FOR IMMEDIATE RELEASE
October 25, 2019
Consolidated Financial Results for the First Half of FY2019(April 1, 2019 to September 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 : Business Promotion 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 Six-Months Period Ended September 30, 2019a. Consolidated Statements of Income
Yen(millions)
Six months
Six months
ended Sept. 30,
ended Sept. 30,
2018
2019
Net Sales
36,362
31,986
Operating Profit
220
36
Ordinary Profit (Loss)
631(37)
Profit (Loss) attributable to
390
(685)
owners of parent

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

13.90 yen
13.81 yen

Change (%)(12.0)(83.4)-

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

(19.87) yen- yen(9.91) yen- yen

U.S.Dollars(millions)
Six months
ended Sept. 30,
2019$296.28$0.33($0.34)($6.34)(18.41) cent
- centb. Net Sales by Business Segment

Batteries
Electronic Devices
Total

Yen
(millions)
Six months
ended Sept. 30,
201823,824
12,53836,362

Yen(millions)
Six months
ended Sept. 30,
201922,697
9,288
31,986

Yen(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 Sept. 30,
2019
2018
54,14550,827
10,2808,819
10,276
8,814
19.0 %
17.3 %

d. Consolidated Statements of Cash FlowsYen(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,
2018
1,470

Six months
ended Sept. 30,
2019
2,038

(1,311)(1,944)

561

630

4,504

9,208

(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 107.96 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)
Six months
ended Sept. 30,
2019$210.24$86.03$296.28

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
60,00072,113(16.8) %Operating Profit
700
823(15.0)
Ordinary Profit
500
718(30.4) %Profit (Loss) attributable to owners(2,000)(290)-%
of parent
Basic Earnings per Share(57.96) yen(9.91) yen
Note for the use of the above forecasted business results.
The financial forecast described above is based upon information available as of October 25, 2019.
3. Others(1) Material changes in significant subsidiaries during the period: Yes
Consolidated Subsidiaries
12 companies
Unconsolidated Subsidiaries (equity method applied)
3 companies
Affiliates (equity method applied only)
0 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.
September 30, 2019: 34,536,302 shares
March 31, 2019: 34,536,302 shares
2) Number of treasury stock at the end of each period
September 30, 2019: 28,058 shares
March 31, 2019: 27,765 shares
3) Average number of shares in each period.
September 30, 2019: 34,508,407 shares September 30, 2018: 28,098,156 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
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

1H/FY2019
September 30, 2019

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

9,208
16,595
2,764
2,539
2,622
1,086
(25)
34,792

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

5,883
4,519
855
2,526
998
175
14,959
499

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

183
1
36
355
(0)
576
16,03550,827

14,092
18,400
344
1,894
326
2,816
37,875

12,78319,190
266
1,740
316
2,860
37,157

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

254
191
3,602
399
402
4,850
42,00831,70926,376(45,829)(48)
12,20731,70926,376(46,521)(48)
11,51527
806(2,765)(1,931)
4
10,28054,14518(293)(2,426)(2,701)
4
8,819
50,827

Consolidated Statement of Income
Millions of yen
1H/FY2018

1H/FY2019

April 18 - September 18

April 19 - September 19

Net sales

36,362

31,986

Cost of sales

30,70926,554Gross profit

5,652

5,431

Selling, general and administrative expenses

5,432

5,395

220

36

Interest income

1018

Dividend income1111Foreign exchange gains

578

13

Gain on sales of non-current assets

130Rent income

19

10

Other

57

36

Total non-operating income

690

90

Interest expenses

69

70

Share of loss of entities accounted for using equity method

57

15

Loss on retirement of non-current assets

96

46

Other

54

31

Total non-operating expenses

278

164

631

(37)

Operating profit
Non-operating income

Non-operating expenses

Ordinary profit (loss)
Extraordinary income
Gain on sales of investments in capital of subsidiaries and associates-

331

Total extraordinary income

-

331

-

745

Extraordinary loss
Loss on sales of businesses
Impairmant loss

42

60

Total extraordinary loss

42

805

Profit (loss) before income taxes

588

(512)

Income taxes-current

171

148

Income taxes-deferred

26

24

Total income taxes

198

173

Profit (loss)

390

(685)

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

390

(685)

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

1H/FY2019

April 18 - September 18

April 19 - September 19

390

(685)

Valuation difference on available-for-sale securities

(0)

(8)

Foreign currency translation adjustment

37

(680)

Remeasurements of defined benefit plans, net of tax

203

339

(4)

(419)

Other comprehensive income

236

(770)

Comprehensive income

626(1,455)626(1,455)(0)0Profit (loss)
Other comprehensive income

Share of other comprehensive income of entities accounted for using equity method(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
1H/FY2018

