FOR IMMEDIATE RELEASE
July 27, 2016
Consolidated Financial Results for the First Quarter Ended June 30, 2016
(April 1, 2016 to June 30, 2016)
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 : Public and Investor Relations Dept., General Affairs & Personnel 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, 2016a. Consolidated Statements of Income
Yen(millions)Three months
Three months
ended June 30,
ended June 30,
2015
2016
Net Sales
19,35517,805
Operating Income
390
(317)
Ordinary Income (Loss)
452
(634)
Profit attributable to owners
441
(713)
of parent

Amounts Per Share of Common Stock:
Basic Earnings
Diluted Earnings

1.58 yen- yen(2.55) yen- yen

Change (%)(8.0)-(URL: http://www.fdk.com)

Yen(millions)
FY2015,
ended Mar. 31,
2016
80,745
1,580
658
167

0.60 yen- yen

U.S.Dollars(millions)Three months
ended June 30,
2016$172.93($3.08)($6.16)($6.93)(2.47) cent
- centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)Three months
ended June 30,
201512,2207,135
19,355Yen(millions)Three months
ended June 30,
2016
11,507
6,298
17,805c. Consolidated Financial Position

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

Yen(millions)
As of March 31,
As of June 30,
2016
2015
54,21752,736
7,754
5,867
7,070
5,188
13.0 %
9.8 %Yen(millions)
FY2015,
ended Mar. 31,
2016
51,72729,01780,745

U.S.Dollars(millions)Three months
ended June 30
2016$111.76$61.17$172.93

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,
2015
2016
985
(1,146)
(705)

(241)

(425)

447

4,724

4,480

(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 102.96 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 2016 ending March. 31, 2017
(Million of yen, except per share data)
FY2016
Change from FY2015
FY2015Net Sales
82,000%80,745
1.6
Operating Income (Loss)
1,500
1,580
(5.1)
Ordinary Income
1,000
658
51.8 %
Profit attributable to owners of parent
500
167
198.1 %Net Income per Share
1.79 yen
0.60 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, 2016.
3. Others(1) Changes in material subsidiaries during the period: No
Consolidated Subsidiaries
14 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.
June 30, 2016: 280,363,026 shares
March 31, 2016: 280,363,026 shares
2) Number of treasury shares at the end of each period
June 30, 2016: 261,622 shares
March 31, 2016: 260,914 shares3) Weighted average number of shares outstanding in each period.
June 30, 2016: 280,101,755 shares June 30, 2015: 280,110,692 shares

Consolidated Balance Sheet
Millions of yen
FY2015
March 31, 2016
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
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
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 share
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/FY2016
June 30, 2016

5,952
18,731
3,011
3,148
1,830
139
1,916
(84)
34,646

4,480
18,199
3,258
3,119
2,165
160
1,999
(77)
33,305

7,120
4,440
1,021
2,700
1,867
763
17,913
552

7,116
4,559
1,009
2,659
1,716
769
17,830
525

169
0
272
24
638
(0)
1,104
19,571
54,217

168
1
276
38
590
(0)
1,074
19,43052,736

14,976
15,680
522
2,994
302
3,120
37,597

14,872
16,260
507
3,393
154
3,234
38,422

1,135
99
4,890
2,472
269
8,866
46,463

981
94
4,808
2,297
265
8,446
46,86828,301
22,622(41,742)
(45)
9,135

28,301
22,622(42,455)
(45)
8,422

19
1,205
(3,290)(2,065)683
7,754
54,21718(73)(3,179)(3,233)678
5,867
52,736

Consolidated Statement of Income
Millions of yen
1Q/FY2015

1Q/FY2016

April 15 - June 15

April 16 - June 16

Net sales

19,35517,805

Cost of sales

16,053

15,271Gross profit

3,302

2,533

Selling, general and administrative expenses

2,911

2,851

390

(317)

5

5

Operating income (loss)
Non-operating income
Interest income
Foreign exchange gains

106-

Rent income

21

Share of profit of entities accounted for using equity method

2

Other

33

29

Total non-operating income

169

40

30

29

5
-

Non-operating expenses
Interest expenses
Foreign exchange losses-

244

Share of loss of entities accounted for using equity method-

26

Loss on retirement of non-current assets

18

25

Other

59

32

Total non-operating expenses

108

357

Ordinary income (loss)

452

(634)

Income (loss) before income taxes

452

(634)

Income taxes-current

26

132

Income taxes-deferred

(22)

(56)

Total income taxes

3

76

448

(710)

Profit attributable to non-controlling interests

62

Profit (loss) attributable to owners of parent

441

(713)

Profit (loss)

