FOR IMMEDIATE RELEASE
October 29, 2014
Consolidated Financial Results for the First Half of FY2014(April 1, 2014 to September 30, 2014)
FDK CORPORATION
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, General Affairs Dept.
E-mail: hirano@fdk.co.jp
The Consolidated Financial Results is unaudited/U.S. GAPP is not applied

1. Consolidated Results for the Six-Months Period Ended September 30, 2014
a. Consolidated Results of Operations
Yen(millions)
Six months
Six months
ended Sept. 30,
ended Sept 30,
2013
2014
Change (%)
Net Sales
39,30835,572(9.5)
Operating Income
1,049
455
(56.6)
Ordinary Income
985
419(57.4)Net Income
484
451
(6.8)

Amounts Per Share of Common Stock:
Basic Earnings
2.23 yen
Diluted Earnings
1.74 yen

1.61 yen- yen(URL: http://www.fdk.com)

Yen(millions)
FY2013,
ended Mar. 31,
2014
76,624
1,448
1,471
1,060

4.48 yen- yen

U.S.Dollars(millions)
Six months
ended Sept. 30,
2014$325.01
$4.16
$3.83
$4.12

1.47 cent- centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)
Six months
ended Sept. 30,
2013
24,026
15,28139,308Yen(millions)
Six months
ended Sept. 30,
2014
23,595
11,97735,572c. Consolidated Financial Position
Yen(millions)
As of Mar. 31,
As of Sept. 30,
2014
2014
Total Assets
55,29456,473
Total Net Assets
6,508
8,003
Shareholders' Equity
8,174
8,459
10.6 %
13.0 %
Shareholders' Equity Ratio

Yen(millions)
FY2013,
ended Mar. 31,
2014
45,671
27,87673,547

U.S.Dollars(millions)
Six months
ended Sept. 30
2014$215.58$109.43$325.01

d. Consolidated Statements of Cash FlowsYen(millions)
Six months
ended Sept. 30,
2013
3,593

Six months
ended Sept. 30,
2014
1,413

(1,981)(810)(1,604)

(650)

4,949

5,256

Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at End of Period(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 109.45 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 2014 ending March. 31, 2015
(Million of yen, except per share data)
FY2014
Change from FY2013
FY2013
Net Sales
82,00076,624
7.0 %Operating Income
2,500
1,448
72.6
Ordinary Income
1,600
1,471
8.8 %
Net Income
1,200
1,060
13.1 %Net Income per Share
4.28 yen
4.88 yen
Note for the use of the above forecasted business results.
The financial forecast described above is based upon information available as of April 25, 2014.
3. Others(1) Changes in material subsidiaries during the period: No
Consolidated Subsidiaries
16 companies
Unconsolidated Subsidiaries (equity method applied)
3 companies
Affiliates (equity method applied only)
2 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: Yes
2) 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.
September 30, 2014: 280,363,026 shares
March 31, 2014: 280,363,026 shares
2) Number of treasury shares at the end of each period
September 30, 2014: 246,204 shares
March 31, 2014: 241,366 shares3) Weighted average number of shares outstanding in each period.
September 30, 2014: 280,119,060 shares September 30, 2013: 217,270,910 shares

Consolidated Balance Sheets
Millions of yen
FY2013
Mar 31, 2014
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
Negative goodwill
Long-term accounts payable - other
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

1H/FY2014
Sep 30, 2014

5,029
18,726
2,226
2,952
1,906
244
1,627
(61)
32,651

5,256
18,577
2,910
3,139
2,126
237
1,809
(105)
33,952

7,486
4,994
855
2,557
1,225
568
17,687
677

7,581
4,718
857
2,692
1,503
719
18,073
614

1,910
1
785
224
1,356
(0)
4,278
22,642

1,478
1
771
198
1,384
(0)
3,833
22,521

55,29456,473

13,224
19,510
386
2,156
252
2,875
38,405

13,85919,100
373
2,017
202
2,987
38,541

1,002
289
4,274
569
3,929
316
10,38048,786

1,193
289
4,394
189
3,578
281
9,928
48,46928,301
22,622(42,706)
(42)
8,174

28,301
22,622(42,420)
(43)
8,459

26
341
(2,658)(2,290)
624
6,508

30
1,507
(2,655)(1,117)661
8,003

55,29456,473

Consolidated Statements of Income
Millions of yen
1H/FY2013

1H/FY2014

Apr'13-Sep'13

Apr'14-Sep'14

Net sales

39,30835,572

Cost of sales

32,94729,484Gross profit

6,360

6,088

Selling, general and administrative expenses

5,311

5,633

Operating income

1,049

455

Interest income

920

Foreign exchange gains-

114

Amortization of negative goodwill

379

379

Rent income

99

99

Other

156

87

Total non-operating income

645

701

Interest expenses

76

71

Foreign exchange losses

124-

Equity in losses of affiliates

385

509

Loss on retirement of non-current assets

19

36

Other

102

119

Total non-operating expenses

709

737

985

419

Subsidy income

83

147

Gain on transfer of business-70

Total extraordinary income

83

217

Loss on revision of retirement benefit plan

304-

Total extraordinary loss

304-

Income before income taxes

763

637

Income taxes-current

196

129

Income taxes-deferred

(95)