1H/FY2019

April 18 - September 18

April 19 - September 19

Profit (loss) before income taxes

588

(512)

Depreciation and amortization

1,067

1,060

42

60

Cash flows from operating activities

Impairment loss
Loss (gain) on sales of businesses-

745

Loss (gain) on sales of investments in capital of subsidiaries and associates

-

(331)

(196)

(237)

1

(75)

Interest and dividend income

(22)

(30)

Interest expenses

69

70

Foreign exchange losses (gains)(0)0

Share issuance cost

12

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

57

15

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

(13)

(0)

Loss on retirement of non-current assets

96

46

Decrease (increase) in notes and accounts receivable-trade

(279)

1,396

Decrease (increase) in inventories

(894)

600

Increase (decrease) in notes and accounts payable-trade

865

(877)

Increase (decrease) in accrued expenses

(27)

422

Other, net

308

(154)

Subtotal

1,676

2,199

Interest and dividend income received

22

30Interest expenses paid

(67)

(75)

Income taxes paid

(160)

(116)

Net cash provided by (used in) operating activities

1,470

2,038

(1,322)(708)

Proceeds from sales of property, plant and equipment

22

24

Purchase of intangible assets

(13)

(55)

Purchase of investment securities

(2)

(2)

Payments for transer of business-(1,205)

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

Cash flows from investing activities
Purchase of property, plant and equipment

Other, net

42(1,311)(1,944)

Net increase (decrease) in short-term loans payable

(55)

790

Purchase of treasury shares

(0)

(0)

Proceeds from issuance of shares acquisition rights

55-

Proceeds from issuance of shares resulting from exercise of shares acquisition rights

800-

Repayments of finance lease obligations

(239)

(159)

Net cash provided by (used in) financing activities

561

630

Effect of exchange rate change on cash and cash equivalents

63

(249)

Net increase (decrease) in cash and cash equivalents

783

473

Cash and cash equivalents at beginning of period

3,720

8,734

Cash and cash equivalents at end of period

4,504

9,208

Net cash provided by (used in) investing activities
Cash flows from financing activities

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

Electronic
Devices

Batteries

Adjustments

Consolidated
Statements

Net sales
Unaffiliated customers

23,824

12,53836,362-36,362

-

-

-

-

-

23,824

12,53836,362-36,362

910

(690)

220

-

220

Adjustments

Consolidated
Statements

Intersegment
Total
Segment profit (loss)

1H/FY2019 April 19 - September 19
Business Segments Reported
Total

Electronic
Devices

Batteries

Net sales
Unaffiliated customers

22,697

Intersegment
Total
Segment profit (loss)

9,288
-

31,986--31,986--

22,697

9,288

31,986-31,986

423

(386)

