FOR IMMEDIATE RELEASE
January 27, 2011

Consolidated Financial Results for the Third Quarter Ended December 31, 2010
(April 1, 2010 to December 31, 2010)

FDK CORPORATION(URL: http://www.fdk.com)

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

1.Consolidated Operating Results for the Nine-Months Period Ended December 31, 2010
a. Consolidated Results of Operations
Yen

Yen

(millions)(millions)

U.S.Dollars(millions)

Nine months

Nine months

FY2009,Nine months

ended Dec. 31,

ended Dec. 31,

ended Mar. 31,

ended Dec. 31,

2010
72,7242009
46,192

2010
68,447

2010$892.98

Operating Income

4,274

1,134

2,398

$52.48

Income(Loss) Before Income Taxes

4,222

550

1,582

$51.84

2,760

145

1,046

$33.8912.7 yen

0.7 yen

4.98 yen--

Net Sales

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

0.86 cent-b. Net Sales byy Business Segment
g
Yen

Yen

Yen

(millions)(millions)(millions)(millions)

Nine months

Nine months

FY2009,Nine months

ended Dec. 31,

ended Dec. 31,

ended Mar. 31,

ended Dec. 31,

2010
29,115

2009
28,618

2010
37,673

2010$357.50

Batteries

43,60917,57330,773$535.47

Total

72,724

46,19268,447$892.98

Electronic Devices

c. Consolidated Financial Position
Yen(millions)
As of Dec. 31,

As of Mar. 31,

2010

2010

Total Assets

64,99964,515

Total Net Assets

4,852

3,258

Total Shareholders' Equity

6,491

3,732

Shareholders' Equity Ratio

6.5

4.1

(31.09) yen(38.39) yen

Shareholders' Equity
Per Share-1-

U.S.Dollars

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

Nine months

ended Dec. 31,

ended Dec. 31,

2010

2009

Cash Flows from

1,593

(610)

1,517

(579)

(1,233)

(576)

5,755

5,558

Operating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at End of Period
Consolidated Subsidiaries

15 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 81.44 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 ending March 31, 2011
(Million of yen, except per share data)
FY2010Change from FY2009(%)

Net Sales¥95,000

Operating Income¥4,00066.8

Net Income¥2,400129.4

Net Income per Share

38.8

11.05 yen-

Note for the use of the above forecasted business results.
The forcast described above is based upon information available as of Octber 26, 2010.

3. 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 the end of periods.
December 31, 2010 : 217,505,884 shares

March 31, 2010: 217,505,884 shares

2)Number of treasury shares at the end of each period
December 31, 2010 : 225,845 shares

March 31, 2010: 218,916 shares3)Weighted average number of shares outstanding in each period.
December 31, 2010 : 217,284,904 shares

December 31, 2009: 207,538,224 shares-2-Consolidated Balance Sheets
Millions of yen
Q3/FY2010
Dec 31, 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-3-

FY2009Mar 31, 2010

5,769
22,166
4,035
3,827
1,996
128
3,555
(61)
41,417

7,417
21,458
2,597
2,921
2,047
265
2,428
(113)
39,023

7,602
8,374
724
3,479
506
207
20,894
850

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

131
9
235
1,459
(0)
1,836
23,581

130
14
688
1,610
(0)
2,444
25,49264,99964,515

19,50823,040
265
2,384
614
2,818
48,632

19,08823,794
325
230
2,310
433
2,853
49,036

553
2
7,594
3,036
328
11,51460,146

66
546
3
7,778
3,605
220
12,221
61,25728,301
22,622(44,391)
(41)
6,491

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

3
(2,249)(2,245)
606
4,852

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

64,99964,515

Consolidated Statements of Income
Millions of yen
Q3/FY2009

Q3/FY2010

Apr'09-Dec'09

Apr'10-Dec'10

Net sales

46,19272,724

Cost of sales

39,58859,882Gross profit

6,603

12,841

Selling, general and administrative expenses

5,469

8,566

Operating income (loss)

1,134

4,274

15

14

-

569

Rent income

1924Gain on sales of noncurrent assets

41

-

Other

103

141

Total non-operating income

180

748

Interest expenses

168

180

Foreign exchange losses

143

691

Loss on retirement of noncurrent assets

65

133

Other

305

148

Total non-operating expenses

683

1,153

631

3,869

Gain on liquidation of subsidiaries and affiliates-

423

Subsidy-219

Gain on donation of noncurrent assets-

117

Gain on sales of subsidiaries and affiliates' stocks

39-

Total extraordinary income

39

759

Loss on retirement of noncurrent assets-

174

Loss on change of contract

-

143

111

-

8

88

119

406

Income (loss) before income taxes

550

4,222

Income taxes-current

337

873

Income taxes-deferred

10

572

Total income taxes

348

1,445

-

2,777

Minority interests in income

56

17

Net income (loss)

