FOR IMMEDIATE RELEASE
April 27, 2005

FY2004 Consolidated Financial Results(April 1, 2004 to March 31, 2005)

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
Date of the meeting of the Board of Directors to settle the consolidated accounts: April 27,2005
Parent Company : Fujitsu Limited (TSE:6702)
Contact : Corporate Communication Group, Business Strategy & Planning Department
E-mail: narishi@fdk.co.jp or niida@fdk.co.jp
U.S. GAPP is not applied

1. Items Relevant to Preparation of Consolidated Financial Results(1)Changes in accounting methods: Yes
For the six consolidated subsidiaries whose accounting periods were different from FDK, provisional
settlement of accounting was made by using FDK's accounting period (from Apr. 1,2004 to Mar. 31, 2005)
and the following financial statement was prepared accordingly.
(2)Changes in scope of consolidation or application of equity method: Yes
2 newly included of consolidated account.
1 excluded from consolidated account.
1 newly included affiliate accounted for under the equity method.
(3)Average number of shares in each year
Ordinary shares - FY2004: 127,983,569 shares FY2003: 83,247,183 shares
Preferred shares - FY2004: 10,000,000 shares FY2003: 54,644 shares(4)Number of shares issued and outstanding at the end of fiscal year.
Ordinary shares - FY2004: 127,972,977 shares FY2003:127,993,851shares
Preferred shares - FY2004: 10,000,000 shares FY2003:10,000,000 shares
2.Consolidated Operating Results for the Fiscal Year 2004
a. Consolidated Results of Operations

Net Sales
Operating IncomeIncome(Loss) Before Income Taxes
and Minority Interests
Net Income (Loss)
Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings

Yen(millions)
FY2004
FY2003
100,441
102,668
1,542
1,650

Change(%)
-2.2
-6.5

U.S.Dollars(millions)
FY2004$938.70$14.41(1,721)(2,713)(8,311)(8,755)-($16.08)($25.36)(21.20) yen-(105.18) yen--(19.81 cent)-(Notes)
1.Figures in this report are rounded to the nearest million yen.
2. All yen figures have been converted to U.S.dollars for convenience only at a uniform rate of $1=107 yen
b. Net Sales by Business Segment
Yen(millions)Electronic Component
Batteries
TotalFY2004
76,36824,073
100,441

FY200380,621
22,047
102,668

Change(%)-5.3
9.2

U.S.Dollars(millions)
FY2004713.72224.98938.70c. Consolidated Financial Condition
Yen(millions)
Total Assets
Shareholders' Equity
Shareholders' Equity Ratio
Shareholders' Equity
Per Share

2005/3/31
71,366
1,234
1.70%(21.61) yen

2004/3/31
78,8644,203
5.30%
1.58 yen(Notes)Shareholders' equity per share was calculated by excluding 4 billion yen obtained by the allocationof new shares to the third party as preferred shares in the last fiscal year.

d. Consolidated Statements of Cash Flows
Yen(millions)
FY2004
Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents,End of Term

FY2003

3,254(1,233)(3,034)(2,143)

(462)

578

9,876

9,098

Consolidated Subsidiaries
Unconsolidated Subsidiaries (equity method applied)
Affiliates (equity method applied only)

17 companies- companies
1 companies

3.Reference - FY2005 Consolidated Financial Forecast (April 1, 2005 - March 31, 2006)
Consolidated Earnings Forecast
Yen(million)
Change from FY2004(%)
Net Sales
100,500+0.06
Operating Income
3,350+217.25
Net Income500
Net Income per Share
3.91 yen-Note for the use of the above 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)
FY2004

Net sales¥FY2003

100,441¥

102,668

Operating costs and expenses
Cost of sales

87,862

90,074

Selling, general and administrative expenses

11,037

10,944

98,899101,018

1,542

1,650

Interest and dividend income

66

49

Equity in earnings (losses) of affiliates, net

22-Interest charges

(721)

(796)

Other, net (Note)(2,630)(9,214)(3,263)(9,961)(1,721)(8,311)

Current

854

391

Deferred

28

26

882

417

(2,603)(8,728)

(110)

(27)

¥ ( 2,713)¥ ( 8,755)

Operating income (loss)
Other income (expenses)

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

Income (loss) before minority interests
Minority interests in income of consolidates subsidiaries
Net income (loss)

Consolidated Balance Sheets
Yen (millions)
31-Mar-05

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¥ 9,894968
23,072
7,991
82
3,792
(121)
45,678¥ 9,112
2,086
26,234
9,672
180
3,306
(75)
50,515

