Consolidated Financial Results · As explained at the beginning of the presentation, at present, we will announce financial results forecasts for 1Q. We project net sales of 60.0

©TAIYO YUDEN 2017

Consolidated Financial ResultsYear ended March 31, 2020

Shinji Masuyama

Chief of Management Planning Headquarters

May 12, 2020

©TAIYO YUDEN 2017

FYE March 2020

Net sales increased 3% Y/Y to ¥282.3 billion, and operating income increased 6% to ¥37.2 billion, resulting in revenue and profit growth.

Net sales and net income recorded all-time highs.

Sales of capacitors increased 3% Y/Y. This growth was led by expansion of sales for automobiles where use of electronic components is advancing.

Earnings Forecast for FYE March 2021

Net sales in 1Q are projected to decrease 12% Q/Q to ¥60.0 billion, and operating income is projected to decrease 59% to ¥3.0 billion.

The full-year earnings forecast is yet to be determined as it is difficult to make reasonable calculations of the impact from novel coronavirus disease (COVID-19).

2

Financial Summary

Financial Summary for FYE March 2020

Net sales increased 3%Y/Y to 282.3 billion yen, and operating income increased 6% Y/Y to 37.2 billion yen, resulting in revenue and profit growth.Both net sales and operating income recorded all-time highs.

Sales of capacitors increased 3% Y/Y, led by growth in sales for use in automobiles in which the number of capacitors used per vehicle is increasing in conjunction with advancing use of electronic components.

Financial Results Forecasts for FYE March 2021At the present stage, it is difficult to determine the impact of COVID-19. Therefore, the announcement of the full-year earnings forecast for FYE March 2021 will be postponed. We will announce the forecast once the outlook has become clearer.

In 1Q, net sales are projected to fall 12% Q/Q to 60.0 billion yen, and operating income is projected to fall 59% Q/Q to 3.0 billion yen.

The prospects for a return to normal from the emergency caused by COVID-19 are still not clear. However we will continue contributing to social infrastructure and maintaining and enhancing people’s lifestyles by steadily doing what it should as an electronic components manufacturer. This includes developing the cutting-edge electronic components that underpin technological development, such as 5G and advancing use of electric vehicles and electronic components in automobiles, and supplying them in a stable manner, improving productivity, and upgrading manufacturing capabilities.

©TAIYO YUDEN 2017

¥ in million FYE Mar 31, 2019(01 Apr 2018 – 31 Mar 2019)

FYE Mar 31, 2020(01 Apr 2019 – 31 Mar 2020)

Change Y/Y

Net sales 274,349 100.0% 282,329 100.0% 7,980 2.9%

Operating income 35,237 12.8% 37,176 13.2% 1,938 5.5%

Ordinary income 34,351 12.5% 35,165 12.5% 813 2.4%

Net income attributable to owners of parent company

23,687 8.6% 18,022 6.4% (5,664) (23.9)%

3

Yen to USD average exchange rate 110.49 yen 109.06 yen 1.43 yen

appreciated

Impact of exchange rate fluctuation

Net sales (3.9) billion yen, Operating income (0.9) billion yen※Including the impact of currencies other than US dollars

R&D expenses 13,039 12,921 (117) (0.9)%

Capital investment 38,570 39,365 794 2.1%

Depreciation expenses 26,547 27,022 475 1.8%

Summary of Consolidated Financial Results (Y/Y)

The financial results for FYE March 2020 recorded net sales of 282.3 billion yen, operating income of 37.2 billion yen, and ordinary income of 35.2 billion yen.

Extraordinary losses were 12.9 billion yen, and the main components were as follows.

First, impairment loss was 5.3 billion yen. This was mainly due to impairment of goodwill incurred upon consolidating our subsidiary, ELNA CO., LTD. We decided to record the impairment loss because ELNA has a high proportion of sales for use in automobiles. Currently, the outlook of the global economy is becoming increasingly uncertain due to sluggish demand in the automotive market and the spread of COVID-19, which has been constraining economic activity.

Second, antitrust-law-related loss was 3.6 billion yen. The main factor was settlements for class actions instituted in the United States against ELNA in relation to transactions of aluminum electrolytic capacitors.

Third, loss on disaster was 3.2 billion yen accompanying damage at FUKUSHIMA TAIYO YUDEN, a subsidiary of TAIYO YUDEN, arising from a typhoon in October 2019. Meanwhile, insurance claim income of 1.4 billion yen for damage arising from the typhoon was recorded as extraordinary gain.

