Taiyo Yuden : Consolidated Financial Results for the Three Months Ended June 30, 2022 (Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

August 3, 2022

Consolidated Financial Results

for the Three Months Ended June 30, 2022

(Under Japanese GAAP)

Company name:	TAIYO YUDEN CO., LTD.
Listing:	Tokyo Stock Exchange
Securities code:	6976
URL:	http://www.ty-top.com
Representative:	Shoichi Tosaka, President and Chief Executive Officer
Inquiries:	Tomomitsu Fukuda, Director and Executive Operating Officer, Deputy Chief of Management
	Planning Headquarters
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 10, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors and
	investment analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
			Net sales	Operating profit	Ordinary profit		Profit attributable to
				owners of parent
	Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%		Millions of yen	%
	June 30, 2022		81,740	(2.5)	13,142	(13.2)	17,204	13.4	12,236	(5.6)
	June 30, 2021		83,836
		38.6	15,147	91.2	15,174	105.8		12,969		185.6
Note: Comprehensive income	For the three months ended June 30, 2022:	¥22,960 million	[63.9%]
			For the three months ended June 30, 2021:	¥14,008 million	[172.6%]
		Basic earnings	Diluted earnings
			per share	per share
	Three months ended			Yen		Yen
	June 30, 2022			98.20		97.92
	June 30, 2021			103.33		103.02
(2) Consolidated financial position
			Total assets	Net assets	Equity-to-asset ratio		Net assets per share
	As of		Millions of yen	Millions of yen		%				Yen
	June 30, 2022			498,774		318,330		63.6			2,547.46
	March 31, 2022			474,522		300,286		63.1			2,403.20
Reference: Equity
	As of June 30, 2022:	¥317,435 million
	As of March 31, 2022:	¥299,460 million

2. Cash dividends

			Annual dividends per share
	First quarter-end		Second quarter-end		Third quarter-end	Fiscal year-end		Total
	Yen		Yen		Yen	Yen		Yen
Fiscal year ended	-	40.00	-		40.00		80.00
March 31, 2022
Fiscal year ending	-
March 31, 2023
Fiscal year ending
March 31, 2023		45.00	-		45.00		90.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecasts of operating results for the period from April 1, 2022 to March 31, 2023

							(Percentages indicate changes from same period in the previous fiscal year.)
															Profit attributable to		Basic
			Net sales			Operating profit		Ordinary profit			earnings
							owners of parent
																per share
			Millions of yen	%		Millions of yen	%		Millions of yen	%		Millions of yen	%		Yen
	Six months ending	183,000		6.0	32,000	(7.7)	31,000	(12.8)	21,500	(24.4)	172.54
	September 30, 2022
	Fiscal year ending		385,000		10.1		70,000		2.6		69,000		(4.4)		48,000		(11.7)		385.21
	March 31, 2023
Note: Revisions to the forecast of operating results most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
   Newly included: -
   Excluded: -
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022

As of March 31, 2022

130,218,481 shares

130,218,481 shares

(ii) Number of treasury shares at the end of the period

As of June 30, 2022

As of March 31, 2022

5,609,783 shares

5,609,656 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2022	124,608,785 shares
Three months ended June 30, 2021	125,516,179 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Forecasts of operating results include a number of assumptions based on information currently available and certain premises which were judged to be rational. Please note that these forecasts may significantly differ from actual results with various factors.
• TAIYO YUDEN will post the financial supplementary data on its web-site.

○Table of contents

1. Qualitative Information Concerning Financial Statements and Other ……………………………………………………	2
(1)	Consolidated Operating Results …………………………………………………………………………………………	2
(2)	Consolidated Financial Conditions ………………………………………………………………………………………	3
(3)	Forecasts of Consolidated Operating Results ……………………………………………………………………………	3
2. Consolidated Financial Statements …………………………………………………………………………………………	4
(1)	Consolidated Balance Sheets ……………………………………………………………………………………………	4
(2)	Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ……………………	6
	Consolidated Statements of Operations
	Three months ended June 30, 2022 ………………………………………………………………………………	6
	Consolidated Statements of Comprehensive Income
	Three months ended June 30, 2022 ………………………………………………………………………………	7
(3)	Notes on Consolidated Financial Statements ……………………………………………………………………………	8
	(Notes on Premise of Going Concern) …………………………………………………………………………………	8
	(Notes in Case of Significant Changes to Shareholders' Equity) ………………………………………………………	8
3. Supplementary Information ………………………………………………………………………………………………	8
(1)	Net Sales by Product Classification ………………………………………………………………………………………	8

