FOR IMMEDIATE RELEASE
July 25, 2018
Consolidated Financial Results for the First Quarter Ended June 30, 2018
(April 1, 2018 to June 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: hirano@fdk.co.jp
The Consolidated Financial Results is unaudited/U.S. GAPP is not applied

1. Consolidated Results for the Three-Months Period Ended June 30, 2018a. Consolidated Statements of Income
Yen(millions)Three months
Three months
ended June 30,
ended June 30,
2017
2018
Net Sales
17,372
17,477
Operating Profit (Loss)
(157)
(123)
Ordinary Profit (Loss)
(161)
193
Profit (Loss) attributable to owner(281)
83
of parent

Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings(1.01) yen- yen

0.30 yen- yen

Change (%)(1.2)-(URL: http://www.fdk.com)

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

(2.25) yen- yen

U.S.Dollars(millions)Three months
ended June 30,
2018$158.11($1.11)
$1.75
$0.75

0.27 cent- centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)Three months
ended June 30,
2017
11,711
5,660
17,372

Yen(millions)Three months
ended June 30,
2018
11,134
6,342
17,477c. Consolidated Financial Position

Total Assets
Net Assets
Owners' Equity
Capital Adequacy Ratio

Yen(millions)
As of March 31,
As of June 30,
2018
2018
51,05450,976
4,293
4,450
4,289
4,446
8.4 %
8.7 %

Yen
(millions)
FY2017,
ended Mar. 31,
2018
48,536
24,592
73,129U.S.Dollars(millions)Three months
ended June 30,
2018$100.72$57.37$158.11

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)Three months
Three months
ended June 30,
ended June 30,
2017
2018
744
1,402
(599)

(720)

1,019

(660)

4,761

3,757

(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 110.54 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 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
0.36 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.
June 30, 2018: 280,363,026 shares
March 31, 2018: 280,363,026 shares
2) Number of treasury stock at the end of each period
June 30, 2018: 272,369 shares
March 31, 2018: 271,437 shares
3) Average number of shares in each period.
June 30, 2018: 280,091,134 shares June 30, 2017: 280,096,788 shares

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
Non-controlling interests
Total net assets
Total liabilities and net assets

1Q/FY2018
June 30, 2018

3,720
20,316
2,781
2,694
2,760
1,150
(105)
33,3183,757
19,531
2,940
3,186
2,980
943
(106)
33,233

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

6,524
4,834
953
2,539
1,308
283
16,444
485

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

207
1
107
497
(0)
813
17,74350,976

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

16,321
18,920
378
2,414
144
2,393
40,571

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

543
191
3,755
1,072
391
5,955
46,52628,301
22,968(45,539)
(47)
5,638

28,301
22,968(45,455)
(47)
5,766

38
948
(2,380)(1,393)
4
4,293
51,05439
919(2,278)(1,320)34,450
50,976

Consolidated Statement of Income
Millions of yen
1Q/FY2017

1Q/FY2018

April 17 - June 17

April 18 - June 18

Net sales

17,372

17,477

Cost of sales

14,737

14,907Gross profit

2,634

2,569

Selling, general and administrative expenses

2,792

2,693

Operating profit (loss)

(157)

(123)

Interest income

45Foreign exchange gains

20

335

Gain on sales of non-current assets

7

12

Rent income

4

9

Other

20

37

Total non-operating income

58

401

Interest expenses

29

30

Share of loss of entities accounted for using equity method

333

Loss on retirement of non-current assets

16

0

Other

12

19

Total non-operating expenses

62

83

(161)

193

Impairmant loss-

22

Total extraordinary loss

-

22

(161)

170

Income taxes-current

92

90

Income taxes-deferred

29

(3)

Total income taxes

121

87

Profit (loss)

(282)

83

(0)

(0)

(281)

83

Non-operating income

Non-operating expenses

Ordinary profit (loss)
Extraordinary loss

Profit (loss) before income taxes

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

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

1Q/FY2018

April 17 - June 17

April 18 - June 18

(282)

83

Valuation difference on available-for-sale securities

10

Foreign currency translation adjustment

68

(26)