As a result, net income attributable to owners of parent company was 18.0 billion yen.

The average exchange rate during FYE March 2020 was US$1:¥109.06, an appreciation of 1.43 yen compared to the previous fiscal year.

The impact from this was a decrease of 3.9 billion yen in net sales and 0.9 billion yen in operating income.

R&D expenses were 12.9 billion yen, nearly the same Y/Y.

Capital investment was 39.4 billion yen, an increase of 0.8 billion yen Y/Y.

Depreciation expenses were 27.0 billion yen, an increase of 0.5 billion yen Y/Y.

©TAIYO YUDEN 2017 4

37.235.2

10.7

2.4

(3.7)(0.9)

(6.5)

Factors behind Operating Income in FYE March 2020

Operating income(FYE Mar 2019)

Impact of selling price

Effect from capacity utilization

Effect from Cost reduction

Changes in fixed costs

Currency

fluctuations

Operating income

(FYE Mar 2020)

A factor for increase in operating income was a 10.7 billion yen effect from capacity utilization.

This includes the impacts of sales volume changes, improvement in the product mix, and changes in inventory.Company-wide inventory as of March 31, 2020 increased 2.6 billion yen from March 31, 2019 on the actual base, excluding the portion with no effect on changes in operating income, such as the impact of exchange rates.

The 2.4 billion yen effect from cost reductions was also a factor for increase in operating income.

The 6.5 billion yen effect from selling prices was a factor for decrease in operating income.

Price reductions in 1Q were moderate, but they resumed at the normal pace from 2Q onwards.

The 3.7 billion yen increase in fixed costs and the 0.9 billion yen effect of exchange rates due to appreciation in the value of the yen were also factors for decrease in operating income.

As a result, operating income increased 2.0 billion yen Y/Y to 37.2 billion yen.


¥ in million FYE Mar 31, 2019 FYE Mar 31, 2020 Change Y/Y

Capacitors 170,633 62.2% 176,457 62.5% 5,824 3.4%

Ferrite and appliedproducts 40,595 14.8% 38,770 13.7% (1,825) (4.5)%

Integrated modules & devices 47,930 17.5% 49,808 17.6% 1,877 3.9%

Others 15,189 5.5% 17,292 6.1% 2,103 13.8%

Total net sales 274,349 100.0% 282,329 100.0% 7,980 2.9%

Financial Results by Product Classification (Y/Y)


■ Capacitors （+3.4%）

The growth was led by expansion of sales for automobiles where use of electronic components is advancing. Sales for use in IT infrastructure/industrial equipment, such as base station communication devices, also increased.

■ Ferrite and applied products ((4.5)%)

Although sales for use in automobiles increased, sales for use in consumer products, information equipment/IT infrastructure, industrial equipment, etc. declined.

■ Integrated modules & devices （+3.9%）

Sales for use in communication devices (FBAR/SAW) increased.

■ Capacitors ■ Ferrite and applied products ■ Integrated modules & devices ■ Others

Financial Results by Product Classification (Y/Y)

Net sales of capacitors were ¥176.5 billion, up 3% Y/Y.

There was strong demand for use in automobiles and IT infrastructure/industrial equipment, such as base station communication devices.

Net sales of ferrite and applied products were 38.8 billion yen, down 5% Y/Y.

While sales for use in automobiles increased, sales for consumer products, information equipment, and IT infrastructure/industrial equipment decreased.

Net sales of integrated modules & devices were 49.8 billion yen, up 4% Y/Y.

An increase in sales of communication devices (FBAR/SAW) contributed to this.

Communication devices account for between 60% and 65% of integrated modules & devices sales.


*Estimated by the Company

Sales by Market Sector

Composition of sales classified by market sector was 18% for use in automobiles, up 3 percentage points Y/Y.

TAIYO YUDEN has focused on sales for use in automobiles for some time, and both net sales and composition of sales have increased steadily.

Composition of sales classified by market sector was 23% for use in IT infrastructure/industrial equipment.

Strong demand for use in base station communication devices has continued. In addition, demand for use in servers, which had slowed temporarily, recovered from 2Q onwards, and sales have continued to expand.

Composition of sales classified by market sector was 35% for use in communication equipment, 14% for use in information equipment, and 10% for use in consumer products, down 2 percentage points Y/Y.

Going forward, we will focus on sales for use in automobiles and IT infrastructure in which seasonal fluctuations are low in order to develop a business structure that is not easily affected by changes in demand.