- 1 -

1. Qualitative Information Concerning Financial Statements and Other

(1) Consolidated Operating Results

During the three-month period ended June 30, 2022 (April 1, 2022 - June 30, 2022), the business conditions surrounding the TAIYO YUDEN Group ("the Group") experienced rising raw material and logistics costs due to increased geopolitical risk and large-scale lockdowns in some regions because of the spread of COVID-19, although there were some signs of recovery in the global economy. As for the future, it will be necessary to monitor infectious disease trends, the international situation, fluctuations in financial and capital markets amid rising interest rates around the world, and the global demand environment.

Under the medium-term management plan 2025, the Group is aiming to increase the proportion of sales in focus markets, primarily automotive and IT infrastructure/industrial equipment, to 50%. Moreover, the Group will produce high value-added electronic components with a focus on high-end and high reliability products to achieve further growth in multilayer ceramic capacitors, the Group's core business, in addition to strengthening inductor and communication device products to establish them as core businesses. We also plan capital investment of ¥300.0 billion over five years to continuously expand capacity to meet increase in demand as well as to implement proactive initiatives in the areas of environmental measures and upgrading of IT.

Consolidated net sales for the three-month period ended June 30, 2022 totaled ¥81,740 million, which is a decrease of 2.5% compared to the corresponding period of the previous fiscal year. Operating profit was ¥13,142 million, a decrease of 13.2%. Ordinary profit was ¥17,204 million, an increase of 13.4%, and profit attributable to owners of parent was ¥12,236 million, a decrease of 5.6%. Although net sales and operating profit were lower owing to the impact of large-scale lockdowns in some regions during the three-month period ended June 30, 2022, ordinary profit increased due to foreign exchange gains and other factors. Profit attributable to owners of parent decreased because of an increase in income taxes.

The average foreign currency exchange rate for the three-month period ended June 30, 2022 was US$1: ¥124.45. This is a depreciation of ¥15.45 as compared to the average realized in the corresponding period of the previous fiscal year of US$1: ¥109.

Net Sales by Product Classification [Capacitors]

The capacitor product classification is comprised of multilayer ceramic capacitors.

While product sales for use in communication equipment declined year over year, sales for use in consumer products, information equipment, automobiles, and IT infrastructure/industrial equipment increased. As a result, net sales for the three-month period ended June 30, 2022 totaled ¥54,583 million, an increase of 2.6% compared to the corresponding period of the previous fiscal year.

[Inductors]

This product classification is comprised of various inductors including wire-wound inductors and multilayer inductors.

In the three-month period ended June 30, 2022, product sales for use in communication equipment, automobiles and IT infrastructure/industrial equipment were lower as compared to the corresponding period of the previous fiscal year while sales for use in consumer products and information equipment were higher. As a result, net sales for the three-month period ended June 30, 2022 totaled ¥11,748 million, which is an increase of 3.2% compared to the corresponding period of the previous fiscal year.

[Integrated Modules & Devices]

This product classification is comprised of FBAR/SAW devices for mobile communications, circuit modules, etc.

For the three-month period ended June 30, 2022, sales of FBAR/SAW devices for mobile communications and circuit modules decreased year over year. This resulted in a 34.5% decrease in sales for this product classification year over year to ¥9,159 million.

[Others]

For this product classification, the Group manufactures and sells aluminum electrolytic capacitors and power storage devices, etc.. For the three-month period ended June 30, 2022, sales of aluminum electrolytic capacitors, mainly for use in automobiles,

increased year over year. This resulted in a 18.7% increase in sales for this product classification year over year to ¥6,248 million.

- 2 -