(46)

Total income taxes

292

175

Income before minority interests

471

462

Minority interests in income (loss)

(13)

11

Net income

484

451

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss

Consolidated Statements of comprehensive income
Total accumulated other comprehensive income
1H/FY2013

1H/FY2014

Apr'13-Sep'13

Apr'14-Sep'14

471

462

5

4

450

1,122

Remeasurements of defined benefit plans, net of tax-

2

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

62

69

Other comprehensive income

519

1,198

990

1,661

Comprehensive income attributable to owners of the parent

1,006

1,624

Comprehensive income attributable to minority interests

(16)

36

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Comprehensive income（Comprehensive income attributable to）

Consolidated Statements of Cash Flows
Millions of yen
1H/FY2013

1H/FY2014

Apr'13-Sep'13

Apr'14-Sep'14

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

763

637

1,369

1,479

Increase (decrease) in provision for retirement benefits

8-

Increase (decrease) in net defined benefit liability

-

(63)

Increase (decrease) in allowance for doubtful accounts

241Interest and dividends income

(10)

(21)

Interest expenses

76

71

Foreign exchange losses (gains)

(5)

(5)

Equity in (earnings) losses of affiliates

385

509

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

(0)

(1)

Loss on retirement of non-current assets

19

36

Amortization of negative goodwill

(379)

(379)

Subsidy income

(83)

(147)

-

(70)

Decrease (increase) in notes and accounts receivable-trade

894

797

Decrease (increase) in inventories

255

(990)

(1,213)

200

589

16

Other, net

1,192

(529)

Subtotal

3,866

1,580

Interest and dividends income received

10

21

Proceeds from subsidy income

83

147

Interest expenses paid

(77)

(71)

Income taxes paid

(289)

(265)

Net cash provided by (used in) operating activities

3,593

1,413

Payments into time deposits(0)-Proceeds from withdrawal of time deposits

10-

Purchase of property, plant and equipment(1,236)(1,113)

Proceeds from sales of property, plant and equipment

172

231

Purchase of intangible assets

(33)

(7)

Purchase of investment securities

(1)

(1)

Loss (gain) on transfer of business

Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued expenses

Net cash provided by (used in) investing activities

Proceeds from sales of stocks of subsidiaries and affiliates

(888)

-

Proceeds from transfer of business-100

Other, net

(4)

(19)

(1,981)(810)(1,385)(410)

Purchase of treasury stock

(0)

(0)

Proceeds from stock issuance to minority shareholders

6

-

(225)

(240)

(1,604)(650)

Effect of exchange rate change on cash and cash equivalents

176

275

Net increase (decrease) in cash and cash equivalents

183

227

Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation

(532)

-

Cash and cash equivalents at beginning of period

5,297

5,029

Cash and cash equivalents at end of period

4,949

5,256

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

Repayments of finance lease obligations
Net cash provided by (used in) financing activities

Consolidated Business Segment Information
Millions of yen'1H/FY2013 Apr'13-Sep'13
Business Segments Reported
Electronic
Batteries
Materials

Total

Ajustments

Consolidated
Statements

Net sales
Unaffiliated customers
Intersegment
Total
Segment income

24,026

15,28139,308-39,308

-

-

-

-

-

24,026

15,28139,308-39,308

520

528

1,049

-

1,049

Ajustments

Consolidated
Statements'1H/FY2014 Apr'14-Sep'14
Business Segments Reported
Electronic
Materials
Batteries

Total

Net sales
Unaffiliated customers
Intersegment
Total
Segment income (loss)

23,595

11,97735,572-35,572

-

-

-

-

-

23,595

11,97735,572-35,572

700

(244)

