FOR IMMEDIATE RELEASE
April.27,2004

FDK Reports FY2003(April 1,2003-March 31, 2004) Financial Results
1.Summary of Consolidated Resultsa.Summary of Consolidated Statements of Operations
Yen

U.S.Dollars(millions)(millions)

FY2003
Net Sales
Operating Income

FY2002

Change(%)

FY2003¥102,668¥86,25819.0$977.79

1,650

459

359.5

$15.71

Income(loss) Before Income Taxes
and minority interests(8,311)(6,143)-($79.15)

Net Income(loss)(8,755)(6,266)-($83.38)

Amounts Per Share of Common Stock:Basic earnings(105.18) yen(75.46) yen-(1)dollar----

Diluted earnings
b.Net Sales by Business Segment

Yen

U.S.Dollars(millions)(millions)

FY2003

FY2002

Change(%)

FY2003

Electronic Components
Batteries¥80,621¥62,69628.6$767.82

22,04723,562-6.4$209.97

Total¥102,668¥86,25819.0$977.79

c.Summary of Consolidated Financial Condition
Yen(millions)
2004/3/31
Total Assets
Shareholders' Equity

2003/3/31¥78,864¥81,371

4,203

1,706

Shareholders' Equity Ratio

5.3%

2.1%

Shareholders' Equity
Per Share

1.58 yen

20.56 yend.Summary of Consolidated Statements of Cash Flows
Yen(millions)
FY2003

FY2002

Cash Flows fromOperating Activities(¥1,233)¥3,967

Cash Flows from
Investing Activities(2,143)(3,686)

Cash Flows from
Financing Activities

578

2,538

9,098

12,391

Cash and Cash Equivalents
at Year End

Consolidated Subsidiaries
Unconsolidated Subsidiaries

16 companies- companies

Affiliates(equity method applied only)- companies

Note : All yen figures have been converted to U.S.dollars for convenience only ata uniform rate of $1=105yen
2.Projections
2. Projections for FY2004 (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

2,000-

15.63 yen-

Net Income per ShareConsolidated Statements of Operations
Yen (millions)
FY2003

Net sales¥

FY2002

102,668¥

FY2001

86,258¥100,614

Operating costs and expenses
Cost of sales
Selling, general and administrative expenses

Operating income (loss)

90,07474,30686,33910,944

11,493

14,502

101,018

85,799100,8411,650

459(227)

3370

106

Other income (expenses)
Interest and dividend income
Equity in earnings (losses) of affiliates, net
Interest charges
Other, net

00(70)

(796)

(815)

(819)

(9,198)(5,857)(10,472)(9,961)(6,602)(11,255)(8,311)(6,143)(11,482)

Current

391

182

198

Deferred

26

(78)

537

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)

417

104

735

(8,728)(6,247)(12,217)

(27)

(19)

(91)

¥ ( 8,755)¥ ( 6,266)¥ ( 12,308)

Consolidated Balance Sheets
Yen (millions)
31-Mar-04

31-Mar-03

31-Mar-02¥ 12,517¥ 10,456

AssetsCurrent assets
Cash and time deposit¥ 9,112

Notes receivable-trade

2,086

1,658

2,192

Accounts receivable-trade26,23420,504

21,911Inventories

9,672

10,33312,016

Deferred tax assets

180

210

176

Other current assets

3,306

2,887

3,981

(75)

(117)

(134)

50,51547,99250,598Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets
Building and structures

10,034

11,09911,816

Other depreciable assets

11,596

14,816

17,665Land4,428

4,470

1,715

Construction in progress

378

559

372

26,43630,94431,568

1,046

1,353

1,429

Securities investments

131

368

556

Deferred tax assets

152

149

129

Other investments and long-term loans

584

565

730

867

1,082

1,415

¥ 78,864¥ 81,371¥ 85,010¥ 448
23,051
22,744
9,614
156
4,390
60,403¥ 398
17,17831,897
4,089
310
4,430
58,302¥ 948
13,21334,783
4,121
109
8,345
61,519

8,688
4,116
85
12,88917,111
2,866
103
20,08012,2203,715
140
16,075

1,369

1,283

1,03519,256
13,635(27,023)
12(1,662)
(15)
4,203

13,206
7,585(18,268)
41(846)(12)
1,706

13,206
7,583(14,530)
87
37
(2)
6,381

¥ 78,864¥ 81,371¥ 85,010

Total tangible fixed assets
Intangible assets
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 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 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)
FY2003

FY2002

FY2001¥ ( 8,311)¥ ( 6,143)¥ ( 11,482)

4,400

5,263

5,524

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
Equity in earnings of affiliates, net

0070(Increase) decrease in receivable-trade(7,312)

1,312

9,016

(Increase) decrease in inventories

153

1,374

4,011

Increase (decrease) in payable-trade

7,581

4,342

(6,285)

Other, net

3,603(1,490)(666)

Cash generated from operations

114

4,658

188

Interest paid(854)

(782)

(847)

49

70

106

Interest and dividends received
Income taxes paid

(542)

21(803)(1,233)

3,967(1,356)(2,917)(4,256)(7,410)

192

229

606

Purchase of intangible assets

(40)

(218)

(155)

Other, net

622

559

415

(2,143)(3,686)(6,544)

Net cash provided by operating activities

Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets

Net cash used in investing activities

Cash flows from financing activities
Proceeds from long-term debt

207

8,562

8,120

Repayment of long-term debt

(2,855)(3,698)(4,832)

