FOR IMMEDIATE RELEASE
July 23, 2018
Consolidated Financial Results for the First Quarter Ended June 30, 2019
(April 1, 2019 to June 30, 2019)(URL: http://www.fdk.com)

FDK CORPORATION
Listing Code No. 6955 (Listing Stock Exchange: The Second Section of Tokyo Stock Exchange)
Address : Shinagawa Crystal Square Bldg., 1-6-41 Konan, Minato-ku, Tokyo 108-8212 Japan
Contact : CSR & Compliance Div.
E-mail: prir-tyo@fdk.co.jp
The Consolidated Financial Results is unaudited/U.S. GAPP is not applied

1. Consolidated Results for the Three-Months Period Ended June 30, 2019a. Consolidated Statements of Income
Yen(millions)Three months
Three months
ended June 30,
ended June 30,
2018
2019
Net Sales
17,477
16,430Operating Profit (Loss)
(123)
(209)
Ordinary Profit (Loss)
193
(298)
Profit (Loss) attributable to83(1,194)owners of parent

Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings

2.99 yen- yen

Change (%)
(6.0)
-

Yen
(millions)
FY2018,
ended Mar. 31,
201972,113
823
718
(290)

(34.62) yen- yen(9.91) yen- yen

U.S.Dollars(millions)Three months
ended June 30,
2019$152.48($1.94)($2.77)($11.08)(32.13) cent
- centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)Three months
ended June 30,
2018
11,134
6,342
17,477

Yen(millions)Three months
ended June 30,
201911,242
5,187
16,430Yen(millions)
FY2018,
ended Mar. 31,
2019
47,76324,35072,113c. Consolidated Financial Position

Total Assets
Net Assets
Owners' Equity
Capital Adequacy Ratio

Yen(millions)
As of March 31,
As of June 30,
2019
2018
54,14552,668
10,2808,586
10,276
8,582
19.0 %
16.3 %

d. Consolidated Statements of Cash Flows

Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at End of Period

Yen(millions)Three months
Three months
ended June 30,
ended June 30,
2018
2019
1,402
(499)
(720)

(474)

(660)

1,420

3,757

9,029

(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 107.75 yen=$1
3. The percentage in this statement presents rate of change compared with the same period last year.
4. FDK implemented a share consolidation (10 to 1) effective October 1, 2018.

U.S.Dollars(millions)Three months
ended June 30,
2019$104.33$48.14$152.48

2. Consolidated Financial Forecast for the fiscal year 2019 ending March 31, 2020
(Million of yen, except per share data)
FY2019Change from FY2018
FY2018Net Sales
65,00072,113(9.9) %
Operating Profit
800
823
(2.9)
718
Ordinary Profit
500(30.4) %%(290)
Profit (Loss) attributable to owners(700)
of parent(9.91) yen
Basic Earnings per Share(23.88) yen
Note for the use of the above forecasted business results.
The financial forecast described above is based upon information available as of April 26, 2019.
3. Others(1) Material changes in significant subsidiaries during the period: No
Consolidated Subsidiaries
12 companies
Unconsolidated Subsidiaries (equity method applied)
3 companies
Affiliates (equity method applied only)
1 companies(2) Applying of specific accounting of the consolidated quarterly financial statements: No(3) Changes in accounting policies, accounting estimates, and retrospective restatement
1) Changes in accounting policies based on revisions of accounting standard: Yes
2) Changes in accounting policies other than ones based on revisions of accounting standard: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Number of issued and outstanding shares (common stock)1) Number of issued and outstanding shares at the end of fiscal year.
June 30, 2019: 34,536,302 shares
March 31, 2019: 34,536,302 shares
2) Number of treasury stock at the end of each period
June 30, 2019: 27,810 shares
March 31, 2019: 27,765 shares
3) Average number of shares in each period.
June 30, 2019: 34,508,503 shares June 30, 2018: 28,009,113 shares(Notes)1. FDK implemented a share consolidation (10 to 1) effective October 1, 2018.
2. This information is a summary of the earnings report. It does not contain all details included in the earnings reportdisclosed in Japanease.