36

-

36

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, 2019 remained
uncertain condition due to stagnation in demand in electronic industry FDK belongs to, including policy of eachcountry such as U.S. and China, expansion of trade friction, economic trend of Europe, though the environment suchas for employment continuously improved in Japan.
Under these circumstances, FDK strived to develop new customers and expand sales in Japan and overseas
integrating the strengths of battery technology, electrical circuit technology and power electronic technology for theoffering on the basis of batteries with electronic technology 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
released FUJITSU Alkaline Battery “Premium S” in this September improved for the performance of long life, longstorage and leakage prevention.
Also, FDK implemented the measures to proceed structural reform of the Electronic Device business such as thetransfer of part of the Electronic Device business, the liquidation of consolidated subsidiary, and the transfer of thewhole equity interest in equity method affiliate.
FDK has developed a Mid Term Business Plan “R1” starting from FY2020 heading towards implement of themeasures for more concentration of management resource and accomplishment of Status-to-be-10-years as a Smart
Energy Partner, to provide offerings that enable customers to best utilize clean and safe electric energy such as thedevelopment and provision of next generation batteries including small all-solid-state SMD battery, metal-hydride
air rechargeable battery, and rechargeable nickel zinc battery in addition to existing batteries.
The sales of Battery business decreased in Japan and overseas consumer market due to intensifying competition
with Chinese companies. The sales of Electronic Device business decreased due to sales decrease by discontinue
operations of overseas subsidiary in last fiscal year and transfer of part of the Electronic Device business. As a result,consolidated sales of this period ended Sept 30, 2019 was 31,986 million yen, decreased by 4,376 million yen (12.0%)
from the same period of last 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 and Alkaline batteries in consumer market in spite of effort for cost reduction.
Regarding Electronic Device business, loss amount decreased from the same period of last year because of effect byselection and concentration such as switching to high value-added products and reduction of fixed expenses. As aresult, the operating profit was 36 million yen decreased by 183 million yen from the same period of last year. The
ordinary loss in this period was 37 million yen (it was 631 million yen ordinary profit in the same period last year).
The loss attributable to owners of parent in this period was 685 million yen (it was 390 million yen profit attributablefor owners of parent in the same period last year) due to 745 million yen of extraordinary loss as provision for loss
on sales of businesses of part of Electronic Device business.
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Battery business decreased from the same period of last year due to decrease in consumer market, thoughsales in industrial market was steady and equipment business increased.
Sales of Ni-MH batteries was same level as the period 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 was same level as the period 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 steadydue to steady demand of equipment.
As a result, sales for the Battery business was 22,697 million yen, decreased by 1,126 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 decrease by business
transfer of part of Electronic Device business, in addition to decrease of Signal processing module for LCD by
discontinue operations of overseas subsidiary in last fiscal year, DC-DC power modules and Switching power supply.
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 by discontinue operations of overseas subsidiary and decrease for large size LCD, though sales fortablet type device was steady. Sales of Switching power supply decreased from the same period of last year due tosales decrease for semiconductor manufacturing equipment and LCD manufacturing equipment. Sales of Tonerdecreased from the same period of last year due to the influence of market inventory and delivery extension.
As a result, sales for the Electronic Device business was 9,288 million yen, decreased by 3,250 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 half in FY2019 decreased by 3,317 million yen (-6.1%) from the end of the previous
fiscal year to 50,827 million yen. Current assets decreased by 2,293 million yen (-6.2%) from the end of theprevious fiscal year to 34,792 million yen. Non-current assets decreased by 1,024 million yen (-6.0%) from the endof the previous fiscal year to 16,035 million yen. The principal causes for decreased current assets were a 1,880
million yen decrease in note and accounts receivable-trade, a 528 million yen decrease in work in process, and a 413
million yen decrease in raw materials and supplies, though was a 473 million yen increase in cash and deposits. The
principal causes for decreased non-current assets were a 843 million yen decrease in property, plant and equipment.
Total liabilities at the end of first half in FY2019 decreased by 1,856 million yen (-4.2%) from the end of theprevious fiscal year to 42,008 million yen. Current liabilities decreased by 717 million yen (-1.9%) from the end of
the previous fiscal year to 37,157 million yen. Non-current liabilities decreased by 1,139 million yen (-19.0%) fromthe end of the previous fiscal year to 4,850 million yen. The principal cause of decreased current liabilities was a1,308 million yen decrease in notes and accounts payable-trade, though was a 790 million yen increase in short-termloans payable. The principal cause of decreased non-current liabilities was a 660 million yen decrease in net defined
benefit liability, a 276 million yen decrease in long-term accounts payable – other and a 215 million yen decrease inlease obligations.
The interest-bearing debt increased by 496 million yen from the end of the previous fiscal year to 19,711 million
yen.
Total net assets at the end of first half in FY2019 decreased by 1,461 million yen (-14.2%) from the end of theprevious fiscal year to 8,819 million yen. The main factors for the decrease in total net assets were a 1100 million
yen decrease in foreign currency translation adjustment, a 691 million yen decrease retained earnings by posting aloss attributable to owners of parent, though was a 339 million yen increase in remeasurements of defined benefit
plans.
2.2 Cash Flow Condition
Cash flows from operating activities increased by 2,038 million yen from the beginning of this fiscal year due to aincrease in cash and cash equivalents (“cash”) by posting an increase in depreciation and amortization, decrease innotes and accounts receivable-trade and a decrease in inventories, though was a decrease in loss before income taxes
and increase in notes and accounts payable-trade (Cash flows from operating activities for the last fiscal year increased
by 1,470 million yen from the beginning of the last fiscal year).
Cash flows from investment activities decreased by 1,944 million yen from the beginning of this fiscal year due toa decrease in cash by posting a payments for transfer of business and purchase of property, plant and equipment (Cashflows from investment activities for the last fiscal year decreased by 1,311 million yen from the beginning of the last
fiscal year).
Cash flows from financing activities increased by 630 million yen from the beginning of this fiscal year due to anincrease in cash by posting a net increase in short-term loans payable (Cash flows from financing activities for thelast fiscal year increased by 561 million yen from the beginning of the last fiscal year).

As a result, the balance of cash and cash equivalents on September 30, 2019 was 9,208 million yen, an increase of
473 million yen from the beginning of this fiscal year.
3. Forecast for the Fiscal Year Ending March 31, 2020
Please refer to the “Announcement of career change support program, Extraordinary loss and Revised Financial
Forecast” released on October 25, 2019.
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.