HDU HQGHG 0DUFK - IR Pocket

May 12, 2020

Company name: TAIYO YUDEN CO., LTD.

URL: http：//www.ty-top.com/

Representative: Shoichi Tosaka, President and Chief Executive Officer

Contact: Koshi Anai, General Manager, Accounting Department

Telephone number: +81-3-6757-8310

Listing exchange: Tokyo Stock Exchange (Code Number: 6976)

YesHolding of presentation of

annual financial results: Yes (For institutional investors and investment analysts)

1. Consolidated financial results for the period from April 1, 2019 to March 31, 2020(1) Operating results (Percentages represent changes from the same period in the previous fiscal year.)

Year endedMarch 31, 2020


Note: Comprehensive income

ended on March 31, 2020 11,350 million yen ; (46.2%) ended on March 31, 2019 21,084 million yen ; 15.6%

Yen Yen % % %



(Reference) Equity in earnings (losses) of affiliates Year ended March 31, 2020 (787) million yen Year ended March 31, 2019 (786) million yen

(2) Financial position

As of March 31, 2020As of March 31, 2019

(Reference) Shareholder's equity As of March 31, 2020 209,891 million yen As of March 31, 2019 205,500 million yen

(3) Cash Flows



2. Dividend information

Yen Yen Yen Yen Yen Millions of yen %



Year endingMarch 31, 2021

(Forecast)

Cash flows from Cash flows from Cash flows fromoperating activities investing activities financing activities

210,454

Millions of yen Millions of yen

52,434

%61.2 343,122

Millions of yen

205,953 328,861

(40,874)

3Q

(4,851)

Net assets

2.9

Total assets Net assets per share

143.04 10.5142.67

23,687

Diluted net income

per share on net salesequity on total assets

8.7

Equity ratio

Operating income

44.8274,349

Consolidated Results for

Operating income

Millions of yen %

37,176 5.5

Net sales

Millions of yen %

282,329 2.4 18,022 (23.9)

Ordinary incomeNet income attributableto owners of the parent

companyMillions of yen % Millions of yen %

35,165

Preparation of supplementary materials for the annual

financial results:

the year ended March 31, 2020

62.5

Cash and cash equivalents

at end of period

Millions of yen Millions of yen

57,285

67.134,351

1,672.40

1.3

1,609.72

51,654 (1,603)

13.2

12.8

Yen

12.4 35,237 74.3

189.93

Net income per share

Return on Ordinary income

185.87

42,967 (33,581)

12.6 11.2

Millions of yen

Total annualdividend

Dividendpayout ratio

Dividend onnet assets1Q 2Q

YearEnd

Total

Cash dividends per share

21.00 2,680 11.1

15.00 - 15.00

1.6- 11.00 - 15.00

%

- 10.00 - 11.00

26.00 3,263 18.2

30.00 --

- 1 -

3. Forecasts of operating results for the period from April 1, 2020 to June 30, 2020(Percentages represent changes from the same period in the previous fiscal year.)

Millions of yen % Millions of yen % Millions of yen % Millions of yen %Three months ending

June 30, 2020

Note: Due to the spread of Novel Coronavirus (COVID-19), we disclose the forecasts of operating results during the three monthsending June 30, 2020 only, as it is presently difficult to achieve the half year or full year forecast. We will announce the full year forecasts promptly at the time when the rational calculation become possible.

4. Note

(1) Changes in principal subsidiaries during year ended March 31, 2020: No

Number of subsidiaries/Company Name Inclusion: - ; Exclusion; -

(3) Number of common shares outstanding : a. Number of common shares outstanding (including treasury stock):

shares shares b. Number of treasury stock:

shares shares c. Average number of common shares outstanding:

shares shares

Others :

60,000 (12.6) 3,000 (68.7) 2,500 (71.7) 1,500 (79.0) 11.95

2. Forecasts of operating results include a number of assumptions based on information currently available and certain premiseswhich were judged to be rational. Please note that these forecasts may significantly differ from actual results with various factors.