©TAIYO YUDEN 2017

Forecast of Consolidated PerformanceFirst quarter of the year ending March 31, 2021


¥ in millionFYE Mar 31, 2020

4QFYE Mar 31, 2021

1Q ForecastChange

Net sales 68,233 100.0% 60,000 100.0% (8,233) (12.1)%

Operating income 7,431 10.9% 3,000 5.0% (4,431) (59.6)%

Ordinary income 6,835 10.0% 2,500 4.2% (4,335) (63.4)%


(1,975) ー 1,500 2.5% 3,475 －

Yen to USD average exchange rate 109.54 yen

(Assumption)

107.00 yen2.54 yen

appreciated

Forecast for 1Q of FYE March 2021

As explained at the beginning of the presentation, at present, we will announce financial results forecasts for 1Q.

We project net sales of 60.0 billion yen, operating income of 3.0 billion yen, ordinary income of 2.5 billion yen, and net income attributable to owners of parent company of 1.5 billion yen.

This forecast of financial results was calculated based on the assumption that operating constraints at plants in the Philippines and Malaysia due to the impact of COVID-19 will last until the end of May. The assumed exchange rate for the financial results forecasts is US$1:¥107.


¥ in millionFYE Mar 31, 2020

4QFYE Mar 31, 2021

1Q ForecastChange

Capacitors 43,738 64.1% 39,000 65.0% (4,738) (10.8)%

Ferrite and appliedproducts 9,090 13.3% 8,000 13.3% (1,090) (12.0)%

Integrated modules & devices 11,226 16.5% 10,000 16.7% (1,226) (10.9)%

Others 4,178 6.1% 3,000 5.0% (1,178) (28.2)%

Total net sales 68,233 100.0% 60,000 100.0% (8,233) (12.1)%

Forecast by Product Classification for 1Q of FYE March 2021

By product, we forecast net sales down 11% Q/Q to 39.0 billion yen for capacitors, down 12% Q/Q to 8.0 billion yen for ferrite and applied products, down 11% Q/Q to 10.0 billion yen for integrated modules & devices, and down 28% Q/Q to 3.0 billion yen for other products.

©TAIYO YUDEN 2017

Impact of Novel Coronavirus Disease(COVID-19)

©TAIYO YUDEN 2017

Impact of COVID-19

12

Production sites in the Philippines and Malaysia are operating although there are constraints due to government restrictions on activities and travel. Sites in other regions are operating as normal.

Production

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

Sales

There are some problems with procurement from suppliers, but we are resolving this by changing procurement channels and utilizing current inventory.

Procurement

The decrease in the number of flights is lengthening distribution lead times and increasing distribution costs. We are addressing this through transportation using alternative flights and routes.

Distribution

Production:

Production activities have continued at all plants, but there are constraints on operations due to government policies at plants in the Philippines and Malaysia.

Plants in other regions are operating as normal.

Sales:

We are working to gather information, including client production trends and final demand for mainstay equipment and preparing to be able to respond to clients’ requests in a timely manner.

Procurement:

There have not been any problems that are likely to have a significant impact on TAIYO YUDEN’s business performance.

Suppliers are also gradually resuming production.

There are some problems with procurement of parts and materials, but we are resolving this by changing procurement channels and utilizing current inventory.

Distribution:

There have been some lengthening in distribution lead times and increase in distribution costs due to the reduction in the number of flights.

We have been taking measures so that we can minimize the impact by using alternative flights and routes.

©TAIYO YUDEN 2017

Operating Status of Production Sites

13

Country Company Main production itemsOperation

status

Japan

TAIYO YUDEN, FUKUSHIMA TAIYO YUDEN, NIIGATA TAIYO YUDEN,WAKAYAM TAIYO YUDEN, TAIYO YUDEN Mobile Technology, etc.

Multilayer ceramic capacitors,inductors, communication devices, modules, etc.

Operating as normal

KoreaKOREA KYONG NAM TAIYO YUDEN

Multilayer ceramic capacitorsOperating as normal

China

TAIYO YUDEN (TIANJIN) ELECTRONICS

InductorsOperating as normal

TAIYO YUDEN (GUANGDONG) Multilayer ceramic capacitorsOperating as normal

Philippines TAIYO YUDEN (PHILIPPINES) InductorsOperating (with

constraints)

Malaysia

TAIYO YUDEN (SARAWAK) Multilayer ceramic capacitorsOperating (with

constraints)

ELNA-SONICAluminum electrolytic capacitors

Operating as normal

Thailand TANIN ELNAAluminum electrolytic capacitors

Operating as normal

Japan/South Korea/Thailand

Continuing operations as normal. No impact from COVID-19 on operations

China: TAIYO YUDEN (TIANJIN) ELECTRONICS CP., LTD.

