Tdk Corporation · TSE:6762
Tdk — Q2 2023 Earnings Presentation
29 slides from Tdk's earnings presentation, Nov 1, 2022
Slide 1: Performance Briefing First Half of Fiscal Year March 2023
Performance Briefing First Half of Fiscal Year March 2023 TDK Corporation IR&SR Group November 1, 2022
Slide 2: Agenda
●Consolidated Results for First Half of FY March 2023 Tetsuji Yamanishi, Executive Vice President ●Consolidated Full Year Projections for FY March 2023 Noboru Saito, President & CEO © TDK Corporation 2022 Performance Briefing First Half of Fiscal Year March 2023 IR&SR Group November 1, 2022 2
Slide 3: Consolidated Results for First Half of FY March 2023
Consolidated Results for First Half of FY March 2023 Tetsuji Yamanishi Executive Vice President © TDK Corporation 2022 Performance Briefing First Half of Fiscal Year March 2023 IR&SR Group November 1, 2022 3
Slide 4: Key points concerning earnings for first half of FY March 2023
Key points concerning earnings for first half of FY March 2023 Despite a drop in demand mainly in the ICT market, due partly to geopolitical risks and economic slowdown concerns, both net sales and operating profit reached record highs on the back of EX-related demand, among other factors.* ● Net sa
Slide 5: Consolidated results for first half of FY March 2023
Consolidated results for first half of FY March 2023 FY March 2022 FY March 2023 Change Results through 2Q Results through 2Q (Yen billions) (2021.4.1-2021.9.30) (2022.4.1-2022.9.30) Yen billions % Net sales 894.2 1,122.0 227.8 25.5 Operating profit 81.6 120.3 38.7 47.4 Operating profit margin 9.1%
Slide 6: First half results - Passive Components segment
First half results - Passive Components segment Net sales (Yen billions) 294.3 Net sales 294.3 billion yen (up 17.8% year on year) 249.8 Operating profit 54.2 billion yen (up 37.0% year on year) ● Ceramic Capacitors ¬ Sales and profit increased year on year. ¬ Sales increased to the automotive marke
Slide 7: First half results - Sensor Application Products segment
First half results - Sensor Application Products segment Net sales Net sales 84.9 billion yen (up 42.7% year on year) (Yen billions) 84.9 Operating profit 7.1 billion yen (up ―% year on year) 59.5 ● Sensors ¬ Sales surged year on year. The segment achieved profitability. ¬ Sales of Temperature and P
Slide 8: First half results - Magnetic Application Products segment
First half results - Magnetic Application Products segment Net sales Net Sales 109.8 billion yen (down 12.8% year on year) (Yen billions) Operating loss -2.5 billion yen (down ―% year on year) 126.0 109.8 ● HDD Heads and HDD Suspension Assemblies ¬ Sales and profit of HDD Heads and HDD Suspension As
Slide 9: First half results - Energy Application Products segment
First half results - Energy Application Products segment Net sales (Yen billions) 602.4 Net Sales 602.4 billion yen (up 38.5% year on year) Operating profit 80.9 billion yen (up 40.1% year on year) 435.1 ● Energy Devices (Rechargeable Batteries) ¬ Sales and profit increased year on year. ¬ Productio
Slide 10: Breakdown of operating profit changes
Breakdown of operating profit changes First half of First half of FY March 2022 Operating profit +38.7 billion yen FY March 2023 81.6 billion yen 120.3 billion yen (Yen billions) Exchange fluctuation (US$=Yen 133.80) +36.9 120.3 Rationalization, Benefits from SG&A expenses Sales price cost reduction
Slide 11: Consolidated results for 2Q of FY March 2023
Consolidated results for 2Q of FY March 2023 FY March 2022 FY March 2023 Change 2Q results 2Q results (Yen billions) Yen billions % Net sales 474.1 611.5 137.4 29.0 Operating profit 50.3 75.7 25.4 50.5 Operating profit margin 10.6% 12.4% +1.8 pt - Profit before tax 52.4 76.0 23.6 45.0 Net profit 41.
