FOR IMMEDIATE RELEASE
January 29, 2020
Consolidated Financial Results for the Third Quarter Ended December 31, 2019
(April 1, 2019 to December 31, 2019)(URL: http://www.fdk.com)

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 : Business Promotion 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 Nine-Months Period Ended December 31, 2019a. Consolidated Statements of Income
Yen(millions)
Nine months
Nine months
ended Dec. 31,
ended Dec. 31,
2018
2019
Net Sales
55,34847,573Operating Profit
1,037
811
Ordinary Profit
1,299
684
Profit (Loss) attributable to
391
(933)
owners of parent

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

13.71 yen
13.56 yen

Change (%)(14.0)(21.8)(47.3)-

Yen(millions)
FY2018,
ended Mar. 31,
201972,113
823
718
(290)

(27.06) yen- yen(9.91) yen- yen

U.S.Dollars(millions)
Nine months
ended Dec. 31,
2019$434.26$7.40$6.24($8.52)(24.70) cent
- centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)
Nine months
ended Dec. 31,
201836,68818,66055,348Yen(millions)
Nine months
ended Dec. 31,
201934,327
13,24547,573Yen(millions)
FY2018,
ended Mar. 31,
2019
47,76324,35072,113c. Consolidated Financial Position

Total Assets
Net Assets
Owners' Equity
Capital Adequacy Ratio

Yen(millions)
As of March 31,
As of Dec. 31,
2019
2018
54,14550,553
10,280
9,041
10,276
9,036
19.0 %
17.9 %

d. Consolidated Statements of Cash Flows

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

Yen(millions)
Nine months
Nine months
ended Dec. 31,
ended Dec. 31,
2018
2019
1,406
2,993
(1,728)(2,143)

1,372

(180)

4,717

9,322

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

U.S.Dollars(millions)
Nine months
ended Dec. 31,2019$313.35$120.90$434.26

2. Consolidated Financial Forecast for the fiscal year 2019 ending March 31, 2020
(Million of yen, except per share data)
FY2019Change from FY2018
FY201872,113
Net Sales
60,000(16.8) %Operating Profit
700
823(15.0)
Ordinary Profit
500
718(30.4) %Profit (Loss) attributable to owners(2,000)(290)-%
of parent
Basic Earnings per Share(57.96) yen(9.91) yen
Note for the use of the above forecasted business results.
The operating profit and the ordinary profit during the nine months ended December 31, 2019 have already reached the forecasted
amount in the third quarter, and extraordinary loss as career change support program was lower than expected. However, since weunder examination of the impact by relocation of domestic resources and the risk of business in overseas subsidiaries, business forecast
which was announced on October 25, 2019 remains unchanged at this moment.
3. Others(1) Material changes in significant subsidiaries during the period: Yes
Consolidated Subsidiaries
12 companies
Unconsolidated Subsidiaries (equity method applied)
3 companies
Affiliates (equity method applied only)
0 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: Yes
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.
December 31, 2019: 34,536,302 shares
March 31, 2019: 34,536,302 shares
2) Number of treasury stock at the end of each period
December 31, 2019: 28,424 shares
March 31, 2019: 27,765 shares
3) Average number of shares in each period.
December 31, 2019: 34,508,270 shares December 31, 2018: 28,562,304 shares(Notes)1. This information is a summary of the earnings report. It does not contain all details included in the earnings reportdisclosed in Japanease.

Consolidated Balance Sheet
Millions of yen
FY2018March 31, 2019
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
Provision for business restructuring
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

Q3/FY2019
December 31, 2019

8,734
18,476
2,790
3,067
3,035
1,082
(101)
37,085

9,322
16,281
2,715
2,446
2,859
1,210
(27)
34,808

6,146
4,526
984
2,540
1,341
263
15,803
481

5,788
4,412
854
2,536
971
126
14,691
483

193
2
65
513
(0)
775
17,05954,145

190
1
25
352
(0)
570
15,74550,55314,092
18,400
344
1,894
326
2,816
37,875

13,24318,450
228
2,317
220
868
1,529
36,858

469
198
4,263
675
382
5,989
43,864

226
210
3,514
282
419
4,653
41,511

31,70926,376(45,829)(48)
12,20731,70926,376(46,769)(48)
11,26727
806(2,765)(1,931)
4
10,28054,14522
76(2,330)(2,230)5
9,041
50,553-