Fiscal Year ended March 31, 2019

130,218,481

4,715,775

126,000,844

As of March 31, 2019


Fiscal Year ended March 31, 2020

130,218,481

2,555,996

Net sales Operating incomeper share

Net income Net income

attributable toowners of the parent

company

124,718,115

Ordinary income

Yen

(2) Changes in accounting policies and accounting estimates, and restatements a. Changes in accounting policies due to the revision of accounting standards: Yes b. Changes in accounting policies by the reasons other than "a.": No c. Changes in accounting estimates: No d. Restatement: No



3. TAIYO YUDEN will post the financial supplementary data on its web-site.

1. This financial press release is out of scope of the audit procedure.

- 2 -

1. Analysis of Operating Results and Financial Condition 1

(1) Analysis of Operating Results 1

(2) Analysis of Financial Condition 6

(3)

8

2. Basic Approach to Selection of Accounting Standard 8

3. Consolidated Financial Statements 10

(1) Consolidated Balance Sheets 10

(2)

of Comprehensive Income 12

(Consolidated Statements of Operations) 12

(Consolidated Statements of Comprehensive Income) 13

(3) Consolidated Statements of Changes in Net Assets 14

(4) Consolidated Statements of Cash Flows 16

(5) Notes to Consolidated Financial Statements 18

(Notes on Premise of Going Concern) 18

(Change in Accounting Policy) 18

(Segment Information) 18

(Per Share Information) 20

(Significant Subsequent Events) 21

4. Other 21

(1) Production, Orders and Sales Results 21……………………..………………………

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Table of contents

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Basic Policy on Profit Distribution and Current/Subsequent Fiscal

.……………………………..

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Year Dividend ………………………………………………………………

……………..…………………………...………………….

Consolidated Statements of Operations and Consolidated Statements

.…………....………………..

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1

1. Analysis of Operating Results and Financial Condition

(1) Analysis of Operating Results

① Operating Results for the Year Ended March 31, 2020

Economy and Market Conditions

During the fiscal year ended March 31, 2020 (April 1, 2019 – March 31,

2020), the business environment surrounding TAIYO YUDEN Group (“the

Group”) maintained a moderate recovery for the global economy as a whole

despite some weaknesses in Asia and Europe. However, due to the impact of

the COVID-19 pandemic at the beginning of 2020, economic activity has

been restrained, and the global economy has slowed sharply. As for the

future outlook, the impact of the outbreak is expected to persist for the time

being, and there is a growing risk of further downturn in the global economy.

In response to COVID-19, based on the Business Continuity Plan (BCP), we

implemented various measures to prevent the spread of the disease and to

ensure the health and wellbeing of stakeholders, including employees and

suppliers. At production sites in Japan and overseas, we have continued

production activities after ensuring thorough measures to prevent infection

while following the instructions and guidance of national and local

governments in each country. In addition, we are making efforts for

non-production employees to carry out duties and reduce the risk of infection

by implementing such measures as working from home in accordance with

the instructions and requests on preventing the spread of infection from

national and local governments in each country.

Company Actions Planned to Offset These Conditions

The Group aimed to achieve its medium-term targets and management vision

by capturing focus markets such as automotive, IT infrastructure/industrial

equipment, healthcare, the environment and energy centered on the solution

business that leverages the Group’s core technologies, in addition to

cutting-edge products and high reliability products that draw on the Group’s

strengths of research and development and production technology. Moreover,

the Group is strengthening its manufacturing capabilities in order to build a

2

structure that can enhance profitability and meet the future increase in

demand for components. In addition to enhancing production capacity, the

Group is accelerating improvements in production efficiency by promoting

advances in underlying technologies and transforming production methods.

In the fiscal year ended March 31, 2020, the Company focused on sales of

products for use in automobiles where use of electric vehicles and electronic

components is advancing and for use in IT infrastructure, such as base station

communication devices and data centers where there are enhancements in

functionality accompanying the upgrading of communication systems and

advances in IoT. Amid rising demand for large, high voltage resistant, high

reliability components, the Company succeeded in increasing sales by

expanding the product line up and production capacity and fulfilling its

supply responsibilities.

As a result of the current state of emergency due to COVID-19, there have

been various changes in society and the management environment. The

Group holds ¥57,285 million in cash and deposits, and has maintained a

sound financial structure with an equity ratio of 61.2%. With commitment

line agreements concluded with a number of financial institutions also

standing at ¥30.0 billion as of May 12, 2020, the Group has secured the

means for responding to contingencies and will continue its business.

Furthermore, the Group will strive to contribute to social infrastructure and

to maintaining and enhancing people’s lifestyles through the stable supply of

electronic components.

