Translation

FOR IMMEDIATE RELEASE
October 25, 2011

Consolidated Financial Results for the First Half of FY2011(April 1, 2011 to September 30, 2011)

FDK CORPORATION(URL: http://www.fdk.com)
Listing Code No.6955 (Listing Stock Exchange: The Second Section of Tokyo Stock Exchange)
Address : Hamagomu Bldg. 5-36-11 Shimbashi, Minato-ku, Tokyo 105-8677
Contact : Corporate Communication Office,E-mail: jun@fdk.co.jp
The Consolidated Financial Results is unaudited / U.S. GAPP is not applied

1.Consolidated Operating Results for the Six-Months Ended September 30, 2011
a. Consolidated Results of Operations

Net Sales

Yen

Yen

(millions)(millions)

U.S.Dollars(millions)Sx months

Sx months

FY2010,Sx months

ended Sept.30

ended Sept.30

ended Mar. 31,

ended Sept.30

201141,836

2010
49,793

2011
94,431

2011$545.95

251

2,971

4,396

$3.28

8

2,413

3,835

$0.10

(134)

1,112

2,571

($1.75)(0.62) yen

5.12 yen

11.83 yen

(0.80) centOperating Income
Income(Loss) Before Income Taxes
and Minority Interests
Net Income (Loss)
Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings-

b. Net Sales byy Business Segment
g
Yen

Yen

Yen

(millions)(millions)(millions)(millions)Sx months

Sx months

FY20１０,Sx months

ended Sept.30
2011
26,902

ended Sept.30
2010
29,272

ended Mar. 31,
2011
57,651

ended Sept.30
2011$351.06

Electronic Devices

14,933

20,52036,779$194.87

Total

41,836

49,79394,431$545.95

Batteriesc. Consolidated Financial Position
Yen(millions)
As of Sept. 30,

As of Mar. 31,

2011

2011

Total Assets

57,602

58,958

Total Net Assets

4,203

4,998

Shareholders' Equity

6,167

6,302

Shareholders' Equity Ratio

6.2 %

7.4 %

U.S.Dollars

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

Six months

ended Sept. 30,

ended Sept. 30,

2011

2010

Cash Flows from

3,162

762

(1532)(826)(1,161)

151

4,299

7,043

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-92.2
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 76.63 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 2011 ending March 31, 2012
(Million of yen, except per share data)
FY201１

Change from FY2010

FY2010Net Sales¥86,500(8.4) %

¥94,431

Operating Income¥500(88.6) %¥4,396Net Income¥200(92.2) %¥2,5710.92 yen(92.2) %Net Income per Share

11.83 yen

Note for the use of the above forecasted business results.
The forecast described above is based upon information available as of October 25, 2011.
3. Others(1)Changes in significant subsidiaries during the period: No(2)Adoption of simplified accounting methods for quarterly reporting: No(3)Changes in accounting policies, procedures, and presentation, etc.
1)Changes resulting from revisions in accounting principles,etc.: No2)Other changes: No(4)Number of shares outstanding (common stock)
1)Number of shares outstanding at the end of periods.
September 30, 2011 : 217,505,884 shares

March 31, 2011: 217,505,884 shares

2)Number of treasury shares at the end of each period
September 30, 2011 : 229,656 shares

March 31, 2011: 226,920 shares3)Weighted average number of shares outstanding in each period.
Six months ended Sept. 30, 2011 : 217,278,131 shares

Six month ended Sept. 30, 2010: 217,285,922 shares

Consolidated Balance Sheets
Millions of yen
FY2010Mar 31, 2011
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
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
LiabilitiesClibili iCurrent
liabilities
Notes and accounts payable-trade
Short-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Provision for loss on desaster
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Negative goodwill
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

1H/FY2011
Sep 30, 2011

4,163
21,690
3,226
3,068
1,513
179
1,584
(60)
35,366

4,308
19,538
3,423
3,925
1,596
172
1,479
(51)
34,393

7,879
7,999
659
3,493
440
367
20,841
908

7,778
8,084
693
3,393
547
137
20,635
852

131
8
228
1,473
(0)
1,841
23,591

139
5
237
1,339
(0)
1,721
23,20858,95857,602

16,73919,650
263
1,935
415
322
3,495
42,823

17,923
18,570
305
2,025
283
322
3,314
42,745

496
1
7,449
2,846
342
11,136
53,959

522
3
7,315
2,466
345
10,65353,39928,301
22,622(44,580)
(41)
6,302

28,301
22,622(44,714)
(41)
6,167

3
(1,916)(1,912)
608
4,998

7
(2,576)(2,569)605
4,203

58,95857,602

Consolidated Statements of Income
Millions of yen
1H/FY2010

1H/FY2011

Apr'10-Sep'10

Apr'11-Sep'11

Net sales

49,793

41,836

Cost of sales

40,98536,273Gross profit

8,807

5,563

Selling, general and administrative expenses

5,836

5,311

Operating income

2,971

251

Non-operating income
Interest income

99

Amortization of negative goodwill

379

379

Rent income

16

8

Other

117

111

Total non-operating income

522

509

Interest expenses

123

85

Foreign exchange losses

503

585

Loss on retirement of non-current assets

123

29

Other

95

137

Total non-operating expenses

845

837

2,648

(76)

