Taiyo Yuden : Consolidated Financial Results for the Three Months Ended June 30, 2023 (Under Japanese GAAP)(80KB)

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, 2023

Consolidated Financial Results

for the Three Months Ended June 30, 2023

(Under Japanese GAAP)

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

Scheduled date to file quarterly securities report:	August 9, 2023
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, 2023 (from April 1, 2023 to June 30, 2023)

(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, 2023	72,612		(11.2)	(577)	-	1,159	(93.3)	903	(92.6)
June 30, 2022	81,740		(2.5)	13,142	(13.2)	17,204	13.4	12,236	(5.6)

Note: Comprehensive income	For the three months ended June 30, 2023:	¥9,018 million	[(60.7)%]
		For the three months ended June 30, 2022:	¥22,960 million	[63.9%]
	Basic earnings	Diluted earnings
		per share	per share
Three months ended		Yen	Yen
June 30, 2023		7.25	7.22
June 30, 2022		98.20	97.92

(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, 2023	551,810		321,910	58.2	2,575.52
March 31, 2023	503,462		318,478	63.1	2,548.15
Reference: Equity
As of June 30, 2023:	¥320,930 million
As of March 31, 2023:	¥317,520 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	-	45.00	-		45.00	90.00
March 31, 2023
Fiscal year ending	-
March 31, 2024
Fiscal year ending
March 31, 2024		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, 2023 to March 31, 2024

(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
Fiscal year ending	322,000		0.8	15,000	(53.1)	14,000	(59.8)	8,000	(65.5)	64.20
March 31, 2024
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, 2023

As of March 31, 2023

130,218,481 shares

130,218,481 shares

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

As of June 30, 2023

As of March 31, 2023

5,610,371 shares

5,610,298 shares

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

Three months ended June 30, 2023

Three months ended June 30, 2022

124,608,140 shares

124,608,785 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, 2023 ……………………………………………………………………	6
		Consolidated Statements of Comprehensive Income
		Three months ended June 30, 2023 ……………………………………………………………………	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

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1. Qualitative Information Concerning Financial Statements and Other

(1) Consolidated Operating Results

During the three-month period ended June 30, 2023 (April 1, 2023 to June 30, 2023), the business conditions surrounding the TAIYO YUDEN Group ("the Group") experienced a trend of moderate recovery although the uncertainty in the global economy continued. As for the future, although the moderate recovery is expected to continue, it will be necessary to monitor the international situation, as well as fluctuations in financial and capital markets and trends in the demand environment amid global monetary tightening.

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, 2023 totaled ¥72,612 million, which is a decrease of 11.2% compared to the corresponding period of the previous fiscal year. Operating loss was ¥577 million compared to operating profit of ¥13,142 million in the same period of the previous fiscal year. Ordinary profit was ¥1,159 million, a decrease of 93.3%, and profit attributable to owners of parent was ¥903 million, a decrease of 92.6%. Net sales as well as operating profit, ordinary profit, and profit attributable to owners of parent declined due to a decrease in production volume and inventory adjustments, primarily in the information equipment and IT infrastructure/industrial equipment.

The average foreign currency exchange rate for the three-month period ended June 30, 2023 was US$1: ¥134.93. This is a depreciation of ¥10.48 as compared to the average realized in the corresponding period of the previous fiscal year of US$1: ¥124.45.

Net Sales by Product Classification

[Capacitors]

The capacitor product classification is comprised of multilayer ceramic capacitors.

While product sales for use in communication equipment and automobiles increased year over year, sales for use in consumer products, information equipment, and IT infrastructure/industrial equipment declined. As a result, net sales for the three-month period ended June 30, 2023 totaled ¥47,133 million, a decrease of 13.6% compared to the corresponding period 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, 2023, product sales for use in information equipment, communication

equipment, and automobiles were higher as compared to the corresponding period of the previous fiscal year while sales for use in consumer products and IT infrastructure/industrial equipment were lower. As a result, net sales for the three-month period ended June 30, 2023 totaled ¥10,976 million, which is a decrease of 6.6% 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, 2023, sales of FBAR/SAW devices for mobile communications increased year over year, but sales of circuit modules decreased. This resulted in a 10.7% decrease in sales for this product classification year over year to ¥8,182 million.

[Others]

For this product classification, the Group manufactures and sells aluminum electrolytic capacitors, etc.

For the three-month period ended June 30, 2023, sales of aluminum electrolytic capacitors, mainly for use in automobiles, increased year over year. This resulted in a 1.1% increase in sales for this product classification year over year to ¥6,320 million.

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