Overview of Business Performance

Consolidated net sales for the fiscal year ended March 31, 2020 totaled

¥282,329 million, which is an increase of 2.9% compared to the

corresponding period of the previous fiscal year. Operating income was

¥37,176 million, an increase of 5.5%. Ordinary income was ¥35,165 million,

an increase of 2.4% compared to the corresponding period of the previous

fiscal year, due to such factors as ¥1,404 million in loss on foreign exchange.

In addition, net income attributable to owners of parent company was

¥18,022 million, down 23.9% year on year. This was the result of recording

extraordinary loss of ¥12,863 million. This amount included impairment loss

on goodwill and antitrust-law-related loss associated with ELNA CO., LTD.,

our subsidiary, and loss on disaster related to our subsidiary FUKUSHIMA

TAIYO YUDEN CO., LTD., which incurred flooding due to the impact of

3

Typhoon #19 (Hagibis) in October 2019.

Exchange Rate

The average foreign currency exchange rate for the fiscal year ended March

31, 2020 was US$1: ¥109.06. This is an appreciation of ¥1.43 as compared

to the average realized in the corresponding period of the previous fiscal year

of US$1: ¥110.49.

Net Sales by Product Classification

Capacitors

The capacitor product classification is comprised of multilayer ceramic

capacitors.

Net sales for the year ended March 31, 2020 totaled ¥176,457 million, which

is an increase of 3.4% compared to the corresponding period of the previous

fiscal year. This was due to a year-on-year increase in sales for use in all

applications.

Ferrite and Applied Products

This product classification is comprised of various inductors including

wire-wound inductors and multilayer chip inductors.

Net sales for the year ended March 31, 2020 totaled ¥38,770 million, which

is a decrease of 4.5% compared to the corresponding period of the previous

fiscal year. This was due to a year-on-year decrease in sales for use in all

applications.

Integrated Modules & Devices

This product classification is comprised of FBAR/SAW devices for mobile

communications, a wide range of power supply and high frequency modules,

embedded-parts multilayer wiring substrates “EOMINTM” and product

mounting business done by a subsidiary company.

For the year ended March 31, 2020, sales of FBAR/SAW devices for mobile

communications, etc. increased year over year. This resulted in a 3.9%

increase in sales for this product classification year over year to ¥49,808

million.

Others

For this product classification, the Group manufactures and sells aluminum

4

electrolytic capacitors and energy devices.

For the year ended March 31, 2020, consolidated sales in this classification

totaled ¥17,292 million, up 13.8% year over year, with the inclusion of

aluminum electrolytic capacitors from ELNA CO., LTD. which was

consolidated starting from the second quarter of the previous fiscal year.

② Outlook for the Year Ending March 31, 2020

Consolidated operating earnings forecasts for the first quarter of the year

ending March 31, 2021 are as follows.

(Millions of yen unless otherwise stated)

Period Three months ending June 30, 2021

Item Amount YoY (%)

Net sales 60,000 (12.6)

Operating income 3,000 (68.7)

Ordinary income 2,500 (71.7)

Net income attributable to the owners of parents company

1,500 (79.0)

The market environment in the fiscal year ending March 31, 2021 includes

the restriction of economic activities and the sharp downturn in the global

economy due to the COVID-19 pandemic, and it is difficult to forecast the

impact of this. Furthermore, with trade issues and geopolitical risks still

present for individual countries, uncertainty about the future outlook has

increased. Therefore, as it is difficult to calculate reasonable forecasts of

full-year operating results at the present stage, the Company has published

the forecast of consolidated operating results for the first quarter of the fiscal

year ending March 31, 2021 as shown above. The Company will publish the

full-year forecasts for operating results promptly when it is possible to make

reasonable calculations.

The forecast of consolidated operating results for the first quarter of the

fiscal year ending March 31, 2021 was calculated based on the latest order

trends and production status. The forecast is based on an average foreign

currency exchange rate of US$1:¥107.

5

Disclaimer concerning forecasts of operating results:

The aforementioned forecasts of results are based on information available as

of the date of this report. As a result, forecast information contained in this

document may include potential risk and uncertainties. Accordingly, actual

results may differ materially from forecasts due to a variety of factors.

6

(2) Analysis of Financial Condition

① Assets, Liabilities and Net Assets

Assets

Total assets stood at ¥343,122 million as of March 31, 2021, up ¥14,260

million from the end of the previous fiscal year.