Consolidated Statement of Income
Millions of yen
Q3/FY2018

Q3/FY2019

April 18 - December 18

April 19 - December 19

Net sales

55,34847,573

Cost of sales

46,08938,906Gross profit

9,258

8,666

Selling, general and administrative expenses

8,221

7,855

Operating profit

1,037

811

Interest income

18

24

Dividend income

1313

Foreign exchange gains

408-

Subsidy income

25-

Gain on sales of non-current assets

13

3

Rent income

28

22

Other

91

62

Total non-operating income

599

126

112

103

Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses-

13

Share of loss of entities accounted for using equity method

19

15

Loss on retirement of non-current assets

114

64

Other

90

55

Total non-operating expenses

337

253

1,299

684

Ordinary profit
Extraordinary income
Gain on sales of investments in capital of subsidiaries and associates-

331

Total extraordinary income-

331

Provision for business restructuring-

868

Loss on sales of businesses-

745

Extraordinary loss-

Loss on liquidation of subsidiaries

579

Impairmant loss

57

61

Total extraordinary loss

637

1,675

Profit (loss) before income taxes

662

(659)

Income taxes-current

244

219

Income taxes-deferred

27

53

Total income taxes

271

273

Profit (loss)

391

(932)

Profit (Loss) attributable to non-controlling interests(0)1

Profit (loss) attributable to owners of parent

391

(933)

Consolidated Statement of Comprehensive Income
Millions of yen
Q3/FY2018

Q3/FY2019

April 18 - December 18

April 19 - December 19

391

(932)

Valuation difference on available-for-sale securities

(13)

(4)

Foreign currency translation adjustment

(242)

(310)

Remeasurements of defined benefit plans, net of tax

305

435

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

(26)

(419)

Other comprehensive income

23

(299)

Comprehensive income

414(1,232)414(1,233)(0)

1Profit (loss)
Other comprehensive income(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
Q3/FY2018

Q3/FY2019

April 18 - December 18

April 19 - December 19

Profit (loss) before income taxes

662

(659)

Depreciation and amortization

1,601

1,601

57

61

Cash flows from operating activities

Impairment loss
Increase (decrease) in provision for business restructuring-

868

Loss (gain) on sales of businesses-

745

Loss (gain) on sales of investments in capital of subsidiaries and associates

-

(331)

Loss on liquidation of subsidiaries

579-

Increase (decrease) in net defined benefit liability

(282)

(325)

Increase (decrease) in allowance for doubtful accounts

(1)

(73)

Interest and dividend income

(31)

(37)

Interest expenses

112

103

Foreign exchange losses (gains)(0)2

Share issuance cost20

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

19

15

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

(13)

(3)

Loss on retirement of non-current assets

114

64

Subsidy income(25)

Decrease (increase) in notes and accounts receivable-trade

(243)

1,966

Decrease (increase) in inventories(1,553)

598

Increase (decrease) in notes and accounts payable-trade

1,062

(663)

Increase (decrease) in accrued expenses

(578)

(939)

Other, net

198

244

Subtotal

1,697

3,238

Interest and dividend income received

31

37

Proceeds from subsidy income

25-Interest expenses paid

(113)

(104)

Income taxes paid

(234)

(177)

Net cash provided by (used in) operating activities

1,406

2,993

(1,715)(914)

Proceeds from sales of property, plant and equipment

23

26

Purchase of intangible assets

(39)

(59)

Purchase of investment securities

(3)

(3)

Proceeds from sales of investments in capital of subsidiaries and associates-

7

Payments for transer of business-(1,205)--

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

Other, net

6

5(1,728)(2,143)(965)

50

Purchase of treasury shares

(0)

(0)

Proceeds from issuance of shares acquisition rights

55-

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

2,619

-

Repayments of finance lease obligations

(337)

(229)

Net cash provided by (used in) financing activities

1,372

(180)

Effect of exchange rate change on cash and cash equivalents

(53)

(81)

Net increase (decrease) in cash and cash equivalents

996

588

Cash and cash equivalents at beginning of period

3,720

8,734

Cash and cash equivalents at end of period

4,717

9,322

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

Consolidated Business Segment Information
Millions of yen
Q3/FY2018 April 18 - December 18
Business Segments Reported
Total

