FOR IMMEDIATE RELEASE
October 26, 2016
Consolidated Financial Results for the First Half of FY2016(April 1, 2016 to September 30, 2016)
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 : Public and Investor Relations Dept., General Affairs & Personnel Div.
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, 2016a. Consolidated Statements of Income
Yen(millions)
Six months
Six months
ended Sept. 30,
ended Sept. 30,
2015
2016
Net Sales
40,61037,056
Operating Income
1,271(376)
Ordinary Income (Loss)
1,174(689)
Profit attributable to owners
969
(892)
of parent

Amounts Per Share of Common Stock:
Basic Earnings
Diluted Earnings

3.46 yen- yen(3.19) yen- yen

Change (%)(8.8)-(URL: http://www.fdk.com)

Yen(millions)
FY2015,
ended Mar. 31,
2016
80,745
1,580658167

0.60 yen- yen

U.S.Dollars(millions)
Six months
ended Sept. 30,
2016$366.46($3.72)($6.81)($8.82)(3.15) cent- centb. Net Sales by Business Segment

Batteries
Electronic Devices
TotalYen(millions)
Six months
ended Sept. 30,
2015
25,54715,08540,610Yen(millions)
Six months
ended Sept. 30,
2016
24,55012,50537,056c. Consolidated Financial Position

Total Assets
Total Net Assets
Shareholders' Equity
Shareholders' Equity Ratio

Yen(millions)
As of March 31,
As of Sept. 30,
2016
2016
54,21752,966
7,754
5,644
7,070
4,955
13.0 %
9.4 %Yen(millions)
FY2015,
ended Mar. 31,
2016
51,72729,01780,745

U.S.Dollars(millions)
Six months
ended Sept. 30
2016$242.78$123.66$366.46

d. Consolidated Statements of Cash Flows
Yen(millions)

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

Six months
ended Sept. 30,
2015
2,902

Six months
ended Sept. 30,
2016
(344)

(911)

(835)

(1,833)

(224)

4,821

3,948

(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 101.12 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 2016 ending March. 31, 2017
(Million of yen, except per share data)
FY2016
Change from FY2015
FY2015Net Sales
75,00080,745(7.1) %Operating Income (Loss)200
1,580(87.3)
Ordinary Income(200)658-%
Profit attributable to owners of parent
10167(94.0) %Net Income per Share
0.04 yen
0.60 yen
Note for the use of the above forecasted business results.
The financial forecast described above is based upon information available as of October 26, 2016.
3. Others(1) Changes in material subsidiaries during the period: NoConsolidated Subsidiaries
14 companies
Unconsolidated Subsidiaries (equity method applied)
3 companies
Affiliates (equity method applied only)
1 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: No2) 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, 2016: 280,363,026 shares
March 31, 2016: 280,363,026 shares
2) Number of treasury shares at the end of each period
September 30, 2016: 262,779 shares
March 31, 2016: 260,914 shares3) Weighted average number of shares outstanding in each period.
September 30, 2016: 280,101,276 shares September 30, 2015: 280,109,185 shares

Consolidated Balance Sheet
Millions of yenAssets
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, netLand
Lease assets, netConstruction 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
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

FY2015

1H/FY2016

Mar 31, 2016

Sep 30, 2016

5,952
18,731
3,011
3,148
1,830
139
1,916
(84)
34,646

3,948
19,213
3,069
3,228
2,054
150
1,310(46)32,927

7,120
4,440
1,021
2,700
1,867
763
17,913
552

7,051
4,666
1,049
2,654
1,785
1,252
18,459
532

169
0
272
24
638
(0)
1,104
19,571

174
1
277
49
544
(0)
1,046
20,03854,21752,966

14,976
15,680
522
2,994
302
3,120
37,597

15,185
15,720
531
3,167
301
4,245
39,151

1,135
99
4,890
2,472
269
8,866
46,463

988
97
4,676
2,139
267
8,169
47,321

28,301
22,622(41,742)
(45)
9,135

28,301
22,622(42,634)
(45)
8,243

19
1,205
(3,290)(2,065)683
7,754

22(240)(3,068)(3,287)688
5,644

54,21752,966

Consolidated Statement of Income
Millions of yen
1H/FY2015

1H/FY2016

Apr'15-Sep'15

Apr'16-Sep'16

Net sales

40,61037,056

Cost of sales

33,557

31,695Gross profit

7,052

5,361

Selling, general and administrative expenses

5,781

5,738

Operating income (loss)

1,271

(376)

Interest income

1610

Foreign exchange gains

286-Rent income

4211

Refunded gain of capital reduction with compensation-65

Other

56

41

Total non-operating income

402

128

Interest expenses

63

61

Foreign exchange losses-237

Share of loss of entities accounted for using equity method

154

58

Loss on retirement of non-current assets

182

39

Other

97

44

Total non-operating expenses

498

441

Ordinary income (loss)

1,174(689)

Profit (loss) before income taxes

1,174(689)