Consolidated Balance Sheet
Millions of yen
FY2018March 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
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
Leased 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
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Provision for loss on business transfer
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Net defined benefit liability
Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
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
Non-controlling interests
Total net assets
Total liabilities and net assets

1Q/FY2019
June 30, 2019

8,734
18,476
2,790
3,067
3,035
1,082
(101)
37,085

9,029
18,155
3,115
2,625
2,729
740
(97)
36,298

6,146
4,526
984
2,540
1,341
263
15,803
481

5,978
4,674
911
2,526
1,033
81
15,206
464

193
2
65
513
(0)
775
17,05954,145

188
2
40
468
(0)
699
16,37052,66814,092
18,400
344
1,894
326
2,816
37,875

12,83919,910
333
2,149
206
745
2,174
38,358

469
198
4,263
675
382
5,989
43,864

380
317
4,133
504
388
5,723
44,082

31,70926,376(45,829)(48)
12,20731,70926,376(47,030)(48)
11,00727
806(2,765)(1,931)
4
10,28054,14523
215(2,664)(2,424)
4
8,586
52,668-

Consolidated Statement of Income
Millions of yen
1Q/FY2018

1Q/FY2019

April 18 - June 18

April 19 - June 19

Net sales

17,477

16,430

Cost of sales

14,907

13,881Gross profit

2,569

2,548

Selling, general and administrative expenses

2,693

2,758

Operating loss

(123)

(209)

Interest income

58Dividend income1111Foreign exchange gains

335

Gain on sales of non-current assets

120Rent income

9

3

Other

26

16

Total non-operating income

401

39

30

33

Non-operating income-

Non-operating expenses
Interest expenses
Foreign exchange losses-

30

Share of loss of entities accounted for using equity method

33

15

Loss on retirement of non-current assets

0

37

Other

19

9

Total non-operating expenses

83

127

193

(298)

Ordinary profit (loss)
Extraordinary loss
Provision for loss on business transfer-

745

Impairmant loss

22

57

Total extraordinary loss

22

802

Profit (loss) before income taxes

170(1,100)

Income taxes-current

90

77

Income taxes-deferred

(3)

16

Total income taxes

87

94

Profit (loss)

83(1,194)

Profit (Loss) attributable to non-controlling interests(0)0Profit (loss) attributable to owners of parent

83(1,194)

Consolidated Statement of Comprehensive Income
Millions of yen
1Q/FY2018

1Q/FY2019

April 18 - June 18

April 19 - June 19

83(1,194)0(4)Foreign currency translation adjustment

(26)

(458)

Remeasurements of defined benefit plans, net of tax

101

101

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

(2)

(132)

Other comprehensive income

73

(493)

Comprehensive income

156(1,688)156(1,688)(0)0Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

Consolidated Statement of Cash Flows
Millions of yen
1Q/FY2018

1Q/FY2019

April 18 - June 18

April 19 - June 19

Cash flows from operating activities
Profit (loss) before income taxes

170(1,100)Depreciation and amortization

529

531

Impairment loss

22

57

Increase (decrease) in provision for loss on business transfer

-

745

(91)

(130)

0

(3)

Interest and dividend income

(17)

(19)

Interest expenses

30

33

Foreign exchange losses (gains)(0)0

Share of (profit) loss of entities accounted for using equity method

33

15

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

(12)

(0)

0

37

Decrease (increase) in notes and accounts receivable-trade

805

(22)

Decrease (increase) in inventories

(870)

303

Increase (decrease) in notes and accounts payable-trade

1,034

(948)

Increase (decrease) in accrued expenses

(631)

(445)

Other, net

543

524

Subtotal

1,547

(420)

Interest and dividend income received

17

19Interest expenses paid

(24)

(30)

Income taxes paid

(138)

(68)

Net cash provided by (used in) operating activities

1,402

(499)

(742)

(475)

21

5

Increase (decrease) in net defined benefit liability
Increase (decrease) in allowance for doubtful accounts

Loss on retirement of non-current assets

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets-(1)

Purchase of investment securities

(1)

(1)

Other, net

1

(1)

(720)

(474)

(535)

1,510

(0)

(0)

Repayments of finance lease obligations

(125)

(89)

Net cash provided by (used in) financing activities

(660)

1,420

Effect of exchange rate change on cash and cash equivalents

15

(151)

