FOR IMMEDIATE RELEASE
July 29, 2004

FY 2004 First Quarter Consolidated Financial Results(April 1, 2004 to June 30, 2004)

FDK CORPORATION
Listing Code No.6955 (Listing Stock Exchange: The first section of Tokyo Stock Exchange)
URL: http://www.fdk.co.jp
Contact : Corporate Communication Group, Business Strategy & Planning Dept.
E-mail: narishi@fdk.co.jp
1.Items Relevant to Preparation of Quarterly Financial Results(1)Adoption of simplified accounting methods: Yes
Calculation of taxes including corporate tax - adopted the methods used effective tax rate.
(2)Changes in accounting policies: Yes
For the seven consolidated subsidiaries whose accounting periods were different from FDK, provisional
settlement of accounting was made by using FDK accounting period and the following financial
statements were prepared accordingly.
(3)Changes in scope of consolidation or application of equity method: None
2.Consolidated Operating Results for the First Quarter of FY2004 (April 1, 2004 to June 30, 2004)
a. Results of Consolidated Operations
Yen
Yen(millions)(millions)
FY2004
1st. Qtr.
Net Sales
Operating IncomeFY2003
1st. Qtr.

U.S.Dollars(millions)

Change(%)

FY2003

FY2004
1st. Qtr¥25,225617¥20,268-

24.5-¥102,668
1,650$233.56$5.71

Income(loss) before income taxes

268

--

(8,311)$2.48

and minority interests
Net Income (loss)

20

-

-

(8,755)

$0.19

- yen

-

(105.18) yen---

Amounts Per Share of Common Stock:
Basic earnings (loss)

0.16 yen-

Diluted earnings(Notes)1.The percentage in the net sales represents rate of change compared with corresponding period of theprevious year.
2.The above operating results other than net sales for the first quarter of the previous year and thepercentage of fluctuation between the first quarter of this year are not disclosed since quarterly
consolidated operating result other than net sales have been disclosed from this first quarter.
3. All yen figures have been converted to U.S.dollars for convenience only ata uniform rate of $1=108 yen
b. Summary of Consolidated Financial Condition
Yen(millions)

Total Assets

FY2004
1st. Qtr.
¥78,879

Yen(millions)
FY2003
1st. Qtr.
-FY2003¥78,864

Shareholders' Equity

4,029

-

4,203Shareholders' Equity Ratio

5.1%

-

5.3%

Shareholders' Equity

0.23 yen- yen

1.58

Per Share

0.15cent-

Note:1. As FDK has started disclosing quarterly financial results from this fiscal year, equivalent results
and changes for the same quarter of the previous year are not stated.
2. The above reflected the result of provisional settlement of accounting information on the consolidated
subsidiary, whose accounting period was different from FDK, to adjust those accounting information to thesame accounting period of FDK. In connection with this, the adjustment amount of 223 million yen accruedby the calculation period change was deducted from the retained earnings.
3. Shareholders' equity per share was calculated by excluding 4 billion yen obtained by the allocationof new share to the third party as preferred stocks in the last fiscal year.
c. Summary of Consolidated Statements of Cash Flows
Yen(millions)

Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from

FY2004
1st Qtr¥1,611

Financing Activities
Cash and Cash Equivalents

Yen(millions)
FY2003
1st. Qtr.
-FY2003(1,233)(947)-(2,143)(253)-578

10,007-

9,098

at Year End
Consolidated Subsidiaries
Unconsolidated Subsidiaries

16 companies- companies- companies

Affiliates (equity method applied only)

Note: As FDK has started disclosing quarterly financial results from this fiscal year, equivalent results
and changes for the same quarter of the previous year are not stated.
3.Reference - FY2004 Consolidated Financial Forecast (April 1, 2004 - March 31, 2005)
Consolidated Earnings Forecast
Yen(million)change(%)
Net Sales¥119,900+16.8
Operating Income
2,450+48.5
Net Income(loss)
2,000
Net Income(loss) per Share

15.63 yen-Note: With regard to the forecast for the fiscal year 2004, there is no change in the forecast figuresannounced on April 27, 2004 for consolidated business results.
Note for the use of our 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¥

Q1/FY2004

FY2003(Apr-Jun'04)(Apr'03-Mar'04)

25,225¥

102,668Operating costs and expenses
Cost of sales

21,956

90,074

Selling, general and administrative expenses

2,652

10,94424,608101,018

617

1,650

28

33

Interest charges

(186)

(796)

Other, net (Note)(191)(9,198)(349)(9,961)268(8,311)

Current

202

391

Deferred

17

26

219

417

Income (loss) before minority interests

49(8,728)

Minority interests in income of consolidates subsidiaries

(29)

(27)

¥ 20

¥ ( 8,755)

Operating income
Other income (expenses)
Interest and dividend income

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

Net income (loss)

Consolidated Balance Sheets
Yen (millions)30-Jun-04

31-Mar-04

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
LandConstruction 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
Other assets(Note)
Total assets¥ 10,025
1,547
26,007
10,722
161
2,558
(75)
50,945¥ 9,112
2,086
26,234
9,672
180
3,306
(75)
50,515

