FOR IMMEDIATE RELEASE
April 26, 2019
Fiscal Year 2018 Consolidated Operating Results(April 1, 2018 to March 31, 2019)
FDK CORPORATION
Listing Code No. 6955 (Listing Stock Exchange: 2nd 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
Date of general shareholders' meeting (as planned): June 25, 2019
Annual securities report filing date (as planned): June 25, 2019
The Consolidated Financial Results is unaudited/U.S. GAPP is not applied

1. Consolidated Operating Results for FY2018 ended March 31, 2019a. Consolidated Income statements
Yen(millions)
FY2017FY2018(4/1/17-3/31/18)(4/1/18-3/31/19)
73,12972,113
Net Sales
666
823
Operating Profit
78718
Ordinary Profit
(630)
(290)
Profit (Loss) attributable to ownersof parent
Amounts Per Share of Common Stock:
Basic Earnings (Loss) per share
Diluted Earnings per share
Rate of Return on Equity
Orginary Profit to Total Assets
Ratio
Operating Profit to Net Sales
Ratio(22.53) yen- yen(15.4) %0.2 %(9.91) yen- yen(4.0) %
1.4 %

0.9 %

1.1 %

(URL: http://www.fdk.com)

Change (%)-1.4 %
23.6
819.6
-

U.S.Dollars(millions)
FY2018(4/1/18-3/31/19)$651.60$7.44$6.49($2.62)(8.96 cent)-b. Consolidated Financial Positions

Total Assets
Net Assets
Owner's Equity
Capital Adequacy Ratio
Net Assets Per ShareYen(millions)
As of Mar. 31,
As of Mar. 31,
2018
2019
51,054
54,145
4,293
10,280
4,289
10,2768.4 %19.0 %
153.15 yen
297.79 yenc. Consolidated Cash FlowsYen(millions)

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

FY2017(4/1/17-3/31/18)
567

FY2018(4/1/18-3/31/19)
1,602(1,959)(1,860)

1,559

5,282

3,720

8,734

Yen
(millions)
FY2017(4/1/17-3/31/18)
48,536
24,592
73,129Yen(millions)
FY2018(4/1/18-3/31/19)
47,76324,35072,113d. Net Sales by Business Segment

Batteries
Electronic Devices
Total(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 $1=110.67 yen.
3. The percentage in this statement presents rate of change compared with the previous fiscal year.
4. FDK implemented a share consolidation (10 to 1) effective October 1, 2018.

U.S.Dollars(millions)
FY2018(4/1/18-3/31/19)$431.58$220.02$651.60

2. Consolidated Forecast for the year ending March 31, 2020
(Million of yen, except per share data)

Net Sales
Operating Profit
Ordinary Profit
Profit (loss) attributable to owners of parent
Basic Earnings Per ShareFY2019Change from FY2018
65,000(9.9) %
800(2.9) %
500
(30.4) %(700)-%(23.88) yen- yen

FY201972,113
823
718
(290)
-9.91 yen

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)
1 companies(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatements
1) Changes in accounting policies based on revisions of accounting standards: No
2) Changes in accounting policies other than ones based on revisions of accounting standard: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Number of issued and outstanding shares (common stock)1) Number of issued and outstanding shares at the end of fiscal year. (including treasury stock)
March 31, 2019: 34,536,302 shares
March 31, 2018: 28,036,302 shares
2) Number of treasury stock at the end of fiscal year
March 31, 2019: 27,765 shares
March 31, 2018: 27,143 shares
3) Average number of shares
March 31, 2019: 29,309,351 shares
March 31, 2018: 28,009,451 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

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

FY2017FY2018

Mar 31, 2018

Mar 31, 2019

3,720
20,316
2,781
2,694
2,760
1,150
(105)
33,3188,734
18,476
2,790
3,067
3,035
1,082
(101)
37,085