-

85

Non-operating expenses

Ordinary income (loss)
Extraordinary income
Gain on sales of land
Subsidy219-

Total extraordinary income

219

85

Loss on retirement of non-current assets

174-

Loss on change of contract

143

-

Other

Extraordinary loss

136-

Total extraordinary loss

454-

Income before income taxes

2,413

8

761

143

Income taxes-current
Income taxes-deferred

530

(2)

Total income taxes

1,292

141

Income (loss) before minority interests

1,120

(132)

Minority interests in income
Net income (loss)

8

2

1,112

(134)

Consolidated Statements of Comprehensive Income
Millions of yen

Income (loss) before minority interests

1H/FY2010

1H/FY2011

Apr'10-Sep'10

Apr'11-Sep'11

1,120

(132)

(2)

3

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

49

-

(847)

(610)

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

(92)

(56)

Other comprehensive income

(893)

(662)

227

(795)

Comprehensive income attributable to owners of the parent

226

(791)

Comprehensive income attributable to minority interests

0(3)

Comprehensive income（Comprehensive income attributable to）

Consolidated Statements of Cash Flows
Millions of yen
1H/FY2010

1H/FY2011

Apr'10-Sep'10

Apr'11-Sep'11

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

2,413

8

Depreciation and amortization

1,800

1,792

Subsidy income

(219)

-

Loss on change of contract

143-

Equity in (earnings) losses of affiliates

16

55

Increase (decrease) in provision for retirement benefits

(167)

(133)

Increase (decrease) in allowance for doubtful accounts

(41)

(4)

Interest and dividends income

(10)

(38)

Interest expenses

123

85

Foreign exchange losses (gains)

52

11

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

(1)

(83)

Loss on retirement of non-current assets

297

29

Amortization of negative goodwill

(379)

(379)

Decrease (increase) in notes and accounts receivable-trade(3,183)

1,324

Decrease (increase) in inventories(1,912)(1,404)

Increase (decrease) in notes and accounts payable-trade

1,715

2,128

Increase (decrease) in accrued expenses

332

(159)

Other, net

108

257

Subtotal

1,087

3,490

Interest and dividends income received

10

38

Proceeds from subsidy

219-

Interest expenses paid

(128)

(127)

Income taxes paid

(426)

(238)

Net cash provided by (used in) operating activities

762

3,162

Payments into time deposits

(7)

(6)

Proceeds from withdrawal of time deposits

33

Purchase of property, plant and equipment(718)(1,654)

Net cash provided by (used in) investing activities

Proceeds from sales of property, plant and equipment

109

150

Purchase of intangible assets

(210)

(25)

Purchase of investment securities

(22)

(1)

Proceeds from sales of investment securities

16-

Other, net

2

1

(826)

(1,532)

Net increase (decrease) in short-term loans payable458(1,023)

Repayment of long-term loans payable

(204)

-

(0)

(0)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Purchase of treasury stock
Repayments of finance lease obligations

(102)

(138)

Net cash provided by (used in) financing activities

151(1,161)

Effect of exchange rate change on cash and cash equivalents

(455)

(325)

Net increase (decrease) in cash and cash equivalents

(368)

143

Cash and cash equivalents at beginning of period

7,411

4,156

Cash and cash equivalents at end of period

7,043

4,299

Consolidated Business Segment Information
Millions of yen
1H/FY2010 Apr'10-Sep'10
Business Segments Reported
Electronic
Batteries
Materials

Total

Ajustments

Consolidated
Statements

Net sales
Unaffiliated customers

29,272

20,52049,793-49,793

-

-

-

-

-

Total

29,272

20,52049,793-49,793

Segment income

2,518

452

2,971

-

2,971

Ajustments

Consolidated
Statements

Intersegment

1H/FY2011 Apr'11-Sep'11
Business Segments Reported
Electronic
Batteries
Materials