Increase (decrease) in short-term borrowings(8,871)(2,716)(3,958)Proceeds from issuance of new common stock

12,100--

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

Effect of exchange rate changes on cash and cash equivalents

--

(249)

(3)

390

36578

2,538

(883)

(495)

(226)

329

Net increase (decrease) in cash and cash equivalents(3,293)2,593(8,454)

Cash and cash equivalents at beginning of year

12,391

9,798

18,252---¥ 9,098¥ 12,391¥ 9,798

Increase in cash from new consolidation of subsidiaries
Cash and cash equivalents at end of year

Consolidated Statements of Shareholders' Equity
Yen (millions)
31-Mar-03

31-Mar-04

31-Mar-02

Common Stock:
Beginning balance
Increase from capital stock issued
Ending balance¥ 13,206¥ 13,206

6,050¥ 13,206--¥ 19,256¥ 13,206¥ 13,206¥ 7,585¥ 7,583¥ 7,583

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

6,050

-

Increase in capital surplus from merger with a subsidiary-

2

Transfer to Retained Earnings--

Ending balance--¥ 13,635¥ 7,585¥ 7,583¥ ( 18,268)¥ ( 14,530)¥ ( 1,942)

Decrease in deficit from merger with a subsidiary

-

2,528

Transfer from Capital Surplus---

Cash dividends paid

--

(250)

Others--(30)

Retained Earnings(Deficit)
Beginning balance-

Net income(loss)(8,755)(6,266)(12,308)

Ending balance¥ ( 27,023)¥ ( 18,268)¥ ( 14,530)

¥ 41

¥ 87

¥ ( 77)

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

(29)

(46)

164

¥ 12

¥ 41

¥ 87

¥ ( 846)¥ 37¥ ( 701)

(816)

(883)

738

¥ ( 1,662)¥ ( 846)¥ 37¥ ( 12)¥ ( 2)¥ ( 5)

(3)

(10)

3

¥ ( 15)¥ ( 12)¥ ( 2)

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Business Performance and Finances
Business Performance Overview
The electronic product market has been rapidly recovering due to the demand expansion ofdigital appliance such as flat screen TVs, digital cameras, third-generation cell-phones, andbroadband communications. Development of new services including ground wave digital
broadcasting and the coming Athens Olympics have been also stimulating the replacement
demand for digital AV appliance.
Under these circumstances, FDK highly utilized its original material technology, and circuitand high-density mounting technology to develop the latest key devices towards realization of
the Ubiquitous society where digital equipments are connected in a network. In addition,
productivity reform movement has been carried out the company-wide since the end of last year
to seek the most efficient production structure, and construction of the low-cost production
structure by the thorough cost reduction are tackled as well.
By concentrating management resources on the flat panel display field where rapid growth
had been expected in the market, the sales of hybrid module was extended greatly. Althoughsome items such as ferrite products were suffering from severe price competition in the market,
total sales is 102,668 million yen of the increase of 19.0% compared with previous fiscal year
result. The increase of profits by the increase of sales and the measure for the cost cut together
contributed the operating income improved 1,650 million yen compared to the previous year.
The operating income became 3.6 times increase to the previous year.
However, non-operating expenses are increased due to the foreign exchange loss generated
in the year end and corporate structural reform generated additional expenditure. Otherexpenses became 9,961 million yen. And thus net loss for this year is resulted 8,755 million yen.

Electronic BusinessAlthough ferrite products were suffering from severe price competition in the market, hybrid
modules for plasma display panels (PDP) for thin shape televisions were spread on a large scale
and its sales contributed the rise of total sales amount. While the sales of switching power
supplies for servers were still not fully recovered, the sales of switching power supplies forstorage devices and flat PDPs pushed the total sales of power systems. Sales of optical devicesrose with its market recovery. The stepper motor for OA apparatus maintained sales amount by
the sales of new products, regardless the decline of its needs.
According to the above-mentioned situation, the sales of the whole electronic business are
80,621 million yen of 28.6% increase compared with the previous fiscal year.

Battery BusinessAlthough sales promotion of the core products like high-performance alkaline battery G
series in the domestic and overseas market was strengthened, unusual weather last yearaffected the sales for outdoors and for excursion products. In addition, overseas major
customers’ decision to postpone their orders affected the sales performance. Consequently, thesales are 22,047 million yen of 6.4% decrease compared with the previous fiscal year.

Projections
Although electronic product markets are on a way to recovery, rabid market competition isexpected.
The present business forecast of the fiscal year ended March 2005 is as follows.
Projections for FY2004
FY2004 (April 1,2004
1,2004 - March 31, 20052005)
Consolidated Earnings Forecast
Yen (million)change(%)
Net Sales
119,900+16.8
Operating income
5,100+310
Income before tax
2,450
Net Income
2,000
The above forecast takes a consideration of the estimated impact of greater 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 product and components in main markets, the exchange rate,
Japan-U.S. stock quotations, etc.

Cash flow condition
The net deficit for the period before tax adjustment is minus 1,233 million yen, though westrived to have an effective operation.
The cash flow by the investing activities of this fiscal year 2,143 million yen resulting frominvestment to the facilities of hybrid module and sell-off of ownership stakes.
The cash flow by the financing activities of this fiscal year increased 578 million yen after theissuance of new shares to the third party and redemption of borrowings.
According to these results, cash and cash equivalents at the end of the year increases 3,293
million yen compared with the balance at the beginning of the year, and resulting 9,098 million
yen.