Current assets increased ¥6,071 million. This increase in current assets was

mainly due to the increase in cash and deposits of ¥3,191 million and work

in process of ¥2,921 million.

Fixed assets increased ¥8,189 million owing to the decrease in goodwill of

¥5,837 million and investments and other assets of ¥4,930 million.

property, plant and equipment of ¥18,882 million.

Liabilities

Total liabilities stood at ¥132,667 million as of the end of the fiscal year

ended March 31, 2020. This was ¥9,760 million higher than the end of the

previous fiscal year. This was mainly due to the increase in long-term

borrowings of ¥6,336 million and accrued amounts payable of ¥3,408

million.

Net Assets

Net assets stood at ¥210,454 million as of March 31, 2020, up ¥4.5 billion

from the end of the previous fiscal year. Principal movements in net assets

were an increase of retained earnings of ¥15,045 million, and decrease of

foreign currency translation adjustments of ¥5,075 million, purchases of

treasury stock of ¥3,982 million, and net unrealized holding gains on

securities of ¥1,088 million.

② Cash Flows

Operating activities

Net cash provided by operating activities for the year ended March 31, 2020

was ¥52,434 million, an increase of 22.0% compared with the previous fiscal

year. The contributing factors are; income before income taxes of ¥23,818

million; depreciation and amortization of ¥27,022 million; impairment loss

of 5,290 million; and income taxes (paid) of ¥7,338 million.

7

Investing activities

Net cash used in investing activities for the year ended March 31, 2020

totaled ¥40,874 million, an increase of 21.7% compared with the previous

fiscal year. The largest cash outflow was ¥44,067 million paid for purchases

of property, plant and equipment.

Financing activities

Net cash provided by financing activities for the year ended March 31, 2020

totaled ¥4,851 million, an increase of 202.5% compared with the previous

fiscal year. The main factors are proceeds from long-term borrowings of ¥9.0

billion, purchases of treasury stock of ¥4,006 million, net decrease in

short-term borrowings of ¥3,899 million, payments of cash dividends of

¥2,776 million, and repayments of long-term borrowings of ¥2,477 million.

As a result of the aforementioned activities, cash and cash equivalent as of

March 31, 2020 increased ¥5,630 million from the end of the previous fiscal

year, to ¥57,285 million.

Reference: Trends in Cash Flow-Related indicators

Fiscal

2016

Fiscal

2017

Fiscal

2018

Fiscal

2019

Fiscal

2020

Equity ratio (%) 57.1 56.8 59.1 62.5 61.2

Equity ratio (%) (Market capitalization basis) 48.2 61.1 74.0 84.5 104.6

Cash flow to interest-bearing liabilities (years) 1.4 1.7 1.6 1.3 1.1

Interest coverage ratio (times) 141.2 123.8 141.0 143.6 126.1

Equity ratio = Shareholders’ equity / Total assets

Equity ratio (Market capitalization basis) = Market capitalization / Total assets

Cash flow to interest-bearing liabilities = Interest-bearing liabilities / Cash flow

Interest coverage ratio = Cash flow / Interest expenditure

Notes:

1. All indicators have been calculated from consolidated financial figures.

2. Market capitalization is calculated based on the number of shares issued

and outstanding less treasury stock.

3. Cash flow refers to cash flows from operating activities as shown on the

8

consolidated statements of cash flows.

4. Interest-bearing liabilities comprise all debt on which interest is paid in

the liabilities section of the consolidated balance sheets as well as

noninterest-bearing convertible bonds with stock acquisition rights.

Interest expenditure represents interest paid as shown on the

consolidated statements of cash flows.

(3) Basic Policy on Profit Distribution and

Current/Subsequent Fiscal Year Dividend

The Company recognizes that enhancing the return of profits to

shareholders is one of management’s most important tasks, and has a policy

of striving for a stable increase in dividends. As such, the Company’s total

return ratio target has been set at 30%, including purchase of treasury stock.

Based on this policy, the Company plans a year-end dividend of 15 yen per

share for the fiscal year ended March 31, 2020, which together with the

interim dividend gives an annual dividend of 26 yen. The Company also

implemented an acquisition of treasury stock of approximately ¥4.0 billion

during the fiscal year ended March 31, 2020 aimed at improving capital

efficiency. This brings the total return ratio, including acquisition of treasury

stock, to 40.3%.

Furthermore, the Company plans an annual dividend of 30 yen per share

(interim dividend: 15 yen, year-end dividend: 15 yen) for the fiscal year

ending March 31, 2021.

