Taiyo Yuden : Earnings Release Conference for the 1st Quarter with notes(541KB)

Consolidated Financial Results

First quarter for the year ending March 31, 2022

Katsuya Sase

Chief of Management Planning Headquarters

August 5, 2021

©TAIYO YUDEN 2017

Financial Summary

1Q for the Year Ending March 2022

• Net sales were ¥83.8 billion. Sales increased 6% Q/Q, primarily for use in communication equipment, such as smartphones.
• Operating income was ¥15.1 billion, up 45% Q/Q. This exceeded the forecast at the beginning of the fiscal year due to control of price reductions and the impact of exchange rates.
• Net sales, operating income, ordinary income, and net income attributable to owners of the parent company all recorded all-time highs on the quarterly basis.

Earnings Forecast for the Year Ending March 2022

• The first-half and the full-year earnings forecasts announced at the beginning of the fiscal year have been upwardly revised.
• The full-year earnings forecasts are for net sales of ¥333.0 billion, up 11% Y/Y, and operating income of ¥55.0 billion, up 35% Y/Y

©TAIYO YUDEN 2017		2

Financial Summary for 1Q FYE March 2022

Net sales increased 6% Q/Q to 83.8 billion yen, and operating income increased 45% to 15.1 billion yen, resulting in sales and profit growth.

Operating income exceeded the forecast at the beginning of the fiscal year due to control of price reductions and the impact of depreciation in the value of the yen.

As a result, quarterly net sales, operating income, ordinary income, and net income attributable to owners of parent company all recorded all-time highs.

Earnings Forecasts for FYE March 2022

As first-half earnings are expected to exceed the forecast at the beginning of the fiscal year, TAIYO YUDEN has upwardly revised earnings forecasts.

Full-year net sales are projected to rise 11% Y/Y to 333.0 billion yen, and operating income is projected to rise 35% Y/Y to 55.0 billion yen.

The operating margin is forecast to be 16.5%.

Consolidated Financial Results (Q/Q)

	FYE Mar 31, 2021	FYE Mar 31, 2022	Change Q/Q
¥ in million	4Q			1Q
	(01 Jan 2021 -31 Mar 2021)	(01 Apr 2021 -30 Jun 2021)
Net sales	79,471	100.0%	83,836	100.0%	4,365	5.5%
Operating income	10,440	13.1%	15,147	18.1%	4,706	45.1%
Ordinary income	11,641	14.6%	15,174	18.1%	3,532	30.3%
Net income attributable	8,789			12,969
to owners of the parent	11.1%	15.5%	4,179	47.5%
company
Yen to USD average	104.31 yen	109.00 yen		4.69 yen
exchange rate		depreciated
Impact of exchange rate	2.6 billion yen on net sales, 1.8 billion yen on operating income
fluctuation	* Including the impact of currencies other than US dollars
R&D expenses		3,141		3,138	(2)	(0.1)%
Capital investment		14,541		7,595	(6,945)	(47.8)%
Depreciation expenses		7,820		7,294	(526)	(6.7)%
©TAIYO YUDEN 2017							3

The financial results for the first quarter of the fiscal year ending March 2022 recorded net sales of 83.8 billion yen, operating income of 15.1 billion yen, ordinary income of 15.2 billion yen, and net income attributable to owners of the parent company of 13.0 billion yen.

The average exchange rate during the quarter was US$1:¥109.00, a depreciation of ¥4.69 from the fourth quarter of the previous fiscal year.

The impact from this was an increase of 2.6 billion yen in net sales and 1.8 billion yen in operating income.

R&D expenses were 3.1 billion yen, practically the same Q/Q.

Capital investment was 7.6 billion yen, a decrease of 6.9 billion yen Q/Q. Depreciation expenses were 7.3 billion yen, down 0.5 billion yen Q/Q.

Factors behind Operating Income (Q/Q)

Operating income (1Q FYE Mar 2022)

15.1

Operating income (4Q FYE Mar 2021)

10.4

Effect from
capacity
utilization
+3.9			Effect from	Currency
			fluctuations
			cost
			+1.8
			reductions
			+0.2
(0.3)				(0.9)
Impact of
	Changes
selling price
	in
				fixed costs
©TAIYO YUDEN 2017				4

A factor for increase in operating income in the first quarter of FYE March 2022 was the 3.9 billion yen effect from capacity utilization. The effect from capacity utilization includes the impact of changes in sales volume, improvement in product mix, and changes in inventory.

Company-wide inventory as of June 30, 2021 increased 3.6 billion yen from March 31, 2021 on the actual basis excluding the portion with no effect on operating income, such as the impact of exchange rates.

Other factors contributing to increase in operating income were the 1.8 billion yen impact of exchange rates due to depreciation in the value of the yen and the 0.2 billion yen effect of cost reductions.

Meanwhile, factors for decrease in operating income were the negative impact of

0.3 billion yen from selling prices although the pace of price reductions has

remained more moderate than usual. Fixed costs, mainly personnel expenses, also increased 0.9 billion yen.

As a result, operating income increased 4.7 billion yen to 15.1 billion from the fourth quarter of the previous fiscal year.

Financial Results by Product Classification (Q/Q)

¥ in million	FYE Mar 31, 2021	FYE Mar 31, 2022	Change Q/Q
4Q		1Q
Capacitors	50,630	63.7%	53,209	63.5%	2,578	5.1%
Inductors	10,501	13.2%	11,386	13.6%	884	8.4%
Integrated modules &	13,213	16.6%	13,977	16.7%	764	5.8%
devices
Others	5,125	6.5%	5,263	6.3%	137	2.7%
Total net sales	79,471	100.0%	83,836	100.0%	4,365	5.5%

©TAIYO YUDEN 2017		5