Consolidated Statement of comprehensive income
Millions of yen
1Q/FY2015

1Q/FY2016

April 15 - June 15

April 16 - June 16

448

(710)

6

(0)

Foreign currency translation adjustment282(1,239)Remeasurements of defined benefit plans, net of tax

26

111

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

19

(46)

Other comprehensive income

334(1,175)Comprehensive income

783(1,886)774(1,881)

8(4)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities(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
1Q/FY2015

1Q/FY2016

April 15 - June 15

April 16 - June 16

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

452

(634)

Depreciation and amortization

600

578

Increase (decrease) in net defined benefit liability

(85)

(82)

Increase (decrease) in allowance for doubtful accounts

10

(2)

Interest and dividend income

(6)

(6)

Interest expenses

30

29

Foreign exchange losses (gains)(2)

1

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

(2)

26

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

0(2)

Loss on retirement of non-current assets

18

25

Decrease (increase) in notes and accounts receivable-trade

1,180

(538)

Decrease (increase) in inventories(1,053)(862)

Increase (decrease) in notes and accounts payable-trade

247

904

Increase (decrease) in accrued expenses

(662)

(694)

Other, net

387

332

Subtotal

1,114

(926)

6

6

Interest expenses paid

(29)

(27)

Income taxes paid

(105)

(199)

Net cash provided by (used in) operating activities

985(1,146)

(718)

(259)

Proceeds from sales of property, plant and equipment

10

17

Purchase of intangible assets

(8)

(2)

Purchase of investment securities

(0)

(1)

Purchase of shares of subsidiaries and associates

(0)

(0)

Other, net

11-

Net cash provided by (used in) investing activities

705

(241)

(300)

580

(0)

(0)

Repayments of finance lease obligations

(124)

(132)

Net cash provided by (used in) financing activities

(425)

447

Effect of exchange rate change on cash and cash equivalents

112

(532)

Net increase (decrease) in cash and cash equivalents(33)(1,472)

Cash and cash equivalents at beginning of period

4,758

5,952

Cash and cash equivalents at end of period

4,724

4,480

Interest and dividend income received

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

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Purchase of treasury shares

Consolidated Business Segment Information
Millions of yen
1Q/FY2015 April 15 - June 15
Business Segments Reported
Electronic
Batteries
Materials

Total

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers
Intersegment
Total
Segment income (loss)

12,2207,135

19,355-

19,355

-

-

-

-

-

12,2207,135

19,355-

19,355

639

(248)

390

-

390

Adjustments

Consolidated
Statements

1Q/FY2016 April 16 - June 16
Business Segments Reported
Electronic
Batteries
Materials

Total

Net sales
Unaffiliated customers

11,507

Intersegment
Total
Segment income (loss)

6,298
-

17,805--17,805--

11,507

6,298

17,805-17,805

91

(408)

(317)

-

(317)

