Taiyo Yuden : Earnings Release Conference for the 3rd Quarter with notes (566KB)

Financial Summary

3Q of the Year Ending March 2021  Net sales were 81.2 billion yen, up 2% Q/Q, and operating income was 11.2 billion yen, largely in line with the previous quarter.

 Strong demand for products used in smartphones and in automobiles continued, and sales and operating income both outperformed the forecasts made in November 2020.



Net sales and operating income recorded all-time highs on the cumulative nine-month basis.

Earnings Forecast for the Year Ending March 2021  The full-year results forecasts published in November 2020 have been revised upward.

 Net sales are projected to increase 5% Y/Y to 295.0 billion yen, and operating income is projected to increase 2% Y/Y to 38.0 billion yen. TAIYO YUDEN will aim for all-time high net sales, operating income, and net income attributable to owners of parent company.

©TAIYO YUDEN 2017

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Overview of Earnings for 3Q of the Year Ending March 2021

Net sales were 81.2 billion yen, up 2% Q/Q, and operating income was 11.2 billion yen, largely in line with the previous quarter.

By market sector, demand for products for use in smartphones and automobiles was strong continuing on from the second quarter, so sales and operating income both outperformed the forecasts made in November 2020.

As a result, net sales and operating income recorded all-time highs on the cumulative nine-month basis.

Earnings Forecast for the Year Ending March 2021

The full-year results forecasts published in November 2020 have been revised upward. TAIYO YUDEN will aim for net sales of 295.0 billion yen, up 5% Y/Y, and operating income of 38.0 billion yen, up 2% Y/Y.

If achieved, net sales and operating income are projected to record all-time highs on the full year basis.

Impact of COVID-19

The impact on TAIYO YUDEN's business activities has practically disappeared (as of February 8)

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

No impact. There were some problems with procurement from suppliers, but we addressed this by changing procurement channels and utilizing current inventory, etc.

There is still some impact, such as lengthening distribution lead times and increasing distribution costs. We are addressing this through transportation using alternative flights and routes.

All production sites in Japan and overseas have been operating as normal since June. It is estimated 1Q net sales decreased 7.0 billion yen due to restrictions on operations from March - May.

©TAIYO YUDEN2017

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Country	Company	Main production items	Operation status
As of May 12, 2020	As of Aug 7, 2020	As of Nov 9, 2020	As of Feb 8, 2021
Philippines	TAIYO YUDEN (PHILIPPINES)	Inductors	Operating (with constraints)	Operating as normal (from June)	Operating as normal	Operating as normal
Malaysia	TAIYO YUDEN (SARAWAK)	Multilayer ceramic capacitors	Operating (with constraints)	Operating as normal (from mid-May)	Operating as normal	Operating as normal
Japan, Korea, China, etc.	Companies other than above	－	Operating as normal	Operating as normal	Operating as normal	Operating as normal

There have been no major changes from the situation as of November last year with regard to COVID-19, and its impact on TAIYO YUDEN's business activities has practically disappeared.

On the sales front, customer production activities have generally returned to normal.

We will continue to gather information on customer production trends, final demand for equipment and so forth.

In procurement activities, there have been no major issues.

Although there were some components with procurement issues for a while, we addressed this by changing procurement channels and utilizing current inventory.

In distribution, issues such as lengthening of some distribution lead times and increases in distribution costs have continued because, even though the number of flights has increased, the cargo volume has also risen.

We are taking measures to minimize the impact, such as using alternative flights and routes.

In production, all plants in Japan and overseas have been continuing production activities as normal since June.

Due to constraints on operations at subsidiaries in the Philippines and Malaysia between March and May, it is estimated net sales declined 7.0 billion yen in the first quarter, but there is no such impact from the second quarter onwards.

3Q - Consolidated Financial Results (Q/Q)

¥ in million	FYE Mar 31, 2021 2Q (01 Jul 2020 - 30 Sep 2020)	FYE Mar 31, 2021 3Q (01 Oct 2020 - 31 Dec 2020)	Change Q/Q
Net sales	79,728	100.0%	81,226	100.0%	1,497	1.9%
Operating income	11,203	14.1%	11,199	13.8%	(4)	(0.0)%
Ordinary income	10,812	13.6%	11,422	14.1%	609	5.6%
Net income attributable to owners of parent company	6,900	8.7%	8,383	10.3%	1,483	21.5%
Yen to USD average exchange rate	106.82 yen	105.15 yen	1.67 yen Appreciated
Impact of exchange rate fluctuation	(0.4) billion yen on net sales, (0.6) billion yen on operating income * Including the impact of currencies other than US dollars
R&D expenses	3,219	3,200	(18)	(0.6)%
Capital investment	10,112	7,160	(2,952)	(29.2)%
Depreciation expenses	7,277	7,558	281	3.9%

©TAIYO YUDEN 2017

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The financial results for the third quarter of the fiscal year ending March 2021 recorded net sales of 81.2 billion yen, operating income of 11.2 billion yen, and ordinary income of 11.4 billion yen.

As extraordinary loss was lower compared to the second quarter, net income attributable to owners of parent company was 8.4 billion yen, an increase of 22%.

The average exchange rate during the third quarter was US$1:¥105.15, an appreciation of ¥1.67 from the second quarter of the fiscal year.

The impact from this was a decrease of 0.4 billion yen in net sales and 0.6 billion yen in operating income.

The appreciation of currencies in Asia, including China and Korea, had a slightly bigger impact on operating income.

R&D expenses were 3.2 billion yen, practically the same as in the previous quarter. Capital investment was 7.2 billion yen, down 3.0 billion yen Q/Q.

Depreciation expenses were 7.6 billion yen, up 0.3 billion yen Q/Q.