145

2,760

Non-operating income
Interest income
Amortization of negative goodwill

Non-operating expenses

Ordinary income (loss)
Extraordinary income

Extraordinary loss

Business structure improvement expenses
Other
Total extraordinary loss

Income before minority interests-4-Consolidated Statements of Cash Flows
Millions of yen
Q3/FY2009

Q3/FY2010

Apr'09-Dec'09

Apr'10-Dec'10

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

550

4,222

Depreciation and amortization

1,567

2,722

Gain on liquidation of subsidiaries and affiliates

-

(423)

Subsidy income

-

(219)

Gain on donation of noncurrent assets

-

(117)

Loss on change of contract-

143

Equity in (earnings) losses of affiliates

119

29

Increase (decrease) in provision for retirement benefits(1,505)(184)

Increase (decrease) in allowance for doubtful accounts

(29)

(45)

Interest and dividends income

(16)

(15)

Interest expenses

168

180

Foreign exchange losses (gains)

22

28

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

(41)

(4)

Loss on retirement of noncurrent assets

65

307

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

(39)

-

Stock issuance cost

53-

Amortization of negative goodwill

-

(569)

Decrease (increase) in notes and accounts receivable-trade118(1,859)Decrease (increase) in inventories(314)(2,641)

Increase (decrease) in notes and accounts payable-trade

812

1,711

Increase (decrease) in accrued expenses

(346)

(448)

Other, net(1,430)(633)

Subtotal

(246)

2,184

Interest and dividends income received

16

15

Proceeds from subsidy-

219

Interest expenses paid

(201)

(170)

Income taxes paid

(178)

(655)

Net cash provided by (used in) operating activities

(610)

1,593

Payments into time deposits

(11)

(11)

Proceeds from withdrawal of time deposits

10

3

Purchase of property, plant and equipment(662)(1,550)Net cash provided by (used in) investing activities

Proceeds from sales of property, plant and equipment

84

507

Purchase of intangible assets

(4)

(373)

Purchase of investment securities

(4)

(23)

Proceeds from sales of investment securities-

16

Proceeds from sales of stocks of subsidiaries and affiliates

150-

Other, net

(141)

(86)

Net cash provided by (used in) investing activities

(579)

1,517

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable(11,008)(696)

Repayment of long-term loans payable

(260)

(357)

Proceeds from issuance of common stock

10,999-Payments for issuance of common stock

(53)

-

Purchase of treasury stock

(1)

(0)

Repayments of finance lease obligations

(252)

(178)

Net cash provided by (used in) financing activities(576)(1,233)

Effect of exchange rate change on cash and cash equivalents

(178)

(498)

Net increase (decrease) in cash and cash equivalents(1,945)(1,656)

Cash and cash equivalents at beginning of period

7,504

7,411

Cash and cash equivalents at end of period

5,558

5,755

-5-

Consolidated Business Segment Information
Millions of yen
Q3/FY2009 Apr'09-Dec'09
Electronic
Materials

Batteries

Total

Elimination

Consolidated-

46,192

Net sales
Unaffiliated customers

28,618Intersegment
Total

17,573

46,192

-

-

-

-

-

28,61817,573

46,192-

46,192

(217)

1,351

1,134

-

1,134

Operating income (loss)

Consolidated Geographic Segment Information
Millions of yen
Q3/FY2009 Apr'09-Dec'09
Japan

North
America

Asia

EuropeTotal

Elimination

Consolidated-

46,192

Net sales
Unaffiliated customers

24,914

19,598423

1,256

46,192

Intersegment

3,061

5,385

39

29

8,516

(8,516)-

Total

27,97624,984462

1,286

54,708(8,516)46,192

529

785

(17)

10

1,307

(173)

1,134

Operating income (loss)

Net Overseas Sales by Customer's Geographic Location
Millions of yen
Q3/FY2009 Apr'09-Dec'09
North
America

Asia

Total sales to foreign customers

17,070Other
Countries

3,470

Total

2,513

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

23,054
46,192

37.0%

7.5%

5.4%

49.9%

Consolidated Business Segment Information
Millions of yen
Q3/FY2010 Apr'10-Dec'10
Business Segments Reported
Electronic
Batteries
Materials

Total

Ajustments

Consolidated
Statements
of income72,724

Net sales
Unaffiliated customers

43,60929,11572,724

-

-

-

-

-

-

Total

43,60929,11572,724-72,724

Segment income (Operating Income)

3,608

666

4,274

-

4,274

Intersegment-6-

Business Results
1. Analysis of Consolidated Business Results(1) Overview
The business environment of the FDK Group (hereinafter called “FDK”) for the nine months
in FY2010 saw a slowdown in the pace of recovery in the latter half due to the lack ofeffectiveness of economic measures taken by many countries.
Under these circumstances, FDK has strengthened its business structure by continuing to
implement the business structural reforms used to strengthen the company in the previous
fiscal year.
As for FDK’s business results for the nine months in FY2010, net sales were 72,724 million
yen, a substantial increase of 26,532 million yen from the same period last year. The increase
was due to the addition of Ni-MH and lithium battery sales, which were transferred to FDK
last January. As for profits, operating income was 4,274 million yen, an increase of 3,140
million yen from the same period last year. Income before income taxes was 4,222 million yen,
an increase of 3,672 million yen from the same period last year. Net income was 2,760 million
yen, an increase of 2,614 million yen from the same period last year.
The divisional sales overview is as follows.

