
2010.

(2) Analysis of Financial Condition
1. Status of Assets, Liabilities and Net Assets
Total assets at the end of first quarter on June 30, 2010 increased 2,836 million yen (4.4%) fromthe end of the previous fiscal year to 67,351 million yen. Current assets increased 3,456 million
yen (8.9%) to 42,479 million yen. Noncurrent assets decreased 620 million yen (-2.4%) to 24,872
million yen.
The principal causes for increased current assets were a 2,131 million yen increase in notes
and accounts receivable trade and a 823 million yen increase in merchandise and finished goods.
The principal cause for decreased noncurrent assets was a 622 million yen decrease in total
property, plant and equipment.
Total liabilities at the end of the first quarter on June 30, 2010 increased 2,664 (4.3%) million
yen from the end of the previous fiscal year to 63,921 million yen. Current liabilities increased
2,978 million yen (6.1%) from the end of the previous fiscal year to 52,014 million yen.
Noncurrent liabilities decreased 3,14 million yen (-2.6%) from the end of the previous fiscal year
to 11,907 million yen.
The principal cause of increased current liabilities was a 1,472 million yen increase in short-term loans payable and a 934 million yen increase in accounts payable trade. The principal
cause for decreased non-current liabilities was a 189 million yen decrease in negative goodwill.
The interest-bearing debt decreased 1,323 million yen from the end of the previous fiscal year
to 26,286 million yen.
Total net assets at the end of first quarter on June 30, 2010 increased 171 million yen (5.3%)
from the end of the previous fiscal year to 3,430 million yen. The primary factors for the increase
in total net assets were a 644 million yen increase in retained earnings from posting a net incomeof the first quarter ended June 30, 2010, though there was a 515 million yen decrease in foreign
currency translation adjustment.

2. Cash Flow Condition
Net cash used in operating activities decreased 1,128 million yen from the end of the previous
fiscal year due to the decrease in cash and cash equivalents (“cash”) that resulted from anincrease in notes and accounts receivable trade and in inventories, though there was an increasein cash due to post income before income taxes and depreciation and amortization, and a decreasein notes and accounts payable trade.
Net cash used in investment activities decreased 272 million yen from the end of the previous
fiscal year due to the decrease in cash that resulted from the purchase of property, plants, andequipment.
Net cash used in financing activities increased 1,373 million yen from the end of the previous
fiscal year due to the increase in capital as an increase in short-term loans payable.
As a result, the balance of cash and cash equivalents at the end of June 30, 2010 was 7,089
million yen, a decrease of 321 million yen from the end of the previous fiscal year.