9,086
9,259
4,393
58
22,796

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

724

1,046

120
230
1,818
2,168

131
152
584
867

¥ 71,366¥ 78,864¥ 276
21,08929,916
7,506
452
3,226

¥ 448
23,051
22,744
9,614
156
4,390

Total current liabilities
Long-term liabilities
Long-term debt
Accrued retirement benefits
Other long-term liabilities

62,46560,403

2,306
4,749
78

8,688
4,11685

Total long-term liabilities

7,133

12,889534

1,369

19,256
13,635(29,893)16(1,759)
(21)
1,234

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

¥ 71,366¥ 78,864

Intangible assets
Investments and long-term loans
Securities investments
Deferred tax assets
Other investments and long-term loans
Total investments
Total assets

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 taxesOther current 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 Cash Flows
Yen (millions)

FY2004

FY2003¥ ( 1,721)¥ ( 8,311)

3,846

4,400

Equity in earnings of affiliates, net(22)-(Increase) decrease in receivable-trade

Cash flows from operating activities
Income (loss) before income taxes and minority interests
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities
Depreciation and amortization

4,604(7,312)(Increase) decrease in inventories

891

153

Increase (decrease) in payable-trade(3,401)

7,581

761

3,603

Cash generated from operations

4,958

114

Interest paid

(731)

(854)

66

49

Income taxes paid

(752)

(542)

Other, net(287)-3,254(1,233)(2,934)(2,917)

Proceeds from sales of tangible fixed assets

373

192

Purchase of intangible assets

(54)

(40)

Other, net

(419)

622

(3,034)(2,143)

Proceeds from long-term debt

646

207

Repayment of long-term debt

(8,559)(2,855)

Increase (decrease) in short-term borrowings

7,527(8,871)

Proceeds from issuance of new common stock-

12,100

(76)

(3)

(462)

578

96

(495)

Net increase (decrease) in cash and cash equivalents(146)(3,293)

Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from change of consolidated
accounting period of consolidated subsidiaries

9,098

12,391Other, netInterest and dividends received

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

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

Effect of exchange rate changes on cash and cash equivalents

Increase in cash and cash equivalents from new consolidation
Decrease in cash and cash equivalents due to exclusion from consolidat
Cash and cash equivalents at end of year

440
660

-(176)-¥ 9,876¥ 9,098

Consolidated Statements of Shareholders' Equity
Yen (millions)
31-Mar-05

31-Mar-04

Common Stock:
Beginning balance
Increase from capital stock issued
Ending balance¥ 19,256¥ 13,206-6,050¥ 19,256¥ 19,256¥ 13,635¥ 7,585-6,050¥ 13,635¥ 13,635¥ ( 27,023)¥ ( 18,268)

¥ 67

-

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

Retained Earnings(Deficit)
Beginning balance
Increase in earnings from addition of consolidated companies
Net increase(decrease) in deficit from change of consolidated accounting
period of consolidated subsidiaries¥ ( 224)-Net income(loss)(2,713)(8,755)Ending balance¥ ( 29,893)¥ ( 27,023)

¥ 12

¥ 41

4(29)

¥ 16

¥ 12

¥ ( 1,662)¥ ( 846)

(97)

(816)

¥ ( 1,759)¥ ( 1,662)¥ ( 15)¥ ( 12)(6)(3)¥ ( 21)¥ ( 15)

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 Business Segment Information
Yen (millions)
FY2004
Electronic Component

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)
Batteries

FY2003¥ 76,368¥ 80,621--¥ 76,368¥ ( 331)¥ 80,621¥ ( 123)¥ 24,073¥ 22,047

Net Sales
Unaffiliated Customers
Intersegment
Total--

Operating Income¥ 24,073¥ 1,873¥ 22,047¥ 1,773

Elimination

Net Sales
Operating Income--

Total

Net Sales¥ 100,441¥ 102,668

Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)--¥ 100,441¥ 1,542¥ 102,668¥ 1,650

Consolidated Geographic Segment Information
Yen (millions)
FY2004Japan

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)Asia¥ 57,191
10,895¥ 68,086¥ 424¥ 65,084
8,610¥ 73,694¥ 2,164¥ 38,314
19,951¥ 58,265¥ 1,653¥ 34,959
20,630¥ 55,589¥ 645¥ 2,267¥ 2,625

Net Sales
Unaffiliated Customers
Intersegment
Total

Operating Income
North America

FY2003

Net Sales
Unaffiliated Customers
Intersegment
Total--¥ 2,267¥ ( 96)¥ 2,625¥ ( 230)

Operating Income¥ 2,669
63¥ 2,732¥ 63-Elimination

Net Sales
Operating Income(30,909)(502)(29,240)
(929)

