Taiyo Yuden : Financial Results for the 1st Quarter(1409KB)

Consolidated Results for

the three months ended June 30, 2021

August 5, 2021

Company name: TAIYO YUDEN CO., LTD.

URL: http：//www.ty-top.com/

Representative: Shoichi Tosaka, President and Chief Executive Officer Contact: Tomomitsu Fukuda, Director and Senior Operating Officer,

Deputy Chief of Management Planning Headquarters Telephone number: [phone]

Listing exchange: Tokyo Stock Exchange (Code Number: 6976) Preparation of supplementary

materials for the quarterly financial results: Yes

Holding of presentation of

quarterly financial results: Yes (For institutional investors and investment analysts)

1. Consolidated financial results for the period from April 1, 2021 to June 30, 2021

(1) Operating results			(Percentages represent changes from the same period in the previous fiscal year.)
							Net income attributable
	Net sales		Operating income	Ordinary income	to owners of the parent
							company
Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Three months ended	83,836	38.6	15,147	91.2	15,174	105.8	12,969	185.6
June 30, 2021
Three months ended	60,493	(11.9)	7,923	(17.4)	7,371	(16.7)	4,541	(36.5)
June 30, 2020
Note: Comprehensive income
ended on June 30, 2021	14,008 million yen ;	172.6%	ended on June 30, 2020	5,138 million yen ; 58.2%
Net income	Diluted net income
	per share		per share
	Yen	Yen
Three months ended	103.33	103.02
June 30, 2021
Three months ended	36.19	36.09
June 30, 2020
(2) Financial position
	Total assets		Net assets	Equity ratio		Net assets per share
As of June 30, 2021	418,762		254,858		60.7		2,024.46
As of March 31, 2021	404,642		243,941		60.1		1,937.86
(Reference) Shareholder's equity	As of June 30, 2021	254,101 million yen	As of March 31, 2021	243,233 million yen

2. Dividend information

		Cash dividends per share
	1Q	2Q	3Q
	Yen	Yen	Yen
Year ended	－	15.00	－
March 31, 2021
Year ending	－
March 31, 2022
Year ending
March 31, 2022		30.00	－
(forecast)

Note: No changes in the forecasted dividend during the first quarter ended June 30, 2021.

Year End	Total
Yen	Yen

25.0040.00

30.0060.00

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3. Forecasts of operating results for the period from April 1, 2021 to March 31, 2022

				(Percentages represent changes from same period in the previous fiscal year.)
									Net income
	Net sales	Operating income	Ordinary income	attributable to		Net income
	owners of the		per share
									parent company
	Millions of yen	% Millions of yen	% Millions of yen	% Millions of yen	%	Yen
Six months ending	175,000	24.8	33,000	72.5		33,000	81.5		25,000	118.5		199.18
September 30, 2021
Year ending	333,000	10.7	55,000	34.9		54,500	32.1		39,500	38.0		314.70

March 31, 2022

Note:

There are changes in the forecasted results during the first quarter ended June 30, 2021.

4. Note

1. Changes in principal subsidiaries during the three months ended June 30, 2021: No Number of subsidiaries/Company Name Inclusion: - ; Exclusion; -
2. Adoption of specific accounting procedures for quarterly consolidated reporting: No
3. Changes in accounting policies and accounting estimates, and restatements
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies by the reasons other than "a.": No
   3. Changes in accounting estimates: No
   4. Restatement: No
5. Number of common shares outstanding :
6. 1. Number of common shares outstanding (including treasury stock):

As of June 30, 2021	130,218,481	shares	As of March 31, 2021
b. Number of treasury stock:
As of June 30, 2021	4,702,521	shares	As of March 31, 2021
c. Average number of common shares outstanding:
Three months ended	125,516,179	shares	Three months ended
June 30, 2021	June 30, 2020

130,218,481 shares

4,702,096 shares

125,502,625 shares

Others :

1. This financial press release is out of scope of the audit procedure.
2. 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.
3. TAIYO YUDEN will post the financial supplementary data on its web-site.

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		Table of contents
1. Qualitative Information Concerning Financial Statements and Other .....................................	1
	(1)	Consolidated Operating Results......................................................................................	1
	(2)	Consolidated Financial Conditions .................................................................................	3
	(3)	Forecasts of Consolidated Operating Results .................................................................	4
2.	Consolidated Financial Statements ..........................................................................................	6
	(1)	Consolidated Balance Sheets ..........................................................................................	6
	(2)	Consolidated Statements of Operations and Consolidated Statements of
		Comprehensive Income...................................................................................................	8
		Consolidated Statements of Operations ..................................................................	8
		Consolidated Statements of Comprehensive Income..............................................	9
	(3)	Notes on Consolidated Financial Statements ................................................................	10
		(Notes on Premise of Going Concern) ..........................................................................	10
		(Notes in Case of Significant Changes to Shareholders' Equity)..................................	10
		(Changes to Accounting Policies) .................................................................................	10
3.	Supplementary Information ..................................................................................................	11
	(1)	Net Sales by Product Classification ...............................................................................	11

1. Qualitative Information Concerning Financial Statements and Other

1. Consolidated Operating Results Economy and Market Conditions

During the three-month period ended June 30, 2021 (April 1, 2020 - June 30, 2021), the business environment surrounding the TAIYO YUDEN Group ("the Group") was extremely challenging for the global economy with economic activity restricted by the impact from the COVID-19 pandemic. As for the future, the trend of recovery is expected to continue. However, it will be necessary to monitor infectious disease trends, trade issues in individual countries, and fluctuations in financial and capital markets, as well as other factors.

Company Actions Planned to Offset These Conditions

Based on the Business Continuity Plan (BCP), we have implemented various measures to prevent the spread of COVID-19 and to ensure the health and wellbeing of stakeholders, including employees and suppliers. At production sites in Japan and overseas, we have continued production activities after ensuring thorough measures to prevent infection while following the instructions and guidance of national and local governments in each country. In addition, we are making efforts for non-production employees to carry out their duties and reduce the risk of infection by implementing such measures as working from home, depending on local infection status, in accordance with the instructions and requests on preventing the spread of infection from national and local governments in each country.

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

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expand capacity to meet increase in demand as well as to implement proactive initiatives in the areas of environmental measures and upgrading of IT.

Overview of Business Performance

Consolidated net sales for the three-month period ended June 30, 2021 totaled ¥83,836 million, which is an increase of 38.6% compared to the corresponding period of the previous fiscal year. Operating income was ¥15,147 million, an increase of 91.2%. Ordinary income was ¥15,174 million, an increase of 105.8%, and net income attributable to owners of the parent company was ¥12,969 million, an increase of 185.6%. In June 2021, there were constraints on operations at the Group's production subsidiary in Malaysia due to the spread of COVID-19. However, the Group recorded sales and profit growth because of expansion in demand, primarily demand for products for automotive use.

Exchange Rate

The average foreign currency exchange rate for the three-month period ended June 30, 2021 was US$1: ¥109. This is a depreciation of ¥1.39 as compared to the average realized in the corresponding period of the previous fiscal year of US$1: ¥107.61.

Net Sales by Product Classification

Starting from the three-month period ended June 30, 2021, the name for the "ferrite and applied products" classification has been changed to "inductors." There is no change to the product composition.

Capacitors

The capacitor product classification is comprised of multilayer ceramic capacitors.

Product sales for consumer products, information equipment, communication equipment, and automobiles were increased. As a result, net sales for the three-month period ended June 30, 2021 totaled ¥53,209 million, which is an increase of 32.8% compared to the corresponding period of the previous fiscal year.

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