Net increase (decrease) in cash and cash equivalents

36

294

Cash and cash equivalents at beginning of period

3,720

8,734

Cash and cash equivalents at end of period

3,757

9,029

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Purchase of treasury shares

Consolidated Business Segment Information
Millions of yen
1Q/FY2018 April 18 - June 18
Business Segments Reported
Total

Electronic
Devices

Batteries

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers

11,134

6,342

17,477-

17,477

-

-

-

-

-

11,134

6,342

17,477-

17,477218(342)

Intersegment
Total
Segment profit (loss)(123) -

(123)

1Q/FY2019 April 19 - June 19
Business Segments Reported
Total

Electronic
Devices

Batteries

Consolidated
Statements

Adjustments

Net sales
Unaffiliated customers

11,242

Intersegment
Total
Segment profit (loss)

5,187
-

16,430--16,430--

11,242

5,187

16,430-16,430

25

(235)

(209)

-

(209)

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
The business environment of the FDK Group (“FDK”) during the first quarter ended June 30, 2019 remained
uncertain condition including policy of each country such as U.S. and China, expansion of trade friction, economic
trend of Europe, though it gradually improved in Japan.
Under these circumstances, FDK strived to develop new customers and expand sales in Japan and overseas using
the strengths of battery technology, electrical circuit technology and power electronic technology to integrate battery
solutions with electronic technology on the basis of batteries into new markets such as IoT, mobility and social
infrastructure, which are expected to grow greatly in the future in addition to conventional markets such as home
appliances, power supply back-up application and automotive accessories. FDK promoted its practical applicationin addition to the start of sample shipment of high capacity model of small all-solid-state SMD battery and also
proceeded the development of FUJITSU Alkaline Battery “Premium S” improved for the performance of long life,
long storage and leakage prevention which is scheduled to be released in September this year.
Also, FDK implemented the transfer of part of the Electronic Device business, liquidation of consolidated
subsidiary, decision of transfer the whole equity interest in equity method affiliate as the measures to proceed
structural reform of the Electronic Device business. FDK implemented the measures for more concentration ofmanagement resource of FDK to battery solution such as development of next generation batteries including small
all-solid-state SMD battery and metal-hydride air secondary battery in addition to existing batteries.
The sales of Battery business increased due to steady sales of Ni-MH batteries and Alkaline batteries in industrial
market and equipment business, though sales of Ni-MH batteries and Alkaline batteries in overseas consumer market
decreased. The sales of Electronic Device business decreased due to sales decrease by discontinue operations ofoverseas subsidiary in last fiscal year, decrease of Signal processing modules for large size LCD, DC-DC power
module and Switching power supply in industrial use such as for server and storage system, while sales of Signal
processing module for tablet type device and for automotive use increased. As a result, consolidated sales of thisperiod ended June 30, 2019 was 16,430 million yen, decreased by 1,046 million yen (6.0%) from the same period oflast year.
With regard to profit and loss in the Battery business, profit was decreased from the same period of last year due
to sales decrease of Ni-MH batteries in overseas consumer market in spite of effort for cost reduction. Regarding
Electronic Device business, loss amount decreased because of effect by selection and concentration and less impact
of increased material price comparing with the same period of last year. As a result, the operating loss was 209
million yen (it was 123 million yen operating loss in the same period of last year). The ordinary loss in this period
was 298 million yen (it was 193 million yen ordinary profit in the same period last year). The loss attributable toowners of parent in this period was 1,194 million yen (it was 83 million yen profit attributable for owners of parent
in the same period last year) due to 745 million Yen of extraordinary loss as provision for loss on transfer of part ofElectronic Device business.
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Battery business increased from the same period of last year due to equipment business increased, though
Ni-MH batteries, Alkaline batteries and Lithium batteries decreased.
Sales of Ni-MH batteries decreased from the same period of last year, due to sales decrease in Japan and overseas
consumer market though sales for industrial use was steady. Sales of Alkaline batteries decreased from the same
period of last year due to sales decrease in Japan and overseas consumer market, though sales for industrial use wassteady. Sales of Lithium batteries decreased from the same period of last year due to decrease of sales for smoke
detectors in Japan and overseas though sales for security and smart meters in Japan was steady. Equipment business
was steady due to steady demand of equipment such as for automobile parts.
As a result, sales for the Battery business was 11,242 million yen, increased by 108 million yen from the same
period of last year.