Slide 12: Quarterly results by segment
Quarterly results by segment YoY change QoQ change 2Q of 1Q of 2Q of (C)-(A) (C)-(B) FY March 2022 FY March 2023 FY March 2023 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 49.8 57.6 62.9 13.0 26.2 5.3 9.1 Inductive Devices 45.3 49.3 52.8 7.5 16.5 3.5 7.0 Other Passive Componen
Slide 13: Consolidated Full Year Projections for FY March 2023
Consolidated Full Year Projections for FY March 2023 Noboru Saito President & CEO © TDK Corporation 2022 Performance Briefing First Half of Fiscal Year March 2023 IR&SR Group November 1, 2022 13
Slide 14: Full year / dividend projections
FY March 2023 full year / dividend projections FY March 2023 FY March 2023 YoY change FY March 2022 full year projections full year projections full year results Yen billions % (announced on Aug. 1, 2022) (announced on Nov. 1, 2022) (Yen billions) Net sales 1,902.1 2,200.0 2,220.0 317.9 16.7 Operati
Slide 15: Market forecast of FY March 2023
Market forecast of FY March 2023 forecast in forecast in May 11 November 1 Production Trend (Unit: Mil. unit) FY2022 FY2023 (YoY) FY2023 (YoY) Automobile* 79 83 (+5%) 84 (+6%) therein xEV 10.1 14.4 (+43%) 15.4 (+52%) Smartphone 1,319 1,319 (±0%) 1,184 (-10%) therein 5G Smartphone 586 663 (+13%) 516
Slide 16: Projections for 3Q of FY March 2023
Projections for 3Q of FY March 2023 - Image of changes in sales (Yen billions) 3Q projections Segment 2Q of FY March 2023 (QoQ change) Passive Components 152.7 -1%～-4% Sensor Application Products 45.9 ±0% Magnetic Application Products 54.7 -14%～-17% Energy Application Products 342.3 ±0% Other 15.9 ―
Slide 17: Key points of future initiatives by segments
Key points of future initiatives by segments ● Passive Components ¬ Continue to strengthen product portfolio to incorporate demand related to automobile applications (ADAS, environment-friendly vehicles) and energy saving. ¬ Investment in Ceramic Capacitors for increased production, which was announ
Slide 18: Key points of future initiatives by segments
Key points of future initiatives by segments ● Sensor Application Products Sales Ratio by Market (Actual results for 2Q of ¬ Increase production of Magnetic Sensors (TMR Sensors) to the ICT market. FY March 2023) ¬ Expand sales of Temperature and Pressure Sensors, and Magnetic Sensors Sensor Applica
Slide 19: Supplementary Data
Supplementary Data © TDK Corporation 2022 Performance Briefing First Half of Fiscal Year March 2023 IR&SR Group November 1, 2022 19
Slide 20: Quarterly sales and operating profit by segment
Quarterly sales and operating profit by segment FY March 2022 FY March 2023 (Yen billions) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 47.1 49.8 50.8 50.4 198.1 57.6 62.9 Inductive Devices 42.1 45.3 47.0 45.8 180.2 49.3 52.8 Other Passive Components 32.5 32.9 32.2 31.8 129.4 34.7 37.0 Passive Com
Slide 21: FY March 2023 projections and forex sensitivity
FY March 2023 projections and forex sensitivity Expenses (Yen billions) Capital expenditure Depreciation R&D 350.0 291.3 300.0 300.0 250.0 212.4 210.0 200.0 173.6 173.4 177.0 180.0 165.3 150.0 140.3 125.0 117.5 127.0 106.6 115.2 100.0 50.0 0.0 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY19/3 FY20/3 FY21/3
Slide 22: Financial position
Financial position March End, June End, September End, Change (Yen billions) 2022 2022 2022 Total assets 3,041.7 3,287.7 3,389.3 101.6 Total liabilities 1,737.9 1,835.2 1,837.7 2.5 Total equity attributable to owners of parent 1,300.3 1,448.6 1,547.6 99.1 Ratio of equity attributable to owners of pa
Slide 23: Cash flows
Cash flows FY March 2022 FY March 2023 YoY (Yen billions) Results through 2Q Results through 2Q change Operating cash flow 13.1 55.3 42.2 Investing cash flow (86.2) (112.1) (25.9) Free cash flow (73.1) (56.9) 16.2 Financing cash flow 43.0 28.2 (14.8) Effect of exchange rate changes on cash and cash
Slide 24: Quarterly sales by markets
Quarterly sales by markets (1Q of FY March 2022 – 2Q of FY March 2023) ¥420.1 bn ¥474.1 bn ¥499.7 bn ¥508.3 bn ¥510.5 bn ¥611.5 bn 100% 5.2% 5.1% 5.0% 4.9% 5.6% 4.8% Others 17.6% 16.8% 17.4% 18.3% 20.7% 18.5% 80% 12.5% 12.0% 11.0% 9.7% 8.9% 7.1% Industrial 60% Equipment ICT (HDD Heads 40% 45.8% 49.0
Slide 25: Passive Components business quarterly sales by markets
Passive Components business quarterly sales by markets (1Q of FY March 2022 – 2Q of FY March 2023) ¥121.8 bn ¥128.0 bn ¥130.0 bn ¥128.0 bn ¥141.6 bn ¥152.7 bn 100% 12.1% 13.0% 13.2% 13.4% 13.4% 13.0% Others 80% 28.4% 29.0% 29.8% 29.8% 30.0% 30.0% Industrial 60% Equipment 16.3% ICT 17.1% 16.5% 14.2%
Slide 26: Net sales, operating profit and capital expenditures history
(Millions of yen) Net sales & overseas sales ratio (%) Operating profit, net profit & operating profit margin (%) (Millions of yen) 2,000,000 100.0 240,000 24.0 90.5 91.4 92.1 91.1 91.1 91.8 91.9 92.1 92.2 88.7 1,800,000 90.0 Operating profit 1,902,124 208,660 Net profit (loss) 200,000 20.0 1,600,00
Slide 27: ROI, ROE, ROA and dividends per share
(%) ROI・ROE・ROA Total Assets, total equity attributable to owners of parent & (%) (Millions of yen) 25 3,200,000 ratio of equity attributable to owners of parent 3,041,653 70.0 ROI Total assets ROE 2,800,000 ROA 19.8 Total equity attributable to owners of 60.0 20 parent 2,401,433 2,400,000 15.9 47.7
Slide 28: 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 29: Text data including Q&A of performance briefing
Text data including Q&A of performance briefing will be uploaded on following site. https://www.tdk.com/en/ir/ir_events/conference/2023/2q_1.html