455

-

455

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
As for the business environment of the FDK Group (“FDK”) during the first half ended September 30, 2014,
some unclear condition still remained due to the anticipation of the slowing economic growth in emerging countries
which were driving force of the world economy, instability of the political situation in Ukrainian and the Middle
East, and high prices of raw materials and fuels due to the depreciation of the yen. In addition, a sense of recovery
on the economy has appeared to be pausing from the instability of the European market and downturn in sales dueto the reaction of the last-minute demand by the consumption tax hike from this April in Japan, and the decline in
consumer spending due to inclement weather, etc. in the latter half of the period.
Under these circumstances, as the business expansion measures, FDK released FUJITSU alkaline battery series
and FUJITSU Ni-MH rechargeable battery series that were redesigned in accordance with upgrading performancein June. Switching of the old models are progressing smoothly. Sales of lithium batteries have expanded due tothe increase in sales for disaster-related goods, security goods, and automotive applications in North American andEuropean markets.
As for FDK’s business results in the first half, net sales were 35,572 million yen, down by 3,735 million yen
from the same period last year since sales of signal processing modules for LCD displays used for large LCD TVs
and Ni-MH batteries for consumer markets decreased.
With regard to profit and loss, operating income of battery business segment was 700 million yen, up by 179
million yen from the same period last year. It was achieved by the continuous application of technological VEs
for product materials and the reduction of purchasing costs. However, the sales of above-mentioned signal
processing module for LCD displays for large LCD TVs of electronic device business decreased largely andoperating income was 455 million yen, down by 593 million yen from the same period last year.
Ordinary income was 419 million yen, down by 565 million yen from the same period last year and net income
was 451 million yen, down by 33 million yen from the same period last year.
The divisional sales overview is as follows.
1.2 Battery Business
Sales of alkaline batteries increased from the same period last year due to the efforts to acquire new customers indomestic and global market in the last fiscal year, and to tackle about possibilities of extending sales with current
customers. Sales of Ni-MH batteries decreased from the same period last year due to the decline in domestic andglobal consumer markets, though there was an increase in the industrial market such as automotive use. Sales oflithium batteries went up from the same period last year, due to the increase in sales for disaster-related goods,
security goods, and automotive applications in North American and European markets.
As a result, sales for the battery business were 23,595 million yen, down by 431 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 the steady increase in sales for consumer
equipment, industrial equipment and hybrid cars. Sales of signal processing modules for LCD displays
significantly decreased from the same period last year as these products had not sold well for large LCD televisions
and for netbooks. Sales of piezoelectric products decrease from the same period last year, due to the sluggish
digital camera market.
As a result, sales for the electronic device business were 11,977 million yen, down by 3,304 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 half of FY2014 increased by 1,178 million yen (2.1%) from the end of the previous
fiscal year to 56,473 million yen. Current assets increased by 1,300 million yen (4.0%) from the end of theprevious fiscal year to 33,952 million yen. Noncurrent assets decreased by 121 million yen (-0.5%) from the end

of the previous fiscal year to 22,521 million yen. The main causes for increase current assets were a 683 million
yen increase in merchandise and finished goods, a 227 million yen increase in cash and deposit and a 220 million
yen in notes and accounts receivable-trade. The principal cause for decrease noncurrent assets was a 432 million
yen decrease in investment securities, though there was a 386 increase in property, plant and equipment.
Total liabilities at the end of first half of FY2014 decreased by 316 million yen (-0.6%) from the end of theprevious fiscal year to 48,469 million yen. Current liabilities increased by 135 million yen (0.4%) from the end of
the previous fiscal year to 38,541 million yen. Noncurrent liabilities decreased by 452 million yen (-4.4%) fromthe end of the previous fiscal year to 9,928 million yen. The principal cause for increase current liabilities was a
635 million yen increase in notes and accounts payable-trade, though there was a 410 million yen decrease in
short-term loans payable. The main causes of decrease non-current assets were a 379 million yen decrease innegative goodwill and a 350 million yen decrease in long-term accounts payable-other.
The interest-bearing debt decreased by 231 million yen from the end of the previous fiscal year to 20,667 million
yen.
Total net assets at the end of first half of FY2014 increased by 1,495 million yen (23.0%) from the end of theprevious fiscal year to 8,003 million yen. The main causes for the increase in total net assets were a 286 million
yen increase in retained earnings by posting a net income of first half of HY2014 and a 1,165 million yen in foreign
currency translation adjustment.
2.2 Cash Flow Condition
Net cash used in operating activities increased by 1,413 million yen from the beginning of this fiscal year due toan increase in cash and cash equivalents (“cash”) by an increase in income before income taxes, the depreciation
and amortization and a decrease in notes and accounts payable-trade, though there was a decrease in cash by anincrease in inventories. (Net cash used in operating activities for the same period last fiscal year increased by 3,593
million yen from the beginning of the last fiscal year)
Net cash used in investment activities decreased by 810 million yen from the beginning of this fiscal year bypurchasing the property, plant and equipment, though there was an income by transfer of business. (Net cash used
in investment activities for the same period last fiscal year decreased by 1,981 million yen from the beginning of thelast fiscal year).
Net cash used in financing activities decreased by 650 million yen from the beginning of this fiscal year due to adecrease in short-term loans payable and the repayments of finance lease obligations. (Net cash used in financing
activities for the same period last fiscal year decreased by 164 million yen from the beginning of the last fiscal
year).
As a result, the balance of cash and cash equivalents on September 30, 2014 was 5,256 million yen, an increaseof 227 million yen from the beginning of this fiscal year.
3. Forecast for the Fiscal Year Ending March 31, 2015
FDK has not changed its business forecast, which was announced on April 25, 2014. We will announce therevision promptly if it will be necessary in the future, by doing our best to collect various information including
market trends.