9,940
11,5044,395
224
26,063

10,034
11,5964,428
378
26,436

994

1,046

129
152
596
877
-

131
152
584
867
-

¥ 78,879¥ 78,864¥ 269
24,12523,256
9,194
179
3,901
60,924¥ 448
23,051
22,744
9,614
156
4,390
60,403

8,250
4,332
54
12,636

8,688
4,116
85
12,889

1,290

1,369

19,256
13,635(27,227)
10(1,629)
(16)
4,029

19,256
13,635(27,023)
12(1,662)
(15)
4,203

¥ 78,879¥ 78,864

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 Shareholders' Equity
Yen (millions)30-Jun-04

31-Mar-04¥ 19,256¥ 13,206-

6,050¥ 19,256¥ 19,256¥ 13,635¥ 7,585-

6,050¥ 13,635¥ 13,635¥ ( 27,023)¥ ( 18,268)¥ ( 224)-Net income(loss)

20(8,755)

Ending balance¥ ( 27,227)¥ ( 27,023)¥ 12¥ 41(2)

(29)

¥ 10

¥ 12

¥ ( 1,662)¥ ( 846)

33(816)¥ ( 1,629)¥ ( 1,662)¥ ( 15)¥ ( 12)(1)(3)¥ ( 16)¥ ( 15)

Common Stock:
Beginning balance
Increase from capital stock issued
Ending balance

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

Retained Earnings(Deficit)
Beginning balance
Net increase(decrease) from change of closing date of consolidated subsidiaries

Unrealized Gain(loss) on Securities,net of taxes:
Beginning balance
Net increase in unrealized gain(loss) on securities
Ending balance

Foreign Currency Translation Adjustments:
Beginning balance
Net increase in foreign currency transaction adjustment
Ending balance

Treasury Stock:
Beginning balance
Net decrease(increase) Treasury stock
Ending balanceConsolidated Statements of Cash Flows
Yen (millions)
Q1/FY2004

FY2003(Apr-Jun'04)(Apr'03-Mar'04)

Cash flows from operating activities
Income (loss) before income taxes and minority interests¥ 268¥ ( 8,311)

Depreciation and amortization

1,015

4,400(Increase) decrease in receivable-trade

2,487(7,312)(Increase) decrease in inventories(1,758)153

Increase (decrease) in payable-trade(508)7,581Other, net

478

3,603

Cash generated from operations

1,982

114

Interest paid

(195)

(854)

28

49(204)

(542)

1,611

(1,233)(947)(2,917)

Proceeds from sales of tangible fixed assets

0192

Purchase of intangible assets0(40)Other, net

0622

(947)

(2,143)

Proceeds from long-term debt

25207

Repayment of long-term debt

(600)

(2,855)

Increase (decrease) in short-term borrowings

342(8,871)

Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities

Interest and dividends received
Income taxes paid
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-

12,100

(20)

(3)

(253)

578

Effect of exchange rate changes on cash and cash equivalents

58(495)

Net increase (decrease) in cash and cash equivalents

469(3,293)

9,098

12,391Other, net
Net cash provided by (used in) financing activities

Cash and cash equivalents at beginning of year
Increase in cash from change of closing date of consolidated subsidiaries

Cash and cash equivalents at end of year440-¥ 10,007¥ 9,098

Business Performance and Finances
Business Performance Overview
In the first quarter of FY2004, revival of Japanese economy and the coming Athens Olympic
Games in August contributed the demand expansion of the electronic devices such as digital AV
equipment and cellular phones.
Under these circumstances, FDK strived for improvement in achievements as much as possible
by powerful promotion of productivity reform movement on the company-wide while furtheringdevelopment of new products to suit the customers’ demands.
As a result, net sales of the first quarter of 2004 were up 24.5% from the same term last year.
Our consolidated business results for the current first quarter reported net sales of 25,225 million
yen, operating income of 617 million yen, ordinary income of 268 million yen and net income of 20
million yen.

Electronic Business
The hybrid modules for plasma displays and for liquid crystal displays achieved large sales
associated with the demand expansion of large-sized thin shape TVs and PC displays. The salesof switching power supplies for servers was also increased due to the sales expansion of those forservers and flat panel displays. For the stepper motors, sales increased for digital cameras but
decreased for OA equipment. The sales amount of whole stepper motors was the almost same as
the same term last year.
According to the above-mentioned situation, the sales of the whole electronic business were
20,280 million yen of 33.9% increase from the same term last year.

Battery Business
Under the severe market environment by influx of overseas products, severe price competitionand so on, sales promotion of the high -performance alkaline battery G series was strengthened.
Consequently, the sales are 4,945 million yen similar to the same te rm last year.

Cash Flow Condition
In terms of cash flows from operating activities, net cash amounted to 1,611 million yen due tothe decline in retained earnings and account receivable.
Cash flows used in investing activities amounted to 947 million yen due to capital investment
payment. Cash flows used in financing activities amounted to 253 million yen due to the paymentof redemption of borrowing, etc.
Consequently, balance of cash and cash equivalents at the end of the first quarter amounted to
10,007 million yen, increased 909 million yen to the same term last year. This amount was added
the additional 440 million yen generated by the change in the closing date of consolidated
subsidiaries.