TDK Corporation · TSE:6762

TDK — H1 FY March 2019 Earnings Presentation

26 slides from TDK's earnings presentation, Oct 31, 2018

  1. Slide 1: Performance Briefing First Half of Fiscal Year March 2019

    Performance Briefing First Half of Fiscal Year March 2019 TDK Corporation Corporate Communications Group October 31, 2018

  2. Slide 2: Agenda: Consolidated Results and Full Year Projections

    ●Consolidated Results for First Half of FY March 2019 Tetsuji Yamanishi, Senior Vice President ●Consolidated Full Year Projections for FY March 2019 Shigenao Ishiguro, President and CEO © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group

  3. Slide 3: Consolidated Results for First Half of FY March 2019

    Consolidated Results for First Half of FY March 2019 Tetsuji Yamanishi Senior Vice President © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group  October 31, 2018  3

  4. Slide 4: Key points concerning earnings for first half of FY March 2019

    Key points concerning earnings for first half of FY March 2019 ● Net sales and operating income both achieved new records both on a half-yearly and a quarterly basis* ¬ Net sales rose 15.8% year on year. Operating income increased 40.7% year on year. ¬ In the Passive Components segment, TDK continue

  5. Slide 5: Consolidated results for first half

    Consolidated results for first half of FY March 2019 FY March 2018 FY March 2019 Change Results through 2Q Results through 2Q (Yen billions) (2017.4.1-2017.9.30) (2018.4.1-2018.9.30) Yen billions % Net sales 623.6 721.9 98.3 15.8 Operating income 44.2 62.2 18.0 40.7 Operating income margin 7.1% 8.6%

  6. Slide 6: First half results - Passive Components segment

    First half results - Passive Components segment Net sales (Yen billions) 224.8 Net sales 224.8 billion yen (up 11.0% year on year) 202.5 Operating income 30.4 billion yen (up 31.6% year on year) ● Ceramic Capacitors ¬ Sales and earnings increased year on year as strong demand continued. ¬ Sales main

  7. Slide 7: First half results - Sensor Application Products segment

    First half results - Sensor Application Products segment Net sales Net sales 39.5 billion yen (up 8.2% year on year) (Yen billions) Operating loss -9.5 billion yen (down ―% year on year) 39.5 36.5 ● Sensors ¬ Sales increased year on year. ¬ Sales of Temperature and Pressure Sensors and Magnetic Sens

  8. Slide 8: First half results - Magnetic Application Products segment

    First half results - Magnetic Application Products segment Net sales (Yen billions) Net Sales 145.9 billion yen (up 5.6% year on year) 145.9 Operating income 4.4 billion yen (down 49.4% year on year) 138.2 ● HDD Heads ¬ Both sales and operating income of HDD Heads increased year on year due to an im

  9. Slide 9: First half results - Energy Application Products segment

    First half results - Energy Application Products segment Net sales Net Sales 280.3 billion yen (up 28.9% year on year) (Yen billions) 280.3 Operating income 54.3 billion yen (up 54.7% year on year) 217.5 ● Energy Devices (Rechargeable Batteries) ¬ Sales and profit increased year on year. ¬ In the IC

  10. Slide 10: Breakdown of operating income changes

    Breakdown of operating income changes First half of First half of FY March 2018 Operating income +18.0 billion yen FY March 2019 44.2 billion yen Benefits from SG&A expenses 62.2 billion yen Rationalization, cost reduction restructuring increase (Yen billions) Sales price +16.3 +0.4 (17.7) Changes i

  11. Slide 11: Consolidated results for 2Q

    Consolidated results for 2Q of FY March 2019 FY March 2018 FY March 2019 Change 2Q results 2Q results (Yen billions) Yen billions % Net sales 334.0 378.9 44.9 13.4 Operating income 27.6 36.8 9.2 33.3 Operating income margin 8.3% 9.7% +1.4 pt - Income before income taxes 27.3 34.1 6.8 24.9 Net income