Shutdown from January 24 (first day of Chinese New Year holiday) to February 19. Constraints on operations for about one month afterwards due to limits on number of workers, but operating as normal since late March.

China: TAIYO YUDEN (GUANGDONG) CO., LTD.

Shutdown from January 24 (first day of Chinese New Year holiday) to February 9.

Subsequently, securing personnel was a bottleneck, but increased employees and gradually lifted capacity utilization and operating as normal.

Philippines

Suspended operations for three days at the end of March due to movement restriction order, but resumed from April 1.

Constraints on operations due to limits on number of workers.

Malaysia: TAIYO YUDEN (SARAWAK) SDN. BHD.

Restriction of Movement Order enforced from March 18, but production activities continued without shutting down operations after obtaining approval from government authorities.

Constraints on operations due to limits on number of workers.

Malaysia: ELNA-SONIC

Operations shut down for approximately one month from March 18 due to Restriction of Movement Order.

There were limits on the number of workers even when operations were resumed after obtaining approval from government authorities, but currently operating as normal.

©TAIYO YUDEN 2017

Supplementary Information

©TAIYO YUDEN 2017

¥ in millionFYE Mar 31, 2018 FYE Mar 31, 2019 FYE Mar 31, 2020

1H 2H 1H 2H 1H 2H

Net sales 118,180 125,937 133,565 140,783 141,908 140,420

Capacitors 66,767 76,091 80,168 90,464 87,812 88,645

Ferrite and applied products 20,223 20,753 21,154 19,441 19,376 19,393

Integrated modules & devices 29,582 27,256 26,369 21,561 25,960 23,848

Others 1,606 1,836 5,873 9,316 8,759 8,533

Operating income 8,775 11,445 14,703 20,534 20,298 16,877

Ordinary income 10,021 10,531 15,385 18,966 19,176 15,988


7,378 8,976 10,980 12,707 15,332 2,690

15

Yen to USD average exchange rate

111.46yen

111.43 yen

109.30yen

111.67yen

109.26yen

108.86yen

Consolidated Earnings Trends (Half Yearly)

©TAIYO YUDEN 2017

¥ in millionFYE Mar 31, 2019 FYE Mar 31, 2020

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Net sales 59,576 73,989 73,963 66,820 68,635 73,272 72,187 68,233

Capacitors 36,184 43,984 47,362 43,101 43,338 44,473 44,907 43,738

Ferrite and applied products 9,228 11,926 11,209 8,231 8,633 10,742 10,303 9,090

Integrated modules& devices 13,208 13,160 10,783 10,778 12,523 13,436 12,621 11,226

Others 954 4,918 4,607 4,708 4,139 4,620 4,354 4,178

Operating income 5,981 8,722 11,789 8,744 9,595 10,703 9,446 7,431

Ordinary income 6,896 8,489 11,403 7,562 8,846 10,330 9,152 6,835


5,645 5,334 9,069 3,638 7,151 8,180 4,666 (1,975)

16

Yen to USD average exchange rate

107.76yen

110.84yen

112.71yen

110.64yen

110.95yen

107.58yen

108.17yen

109.54yen

Consolidated Earnings Trends (Quarterly)


Net sales

Consolidated Earnings Trends (Quarterly)


(¥ in billion)

Orders Received and Order Backlog Trends (Quarterly)

■ Capacitors ■ Ferrite and applied products ■ Integrated modules & devices ■ Others


Consolidated Financial Position


Forward-looking statements

This document contains information about the plans, business results, and strategies of TAIYO YUDEN CO., LTD. and the TAIYO YUDEN Group. These forward-looking statements other than historical facts represent judgments made by the Company based on information available at present and are inherently subject to a variety of uncertainties. TAIYO YUDEN cannot provide any guarantee as to the attainment of certain figures in the future. The Company’s actual activities and business results could differ significantly due to changes including, but not limited to, changes in the electronics market in which the Company’s business activities are centered. Readers should not overly rely on the information contained in this document.

©TAIYO YUDEN 2017

Documents

Consolidated Financial Results · As explained at the beginning of the presentation, at present, we will announce financial results forecasts for 1Q. We project net sales of 60.0