(2) Battery BusinessOverall sales for the battery business were 43,609 million yen, a 26,035 million yen increase
from the same period last year. Although sales of alkaline batteries decreased from the same
period last year due to the decrease in overseas sales in the latter period, sales of Ni-MH
batteries and lithium batteries contributed to the increased sales of the battery business.

(3) Electronic Device BusinessOverall sales for the electronic device business were 29,115 million yen, a 496 million yen
increase from the same period last year. Sales of coil devices increased from the same period
last year due to an increase in sales for automobiles. Sales of piezoelectric components andsignal processing modules for LCDs increased from the same period last year. Sales ofmultilayer power inductors and toner stayed the same as last year. Sales of optical devices
decreased from the same period last year due to a decline in market needs for new submarine
cable settlements. Sales of switching power supplies decreased from the same period last year
due to a sales decline for servers.

(4) Forecast for the Full Fiscal Year Ending March 31, 2011
For the nine months in FY2010, net sales increased from the same period last year, duelargely to the addition of sales of Ni-MH batteries and lithium batteries. As for profits, due tobusiness structural reforms made the previous fiscal year, all income categories have been
exceeding the plan.
However, with regard to the future, the fourth quarter will turn out to be very tough andundergo a reversal due to the expected economic slowdown resulting from the end of theeconomic stimulus effect, soaring prices of raw materials such as rare earth minerals, and theprolonged impact of the strong yen.
Considering these impacts, the forecast remains unchanged for the fiscal year ending March
31, 2011 which was announced on October 26, 2010.

2. Analysis of Financial Condition(1) Status of Assets, Liabilities and Net Assets
Total assets at the end of the nine months in FY2010 increased 483 million yen (0.7%) fromthe end of the previous fiscal year to 64,999 million yen. Current assets increased 2,394 million
yen (6.1%) to 41,417 million yen. Non-current assets decreased 1,911 million yen (-7.5%) to
23,581 million yen.
The principal causes for increased current assets were a 1,438 million yen increase inmerchandise and finished goods and a 905 million yen increase in work in process, though cash
and deposits decreased 1,648 million yen. The principal cause for decreased non-current assets
was a 1,484 million yen decrease in total property, plant and equipment.
Total liabilities at the end of the nine months in FY2010 decreased 1,110 million yen (-2.8%)
from the end of the previous fiscal year to 60,146 million yen. Current liabilities decreased 403
million yen (-0.8%) from the end of the previous fiscal year to 48,632 million yen. Non-current
liabilities decreased 706 million yen (-5.8%) from the end of the previous fiscal year to 11,514
million yen. The principal cause of decreased current liabilities was a 754 million yen decreasein short-term loans payable. The principal causes for decreased non-current liabilities were a
569 million yen decrease in negative goodwill and a 184 million yen decrease in provisions for
retirement benefits.
The interest-bearing debt decreased 1,104 million yen from the end of the previous fiscal
year to 23,858 million yen.
Total net assets at the end of the nine months in FY2010 increased 1,593 million yen (48.9%)
from the end of the previous fiscal year to 4,852 million yen. The primary factor for the increase
in total net assets was a 2,760 million increase in retained earnings from posting a net income
for the nine months in FY2010, though there was a 1,216 million yen decrease in foreign
currency translation adjustment.

(2) Cash Flow Condition
Net cash used in operating activities for the nine months ended December 31, 2010 increased
1,593 million yen from the end of the previous fiscal year by posting income before income taxes,
depreciation and amortization, and an increase in notes and accounts payable-trade, though
there was a decrease in cash and cash equivalents (hereinafter called “cash”)that resulted froman increase in inventories and in notes and accounts receivable-trade.
Net cash used in investment activities for the nine months ended December 31, 2010
decreased 1,517 million yen from the end of the previous fiscal year due to decrease in cashthat resulted from the purchase of property, plants, equipment and intangible assets.
Net cash used in financing activities for the nine months ended December 31, 2010 decreased
1,233 million yen from the end of the previous fiscal year due to a decrease in short-term loans
payable.
As a result, the balance of cash and the end of December 31, 2010 was 5,755 million yen, adecrease of 1,656 million yen from the end of the previous fiscal year.