  12. Slide 12: Quarterly results by segment

    Quarterly results by segment 2Q of 1Q of 2Q of YoY change QoQ change (C)-(A) (C)-(B) FY March 2018 FY March 2019 FY March 2019 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 39.2 44.5 43.9 4.7 12.0 (0.6) -1.3 Inductive Devices 40.5 41.3 41.6 1.1 2.7 0.3 0.7 Other Passive Compone

  13. Slide 13: Consolidated Full Year Projections for FY March 2019

    Consolidated Full Year Projections for FY March 2019 Shigenao Ishiguro President and CEO © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group  October 31, 2018  13

  14. Slide 14: Projections for 3Q of FY March 2019

    Projections for 3Q of FY March 2019 - Image of changes in sales (Yen billions) 3Q projections Segment 2Q of FY March 2019 (QoQ change) Passive Components 112.1 +1%～+3% Sensor Application Products 20.6 ±0% Magnetic Application Products 75.4 -5%～-7% Energy Application Products 154.8 ±0% Other 16.0 ― T

  15. Slide 15: Full year and dividend projections

    FY March 2019 full year / dividend projections FY March 2019 FY March 2019 YoY change FY March 2018 full year projections full year projections full year results Yen billions % (Yen billions) (announced on Apr. 27, 2018) (announced on Oct. 31, 2018) Net sales 1,271.7 1,340.0 1,420.0 148.3 11.7 Opera

  16. Slide 16: Supplementary Data

    Supplementary Data © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group  October 31, 2018  16

  17. Slide 17: Quarterly sales and operating income by segment

    Quarterly sales and operating income by segment FY March 2018 FY March 2019 (Yen billions) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 36.3 39.2 40.1 41.4 157.0 44.5 43.9 Inductive Devices 37.6 40.5 40.3 39.2 157.5 41.3 41.6 Other Passive Components 22.8 26.2 28.9 25.3 103.2 26.9 26.6 96.7 105.8

  18. Slide 18: FY March 2019 projections and forex sensitivity

    FY March 2019 projections and forex sensitivity Expenses (Yen billions) Capital expenditure Depreciation R&D 250 210.0 200 178.6 160.7 167.6 150 102.5 110.0 102.6 110.0 100 87.5 92.2 84.9 91.3 80.2 83.2 70.6 50 0 FY15/3 FY16/3 FY17/3 FY18/3 FY19/3 FY15/3 FY16/3 FY17/3 FY18/3 FY19/3 FY15/3 FY16/3 FY1

  19. Slide 19: Financial position

    Financial position March End, June End, September End, Change (Yen billions) 2018 2018 2018 Total asset 1,905.2 1,969.6 2,028.3 58.7 Total liability 1,074.0 1,127.8 1,147.3 19.5 Stockholders's equity 824.6 834.9 874.6 39.7 (comprehensive income) (119.5) (113.5) (96.0) 17.5 Stockholders's equity rati

  20. Slide 20: Cash flows

    Cash flows FY March 2018 FY March 2019 YoY Results through 2Q Results through 2Q change (Yen billions) Operating cash flow (10.8) 7.7 18.5 Investing cash flow (198.8) (55.0) 143.8 Free cash flow (209.6) (47.3) 162.3 Financing cash flow 143.3 14.7 (128.6) Effect of exchange rate changes on cash and c

  21. Slide 21: Quarterly sales by applications

    Quarterly sales by applications (1Q of FY March 2018 – 2Q of FY March 2019) © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group  October 31, 2018  21

  22. Slide 22: Passive Components business quarterly sales by applications

    Passive Components business quarterly sales by applications (1Q of FY March 2018 – 2Q of FY March 2019) © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group  October 31, 2018  22

  23. Slide 23: Performance Briefing First Half of Fiscal Year March 2019

    © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group  October 31, 2018  23

  24. Slide 24: Performance Briefing First Half of Fiscal Year March 2019

    © TDK Corporation  2018 Performance Briefing First Half of Fiscal Year March 2019 Corporate Communications Group  October 31, 2018  24

  25. Slide 25: 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

  26. Slide 26: Text data including Q&A will be uploaded online

    Text data including Q&A of performance briefing will be uploaded on following site. http://www.global.tdk.com/ir/ir_events/conference/2019/2q_1.htm

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