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
The business environment of the FDK Group (“FDK”) during the first quarter ended June 30, 2016 remained
uncertain condition continuously from the 2nd half period in the previous fiscal year, such as the delay of personal
consumptions, the concern about downturn of company earnings by the appreciation of the Yen after the news of“Brexit” in Japan, in addition to the slowing economic growth in China and emerging countries, the instability ofEuropean market though the U.S domestic demand continued in recovering trend.
Under these circumstances, to achieve the target of “Mid-Term Business Plan 1618” starting from April this year,
FDK has strived to extend the sales to the global industrial market expected for the potential growing like
Automotive, Housing, Environmental Energy, ICT and also has strived to develop new products to these market.
For the consumer market, FDK has strived to reorganize to the appropriate marketing organization fordiversification of customers and develop the products which satisfy the concept of each customers. And FDK
also strived to enhance its Brand awareness and recognition in global market by strengthening marketing
performance and the sales promotion using internet and SNS.
As for FDK’s business results in the first quarter, net sales were 17,805 million yen, decreased by 1,550 million
yen (-8.0%) from the same period last year. It was by the rapid appreciation of the Yen and sales decrease fromthe same period last year of Alkaline batteries and Ni-MH batteries due to the change to the low price new products
affected by low demand in global consumer market, although the sales quantity was in increase trend. And also it
was by sales quantity decrease from the same period last year of many products in industrial market such as Signal
Processing Modules for LCD Displays for LCD Televisions and Lithium batteries for disaster-related goods.
With regard to profit and loss, operating loss was 317 million yen (it was 390 million yen profit in the same
period last year). Although FDK has strived to proceed cost reduction activity in all FDK group companies for thebattery products rapidly increasing the quantity to cope against the loss caused by above mentioned sales decrease
and rapid appreciation of the Yen, the effect of cost reduction activity need time to contribute to profit. Ordinary
loss was 634 million yen (ordinary income was 452 million yen in the same period last year). Loss attributable toowners of parent in the first quarter was 713 million yen (it was 441 million yen profit attributable to owners ofparent in the same period last year).
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Alkaline batteries decreased from the same period last year due to sales decrease in domestic market andof decrease of OEM products in Europe, although the sales of OEM products in USA and for internet sales
increased. Sales of Ni-MH batteries was same level as the same period last year due to the increase in sales of
OEM products in USA and for automotive use, although the sales for consumer market and industrial market
decreased due to low demand in domestic and overseas market. Sales of Power storage systems decreased fromthe same period last year due to the decrease of communication equipment backup use, although the sales ofvending machine backup use was steady. Sales of Lithium batteries decreased from the same period last year, due
to the decrease in sales for disaster-related goods in overseas, although the sales for automotive applications steadily
increased.
As a result, sales for the Battery business were 11,507 million yen, decreased by 712 million yen from the same
period last year.
1.3. Electronic Device Business
Sales of Ferrite and Coil Devices decreased from the same period last year, while the sales for automotive use
steadily increased, their sales for consumer and industrial use has decreased. Sales of Multi-layer Power Inductor
decreased from the same period last year, due to the sluggish smartphone market. Sales of Signal Processing
Modules for LCD Displays decreased from the same period last year, due to sales decrease for LCD Televisions
use. Sales of Switching Power Supply increased form the same period last year, due to steady sales for industrialuse.
As a result, sales for the Electronic Device business were 6,298 million yen, decreased by 837 million yen fromthe 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 quarter of FY2016 decreased by 1,481 million yen (-2.7%) from the end of theprevious fiscal year to 52,736 million yen. Current assets decreased by 1,340 million yen (-3.9%) from the end of
the previous fiscal year to 33,305 million yen. Non-current assets decreased by 140 million yen (-0.7%) from theend of the previous fiscal year to 19,430 million yen. The principal causes for decreased current assets were a
1,472 million yen decrease in cash and deposits. The principal cause for decreased non-current assets was a 83
million yen decrease in property, plant and equipment.
Total liabilities at the end of first quarter of FY2016 increased by 405 million yen (0.9%) from the end of theprevious fiscal year to 46,868 million yen. Current liabilities increased by 825 million yen (2.2%) from the end of
the previous fiscal year to 38,422 million yen. Non-current liabilities decreased by 419 million yen (-4.7%) fromthe end of the previous fiscal year to 8,446 million yen. The principal cause of increased current liabilities was a
580 million yen increase in short-term loans payable and a 399 million yen increase in accounts payable-other.
The principal cause for decreased non-current liabilities was a 174 million yen decrease in long-term accounts
payable – other and a 154 million yen decrease in lease obligations.
The interest-bearing debt increased by 410 million yen from the end of the previous fiscal year to 17,748 million
yen.
Total net assets at the end of first quarter of FY2016 decreased by 1,886 million yen (-24.3%) from the end of theprevious fiscal year to 5,867 million yen. The main factors for the decrease in total net assets were a 1,279 million
yen decrease in foreign currency translation adjustment and a 713 million yen decrease in retained earnings byposting a profit attributable to owners of parent.
2.2 Cash Flow Condition
Net cash used in operating activities decreased by 1,146 million yen from the beginning of this fiscal year due toan decrease in cash and cash equivalents (“cash”) by posting the increase in loss before income taxes, increase ininventories, decrease in accrued expenses and increase in notes and accounts receivable-trade, though there was aincrease in cash by increase in notes and accounts payable-trade and depreciation and amortization (Net cash usedin operating activities for the last fiscal year increased by 985 million yen from the beginning of the last fiscal year).
Net cash used in investment activities decreased by 241 million yen from the beginning of this fiscal year bypurchase of property, plant and equipment (Net cash used in investment activities for the last fiscal year decreased
by 705 million yen from the beginning of the last fiscal year).
Net cash used in financing activities increased by 447 million yen from the beginning of this fiscal year due tothe increase in short-term loans payable (Net cash used in financing activities for the last fiscal year decreased by
425 million yen from the beginning of the last fiscal year).
As a result, the balance of cash and cash equivalents on June 30, 2016 was 4,480 million yen, a decrease of 1,472
million yen from the beginning of this fiscal year.
3. Forecast for the Fiscal Year Ending March 31, 2017
FDK has not changed its business forecast, which was announced on April 27, 2016. We will announce therevision promptly if it will be necessary in the future, by doing our best to collect various information including
market trends.