6,153
4,952
984
2,535
1,282
464
16,372
502

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

204
1
106
549
(0)
862
17,736

193
2
65
513
(0)
775
17,05951,054

54,145

15,23019,455
468
2,018
336
3,055
40,564

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

553
194
3,847
1,216
383
6,196
46,760

469
198
4,263
675
382
5,989
43,86428,301
22,968(45,539)
(47)
5,683

31,70926,376(45,829)(48)
12,20738
948(2,380)(1,393)
4
4,293

27
806
(2,765)(1,931)
4
10,28051,054

54,145

Consolidated Statement of Income
Millions of yen
FY2017FY2018Apr'17-Mar'18

Apr'18-Mar'19

Net sales

73,12972,113

Cost of sales

61,15260,317Gross profit

11,977

11,795

Selling, general and administrative expenses

11,311

10,971666

823Interest income1824

Foreign exchange gains-

324

Gain on sales of non-current assets

136

21

Rent income

26

34

Other

82

189

Total non-operating income

263

594

Interest expenses

123

151

Foreign exchange losses

434-

Share of loss of entities accounted for using equity method

85

60

Loss on sales of non-current assets

52

118

Loss on retirement of non-current assets

50

189

Other

105

180

Total non-operating expenses

851

700

78

718

-

621

Impairment loss

527

71

Total extraordinary losses

527

692

Profit (loss) before income taxes

(449)

26

Income taxes-current

187

270

Income taxes-deferred

(6)

45

Total income taxes

181

316

Loss

(630)

(290)

0

0

(630)

(290)

Operating profit
Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary losses
Loss on liquidation of subsidiaries

Profit attributable to non-controlling interests
Loss attributable to owners of parent

Consolidated Statement of Comprehensive Income
Millions of yen
FY2018FY2018Apr'17-Mar'18

Apr'18-Mar'19

(630)

(290)

Valuation difference on available-for-sale securities

15

(10)

Foreign currency translation adjustment

97

(116)

Remeasurements of defined benefit plans, net of tax

516

(385)

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

24

(24)

Other comprehensive income

653

(537)

22

(827)

Comprehensive income attributable to owners of the parent

22

(828)

Comprehensive income attributable to non-controlling interests

0

0

Loss
Other comprehensive income

Comprehensive income(Comprehensive income attributable to)Consolidated Statement of Changes in Equity
FY2017 (Apr'17-Mar'18)
Yen (millions)Shareholders' equity

Beginning balance
Changes of items during period
Issuance of new shares - exercise of shareacquisition rights
Loss attributable to owners of parent
Issuance of share acquisition rights
Exercise of share acquisition rights
Purchaes of treasury shares
Change in ownership interest of parent due
to transactions with non-controllinginterests
Net changes of items other thanshareholders' equity
Total changes of items during periodEnding balance

Capital stock

Capital surplus

Retained earnings

Treasury shares

Total
shareholders'equity28,301

22,622(44,908)

(46)

5,969

(630)

(1)
346

28,301346
22,968(630)(45,539)(1)(47)

Accumulated other comprehensive income
Foreign
Valuation difference on
Remeasurement
currency
s of defined
available-for-saletranslation
securities
benefit plansadjustment
23
825(2,896)

Total
Accumulated
othercomprehensive(2,046)

Share acquisitionrightsNon-controllinginterests-

Net assets

716

4,638

-

-

(630)
(1)

(630)
(1)

346

346

(285)
5,683

15

122

516

653

(712)

(712)

(59)

15
38

122
948

516
(2,380)653(1,393)

(712)
4

(712)
4

(345)
4,293

Consolidated Statement of Changes in Equity
FY2018 (Apr'18-Mar'19)
Yen (millions)Shareholders' equity

Beginning balance
Changes of items during period
Issuance of new shares - exercise of shareacquisition rights
Loss attributable to owners of parent
Issuance of share acquisition rights
Exercise of share acquisition rights
Purchaes of treasury shares
Change in ownership interest of parent due
to transactions with non-controllinginterests
Net changes of items other thanshareholders' equity
Total changes of items during periodEnding balance

Capital stock

Capital surplus

Retained earnings

Treasury shares

Total
shareholders'equity28,301

22,96845,539

(47)

5,683

3,379

3,379

Total
Accumulated
othercomprehensive(1,393)

Share acquisitionrightsNon-controllinginterests-

Net assets

4

6,759
(290)

27

Accumulated other comprehensive income
Foreign
Valuation difference on
Remeasurement
currency
available-for-sales of definedtranslation
benefit planssecurities
adjustment
948(2,380)
38

27
(0)

4,293
6,759

(290)
55
(0)

(290)
55
(0)

55
(55)

