Taiyo Yuden : Earnings Release Conference (442KB)

Consolidated Financial Results

Year ended March 31, 2020

Shinji Masuyama

Chief of Management Planning Headquarters

May 12, 2020

©TAIYO YUDEN 2017

Financial Summary

FYE March 2020

• Net sales increased 3% Y/Y to ¥282.3 billion, and operating income increased 6% to ¥37.2 billion, resulting in revenue and profit growth.
• Net sales and net income recorded all-time highs.
• Sales of capacitors increased 3% Y/Y. This growth was led by expansion of sales for automobiles where use of electronic components is advancing.

Earnings Forecast for FYE March 2021

• Net sales in 1Q are projected to decrease 12% Q/Q to ¥60.0 billion, and operating income is projected to decrease 59% to ¥3.0 billion.
• The full-year earnings forecast is yet to be determined as it is difficult to make reasonable calculations of the impact from novel coronavirus disease (COVID-19).

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Summary of Consolidated Financial Results (Y/Y)

¥ in million	FYE Mar 31, 2019	FYE Mar 31, 2020		Change Y/Y
(01 Apr 2018 - 31 Mar 2019)	(01 Apr 2019 - 31 Mar 2020)
Net sales	274,349	100.0%	282,329	100.0%		7,980	2.9%
Operating income	35,237	12.8%	37,176	13.2%		1,938	5.5%
Ordinary income	34,351	12.5%	35,165	12.5%		813	2.4%
Net income attributable	23,687			18,022
to owners of parent	8.6%	6.4%		(5,664)	(23.9)%
company
Yen to USD average	110.49 yen	109.06 yen			1.43 yen
exchange rate			appreciated
Impact of exchange rate	Net sales (3.9) billion yen, Operating income (0.9) billion yen
fluctuation	※Including the impact of currencies other than US dollars
R&D expenses		13,039		12,921		(117)	(0.9)%
Capital investment		38,570		39,365		794	2.1%
Depreciation expenses		26,547		27,022		475	1.8%
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Factors behind Operating Income in FYE March 2020

Operating income	Operating income
(FYE Mar 2020)
(FYE Mar 2019)	37.2
35.2

©TAIYO YUDEN 2017

Effect from capacity utilization

10.7

Effect from Cost reduction 2.4

		(0.9)
	(3.7)	Currency
(6.5)	Changes in	fluctuations
Impact of	fixed costs
selling price

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Financial Results by Product Classification (Y/Y)

¥ in million	FYE Mar 31, 2019	FYE Mar 31, 2020	Change Y/Y

Capacitors	170,633	62.2%	176,457	62.5%	5,824	3.4%
Ferrite and applied	40,595	14.8%	38,770	13.7%	(1,825)	(4.5)%
products
Integrated modules &	47,930	17.5%	49,808	17.6%	1,877	3.9%
devices
Others	15,189	5.5%	17,292	6.1%	2,103	13.8%
Total net sales	274,349	100.0%	282,329	100.0%	7,980	2.9%

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Financial Results by Product Classification (Y/Y)

■ Capacitors

（+3.4%）

The growth was led by expansion of sales for automobiles where use of electronic components is advancing. Sales for use in IT infrastructure/industrial equipment, such as base station communication devices, also increased.

■ Ferrite and applied products

((4.5)%)

Although sales for use in automobiles increased, sales for use in consumer products, information equipment/IT infrastructure, industrial equipment, etc. declined.

■ Integrated modules & devices （+3.9%）

Sales for use in communication devices (FBAR/SAW) increased.

■ Capacitors	■ Ferrite and applied products	■ Integrated modules & devices	■ Others
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Sales by Market Sector

		*Estimated by the Company
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Forecast of Consolidated Performance

First quarter of the year ending March 31, 2021

©TAIYO YUDEN 2017

Forecast for 1Q of FYE March 2021

¥ in million	FYE Mar 31, 2020	FYE Mar 31, 2021	Change
4Q		1Q Forecast
Net sales	68,233	100.0%	60,000	100.0%	(8,233)		(12.1)%
Operating income	7,431	10.9%	3,000	5.0%	(4,431)		(59.6)%
Ordinary income	6,835	10.0%	2,500	4.2%	(4,335)		(63.4)%
Net income attributable	(1,975)		1,500
to owners of parent	ー	2.5%	3,475		－
company

Yen to USD average exchange rate

109.54 yen	(Assumption)	2.54 yen
107.00 yen	appreciated

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Forecast by Product Classification for 1Q of FYE March 2021

¥ in million	FYE Mar 31, 2020	FYE Mar 31, 2021	Change
4Q		1Q Forecast
Capacitors	43,738	64.1%	39,000	65.0%	(4,738)		(10.8)%
Ferrite and applied	9,090	13.3%	8,000	13.3%	(1,090)		(12.0)%
products
Integrated modules &	11,226	16.5%	10,000	16.7%	(1,226)		(10.9)%
devices
Others	4,178	6.1%	3,000	5.0%	(1,178)		(28.2)%
Total net sales	68,233	100.0%	60,000	100.0%	(8,233)		(12.1)%

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Impact of Novel Coronavirus Disease

(COVID-19)

©TAIYO YUDEN 2017

Impact of COVID-19

Production

Sales

Procurement

Distribution

©TAIYO YUDEN 2017

Production sites in the Philippines and Malaysia are operating although there are constraints due to government restrictions on activities and travel. Sites in other regions are operating as normal.

