Tdk Corporation · TSE:6762
Tdk — FY March 2020 Earnings Presentation
32 slides from Tdk's earnings presentation, May 15, 2020
Slide 1: Performance Briefing Fiscal Year March 2020
Performance Briefing Fiscal Year March 2020 TDK Corporation Corporate Communications Group May 15, 2020
Slide 2: Consolidated Results and Full Year Projections
●Consolidated Results for FY March 2020 Tetsuji Yamanishi, Executive Vice President ●Consolidated Full Year Projections for FY March 2021 Shigenao Ishiguro, President & CEO © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 2
Slide 3: Consolidated Results for FY March 2020
Consolidated Results for FY March 2020 Tetsuji Yamanishi Executive Vice President © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 3
Slide 4: Key points concerning earnings for FY March 2020
Key points concerning earnings for FY March 2020 Economic slowdown in China and the rest of the world became clear due to worsening ties between the US and China. In the fourth quarter, economic activity stagnated in each country due to the spread of COVID-19 coronavirus infections, impacting the pr
Slide 5: Consolidated full year results for FY March 2020
Consolidated full year results for FY March 2020 FY March 2019 FY March 2020 Change full year results full year results (Yen billions) Yen billions % Net sales 1,381.8 1,363.0 (18.8) -1.4 Operating income 107.8 97.9 (9.9) -9.2 Operating income margin 7.8% 7.2% -0.6 pt - Income before income taxes 11
Slide 6: FY March 2020 results - Passive Components segment
FY March 2020 results - Passive Components segment Net sales Net sales 395.5 billion yen (down 8.7% year on year) (Yen billions) Operating income 39.1 billion yen (down 33.0% year on year) 433.4 395.5 ● Ceramic Capacitors ¬ Sales and profit decreased year on year. ¬ Sales increased to the automotive
Slide 7: FY March 2020 results - Sensor Application Products segment
FY March 2020 results - Sensor Application Products segment Net sales Net sales 77.9 billion yen (up 1.8% year on year) (Yen billions) Operating loss -25.0 billion yen (up ―% year on year) 76.5 77.9 ● Sensors ¬ Sales of conventional products (Temperature and Pressure Sensors, and Hall Sensors) to th
Slide 8: FY March 2020 results - Magnetic Application Products segment
FY March 2020 results - Magnetic Application Products segment Net sales Net Sales 219.7 billion yen (down 19.5% year on year) (Yen billions) Operating income 0.4 billion yen (down 97.6% year on year) 272.8 219.7 ● HDD Heads and HDD Suspension Assemblies ¬ While HDD assembly volume dropped significan
Slide 9: FY March 2020 results - Energy Application Products segment
FY March 2020 results - Energy Application Products segment Net sales Net sales 597.7 billion yen (up 11.2% year on year) (Yen billions) Operating income 124.1 billion yen (up 36.4% year on year) 597.7 537.5 ● Energy Devices (Rechargeable Batteries) ¬ Sales and profit increased year on year. ¬ Sales
Slide 10: Breakdown of operating income changes
Breakdown of operating income changes FY March 2019 Operating income -9.9 billion yen FY March 2020 107.8 billion yen 97.9 billion yen (Yen billions) Rationalization, Benefits from SG&A expenses Sales price restructuring increase cost reduction Impairment Changes in sales reduction +1.6 (10.4) +19.1
Slide 11: Operating income quarterly results by segment
FY March 2020 quarterly results by segment 4Q of 3Q of 4Q of YoY change QoQ change (C)-(A) (C)-(B) FY March 2019 FY March 2020 FY March 2020 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 42.3 37.3 37.7 (4.6) -10.9 0.4 1.1 Inductive Devices 34.3 34.8 33.0 (1.3) -3.8 (1.8) -5.2 O
Slide 12: Consolidated Full Year Projections for FY March 2021
Consolidated Full Year Projections for FY March 2021 Shigenao Ishiguro President & CEO © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 12
Slide 13: Quarterly World GDP Growth
Quarterly World GDP Growth Y o Y% CQ4/2019 CQ1/2020 CQ2/2020 CQ3/2020 CQ4/2020 CY2020 Worldwide +3.4 -3.1 -8.0 -3.1 -2.3 -4.0 10 China 5 0 CQ4/2019 CQ1/2020 CQ2/2020 CQ3/2020 CQ4/2020 Worldwide Japan ‐5 EU ‐10 USA ‐15 ‐20 Worldwide USA EU Japan China (Source: Nomura Global Market Research) © TDK Cor
Slide 14: Market forecast of FY March 2021
Market forecast of FY March 2021 Production Trend (Unit: Mil. unit) FY2019 FY2020 (Y o Y) Automobile* 87 75 (‐14%) therein xEV 4.4 4.9 (+11%) Smartphone 1,365 1,240 (‐9%) therein 5G Smartphone 43 376 (x 9) HDD 309 265 (‐14%) therein Nearline 56 62 (+10%) Notebook PC 162 163 (+1%) Tablet 122 127 (+5%
Slide 15: Projections for FY March 2021 - Image of changes in sales