Remeasurements of defined benefit plans, net of tax

109

101

3

(2)

Other comprehensive income

183

73

Comprehensive income

(99)

156

Comprehensive income attributable to owners of the parent

(98)

156

Comprehensive income attributable to non-controlling interests

(0)

(0)

Profit (loss)
Other comprehensive income

Share of other comprehensive income of entities accounted for using equity method(Comprehensive income attributable to)Consolidated Statement of Cash Flows
Millions of yen
1Q/FY2017

1Q/FY2018

April 17 - June 17

April 18 - June 18

Cash flows from operating activities
Profit (loss) before income taxes

(161)

170

Depreciation and amortization

515

529

Impairment loss-

22

Increase (decrease) in net defined benefit liability

(86)

(91)

Increase (decrease) in allowance for doubtful accounts(9)0Interest and dividend income

(5)

(17)

Interest expenses

29

30

Foreign exchange losses (gains)

(0)

(0)

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

333

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

(7)

(12)

Loss on retirement of non-current assets

160Decrease (increase) in notes and accounts receivable-trade

528

805

Decrease (increase) in inventories

(978)

(870)

Increase (decrease) in notes and accounts payable-trade

1,169

1,034

Increase (decrease) in accrued expenses

(538)

(631)

Other, net

414

543

Subtotal

890

1,547

5

17

Interest expenses paid

(30)

(24)

Income taxes paid

(121)

(138)

Net cash provided by (used in) operating activities

744

1,402

(664)

(742)

Proceeds from sales of property, plant and equipment

78

21

Purchase of intangible assets

(11)

-

Purchase of investment securities

(1)

(1)

Other, net

(0)

1

(599)

(720)

1,540

(535)

(0)

(0)

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

(385)

-

Repayments of finance lease obligations

(135)

(125)

Net cash provided by (used in) financing activities

1,019

(660)

58

15

Net increase (decrease) in cash and cash equivalents

1,222

36

Cash and cash equivalents at beginning of period

3,538

3,720

Cash and cash equivalents at end of period

4,761

3,757

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

Effect of exchange rate change on cash and cash equivalents

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

Electronic
Devices

Batteries

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers

11,711

5,660

17,372-

17,372

-

-

-

-

-

11,711

5,660

17,372-

17,372

325

(483)

(157)

-

(157)

Adjustments

Consolidated
Statements

Intersegment
Total
Segment profit (loss)

1Q/FY2018 April 18 - June 18
Business Segments Reported
Total

Electronic
Devices

Batteries

Net sales
Unaffiliated customers

11,134

Intersegment
Total
Segment profit (loss)

6,342
-

17,477--

17,477--

11,134

6,342

17,477-

17,477

218

(342)

(123)

-

(123)

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
The business environment of the FDK Group (“FDK”) during the nine months ended June 30, 2018 remained
uncertain condition, such as the concern about the adverse effect on the global economy due to protectionist
movements on trading of each country 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 brought together the strengths of battery technology, electrical circuit
technology and power electronic technology to integrate battery solutions with electronic technology on the basis ofbatteries 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 andautomotive accessories FDK strived to develop new customers and expand sales in Japan and overseas.
Regarding the business results in the first quarter of Battery business, Sales of Ni-MH batteries and Lithium
batteries decreased in the industrial market, while the sales of consumer market was steady such as Alkaline batteries
for internet sales and Ni-MH batteries in domestic and overseas retail market. As a result, consolidated sales of thisperiod ended June 30, 2018 was 17,477 million yen, increased by104 million yen (0.6%) from the same period oflast year.
With regard to profit and loss in the Battery business, profit was decreased from the same period of last year due
to sales decrease of Ni-MH batteries and Lithium batteries, and increase of material cost of Alkaline batteries andLithium batteries. And in the Electronic Device business, loss decreased from same period of last year due to sales
increase. As a result, the operating loss was 123 million yen (it was 157 million yen operating loss in the same
period of last year). The ordinary profit in this period was 193 million yen (ordinary loss was 161 million yen in
the same period last year). The profit attributable to owners of parent in this period was 83 million yen (it was 281
million yen loss attributable for owners of parent in the same period last year). It was achieved by non-operating
income of 335 million yen as the foreign exchange gains.
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Power Storage Systems was decreased from the same period of last year due to sales decrease of Back-up
use for telecommunication equipment. Sales of Ni-MH batteries decreased from the same period last year, due tosales decrease of industrial use, although sales of domestic and overseas retail market were steady. Sales of Alkaline
batteries was stable and almost same as the same period of last year due to steady sales for internet sales, althoughsales of OEM products decreased in domestic and overseas market. Sales of Lithium batteries decreased from thesame period of last year due to the sluggishness of infrastructure market in Japan and overseas, although sales ofsmoke detectors in overseas market was steady.
As a result, sales for the Battery business was 11,134 million yen, decreased by 577 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 industrial
equipment. Sales of Multi-layer Power Inductor products was decreased from the same period last year, due to sales
decrease for smart phone and integrated circuit application. Sales of DC-DC Power Module increased from thesame period last year due to the steady sales for industrial equipment. Sales of Signal Processing Modules for LCD
increased from the same period last year, due to steady sales for industrial equipment, touch panel, automotive use
and large size LCD display.
As a result, sales for the Electronic Device business was 6,333 million yen, increased by 682 million yen from thesame period last year.