Income taxes-current

191

247

Income taxes-deferred4(58)Total income taxes

196

189

Profit (loss)

978(878)

Profit attributable to non-controlling interests

813

Profit (loss) attributable to owners of parent969(892)

Non-operating income

Non-operating expenses

Consolidated Statement of Comprehensive Income
Millions of yen
1H/FY2015

1H/FY2016

Apr'15-Sep'15

Apr'16-Sep'16

978(878)

102(319)(1,401)

71

222

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

(19)

(53)

Other comprehensive income(257)(1,230)720(2,108)Comprehensive income attributable to owners of the parent

710(2,114)Comprehensive income attributable to non-controlling interests

105Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

Comprehensive income(Comprehensive income attributable to)Consolidated Statement of Cash Flows
Millions of yen
1H/FY2015

1H/FY2016

Apr'15-Sep'15

Apr'16-Sep'16

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

1,174(689)

Depreciation and amortization

1,219

1,181

-(65)

(128)

(214)

Increase (decrease) in allowance for doubtful accounts

14(33)

Interest and dividend income

(17)

(11)

Interest expenses

6361

Foreign exchange losses (gains)

03

154

58

Refunded gain of capital reduction with compensation
Increase (decrease) in net defined benefit liability

Share of (profit) loss of entities accounted for using equity method
Loss (gain) on sales of property, plant and equipment0(2)Loss on retirement of non-current assets

18239

Decrease (increase) in notes and accounts receivable-trade(247)(1,714)

Decrease (increase) in inventories

(920)

(701)

Increase (decrease) in notes and accounts payable-trade

1,208

1,345

Increase (decrease) in accrued expenses

14735

Other, net324

694

Subtotal

3,176

(14)

Interest and dividend income received

1711

Interest expenses paid

(66)

(61)

Income taxes paid

(225)

(281)

Net cash provided by (used in) operating activities

2,902

(344)

Cash flows from investing activities
Purchase of property, plant and equipment(1,509)(973)

Proceeds from sales of property, plant and equipment

664

99

Purchase of intangible assets

(46)

(28)

Purchase of investment securities

(2)

(2)

Purchase of shares of subsidiaries and associates(0)-

Income by reduction of capital for a fee-65Other, net

(18)

3

Net cash provided by (used in) investing activities

(911)

(835)

(1,580)

40(0)

(0)

(252)

(264)

(1,833)(224)

Effect of exchange rate change on cash and cash equivalents

(93)

(599)

Net increase (decrease) in cash and cash equivalents

63(2,004)

Cash and cash equivalents at beginning of period

4,758

5,952

Cash and cash equivalents at end of period

4,821

3,948

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

Consolidated Business Segment Information
Millions of yen
F1H/FY2015 Apr'15-Sep'15
Business Segments Reported
ElectronicMaterials
Batteries

Total

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers

25,547

15,06340,610-40,610

-----

Total

25,547

15,06340,610-40,610

Segment income (loss)

1,570(299)

1,271

-

1,271

Adjustments

Consolidated
Statements

Intersegment

F1H/FY2016 Apr'16-Sep'16
Business Segments Reported
ElectronicBatteries
Materials

Total

Net sales
Unaffiliated customers
Intersegment
Total
Segment income (loss)

24,55012,50537,056-37,056-----24,55012,50537,056-37,056652(1,028)(376)-(376)