Projections for FY March 2021 - Image of changes in sales (Yen billions) FY March 2021 FY March 2020 Segment full year projections full year results (YoY change) Passive Components 399.5 -7～-10% Sensor Application Products 77.9 +8～+11% Magnetic Application Products 219.7 -15～-18% Energy Application
Slide 16: FY March 2021 full year / dividend projections
FY March 2021 full year / dividend projections FY March 2021 YoY change FY March 2020 full year projections full year results Yen billions % (announced on May 15, 2020) (Yen billions) Net sales 1,363.0 1,290.0 (73.0) -5.4 Operating income 97.9 70.0 (27.9) -28.5 Operating income margin 7.2% 5.4% -1.8
Slide 17: Strengthening the Financial Base in FY March 2021
Strengthening the Financial Base in FY March 2021 Mid-Term Financial Strategy (announced in 2018) Steadily recover growth investments executed towards transforming business earnings model Execute further growth investments based on well-balanced capital allocation Well-balanced capital allocatio
Slide 18: Contributing to energy and environmental issues
Contributing to energy and environmental issues Internal Become an energy eco-friendly company (How TDK will change) • Improve productivity • Promote thorough energy conservation measures • Switch to renewable energies External Contribute to energy conservation in society (How to change society) • H
Slide 19: Contributing to the improved efficiency of society through data utilization
Contributing to the improved efficiency of society through data utilization Internal Digitizing TDK (How TDK will change) • Digitization of production activities (Industry 4.0 promotion) • Digital marketing • Digital communication platform integration External Analog - digital conversion with sensin
Slide 20: Supplementary Data
Supplementary Data © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 20
Slide 21: Financial position
Financial position Change March end, 2018 March end, 2019 March end, 2020 (Yen billions) 2019-2020 Total assets 1,905.2 1,992.5 1,943.4 -49.1 Total liabilities 1,074.0 1,108.7 1,094.8 -13.9 Stockholder’s equity 824.6 877.3 844.0 -33.3 (comprehensive income) -119.5 -124.4 -190.1 -65.7 Stockholder’s e
Slide 22: Cash flows
Cash flows (Yen billions) Operating cash flow Investment cash flow Free cash flow 250 222.4 200 180.4 140.3 150 91.3 100 50 0.1 0 March end, 2018 March end, 2019 March end, 2020 (50) (42.0) (100) (154.8) (150) (140.2) (200) (250) (246.1) Change March end, 2018 March end, 2019 March end, 2020 (Yen bi
Slide 23: Quarterly sales and operating income by segment
Quarterly sales and operating income by segment FY March 2019 FY March 2020 (Yen billions) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 44.5 43.9 42.7 42.3 173.3 39.3 39.6 37.3 37.7 153.9 Inductive Devices 38.9 39.5 37.3 34.3 150.0 34.1 35.7 34.8 33.0 137.6 Other Passive Components 29.3 28.7 26.7
Slide 24: FY March 2021 projections and forex sensitivity
FY March 2021 projections and forex sensitivity Expenses (Yen billions) Capital expenditure Depreciation R&D 200 178.6 173.6 173.4 180.0 167.6 150 140.0 125.0 120.0 115.2 117.5 106.6 102.6 100 87.5 92.2 91.3 50 0 FY17/3 FY18/3 FY19/3 FY20/3 FY21/3 FY17/3 FY18/3 FY19/3 FY20/3 FY21/3 FY17/3 FY18/3 FY1
Slide 25: Annual sales by applications
Annual sales by applications (FY March 2019 - FY March 2020) © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 25
Slide 26: Passive Components business annual sales by applications
Passive Components business annual sales by applications (FY March 2019 - FY March 2020) © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 26
Slide 27: Quarterly sales by applications
Quarterly sales by applications (FY March 2019 - FY March 2020) © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 27
Slide 28: Passive Components business quarterly sales by applications
Passive Components business quarterly sales by applications (FY March 2019 - FY March 2020) © TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 28
Slide 29: Performance Briefing Fiscal Year March 2020
© TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 29
Slide 30: Performance Briefing Fiscal Year March 2020
© TDK Corporation 2020 Performance Briefing Fiscal Year March 2020 Corporate Communications Group May 15, 2020 30
Slide 31: Cautionary statements with respect to forward-looking statements
Cautionary statements with respect to forward-looking statements This material contains forward-looking statements, including projections, plans, policies, management strategies, targets, schedules, understandings, and evaluations about TDK, or its group companies (TDK Group). These forward-looking
Slide 32: Text data including Q&A will be uploaded
Text data including Q&A of performance briefing will be uploaded on following site. https://www.tdk.com/corp/en/ir/ir_events/conference/2020/4q_1.htm