3,407
31,7093,407
26,376(290)(45,829)

(0)
(48)

6,524
12,207

(10)

(141)

(385)

(537)

(10)
27

(141)
806

(385)
(2,765)(537)(1,931)

-

0

(537)

0
4

5,986
10,280Consolidated Statement of Cash Flows
Millions of yen
FY2017FY2018Apr'17-Mar'18

Apr'18-Mar'19

Cash flows from operating activities
Loss before income taxes

(449)

26

Depreciation and amortization

2,092

2,136

Impairment loss

527

71

Increase (decrease) in net defined benefit liability

(366)

(375)

Increase (decrease) in allowance for doubtful accounts

64

(3)

Interest and dividend income

(20)

(37)

Interest expenses

123

151

Foreign exchange losses (gains)

0(0)

Share issuance cost-46

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

85

60

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

(84)

96

Loss on retirement of non-current assets

50

189

Subsidy income

-

(25)

Loss on liquidation of subsidiaries-

621(1,847)

1,820

Decrease (increase) in inventories

(335)

(685)

Increase (decrease) in notes and accounts payable-trade

1,347(1,149)

Increase (decrease) in accrued expenses

133

(37)

Other, net

(457)

(929)

Subtotal

863

1,974

Interest and dividend income received

20

37

Decrease (increase) in notes and accounts receivable-trade

Proceeds from subsidy income-

25Interest expenses paid

(122)

(152)

Income taxes paid

(194)

(283)

Net cash provided by (used in) operating activities

567

1,602

(2,280)(1,922)

Proceeds from sales of property, plant and equipment

391

103

Purchase of intangible assets

(69)

(40)

Purchase of investment securities

(4)

(4)

Other, net

43(1,959)(1,860)2,485(1,055)(1)(0)

Proceeds from issuance of share acquisition rights-

55

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

-

6,716

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

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

Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidation(385)

Repayments of finance lease obligations

(539)

(434)

Net cash provided by (used in) financing activities

1,559

5,282

Effect of exchange rate change on cash and cash equivalents

14

(10)

Net increase (decrease) in cash and cash equivalents

181

5,013

Cash and cash equivalents at beginning of period

3,538

3,720

Cash and cash equivalents at end of period

3,720

8,734

-

Consolidated Business Segment Information
Millions of yen
FY2017 Apr'17-Mar'18
Business Segments Reported
Electronic
Materials
Batteries

Net sales
Unaffiliated customers
Intersegment
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Investment to entities accounted for using equity method
Increase in property, plant and equipment and intangible assets

Total

Adjustments

Consolidated
Statements

48,536
48,536
1,814
34,577

24,592
24,592(1,147)
15,79973,12973,129666
50,376677

73,12973,129666
51,054

1,798
2,283

294
197
389

2,092
197
2,672

-

2,092
197
2,672

Adjustments

Consolidated
Statements

FY2018 Apr'18-Mar'19
Business Segments Reported
Electronic
Materials
Batteries

Total

Net sales
Unaffiliated customers

47,76324,35072,113-

72,113

-

-

-

-

-

Total

47,76324,35072,113-

72,113

Segment profit (loss)
Segment assets
Other items
Depreciation
Investment to entities accounted for using equity method
Increase in property, plant and equipment and intangible assets

