Consolidated Financial Results

Year ended March 31, 2023

Katsuya Sase

Chief of Management Planning Headquarters

May 9, 2023

©TAIYO YUDEN 2017

Financial Summary

FYE March 2023

Net sales declined 9% Y/Y and operating profit declined 53% Y/Y as a result of a decrease in production volume of smartphones, laptops, and other products, and the impact of inventory adjustments.

Sales of capacitors fell 10% Y/Y. Although sales of products for use in automobiles increased, sales of products for other applications decreased.

Sales of inductors rose 8% Y/Y, driven by increase in a wide range of applications.

Earnings Forecast for FYE March 2024

Net sales are projected to increase 1% Y/Y to ¥322.0 billion and operating profit is projected to decrease 53% Y/Y to ¥15.0 billion.

TAIYO YUDEN will pay an annual dividend of 90 yen per share in FYE March 31, 2024, the same as in FYE March 31, 2023.

©TAIYO YUDEN 2017

2

Financial Summary for FYE March 2023

Sales and profit fell for FYE March 2023 compared to the previous fiscal year with down in net sales of 9% and operating profit of 53%.

Sales and profit were affected by a deteriorating market environment for electronic components with declines in production volume for many devices, including smartphones and laptops, as well as inventory adjustments.

Sales of capacitors declined 10% Y/Y due to a decrease in sales for use in other applications despite an increase in sales of products for use in automobiles.

On the other hand, sales of inductors increased 8% Y/Y as sales expanded in a wide range of applications, primarily for use in communication equipment, such as smartphones.

Earnings Forecasts for FYE March 2024

TAIYO YUDEN forecasts net sales of 322.0 billion yen, up 1% Y/Y, and operating profit of 15.0 billion yen, down 53%.

Despite a slight increase in net sales, we anticipate a decline in profit due to lower selling prices and the impact of higher fixed costs in preparation for business expansion over the medium-term.

YAIYO YUDEN will pay a dividend of 90 yen per share in FYE March 2024, the same as in FYE March 2023.

Summary of Consolidated Financial Results (Y/Y)

¥ in million

FYE Mar 31, 2022

FYE Mar 31, 2023

Change Y/Y

Net sales

349,636

100.0%

319,504

100.0%

(30,132)

(8.6)%

Operating profit

68,218

19.5%

31,980

10.0%

(36,238)

(53.1)%

Ordinary profit

72,191

20.6%

34,832

10.9%

(37,358)

(51.7)%

Profit attributable to

54,361

15.5%

23,216

7.3%

(31,145)

(57.3)%

owners of parent

Yen/USD

111.56 yen

134.20 yen

22.64 yen

average exchange rate

depreciated

Impact of exchange rate

Net sales +37.6 billion yen, operating profit +25.6 billion yen

fluctuation

*Including the impact of currencies other than US dollars

R&D expenses

13,099

12,678

(420)

(3.2)%

Capital investment

34,023

50,489

16,466

48.4%

Depreciation expenses

31,287

34,903

3,615

11.6%

©TAIYO YUDEN 2017

3

The financial results for FYE March 2023 recorded net sales of 319.5 billion yen and operating profit of 32.0 billion yen.

Ordinary profit was 34.8 billion yen, with 1.6 billion yen in subsidy income, 1.1 billion yen in foreign exchange gains, and other items recorded as non-operating income.

In addition, profit attributable to owners of parent stood at 23.2 billion yen as a result of

2.9 billion yen in loss related to the Anti-monopoly Act and other items recorded as extraordinary losses.

The average exchange rate during FYE March 2023 was US$1:¥134, a depreciation of ¥23 from the previous fiscal year.

The impact from this was an increase of 37.6 billion yen in net sales and 25.6 billion yen in operating profit.

R&D expenses were 12.7 billion yen, down slightly Y/Y. Capital investment was 50.5 billion yen.

Capital investment increased 16.5 billion yen Y/Y due to such factors as the construction of the new materials building for multilayer ceramic capacitors (MLCCs) at the Yawatabara Plant in Gunma Prefecture.

Depreciation expenses were 34.9 billion yen, up 3.6 billion yen Y/Y.

Factors behind Operating Income in FYE March 2023

Operating profit (FYE Mar 2022)

68.2

Operating

profit

(FYE Mar

Currency 2023)

fluctuations 32.0 +25.6

Changes

In fixed costs

+0.4

(2.0)

Effect from cost

(14.7)reductions Impact of

selling price

©TAIYO YUDEN 2017

(45.5)

Effect from

capacity utilization

4

The main factor for decrease in operating profit Y/Y was the 45.5 billion yen effect from capacity utilization.

The effect from capacity utilization includes the impact of improvement in product mix in addition to changes in sales volume and changes in inventory.

Sales volume declined because of slower demand associated with decreases in production volume and inventory adjustments in each market.

The Company's inventory reductions to optimize inventory levels in the second half were also factors for decrease in profit.

Other factors for decrease in operating profit were the 14.7 billion yen effect from selling prices and the 2.0 billion yen increase in costs due to soaring raw material expenses.

The 25.6 billion yen effect of exchange rates due to the depreciation of the yen and the

0.4 billion yen decrease in fixed costs were factors for increase in profit. However, operating profit declined significantly Y/Y to 32.0 billion yen.

Financial Results by Product Classification (Y/Y)

¥ in million

FYE Mar 31, 2022

FYE Mar 31, 2023

Change Y/Y

Capacitors

230,383

65.9%

208,115

65.1%

(22,268)

(9.7)%

Inductors

48,925

14.0%

52,866

16.5%

3,941

8.1%

Integrated modules &

48,799

14.0%

32,581

10.2%

(16,218)

(33.2)%

devices

Others

21,527

6.2%

25,941

8.1%

4,413

20.5%

Total net sales

349,636

100.0%

319,504

100.0%

(30,132)

(8.6)%

©TAIYO YUDEN 2017

5

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Taiyo Yuden Co. Ltd. published this content on 09 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2023 07:29:03 UTC.