We are closely monitoring production trends at client companies and final demand for equipment, etc.

There are some problems with procurement from suppliers, but we are resolving this by changing procurement channels and utilizing current inventory.

The decrease in the number of flights is lengthening distribution lead times and increasing distribution costs. We are addressing this through transportation using alternative flights and routes.

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Operating Status of Production Sites

Country	Company	Main production items	Operation
status
	TAIYO YUDEN, FUKUSHIMA TAIYO	Multilayer ceramic capacitors,	Operating
Japan	YUDEN, NIIGATA TAIYO YUDEN,	inductors, communication
WAKAYAM TAIYO YUDEN, TAIYO	as normal
	devices, modules, etc.
	YUDEN Mobile Technology, etc.
Korea	KOREA KYONG NAM TAIYO	Multilayer ceramic capacitors	Operating
YUDEN	as normal
	TAIYO YUDEN (TIANJIN)	Inductors	Operating
	ELECTRONICS	as normal
China
TAIYO YUDEN (GUANGDONG)	Multilayer ceramic capacitors	Operating
	as normal
Philippines	TAIYO YUDEN (PHILIPPINES)	Inductors	Operating (with
constraints)
	TAIYO YUDEN (SARAWAK)	Multilayer ceramic capacitors	Operating (with
	constraints)
Malaysia
ELNA-SONIC	Aluminum electrolytic	Operating
	capacitors	as normal
Thailand	TANIN ELNA	Aluminum electrolytic	Operating
capacitors	as normal
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Supplementary Information

©TAIYO YUDEN 2017

Consolidated Earnings Trends (Half Yearly)

¥ in million	FYE Mar 31, 2018	FYE Mar 31, 2019	FYE Mar 31, 2020
	1H	2H	1H	2H	1H	2H
Net sales	118,180	125,937	133,565	140,783	141,908	140,420
Capacitors	66,767	76,091	80,168	90,464	87,812	88,645
Ferrite and applied	20,223	20,753	21,154	19,441	19,376	19,393
products
Integrated modules &	29,582	27,256	26,369	21,561	25,960	23,848
devices
Others	1,606	1,836	5,873	9,316	8,759	8,533
Operating income	8,775	11,445	14,703	20,534	20,298	16,877
Ordinary income	10,021	10,531	15,385	18,966	19,176	15,988
Net income attributable	7,378	8,976	10,980	12,707	15,332	2,690
to owners of parent
company
Yen to USD average	111.46	111.43	109.30	111.67	109.26	108.86
exchange rate	yen		yen	yen	yen	yen	yen
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Consolidated Earnings Trends (Quarterly)

¥ in million		FYE Mar 31, 2019			FYE Mar 31, 2020
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
Net sales	59,576	73,989	73,963	66,820	68,635	73,272	72,187	68,233
Capacitors	36,184	43,984	47,362	43,101	43,338	44,473	44,907	43,738
Ferrite and applied	9,228	11,926	11,209	8,231	8,633	10,742	10,303	9,090
products
Integrated modules	13,208	13,160	10,783	10,778	12,523	13,436	12,621	11,226
& devices
Others	954	4,918	4,607	4,708	4,139	4,620	4,354	4,178
Operating income	5,981	8,722	11,789	8,744	9,595	10,703	9,446	7,431
Ordinary income	6,896	8,489	11,403	7,562	8,846	10,330	9,152	6,835
Net income
attributable to	5,645	5,334	9,069	3,638	7,151	8,180	4,666	(1,975)
owners of parent
company
Yen to USD average	107.76	110.84	112.71	110.64	110.95	107.58	108.17	109.54
exchange rate	yen	yen		yen	yen	yen	yen	yen	yen
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Consolidated Earnings Trends (Quarterly)

Net sales

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Orders Received and Order Backlog Trends (Quarterly)

(¥ in billion)

■ Capacitors	■ Ferrite and applied products	■ Integrated modules & devices	■ Others	18
©TAIYO YUDEN 2017

Consolidated Financial Position

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Forward-looking statements

This document contains information about the plans, business results, and strategies of TAIYO YUDEN CO., LTD. and the TAIYO YUDEN Group. These forward-looking statements other than historical facts represent judgments made by the Company based on information available at present and are inherently subject to a variety of uncertainties. TAIYO YUDEN cannot provide any guarantee as to the attainment of certain figures in the future. The Company's actual activities and business results could differ significantly due to changes including, but not limited to, changes in the electronics market in which the Company's business activities are centered. Readers should not overly rely on the information contained in this document.

©TAIYO YUDEN 2017		20

©TAIYO YUDEN 2017