2,041
34,374(1,217)
14,358823
48,733

5,412

823
54,145

1,864
1,790

272
111
143

2,136
111
1,934

-

2,136
111
1,934

Intersegment

Business Results(1) Analysis of Consolidated Business Results
1.1 Overview
The business environment of the FDK Group (“FDK”) during the fiscal year ending March 31, 2019, remained
uncertain condition, such as impacts on the global economy due to intensified trade friction between North America
and China, Brexit, Protective trade policy and increase of material cost though the corporate profit, capital investment
and employment environment of domestic companies improved as well as personal consumption gradually improvedin Japan.
Under these circumstances, FDK strived to expand sales of battery solutions integrating the strengths of battery
technology, electrical circuit technology and power electronic technology into new markets and customers in Japanand overseas such as IoT, mobility and social infrastructure, which are expected to grow greatly in future in addition
to conventional markets such as home appliances, power supply back-up application and automotive accessories. As
the result, FDK developed new customers of Lithium batteries such as for remote meter reading applications for gas
and other smart meters that are expected to expand in the future.
Also FDK started sample shipment of SMD type small size all-solid-state battery which received attention fromindustry market as a next generation battery and promoted its practical application in addition to the development ofhigh-capacity model.
Regarding the business results for this fiscal year, sales of Battery business decreased due to sales of Ni-MH
batteries and Lithium batteries decreased in the industrial market, though sales of Ni-MH batteries and Alkaline
batteries in consumer market remained steady. Sales of Electronic Device business also decreased due to sales ofMulti-layer power inductors and Switching Power Supply decreased, though sales of Signal Processing Modules for
LCD increased.
As a result, business result in FY2018, net sales were 72,113 million yen, decreased by 1,016 million yen (-1.4%)
from the last fiscal year.
With regard to profit and loss, the operating profit of this fiscal year was 823 million yen increased by 157 million
yen from the last fiscal year due to company-wide cost and expenses reduction and favorable impact of currency
exchange ratio, although profit was affected by sales decrease and increase of material cost.
The ordinary profit in this fiscal year was 718 million yen increased by 640 million yen from the last fiscal year. It
was achieved due to non-operating income of 594 million yen including 324 million yen of foreign exchange gains,though 700 million yen was counted as non-operating expenses including loss on sales and retirement of non-current
assets caused by discontinuation of consolidated subsidiary SUZHOU FDK CO., LTD. operation and interest
expense.
On the other hand, the loss attributable to owners of parent in this fiscal year was 290 million yen (it was 630 million
yen loss attributable for owners of parent in the last fiscal year) due to 692 million yen was counted into extraordinary
loss, consisting liquidation loss of consolidated subsidiary caused by discontinuation of its operation above andincrease of income tax, although the loss amount decreased from the last fiscal year.
The divisional sales overview is as follows.
1.2 Battery Business
Sales of Battery business decreased from the last fiscal year, due to Ni-MH batteries and Lithium batteries
decreased, though Alkaline batteries increased.
Sales of Ni-MH batteries decreased from the last fiscal year, due to sales decrease of some of OEM products inoverseas market and products for industrial use, although sales of domestic and overseas retail market were steady.
Sales of Alkaline batteries increased from the last fiscal year due to increase of internet sales, steady sales for domestic
retail market and industrial use while sales at the stores were hard to grow because the buying style of consumer werechanging. Sales of Lithium batteries decreased from the last fiscal year due to delay of demand to replace smoke
detectors in Japan and overseas and delay of start-up of smart meters market.
As a result, sales for the Battery business was 47,763 million yen, decreased by 773 million yen from the last fiscal
year.
1.3. Electronic Device Business
Sales of Electric Device business decreased from the last fiscal year due to Multi-layer Power Inductor andSwitching Power Supply decreased, though Signal processing modules for LCD increased.
Sales of Coil devices increased from the last fiscal year, due to steady sales for automotive use. Sales of Multilayer Power Inductors was decreased from the last fiscal year, due to sluggishness of smart phone market and sales
decrease for integrated circuit application. Sale of Ceramic products increased from the last fiscal year, due to steadysales for high-end digital cameras. Sales of Toner decreased from the last fiscal year, due to market inventory
adjustment. Sales of Signal Processing Modules for LCD increased from the last fiscal year, due to steady sales for
LCD display. Sales of Switching Power Supplies decreased from the last fiscal year, due to sales decrease forservers, though the sales for semiconductor manufacturing equipment were steady.
As a result, sales for the Electronic Device business were 24,350 million yen, decreased by 242 million yen fromthe last fiscal year.
(2) Analysis of Financial Condition
2.1 Status of Assets, Liabilities and Net Assets
Total assets at the end of FY2018 increased by 3,090 million yen (6.1%) from the end of the previous fiscal year
to 54,145 million yen. Current assets increased by 3,767 million yen (11.3%) from the end of the previous fiscal
year to 37,085 million yen. Non-current assets decreased by 676 million yen (-3.8%) from the end of the previous
fiscal year to 17,059 million yen. The principal causes for increased current assets were a 5,013 million yen increasein cash and deposits, though a 1,839 million yen decrease in notes and accounts receivable-trade.
Total liabilities at the end of FY2018 decreased by 2,895 million yen (-6.2%) from the end of the previous fiscal
year to 43,864 million yen. Current liabilities decreased by 2,689 million yen (-6.6%) from the end of the previous
fiscal year to 37,875 million yen. Non-current liabilities decreased by 206 million yen (-3.3%) from the end of theprevious fiscal year to 5,989 million yen. The principal cause of decreased current liabilities were a 1,138 million
yen decrease in notes and accounts payable-trade and a 1,055 million yen decrease in short-term loans payable. The
principal cause of decreased non-current liabilities were a 541 million yen decrease in long-term accounts payable –other, though a 416 million yen increase in net defined benefit liability.
The interest-bearing debt decreased by 1,262 million yen from the end of the previous fiscal year to 19,214 million
yen.
Total net assets at the end of FY2018 increased by 5,986 million yen (139.4%) from the end of the previous fiscal
year to 10,280 million yen. The main factors for the increase in total net assets were a 3,407 million yen increase inin capital stock and capital surplus by posting a resulting from exercise of share acquisition rights.
2.2 Cash Flow Condition
Cash flows from operating activities increased by 1,602 million yen from the beginning of this fiscal year due toan increase in cash and cash equivalents (“cash”) by posting a depreciation and amortization and decrease in notes
and accounts receivable-trade, though was a decrease in cash by posting a decrease in notes and accounts payabletrade (Cash flows from operating activities for the last fiscal year increased by 567 million yen from the beginning of
the last fiscal year).
Cash flows from investment activities decreased by 1,860 million yen from the beginning of this fiscal year due toan decrease in cash by posting a purchase of property, plant and equipment (Cash flows from investment activities
for the last fiscal year decreased by 1,959 million yen from the beginning of the last fiscal year).
Cash flows from financing activities increased by 5,282 million yen from the beginning of this fiscal year due to aincrease in cash by posting a proceeds from issuance of shares resulting from exercise of share acquisition rights,
though was a decrease in decrease in short-term loans payable (Cash flows from financing activities for the last fiscal
year increased by 1,559 million yen from the beginning of the last fiscal year).
As a result, the balance of cash and cash equivalents on March 31, 2019 was 8,734 million yen, an increase of
5,013 million yen from the beginning of this fiscal year.
Ref: Changes in cash flow indicators
Equity ratio (%)
Market value equity ratio (%)