The Company has stipulated that an interim dividend can be offered based on

a resolution by our Board of Directors and has established a basic policy to

offer two dividends per annum in the form of an interim dividend and

year-end dividend. The interim dividend is resoluted by the Company’s

Board of Directors. The year-end dividend is resoluted at the general

shareholders’ meeting.

2. Basic Approach to Selection of Accounting Standard

TAIYO YUDEN Group uses Generally Accepted Accounting Principles in

Japan (Japan GAAP) for the preparation of its consolidated financial

9

statements in view of comparability for the period covered by the

consolidated financial statements and inter-company comparability.

The Group’s policy is to proceed with consideration into the application of

International Financial Reporting Standards taking into account a trend of

circumstances and outside Japan.

3. Consolidated Financial Statements

(1) Consolidated Balance Sheets(Millions of yen)

As of March 31,2019

As of March 31,2020

ASSETS

Current assets:

Cash and deposits 56,430 59,622

Trade notes and accounts receivable 62,745 64,680

Merchandise and finished products 21,065 18,134

Work in process 25,907 28,829

Raw materials and supplies 13,974 15,624

Other 5,972 5,220

Allowance for doubtful receivables (238) (182)

Total current assets 185,858 191,930

Fixed assets:

Property, plant and equipment:Buildings and structures 94,768 97,082Machinery and equipment 263,270 278,081

Tools, furniture and fixtures 26,089 27,578

Land 11,022 12,661

Construction in progress 10,468 18,307

Accumulated depreciation (280,102) (289,311)

Net property, plant and equipment 125,517 144,400

Intangible fixed assets:

Goodwill 5,837 -

Other 1,219 1,293

Total intangible fixed assets 7,056 1,293

Investments and other assets:

Investment securities 4,760 2,671

Net defined benefit asset 16 19

Deferred tax assets 3,864 1,314

Other 2,119 1,819

Allowance for doubtful receivables (332) (326)

Total investments and other assets 10,428 5,498

Total fixed assets 143,003 151,192

Total assets 328,861 343,122

10

(Millions of yen)

As of March 31,2019

As of March 31,2020

LIABILITIES

Current liabilities:

Trade notes and accounts payable 25,031 26,603

Short-term borrowings 23,152 19,250

Current portion of long-term borrowings 2,477 2,663

Accrued amounts payable 13,405 16,813

Income taxes payable 5,085 1,903

Accrued bonuses for employees 4,167 4,576

Accrued bonuses for directors and corporate auditors 258 233

Other 8,420 12,290

Total current liabilities 81,997 84,333

Long-term liabilities:

Long-term borrowings 28,415 34,752

Deferred tax liabilities 4,771 3,397

132 49

Net defined benefit liability 3,742 4,200

Other 3,847 5,934

Total long-term liabilities 40,910 48,334

Total liabilities 122,907 132,667

NET ASSETS

Shareholders’ equity:

Common stock 33,575 33,575

Capital surplus 49,904 49,903

Retained earnings 135,217 150,263

Treasury stock (4,613) (8,596)

Total shareholders’ equity 214,083 225,146

Accumulated other comprehensive income

Net unrealized holding gains on securities 1,519 430

Deferred gains (losses) on hedges 2 (82)

Foreign currency translation adjustments (9,703) (14,779)

Remeasurements of defined benefit plans (401) (824)

Total accumulated other comprehensive income (8,583) (15,255)

Stock acquisition rights 453 563

Total net assets 205,953 210,454

Total liabilities and net assets 328,861 343,122

Accrued retirement benefits for directors and corporateauditors

11

(2) Consolidated Statements of Operations and Conslidated Statements of Comprehensive Income(Consolidated Statements of Operations)

(Millions of yen)



Net sales 274,349 282,329

Cost of sales 192,084 196,979

Gross profit 82,264 85,350

Selling, general and administrative expenses 47,026 48,173

Operating income 35,237 37,176

Non-operating income:

Interest income 382 335

Dividend income 142 146

Gain on foreign exchange 190 -

Subsidy income 451 245

Other 329 244

Total non-operating income 1,496 972

Non-operating expenses:

Interest expense 349 375

Equity in losses of affiliate 786 787

Loss on foreign exchange - 1,404

Stock issuance cost 144 -

Depreciation of inactive noncurrent assets 194 219

Loss from suspended operation 655 -

Other 252 197

Total non-operating expenses 2,382 2,983

Ordinary income 34,351 35,165

Extraordinary gains:

Gain on sales of property, plant and equipment 16 148

Gain on sales of investment securites 1,535 16

Gain on step acquisition 249 -

Insurance claim income - 1,351

Other 24 -

Total extraordinary gains 1,825 1,516

Extraordinary losses:

Loss on disposal and sales of property, plant and equipment 494 764

Impairment loss 4,614 5,290

Loss on devaluation of investment securities 52 17

Business structure improvement expenses 2,235 -

Loss on diaster - 3,168

Anti-monopoly Act related loss 579 3,600

Other 88 22

Total extraordinary losses 8,066 12,863

Income before income taxes 28,110 23,818

Income taxes - current 5,983 4,637

Income taxes - deferred (1,560) 1,158

Total income taxes 4,422 5,795

Net income 23,687 18,022

Net income attributable to owners of parent company 23,687 18,022

12

(Consolidated Statements of Comprehensive Income)

(Millions of yen)



Net income 23,687 18,022

Other comprehensive income

Net unrealized holding gains (losses) on securities (1,377) (1,088)

Deferred gains (losses) on hedges 17 (84)

Foreign currency translation adjustments (674) (5,075)

Remeasurement of defined benefit plans (568) (423)

Total other comprehensive income (loss) (2,602) (6,671)

Comprehensive income 21,084 11,350

(Breakdown)

Comprehensive income attributable to shareholders 21,084 11,350

13

(3) Consolidated Statements of Changes in Net Assets

Prior fiscal year (April 1, 2018 - March 31, 2019)(Millions of yen)

Change in ownership interest of parentdue to transactions with non-controllinginterests

Changes of items during the year

Conversion of convertible bonds

Dividends from surplus

Net income attributable to owners ofparent company

Purchase of treasury stock

Disposal of treasury stock

Change by share exchanges


Net change of items other thanshareholders’ equity during the period

Cumulative effect of changes inaccounting policies


Conversion of convertible bonds


Net income attributable to owners ofparent company



Change by share exchanges



-

(0)

20,035

170,1182,896 (15) (9,028) 167 (5,980) 342

(0)

-

20,035

(1,631) 1,631 -

-

23,557 41,518 113,984 (3,302) 175,756Balance at the beginning of the currentperiod reflecting changes in accountingpolicies

Balance at the beginning of the currentperiod reflecting changes in accountingpolicies

10,017 10,017

35,835

(9,703) (401) (8,583) 205,953

(2,454)(2,454)

111

453

Total changes of items during the year (1,377) 17 (674) (568) (2,602)

Balance at the end of the year 1,519 2

(1,377) 17 (674) (568) (2,602) 111 (2,491)

(3,001)

59

23,687

342 170,118

(2,454)

Balance at the beginning of the year 2,896 (15) (9,028) 167 (5,980)


Stockacuisition

rights

Total netassetsNet unrealized

holding gainson securities

Deferred gainsor losses on

hedges

Foreigncurrency

translationadjustment

Remeasure-ments of

defined benefitplans

Accumulatedother

comprehensiveincome

Balance at the end of the year 33,575 49,904 135,217 (4,613) 214,083

Total changes of items during the year 10,017 8,386 21,233 (1,310) 38,326

(0)

(0) 59 59

23,687 23,687

(3,001) (3,001)

Balance at the beginning of the year 23,557 41,518 113,984 (3,302) 175,756

Shareholders' equity

Capital stock Capital surplus Retained earnings Treasury stockTotal

shareholdres' equity

14

Current fiscal year (April 1, 2019 - March 31, 2020)(Millions of yen)




Net income






Net income




210,454

110 4,693

Balance at the end of the year 430 (82) (14,779) (824) (15,255) 563

Total changes of items during the year (1,088) (84) (5,075) (423) (6,671)

(1,088) (84) (5,075) (423) (6,671) 110 (6,561)

23

(4,006)

(2,784)

18,022

205,761


(192)


1,519 2 (9,703) (401) (8,583) 453

453 205,953Balance at the beginning of the year 1,519 2 (9,703) (401) (8,583)