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
The business environment of the FDK Group (“FDK”) during the first half ended September 30, 2016 remained
uncertain condition, such as the slowing economic growth in China and emerging countries, sluggish economy inresource-rich countries and Europe, in addition to the delay of personal consumptions in Japan, the furtherappreciation of the Yen due to “Brexit” and higher geopolitical risks, though the U.S domestic demand continued
in recovering trend.
Under these circumstances, to achieve the target of “Mid-Term Business Plan 1618” starting from April this year,
FDK has strived to enhance its Brand awareness and recognition in global consumer market by releasing the Image
sound to domestic and overseas as one of the promotion of FUJITSU Rechargeable batteries highly evaluated as
the Environmental Free Products and holding the Live events collaborating with the composer of the Image soundusing SNS, etc. And FDK decided the merger of FDK TOTTORI CO., LTD., a consolidated subsidiary of FDK,
on October 1, 2016 to further strengthen the business by capitalizing on mutual resources more effectively andspeed up of decision making and by proceeding the development of multiple product of Electronic devices andLithium batteries as FDK’s Lithium battery business is in an expansionary trend due to increasing demand indisaster-related goods, security use and automotive markets.
As for FDK’s business results in the first half, net sales were 37,056 million yen, decreased by 3,554 million yen(-8.8%) from the same period last year. It was by the rapid appreciation of the Yen and sales decrease from thesame period last year of almost all Electronic devices, though the battery business almost achieved the plan by theincrease of production quantity of Alkaline batteries and Ni-MH batteries.
With regard to profit and loss, operating loss was 376 million yen (it was 1,271 million yen profit in the same
period last year) because of further appreciation of the Yen and increase of material cost and large sales decrease inElectronic Device Business, although FDK has strived to proceed cost reduction activity in all FDK groupcompanies for the battery products rapidly increasing the quantity. Ordinary loss was 689 million yen (ordinary
income was 1,174 million yen in the same period last year) due to non-operating expense mainly caused by foreignexchange loss 237 million yen, although there was a non-operating profit by Refunded gain of capital reduction
with compensation 65 million yen. Loss attributable to owners of parent in the first half was 892 million yen (itwas 969 million yen profit attributable to owners of parent in the same period last year).
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Alkaline batteries decreased from the same period last year due to the delay of personal consumptions,although the sales of OEM products and for internet sales in USA increased and sales for demand by natural
disaster, emergency charger for Smart-phone in Japan temporally increased from first quarter. Sales of Ni-MH
batteries decreased from the same period last year due to decrease of the products for domestic and overseas
industrial use, although sales of OEM products in USA and for automotive use were steady. Sales of Power
storage systems was same level as the same period last year because sales of vending machine backup use andcommunication equipment backup use and were steady. Sales of Lithium batteries decreased from the same
period last year, due to the decrease of sales for disaster-related goods in overseas, although the sales fordisaster-related goods, security use in Japan and for automotive applications in overseas were steady.
As a result, sales for the Battery business was 24,550 million yen, decreased by 996 million yen from the same
period last year.
1.3. Electronic Device Business
Sales of Ferrite and Coil devices decreased from the same period last year, while the sales for automotive use wassteady, the sales for consumer and industrial use has decreased. Sales of Ceramic products decreased from thesame period last year due to the sluggish Digital camera market. Sales of DC-DC Converter decreased from thesame period last year due to the sales decrease for Server, Storage, Network equipment and various industrial use.
Sales of Signal Processing Modules for LCD Displays decreased from the same period last year, due to sales
decrease for large-sized LCD Televisions use. Sales of Switching Power Supply increased form the same period

last year, due to steady sales for industrial use.
As a result, sales for the Electronic Device business were 12,505 million yen, decreased by 2,557 million yen
from the 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 half of FY2016 decreased by 1,250 million yen (-2.3%) from the end of theprevious fiscal year to 52,966 million yen. Current assets decreased by 1,718 million yen (-5.0%) from the end of
the previous fiscal year to 32,927 million yen. Non-current assets increased by 467 million yen (2.4%) from theend of the previous fiscal year to 20,038 million yen. The principal causes for decreased current assets were a2,004 million yen decrease in cash and deposits. The principal cause for increased non-current assets was a 545
million yen decrease in property, plant and equipment.
Total liabilities at the end of first half of FY2016 decreased by 858 million yen (1.8%) from the end of theprevious fiscal year to 47,321 million yen. Current liabilities increased by 1,554 million yen (4.1%) from the endof the previous fiscal year to 39,151 million yen. Non-current liabilities decreased by 696 million yen (-7.9%)
from the end of the previous fiscal year to 8,169 million yen. The principal cause of increased current liabilities
was a 208 million yen increase in notes and accounts payable-trade and a 172 million yen increase in accounts
payable-other. The principal cause for decreased non-current liabilities was a 332 million yen decrease inlong-term accounts payable – other, a 214 million yen decrease in net defined benefit liability and a 146 million yen
decrease in lease obligations.
The interest-bearing debt decreased by 97 million yen from the end of the previous fiscal year to 17,240 million
yen.
Total net assets at the end of first half of FY2016 decreased by 2,109 million yen (-27.2%) from the end of theprevious fiscal year to 5,644 million yen. The main factors for the decrease in total net assets were a 1,446 million
yen decrease in foreign currency translation adjustment and a 892 million yen decrease in retained earnings byposting a profit attributable to owners of parent.
2.2 Cash Flow Condition
Net cash used in operating activities decreased by 344 million yen from the beginning of this fiscal year due to an
decrease in cash and cash equivalents (“cash”) by posting the increase in notes and accounts receivable-trade,increase in inventories and decrease in loss before income taxes, though there was a increase in cash by increase innotes and accounts payable-trade, increase in depreciation and amortization (Net cash used in operating activities
for the last fiscal year increased by 292 million yen from the beginning of the last fiscal year).
Net cash used in investment activities decreased by 835 million yen from the beginning of this fiscal year bypurchase of property, plant and equipment (Net cash used in investment activities for the last fiscal year decreased
by 911 million yen from the beginning of the last fiscal year).
Net cash used in financing activities decreased by 224 million yen from the beginning of this fiscal year due tothe repayments of finance lease obligations (Net cash used in financing activities for the last fiscal year decreased
by 1,833 million yen from the beginning of the last fiscal year).
As a result, the balance of cash and cash equivalents on September 30, 2016 was 3,948 million yen, a decrease of
2,004 million yen from the beginning of this fiscal year.
3. Forecast for the Fiscal Year Ending March 31, 2017
Please refer to the “Announcement of the Revised Financial Forecast” announced on October 26, 2016.