Taiyo Yuden : Notice concerning Differences between Forecasts and Results for the Second Quarter of the Fiscal Year Ending March 31, 2021 and Full-Year Forecast of Financial Results(155KB)

For immediate release

Notice concerning Differences between Forecasts and Results for the Six-months Period of the Fiscal Year Ending March 31, 2021 and Revision of Full-Year Forecast of Financial Results

TOKYO, November 9, 2020 - TAIYO YUDEN CO., LTD. hereby announces that differences have arisen between the consolidated forecast for the six-months period of the fiscal year ending March 31, 2021 (April 1, 2020 to September 30, 2020) published on August 7, 2020 and the results. In addition, the full-year consolidated financial results forecast for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021) is revised as shown below.

1. Consolidated Results for the Six-month Period Ended September 30, 2021 (April 1, 2020 - September 30, 2020)

Unit: Millions of yen

					Net income
			Operating	Ordinary	attributable		Net income
		Net sales	to owners of		per share
		income	income
			parent		[Yen]
					company
Previous forecast	(Ａ)	130,000	15,000	14,000	8,500	67.73
Actual result	(Ｂ)	140,222	19,126	18,183	11,442	91.16
Net change	(Ｂ－Ａ)	10,222	4,126	4,183	2,942
Net change		7.9%	27.5%	29.9%	34.6%
(Reference)
Six-month period ended	141,908	20,298	19,176	15,332	121.27
September 30, 2020

2. Consolidated Results for the Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)

Unit: Millions of yen

					Net income
			Operating	Ordinary	attributable		Net income
		Net sales	to owners of		per share
		income	income
			parent		[Yen]
					company
Previous forecast	(Ａ)	265,000	27,000	26,000	17,000	135.46
Revised forecast	(Ｂ)	284,000	34,000	33,000	22,000	175.27
Net change	(Ｂ－Ａ)	19,000	7,000	7,000	5,000
Net change		7.2%	25.9%	26.9%	29.4%
(Reference)
Year ended		282,329	37,176	35,165	18,022	143.04
March 31, 2020

3. Rationale for Differences between Forecasts and Results and for Revision of Forecast

During the consolidated cumulative second quarter of the fiscal year ending March 31, 2021 (the six-month period ended September 30, 2020), signs of a gradual recovery were seen in the global economy, which had faced

1

extremely challenging conditions in the first quarter (the three-month period ended June 30, 2020) with economic activity restricted due to the impact of the COVID-19 global pandemic. In this environment, demand for electronic components was higher than expected due to such factors as the increase in working from home and at-home learning using electronic devices, increase in sales of components for use in smartphone production, and a recovery in automobile production. As a result, differences arose between forecasts and results.

In addition, the Company will upwardly revise the full-year financial results forecast based on the results for the consolidated cumulative second quarter of the fiscal year ending March 31, 2021, future demand forecasts, and other factors.

During the first quarter, there were constraints on operations at production subsidiaries in the Philippines and Malaysia due to the impact of COVID-19, but these subsidiaries returned to normal operations in the second quarter, and we have assumed that they will continue to operate as normal from the third quarter onward. The forecast is based on an average foreign currency exchange rate of US$1:¥105.

Despite the continuing uncertainty due to the impact of COVID-19, we have assumed there will be no significant changes to the trend of increasing demand for electronic components over the medium term. We expect that demand for large, high reliability components will increase alongside advancing use of electronics and electronic components and enhancements in performance for automobile and information infrastructure, such as base station communication devices and data centers. These are our focus markets. Moreover, there are ongoing enhancements in functionality and performance of communication equipment, such as 5G smartphones, and we believe there will be an increase in cutting edge products that require advanced technical capabilities. The Company will continue to make the essential investment to prepare for this demand and for achieving future growth. Meanwhile, we will continue working to create a more resilient distributed production system and to improve production efficiency utilizing AI and other means as measures to address risks going forward.

Disclaimer concerning Forecasts of Results:

The aforementioned forecasts of results are based on information available as of the date of this news release. As a result, information included in this document may include uncertain factors, and actual results may differ materially from forecasts due to a variety of factors.

2