Stockacquisition

rightsTotal net assetsNet unrealized

holding gainson securities

Deferred gainsor losses on

hedges

Foreigncurrency

translationadjustment

Remeasure-ments of

defined benefitplans

Accumulatedother

comprehensiveincome

11,254

Balance at the end of the year 33,575 49,903 150,263 (8,596) 225,146

Total changes of items during the year - (0) 15,238 (3,982)

(0) 23 23

18,022 18,022

(4,006) (4,006)

(2,784)


33,575 49,904 135,025 (4,613)

Capital surplus Retained earnings Treasury stock

(2,784)

213,891

(192) (192)

Totalshareholdres' equity

Balance at the beginning of the year 33,575 49,904 135,217 (4,613) 214,083

Shareholders' equity

Capital stock

15

(4) Consolidated Statements of Cash Flows(Millions of yen)



Operating activities:

Income before income taxes 28,110 23,818

Depreciation and amortization 26,547 27,022

Impaiment loss 4,614 5,290

Insurance claim income - (1,351)

Business structure improvement expense 2,235 -

Loss on disaster - 3,168

Anti-monopoly Act related loss 579 3,600

Amortization of goodwill 473 631

Increase (decrease) in allowance for doubtful receivables (29) (59)

Increase (decrease) in accrued bonuses for employees 430 420Increase (decrease) in accrued bonuses for directors andcorporate auditors

26 (24)

Increase (decrease) in accrued retirement benefits for directorsand corporate auditors

(1) (80)

Interest and dividend income (524) (482)

Interest expense 349 375Equity in earnings of affiliate 786 787Stock issuance cost 144 -(Gain) loss on disposal and sales of property, plant andequipment

478 615

(Gain) loss on sales of investment securites (1,535) (10)

(Gain) loss on step acquisition (249) -

Subsidy income (209) (123)

(Gain) loss on devaliation of investment securities 52 17

(Increase) decrease in trade receivables (1,340) (3,207)

(Increase) decrease in inventories (6,263) (4,295)

Increase (decrease) in trade payables (4,062) 1,894

Other 103 2,717Subtotal 50,716 60,724

Interest and dividends received 514 502

Interest paid (299) (415)

Proceeds from insurance income - 1,351

Business structure improvement expense paid (2,235) -

Payments associated with disaster loss - (1,588)

Anti-monopoly Act related loss paid (2,681) (802)

Income taxes (paid) refunded (3,047) (7,338)

Net cash provided by operating activities 42,967 52,434

Investing activities:

Purchases of property, plant and equipment (42,562) (44,067)

Proceeds from sales of property, plant and equipment 38 327

(Increase) decrease in time deposits 1,028 2,186

Proceeds from sales of investment securities 2,536 194

Receipt from subsidy income 312 222

Purchase of shares of subsidiaries and associates (258) -

Proceeds from purchases of investments in subsidiaries resultingin charge in scope of cpnsolidation

5,148 -

Other 173 261

Net cash used in investing activities (33,581) (40,874)

16



Financing activities:

Net increase (decrease) in short-term borrowings (12,673) (3,899)

Proceeds from long-term borrowings 22,024 9,000

Repayments of long-term borrowings (5,194) (2,477)

Purchases of treasury stock (3,001) (4,006)

Payments of cash dividends (2,449) (2,776)

Repayments of lease obligations (117) (630)

Other (191) (61)

Net cash provided by (used in) financing activities (1,603) (4,851)

Effect of exchange rate changes on cash and cash equivalents 34 (1,077)

Net increase (decrease) in cash and cash equivalents 7,816 5,630

Cash and cash equivalents at beginning of period 43,837 51,654

Cash and cash equivalents at end of period 51,654 57,285

17

18

(5) Notes to Consolidated Financial Statements

(Notes on Premise of Going Concern)

No relevant items to report.

(Change in Accounting Policy)

Overseas subsidiaries adopting International Financial Reporting Standards

(IFRS) applied IFRS 16 Leases effective from the beginning of the year

ending March 31, 2021. Under IFRS 16, lessees record assets and liabilities

as the accounting treatment for all leases in principle. In addition, the method

of recognizing the cumulative impact due to the application of the standard

as of the initial application date, with transitional measure, has been adopted.

The impact from the adoption of this standard on the consolidated financial

statements is immaterial.

(Segment Information)

a. Segment information

As the Group has a single business segment, publication of segment

information has been omitted.

b. Related information

Year ended March 31, 2019 (April 1, 2018 – March 31, 2019)

1. Information for each product and service

Information for each product and service has been omitted here because

it is disclosed in “4. Other; (1) Production, Orders and Sales Results.”