Electronic
Devices

Batteries

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers

36,68818,66055,348-55,348

-

-

-

-

-

Total

36,68818,66055,348-55,348Segment profit (loss)

1,882

(844)

1,037

-

1,037

Adjustments

Consolidated
Statements

Intersegment

Q3/FY2019 April 19 - December 19
Business Segments Reported
Total

Electronic
Devices

Batteries

Net sales
Unaffiliated customers

34,327

Intersegment

13,245-47,573--47,573

-

-

Total

34,327

13,24547,573-47,573

Segment profit (loss)

1,273

(461)

811

-

811

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
The business environment of the FDK Group (“FDK”) during the nine months ended December 31, 2019
remained uncertain condition due to stagnation in demand in the electronic industry to which FDK belongs, national
policies and continuation of trade friction such as U.S. and China, and economic trend of Europe, regardless the
economic trend of Japan was steady from improving employment, and impact on the consumption tax increase
limited under the government measures such as the introduction of reduced tax rates and the redemption of cashless
settlement points.
Under these circumstances, FDK have formulated a vision that “FDK group, as a Smart Energy Partner, assemble
advanced technologies, would like our customers to best utilize electric energy in a safe and efficient manner, andcontribute to materialization and development of sustainable society.” and a Mid Term Business Plan “R1” startingfrom FY2020 in order to accomplish “10 years’ scheme” as FDK’s “Status-to-be-in-10-years”. In an effort toachieve them, during the nine months in FY2019, FDK executed some of these measures such as a transfer of partof the Electronic Device business, the optimization of personnel under career change support program, andreorganization of the business portfolio, and has strived to develop next generation batteries such as small all-solidstate SMD battery, metal-hydride air rechargeable battery and rechargeable nickel zinc battery, and expanded salesof batteries for industrial use in current business. Furthermore FDK released FUJITSU Alkaline Battery “Premium
S”, which was improved for the performance of long life, long storage and leakage prevention, and strived to increase
sales volume of alkaline battery together with Ni-MH battery for consumer market in the peak demand season suchas Christmas and yeas-end sales.
Regarding the business result for the third quarter ended December 31, 2019, the sales of Battery businessdecreased in Japanese and overseas consumer market due to intensifying competition with Chinese companies andthat of Electronic Device business also decreased due to discontinuing operations of an overseas subsidiary in last
fiscal year and transferring part of the Electronic Device business. As a result, sales was 47,573 million yen,decreased by 7,775 million yen (14.0%) from the same period of last year.
With regard to the profit and loss, the Battery business decreased its profit from the same period of last year due tosales decrease of Ni-MH batteries and Alkaline batteries in consumer market in spite of effort for cost reduction. On
the other hand, Electronic Device business decreased its loss amount from the same period of last year because of theeffect by selection and concentration such as switching to high value-added products and reduction of fixed expenses.
As a result, the operating profit was 811 million yen, decreased by 226 million yen from the same period of last year.
The ordinary profit was 684 million yen, decreased by 615 million yen from the same period of last year. The loss
attributable to owners of parent in this period was 933 million yen (it was 391 million yen profit attributable forowners of parent in the same period last year) due to a 745 million yen of extraordinary loss as provision for loss on
sales of businesses of part of Electronic Device business, a 331 million yen of extraordinary income as gain on salesof investments in capital of subsidiaries and associates on the transfer of the whole equity interest in equity method
affiliate for the 2nd quarter in FY2019 and a 868 million yen of extraordinary loss as career change support programin this quarter.
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Battery business totally decreased from the same period of last year due to decrease of sales in the
consumer market, though sales in industrial market and equipment business was steady.
Sales of Ni-MH batteries was same level as the period last year due to decrease in Japanese and overseas consumer
market, though business opportunity and order for the industrial-use increased. Sales of Alkaline batteries decreased
from the same period of last year due to decrease in Japanese and overseas consumer market, though the sales forindustrial-use was steady. Sales of Lithium batteries was same level as the period last year due to decrease of sales
for smoke detectors in Japan, though sales for security and smart meters in Japan and overseas was steady.
Equipment business was steady, supported by stable demand.
As a result, sales for the Battery business was 34,327 million yen, decreased by 2,360 million yen from the same
period of last year.