(2) Analysis of Financial Condition
2.1 Status of Assets, Liabilities and Net Assets
Total assets at the end of first quarter in FY2018 decreased by 77 million yen (-0.2%) from the end of the previous
fiscal year to 50,976 million yen. Current assets decreased by 85 million yen (-0.3%) from the end of the previous
fiscal year to 33,233 million yen. Non-current assets increased by 7 million yen (0.0%) from the end of the previous
fiscal year to 17,743 million yen. The principal causes for decreased current assets were a 784 million yen decreasein notes and accounts receivable-trade, though was a 491 million yen increase in work in process.
Total liabilities at the end of first quarter in FY2018 decreased by 233 million yen (-0.5%) from the end of theprevious fiscal year to 46,526 million yen. Current liabilities increased by 7 million yen (0.0%) from the end of theprevious fiscal year to 40,571 million yen. Non-current liabilities decreased by 241 million yen (-3.9%) from theend of the previous fiscal year to 5,955 million yen. The principal cause of increased current liabilities was a 1,090
million yen increase in notes and accounts payable-trade, though was a 535 million yen decrease in short-term loans
payable. The principal cause of decreased non-current liabilities was a 144 million yen decrease in long-term
accounts payable – other.
The interest-bearing debt decreased by 635 million yen from the end of the previous fiscal year to 19,841 million
yen.
Total net assets at the end of first quarter in FY2018 increased by 156 million yen (3.6%) from the end of theprevious fiscal year to 4,450 million yen. The main factors for the increase in total net assets were a 83 million yen
increase in retained earnings by posting a 101 million yen increase in remeasurements of defined benefit plans and a
profit attributable to owners of parent.
2.2 Cash Flow Condition
Cash flows from operating activities increased by 1,402 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, decreasein notes and accounts receivable-trade and depreciation and amortization, though was a decrease in cash by posting
an increase in inventories and decrease in accrued expenses (Cash flows from operating activities for the last fiscal
year increased by 744 million yen from the beginning of the last fiscal year).
Cash flows from investment activities decreased by 720 million yen from the beginning of this fiscal year due to adecrease in cash by posting a purchase of property, plant and equipment (Cash flows from investment activities forthe last fiscal year decreased by 599 million yen from the beginning of the last fiscal year).
Cash flows from financing activities decreased by 660 million yen from the beginning of this fiscal year due to adecrease in cash by posting a short-term loans payable (Cash flows from financing activities for the last fiscal year
decreased by 1,019 million yen from the beginning of the last fiscal year).
As a result, the balance of cash and cash equivalents on June 30, 2018 was 3,757 million yen, an increase of 36
million yen from the beginning of this fiscal year.

3. Forecast for the Fiscal Year Ending March 31, 2018
FDK has not changed its business forecast which was announced on April 26, 2018.
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.