2. Information for each region

(1) Net sales (Millions of yen)

Japan China Hong Kong Other countries

or regions Total

29,343 96,256 44,240 104,508 274,349

Note: Net sales are grouped according to the country or region of the

customer’s business address.

(2) Property, plant and equipment (Millions of yen)

Japan China Malaysia Other countries

or regions Total

84,970 10,636 16,085 13,825 125,517

3. Information for each main customer

Information for each main customer has been omitted because no

19

customer accounts for more than 10% of net sales on the consolidated

profit and loss statement.


1. Information for each product and service

Information for each product and service has been omitted here because

it is disclosed in “4. Other; (1) Production, Orders and Sales Results.”

2. Information for each region

(1) Net sales (Millions of yen)

Japan China Hong Kong Other countries

and regions Total

26,848 98,462 54,395 102,622 282,329

Note: Net sales are grouped according to the country or region of the

customer’s business address.

(1) Property, plant and equipment (Millions of yen)

Japan China Malaysia Other countries

and regions Total

96,565 12,478 21,041 14,314 144,400

3. Information for each main customer

Information for each main customer has been omitted because no

customer accounts for more than 10% of net sales on the consolidated

statements of operations.

c. Fixed asset impairment losses for each reportable segment


information about fixed asset impairment losses has been omitted.

d. Information on Amortization of Goodwill and Unamortized Balance

by Reporting Segment


information about fixed asset impairment losses has been omitted.

e. Information on Gain on Negative Goodwill by Reporting Segment


20

(Per Share Information)



Net assets per share 1,609.72 1,672.40

Net income per share 189.93 143.04

Diluted net income per share 185.87 142.67

Note 1: The following represents the basic data used for calculating net assets per share.


As of March 31, 2019 As of March 31, 2020

Total net assets 205,953 210,454

Deductions from Total net assets 453 563

(Stock acquisition rights) (453) (563)

(Non-controlling interests) ( - ) ( - )

Net assets at fiscal year-end related to common stock 205,500 209,891

Number of common stock at fiscal year-end used in the calculation of net assets per share (thousand shares)

127,662 125,502

Note 2: The following represents the basic data used for calculating net income per share.




Net income per share

Net income attributable to owners of parent company 23,687 18,022

Amounts not allocated to common stock shareholders - -

Net income attributable to owners of parent company related to common stock

23,687 18,022

Average number of common stock outstanding in FY

(thousand shares) 124,718 126,000

Diluted net income per share

Adjustments to net income attributable to owners of parent company

(2) -

Interest on bonds (net after deduction of taxes)

(2) (-)

Increase in common stock (thousand shares)

2,711 323

Convertible bonds with acquisition rights

(thousand shares) 2,434 (-)

Stock acquisition rights (thousand shares)

277 323

Outline of stock not included in diluted net income per share due to lack of dilutive effect

- -

21

(Significant Subsequent Events)


4. Other (1) Production, Orders and Sales Results

1. Production

Product classification Year ended

March 31, 2019 Year ended

March 31, 2020

Amount [%] Amount [%]

Capacitors 174,658 65.6 176,185 65.7

Ferrite and applied products 39,127 14.7 38,499 14.4

Integrated modules & devices 39,392 14.8 39,150 14.6

Others 12,893 4.8 14,420 5.4

Total 266,072 100.0 268,254 100.0

Note: 1. Amounts are based on average unit sales prices for the period. 2. The aforementioned amounts are exclusive of consumption and related taxes. 3. The Group has a single business segment which is electronic components, and the categories described

above are not reportable business segments.

2. Orders



March 31, 2020


Capacitors 166,600 61.2 182,627 63.5



Others 15,721 5.8 17,782 6.2

Total 272,057 100.0 287,732 100.0

Note: 1. The aforementioned amounts are exclusive of consumption and related taxes. 2. The Group has a single business segment which is electronic components, and the categories described


3. Order Backlog



March 31, 2020


Capacitors 37,956 67.7 44,126 71.8



Others 2,886 5.2 3,377 5.5

Total 56,039 100.0 61,442 100.0

22



4. Sales Results



March 31, 2020


Capacitors 170,633 62.2 176,457 62.5



Others 15,189 5.5 17,292 6.1

Total 274,349 100.0 282,329 100.0



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