Total

Net Sales¥ 100,441¥ 102,668

Operating Income
EuropeNet Sales
Unaffiliated Customers
Intersegment
Total

Unaffiliated Customers
Intersegment
Total

Operating Income (Loss)¥ 100,441¥ 1,542¥ 102,668¥ 1,650

Net Overseas Sales by Customer's Geographic Location
Yen (millions)
FY2004
Asia
North America
Other countries
Total¥ 40,387
6,041
6,232
¥ 52,660

FY2003¥ 38,913
5,809
6,588
¥ 51,310Business Performance and Finances
Business Performance Overview
At the beginning of the FY 2004, sales of electric components were expected to be very
favorable as the market expansion of the digital home appliances was expected. From themiddle of the first half, however, the flat panel display market went through an intensive
adjustment period and pressures on price markdowns mounted to electronic component
manufactures.
Under these circumstances, FDK strived to develop new products and technologies torespond the customer needs and carried out production innovation aimed at the establishmentof a company-wide low-cost manufacturing structure and the improvement of businessperformance.
However, the slowdown in sales of PDP modules and related products affected our businessperformance. As a result, consolidated net sales were posted 100,441 million yen of the decreaseof 2.2% from the previous fiscal year. Consolidated operating income was 1,542 million yen of
the decrease of 6.5 %. Consolidated net loss was resulted 2,713 million yen.

Electronic Component Business[Hybrid Module Division]
From the middle of the fiscal year, the flat panel display market went into an adjustment
period and the sales of our hybrid modules related to LCDs and PDPs were much affected.
From the 4th quarter, however, the LCD panel market was recovered especially in overseas. In
contrast, the market competition among PDP makers was intensified, which caused inventory
adjustment period of the PDP devices. Net sales of this division were 47,105 million yen of
10.3% decrease from the previous fiscal year.
[Power System Division]
While the sales of switching power supplies for flat panel displays were decreased, those forstorage devices and the like were increased. Sales of coil devices were increased, due to thesales growth of inverter transformer and the sales of newly launched multilayer power chipinductors. Net sales of this division were 12,179 million yen of 22.3% increase from the previous
fiscal year.
[Motor Division]
Sales of stepper motors were increased in compact models for digital cameras and camera
phones but much decreased for OA equipment due to the demand decline. As a result, net salesof this division were 6,141 million yen of 2.8% decrease from the previous fiscal year.
[Component Division]
Sales of piezoelectric parts and optical devices were increased but sales of ferrite products
were decreased. Net sales of this division were 10,942 million yen of 7.7% decrease from theprevious fiscal year.
According to the above-mentioned situation, net sales of the electronic component businesswere 76,367 million yen of 5.3% decrease from the previous fiscal year.

Battery Business
FDK strived to develop new products and technologies to offer safe and high-quality
batteries to customers. In domestic market, sales promotion of the core products such as thehigh-performance alkaline battery “G series” was further strengthened and the higher
performance alkaline battery “G-Plus” was launched to strengthen the sales. Overseas sales
were increased from the previous fiscal year, especially in North American market.
Consequently, net sales of this business were 24,073 million yen of 9.2% increase from theprevious fiscal year.

Projections
The outlook for the digital home appliance market is still clouded and the market environment
will be expected to be severe due to the escalating prices of raw materials such as crude oil andiron ore.
The present business forecast of the fiscal year ended March 2006 is as follows.
Projections for FY2005 (April 1,2005 - March 31, 2006)
Consolidated Earnings Forecast
Yen (million)change (%)
Net Sales
100,500+0.06%
Operating Income
3,350+217.25%
Ordinary Income
950
Net Income
500
The above forecast takes a consideration of the estimated impact of worldwide economic
deceleration and some uncertain ramifications which might diminish the objectivity somehow
and cause a slight difference with the actual achievements, these factors include thesupply-and-demand trend of the products and components in major markets, the exchange rate,
Japan-U.S. stock quotations, etc.

Cash Flow Condition
The cash flow from the operating activities increased 3,254 million yen as we strived toincrease business efficiency such as liquidation of receivable and reduction in inventory by theproduction innovation, though we posted the net deficit for the period before tax adjustment.
The cash flow from the investing activities of this fiscal year decreased 3,034 million yen
resulting from investment to the facilities primarily on hybrid modules for LCDs in overseas.
The cash flow from the financing activities of this fiscal year decreased 462 million yen and inaddition, the adjustment amount of 924 million yen was increased in cash and cash equivalents,
which was accrued by the changes in scope of consolidation.
As a result, cash and cash equivalents at the end of the year increased 778 million yen
compared with the balance at the beginning of the year, and totaled 9,876 million yen.