FY201413.8
70.0

FY201513.0
48.6

FY20168.0
71.3

FY20178.4
106.4

FY201819.0
51.5

Debt to cash flow ratio (%)
9.9
3.2
55.8
Interest coverage ratio (%)
13.4
40.4
2.7
1. Equity ratio = Total shareholders' equity / Total assets
2. Market value equity ratio = Market capitalization / Total assets
3. Debt to cash flow ratio = Interest-bearing debt / Net cash used in operating activities
4. Interest coverage ratio = Net cash used in operating activities / Interest expense

36.1
4.6

12.0
10.6

3. Forecast for the Fiscal Year Ending March 31, 2020
In the future business environment, although personal consumption is on a moderate recovery trend, still
uncertainties such as impacts on the global economy due to intensified trade friction between North America andChina, Protective trade policy, and consumption tax increase in Japan are prospected.
As a “Smart Energy Manager” that combines battery technology, circuit technology and power electronics
technology “globally to contribute to society with technology that efficiently uses electric energy”, FDK groupprovides service and value to meet the expectations of shareholders, customers and other stakeholders by “One FDK”.
FDK group strives to develop new customers and expand sales in Japan and overseas into new markets such as
IoT, mobility and social infrastructure, providing battery solution based on battery technology of Ni-MH batteries,
Alkaline batteries and Lithium batteries with electronic technology in addition to conventional markets such as home
appliances, power supply back-up application and automotive accessories. In addition, FDK will strategicallyinvest in newly developed batteries such as SMD type small size all-solid-state battery, metal-hydride air secondary
battery and plan to launch them onto the market at an early stage in future.
As for the business forecast for the FY2019, FDK targets net sales at 65,000 million yen, operating profit at 800
million yen, ordinary profit at 500 million yen, and loss attributable to owners of the parent at 700 million yen.
Regarding the exchange rate for FY2019, FDK sets it at 105 yen per US dollar and at 130 yen per Euro.