Total

Net sales
Unaffiliated customers
Intersegment
Total
Segment income

26,902

14,933

41,836-

41,836

-

-

-

-

-

26,902

14,933

41,836-

41,836

156

94

251

-

251

Business Results
1. Analysis of Consolidated Business Results(1) Overview
On the business environment of the FDK Group (hereinafter called “FDK”) in the first half of
FY2011, the Japanese economy continued to recover gradually as the recovery progressed toward
the reconstruction of disaster areas, from the slump caused by the Great East Japan Earthquake.
On the other hand, the global economy could not dispel the uncertainty since the financial crisis
in Europe, the economic recession in the U.S , the continuing appreciations of yens and the fallingstock prices.
As for FDK’s business results, net sales were 41,836 million yen, a substantial decrease of
7,956 million yen from the same period last year. This large decrease was mostly due to the
production adjustment of LCD panels.
As for profits, operating income was 251 million yen, decreased 2,719 million yen from thesame period last year. The decrease was a result of the rising material costs for batteries such as
rare earth and the appreciation of yen. Income before income taxes fell to 8 million yen, due to thepost of foreign exchange losses from the appreciation of yen and net loss was 134 million yen.
The divisional sales overview is as follows.

(2) Battery Business
Sales of alkaline batteries increased from the same period last year due to the extensive
production in the first quarter to respond on the scarce condition in retail stores by the Great
East Japan Earthquake. Sales of Ni-MH batteries decreased from the same period last year due
to the downturn of the market condition in North America and Europe. Sales of lithium batteries
decreased from the same period last year as the demand for mobile phones and laptop computerswere declined in addition to a decrease in security products and emergency supplies.
As a result, sales for the battery business were 26,902 million yen, a decrease of 2,369 million
yen from the same period last year.

(3) Electronic Device Business
Sales of signal processing modules for LCDs largely decreased from the same period last year
due to the over production of the LCD panels worldwide and thus further panel production had
decreased largely. Sales of switching power supplies decreased from the same period last year due
to the decline in the demand for servers. Sales of coil devices decreased from the same period lastyear due to the decrease in sales of transformers for automobiles since domestic automobile
production was decreased by the impact of the Great East Japan Earthquake and the decrease insales of transformers for LCD TVs by the slowdown in demands. Sales of toner increased from thesame period last year due to an expanded demand for printers. Sales of optical devices increased
from the same period last year due to the recovering demand for flagging submarine cablesettlements.
As a result, sales for the electronic device business were 14,933 million yen, a decrease of 5,586
million yen from the same period last year.

2. Analysis of Financial Condition(1) Status of Assets, Liabilities and Net Assets
Total assets at the end of the first half of FY2011 decreased 1,356 million yen (2.3%) from theend of the previous fiscal year to 57,602 million yen. Current assets decreased 972 million yen(2.8%) to 34,393 million yen. Non-current assets decreased 383 million yen (-1.6%) to 23,208
million yen.
The principal causes for decreased current assets were a 2,151 million yen decrease in notes
and accounts receivable trade, though there was a 856 million yen increase in work in process.
The principal cause for decreased non-current assets was a 206 million yen decrease in total
property, plant and equipment.
Total liabilities at the end of the first half of FY2011 decreased 560 (-1.0%) million yen from theend of the previous fiscal year to 53,399 million yen. Current liabilities decreased 77 million yen(-0.2%) from the end of the previous fiscal year to 42,745 million yen. Non-current liabilities
decreased 482 million yen (-4.3%) from the end of the previous fiscal year to 10, 653 million yen.
The principal causes of decreased current liabilities were a 1,080 million yen decrease in
short-term loans payable and a 132 million yen decrease in income tax payable though there wasa 1,184 million yen increase in notes and accounts payable-trade. The principal causes for
decreased non-current liabilities were a 379 million yen decrease in negative goodwill.
The interest-bearing debt increased 1,012 million yen from the end of the previous fiscal year
to 19,398 million yen.
Total net assets at the end of the first half of FY2011 decreased 795 million yen (-15.9%) fromthe end of the previous fiscal year to 4,203 million yen. The primary factor for the decrease intotal net assets was a 660 million yen decrease in foreign currency translation adjustment and a
134 million yen decrease in retained earnings from posting a net income of the first half of
FY2011.

(2) Cash Flow Condition
Net cash used in operating activities increased 3,162 million yen from the end of the previous
fiscal year due to the increase in cash and cash equivalents（cash）that resulted from increase innotes and accounts payable trade, posting depreciation and amortization, and decrease in notes
and account receivable-trade, though there was a decrease in cash due to increase in inventories.
Net cash used in investment activities decreased 1,532 million yen from the end of the previous
fiscal year due to the decrease in cash that resulted from the purchase of property, plants,
equipment and intangible assets.
Net cash used in financing activities decreased 1,161 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 cash equivalents at the end of first half of FY2011 was
4,299 million yen, an increase of 143 million yen from the end of the previous fiscal year.

3. Forecast for the Full Fiscal Year Ending March 31, 2012
Please refer to the “Announcement of the Revised Financial Forecast” announced on October25, 2011.