1.3 Electric Device business
Sales of Electric Device business decreased from the same period of last year due to sales of DC-DC power
modules, Signal processing module for LCD and Switching power supply decreased though sales of Toner increased.
Sales of DC-DC power module decreased from the same period of last year due to sales for server and storage
system decreased. Sales of Signal processing modules for LCD decreased from the same period of last year due tosales decrease for large size LCD, though sales for tablet type device and automotive use was steady. Sales of
Switching power supply decreased from the same period of last year due to sales decrease for LCD manufacturing
equipment though sales for semiconductor manufacturing equipment was steady. Sales of Toner was steady due toincrease for overseas market.
As a result, sales for the Electronic Device business was 5,187 million yen, decreased by 1,155 million yen fromthe same period last year.
(2) Analysis of Financial Condition
2.1 Status of Assets, Liabilities and Net Assets
Total assets at the end of first quarter in FY2019 decreased by 1,476 million yen (-2.7%) from the end of theprevious fiscal year to 52,668 million yen. Current assets decreased by 786 million yen (-2.1%) from the end of theprevious fiscal year to 36,298 million yen. Non-current assets decreased by 689 million yen (-4.0%) from the endof the previous fiscal year to 16,370 million yen. The principal causes for decreased current assets were a 442
million yen decrease in work in process, a 321 million yen decrease in note and accounts receivable-trade and a 305
million yen decrease in raw materials and supplies, though was a 325 million yen increase in merchandise andfinished goods.
Total liabilities at the end of first quarter in FY2019 increased by 217 million yen (0.5%) from the end of theprevious fiscal year to 44,082 million yen. Current liabilities increased by 483 million yen (1.3%) from the end of
the previous fiscal year to 38,358 million yen. Non-current liabilities decreased by 265 million yen (-4.4%) fromthe end of the previous fiscal year to 5,723 million yen. The principal cause of increased current liabilities was a1,510 million yen increase in short-term loans payable and a 745 million yen increase in provision for loss on business
transfer, though was a 1,252 million yen decrease in notes and accounts payable-trade. The principal cause of
decreased non-current liabilities was a 170 million yen decrease in long-term accounts payable – other and a 130
million yen decrease in net defined benefit liability.
The interest-bearing debt increased by 1,409 million yen from the end of the previous fiscal year to 20,623 million
yen.
Total net assets at the end of first quarter in FY2019 decreased by 1,693 million yen (-16.5%) from the end of theprevious fiscal year to 8,586 million yen. The main factors for the decrease in total net assets were a 1,200 million
yen decrease in retained earnings by posting a loss attributable to owners of parent and a 590 million yen decrease inforeign currency translation adjustment.
2.2 Cash Flow Condition
Cash flows from operating activities decreased by 499 million yen from the beginning of this fiscal year due to adecrease in cash and cash equivalents (“cash”) by posting a decrease in loss before income taxes and a decrease innotes and accounts payable-trade, though was a decrease in inventories (Cash flows from operating activities for thelast fiscal year increased by 1,402 million yen from the beginning of the last fiscal year).
Cash flows from investment activities decreased by 474 million yen from the beginning of this fiscal year due to adecrease in cash by posting a purchase of property, plant and equipment (Cash flows from investment activities forthe last fiscal year decreased by 720 million yen from the beginning of the last fiscal year).
Cash flows from financing activities increased by 1,420 million yen from the beginning of this fiscal year due toan increase in cash by posting a net increase in short-term loans payable (Cash flows from financing activities for thelast fiscal year decreased by 660 million yen from the beginning of the last fiscal year).
As a result, the balance of cash and cash equivalents on June 30, 2019 was 9,029 million yen, an increase of 294
million yen from the beginning of this fiscal year.

3. Forecast for the Fiscal Year Ending March 31, 2020
FDK has not changed its business forecast which was announced on April 26, 2019.
There is a risk of sales decrease from the second quarter as the business environment of FDK is now in a severe
situation such as harder competition in overseas consumer market for Battery business and trade friction between U.S
and China. FDK is considering measures to respond to such changes of business environment and investigating thebusiness forecast thoroughly.
FDK will announce the revision promptly if it will be necessary in the future, by doing our best to collect various
information including market trends.