Taiyo Yuden : Financial Results for the 3rd Quarter(1402KB)

Consolidated Results for

the nine months ended December 31, 2021

February 4, 2022

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 December 31, 2021

(1) Operating results			(Percentages represent changes from the same period in the previous fiscal year.)
						Net income attributable to
	Net sales		Operating income	Ordinary income	owners of the parent
							company
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Nine months ended	262,510	18.5	52,299	72.5	53,934	82.2	41,859	111.1
December 31, 2021
Nine months ended	221,449	3.4	30,326	2.0	29,605	4.5	19,825	(0.9)
December 31, 2020
Note: Comprehensive income
ended on December 31, 2021	47,681 million yen ;	107.0%	ended on December 31, 2020	23,032 million yen ;	29.7%
	Net income	Diluted net income
	per share		per share
	Yen		Yen
Nine months ended	333.39		332.41
December 31, 2021
Nine months ended	157.96		157.50
December 31, 2020
(2) Financial position
	Total assets		Net assets		Equity ratio		Net assets per share
	Millions of yen	Millions of yen		%		Yen
As of December 31, 2021	453,329		283,638		62.4		2,252.47
As of March 31, 2021	404,642		243,941		60.1		1,937.86
(Reference) Shareholder's equity	As of December 31, 2021 282,881 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
Yer ending	－	40.00	－
March 31, 2022

Yer ending March 31, 2022 (forecast)

Note: No changes in the forecasted dividend during the third quarter ended December 31, 2021.

Year End	Total
Yen	Yen

25.0040.00

40.0080.00

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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 owners	Net income
	of the parent	per share
							company
	Millions of yen		% Millions of yen	% Millions of yen		% Millions of yen	%	Yen
Year ending	345,000	14.6	64,000	57.0	64,000	55.2	48,000	67.7	382.20
March 31, 2022

Note: There are no changes in the forecasted results during the third quarter ended December 31, 2021.

4. Note

(1) Changes in principal subsidiaries during the nine months ended December 31, 2021: Number of subsidiaries/Company Name Inclusion: - ; Exclusion; -

1. Adoption of specific accounting procedures for quarterly consolidated reporting:
2. Changes in accounting policies and accounting estimates, and restatements
3. 1. Changes in accounting policies due to the revision of accounting standards:
   2. Changes in accounting policies by the reasons other than "a.":
   3. Changes in accounting estimates:
   4. Restatement:
4. Number of common shares outstanding :

a. Number of common shares outstanding (including treasury stock):
As of December 31, 2021	130,218,481	shares	As of March 31, 2021
b. Number of treasury stock:
As of December 31, 2021	4,631,398	shares	As of March 31, 2021
c. Average number of common shares outstanding:
Nine months ended	125,558,892	shares	Nine months ended
December 31, 2021	December 31, 2020

No

No

Yes

No

No

No

130,218,481 shares

4,702,096 shares

125,511,704 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 ..........................................................................................	5
	(1)	Consolidated Balance Sheets ..........................................................................................	5
	(2)	Consolidated Statements of Operations and Consolidated Statements of
		Comprehensive Income...................................................................................................	7
		Consolidated Statements of Operations ..................................................................	7
		Consolidated Statements of Comprehensive Income..............................................	8
	(3)	Notes on Consolidated Financial Statements ..................................................................	9
		(Notes on Premise of Going Concern)............................................................................	9
		(Notes in Case of Significant Changes to Shareholders' Equity)....................................	9
		(Changes to Accounting Policies) .................................................................................	9
		(Adoption of Accounting Standard for Fair Value Measurement, etc.) .........................	9
3.	Supplementary Information .................................................................................................	10
	(1)	Net Sales by Product Classification ..............................................................................	10

1. Qualitative Information Concerning Financial Statements and Other

(1) Consolidated Operating Results

Economy and Market Conditions

During the nine-month period ended December 31, 2021 (April 1, 2021 - December 31, 2021), the business environment surrounding the TAIYO YUDEN Group ("the Group") moved toward the easing of severe restrictions on economic activities and the global economy began to recover although there were still no signs of the end of 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

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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.

Overview of Business Performance

Consolidated net sales for the nine-month period ended December 31, 2021 totaled ¥262,510 million, which is an increase of 18.5% compared to the corresponding period of the previous fiscal year. Operating income was ¥52,299 million, an increase of 72.5%. Ordinary income was ¥53,934 million, an increase of 82.2%, and net income attributable to owners of the parent company was ¥41,859 million, an increase of 111.1%. In the six-month period ended September 30, 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 in the nine-month period ended December 31, 2021 because of expansion in demand, primarily demand for products for automotive use.

Exchange Rate

The average foreign currency exchange rate for the nine-month period ended December 31, 2021 was US$1: ¥110.53. This is a depreciation of ¥4 as compared to the average realized in the corresponding period of the previous fiscal year of US$1: ¥106.53.

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 all equipment increased compared to the corresponding period of the previous fiscal year. As a result, sales increased 19.0% year on year to ¥172,031 million.

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