1.3 Electric Device business
Sales of Electric Device business decreased from the same period of last year due to sales decrease by business
transfer of part of Electronic Device business, in addition to decrease of Signal processing module for LCD by
discontinuing its operations of an overseas subsidiary in last fiscal year, DC-DC power modules and Switching power
supply.
Sales of DC-DC power module decreased from the same period of last year due to decrease of sales for server andstorage system, though sales for automotive-use was steady. Sales of Signal processing modules for LCD dropped
as a total from the same period of last year due to sales decrease by discontinuing its operations of an overseas
subsidiary and decrease for industrial-use, though sales for automotive, PC and tablet-use expaneded. Sales of
Switching power supply decreased from the same period of last year due to decrease of sales for semiconductor
manufacturing equipment and LCD manufacturing equipment. Sales of Toner increased from the same period oflast year.
As a result, sales for the Electronic Device business was 13,245 million yen, decreased by 5,415 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 nine months in FY2019 decreased by 3,592 million yen (-6.6%) from the end of theprevious fiscal year to 50,553 million yen. Current assets decreased by 2,277 million yen (-6.1%) from the end of
the previous fiscal year to 34,808 million yen. Non-current assets decreased by 1,314 million yen (-7.7%) from theend of the previous fiscal year to 15,745 million yen. The principal causes for decreased current assets were a 2,195
million yen decrease in note and accounts receivable-trade and a 621 million yen decrease in work in process, though
was a 588 million yen increase in cash and deposits. The principal causes for decreased non-current assets were a
1,111 million yen decrease in property, plant and equipment.
Total liabilities at the end of nine months in FY2019 decreased by 2,353 million yen (-5.4%) from the end of theprevious fiscal year to 41,511 million yen. Current liabilities decreased by 1,016 million yen (-2.7%) from the endof the previous fiscal year to 36,858 million yen. Non-current liabilities decreased by 1,336 million yen (-22.3%)
from the end of the previous fiscal year to 4,653 million yen. The principal cause of decreased current liabilities
was a 848 million yen decrease in notes and accounts payable-trade. The principal cause of decreased non-current
liabilities was a 748 million yen decrease in net defined benefit liability.
The interest-bearing debt decreased by 309 million yen from the end of the previous fiscal year to 18,904 million
yen.
Total net assets at the end of nine months in FY2019 decreased by 1,238 million yen (-12.0%) from the end of theprevious fiscal year to 9,041 million yen. The main factors for the decrease in total net assets were a 939 million
yen decrease retained earnings by posting a loss attributable to owners of parent and a 730 million yen decrease inforeign currency translation adjustment, though was a 435 million yen increase in remeasurements of defined benefit
plans.
2.2 Cash Flow Condition
Cash flows from operating activities increased by 2,993 million yen from the beginning of this fiscal year due to aincrease in cash and cash equivalents (“cash”) by posting an increase in depreciation and amortization, decrease innotes and accounts receivable-trade, increase in provision for business restructuring and a decrease in inventories,
though was a decrease in accrued expenses, decrease in notes and accounts payable-trade and loss before income
taxes (Cash flows from operating activities for the last fiscal year increased by 1,406 million yen from the beginningof the last fiscal year).
Cash flows from investment activities decreased by 2,143 million yen from the beginning of this fiscal year due toa decrease in cash by posting a payments for transfer of business and purchase of property, plant and equipment (Cashflows from investment activities for the last fiscal year decreased by 1,728 million yen from the beginning of the last
fiscal year).
Cash flows from financing activities decreased by 180 million yen from the beginning of this fiscal year due to an
decrease in cash by posting a repayments of finance lease obligations (Cash flows from financing activities for thelast fiscal year decreased by 1,372 million yen from the beginning of the last fiscal year).
As a result, the balance of cash and cash equivalents on December 31, 2019 was 9,322 million yen, an increase of
588 million yen from the beginning of this fiscal year.
3. Forecast for the Fiscal Year Ending March 31, 2020
The operating profit and the ordinary profit during the nine months ended December 31, 2019 have already reached
the forecasted amount in the third quarter, and extraordinary loss as career change support program was lower than
expected. However, since we under examination of the impact by relocation of domestic resources and the risk ofbusiness in overseas subsidiaries, business forecast which was announced on October 25, 2019 remains unchanged
at this moment.
FDK will promptly announce it if the revision be necessary upon collecting various information including market
trends from now on.