Tdk Corporation · TSE:6762

Tdk — Q1 2025 Earnings Presentation

35 slides from Tdk's earnings presentation, Jul 30, 2024

  1. Slide 1: Fiscal Year March 2025 1st Quarter Performance Briefing

    Fiscal Year March 2025 1st Quarter Performance Briefing TDK Corporation IR&SR Group July 30, 2024

  2. Slide 2: Index

    Index 1 Q1, FY March 2025 Results Highlights Tetsuji Yamanishi, Senior Executive Vice President 2 FY March 2025 Projections Tetsuji Yamanishi, Senior Executive Vice President 3 Appendix Q1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 2

  3. Slide 3: Q1, FY March 2025 Results Highlights

    Q1, FY March 2025 Results Highlights Tetsuji Yamanishi Senior Executive Vice President Q1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 3

  4. Slide 4: Q1, FY March 2025 key points

    Q1, FY March 2025 key points • Net sales increased and operating profit increased significantly year on year, due to recovery in demand from the ICT market and the HDD market. Net sales (JPY bn) Operating profit (JPY bn) 518.8 57.9 Up 3.1 ％ YoY Up 120.0 ％ YoY • Sales of small capacity rechargeable b

  5. Slide 5: Q1, FY March 2025 results

    Q1, FY March 2025 results • Net sales and operating profit increased year on year. ▍Exchange rate impact on FY3/24 FY3/25 Change net sales and operating profit Q1 Q1 JPY bn % (OP) (JPY bn) (JPY bn) Net sales Approx. +53.8 Net sales 503.4 518.8 +15.4 +3.1% OP Approx. +11.1 Operating profit 26.3 57.9

  6. Slide 6: Passive Components segment – Q1

    Passive Components segment – Q1 • While sales to the ICT market increased, results were flat due to a decrease in sales to the industrial market and slower sales to the automotive market. ▍Net sales (JPY bn) +1.6% • Sales increased while profit decreased year on year. 200 Ceramic capacitors • Sales

  7. Slide 7: Sensor Application Products segment – Q1

    Sensor Application Products segment – Q1 • While sales to the ICT market increased, profit decreased due to a decline in sales to the industrial equipment market. ▍Net sales (JPY bn) +13.6% 60 50 47.3 49.2 45.2 44.1 Temperature and • Sales increased while profit decreased year on year. 38.8 pressure

  8. Slide 8: Magnetic Application Products segment – Q1

    Magnetic Application Products segment – Q1 • Sales of HDD-related components increased significantly due to a recovery in demand from the HDD market, resulting in improved profitability. ▍Net sales (JPY bn) +43.9% HDD heads 70 and HDD • Sales increased year on year and profitability improved. 60 49.

  9. Slide 9: Energy Application Products segment – Q1

    Energy Application Products segment – Q1 • Small capacity batteries posted an increase in sales volume and a significant increase in profit due to a recovery in demand from the ICT market. ▍Net sales (JPY bn) (4.4)% • Sales decreased while profit increased year on year. 450 400 Energy devices • Prof

  10. Slide 10: Quarterly results by segment

    Quarterly results by segment FY3/24 FY3/24 FY3/25 YoY [C] – [A] QoQ [C] – [B] (JPY bn) Q1 [A] Q4 [B] Q1 [C] JPY bn % JPY bn % Capacitors 62.5 60.5 61.5 (1.0) (1.6)% +1.0 +1.6% Inductive Devices 47.5 48.3 50.8 +3.3 +6.9% +2.5 +5.3% Other Passive Components 30.7 29.7 30.7 +0.1 +0.3% +1.0 +3.4% Passive

  11. Slide 11: Analysis of change in operating profit – Q1

    Analysis of change in operating profit – Q1 (JPY bn) Operating profit +31.6 Exchange rate SG&A expenses fluctuation Benefits from decrease USD/JPY: Rationalization, 137.18 → 155.82 restructuring Changes in sales Selling price cost reduction (incl. deterioration in fluctuation operating rate and chan

  12. Slide 12: FY March 2025 Projections

    FY March 2025 Projections Q1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 12

  13. Slide 13: Projections by segment for Q2, FY March 2025

    Projections by segment for Q2, FY March 2025 Q2, FY3/25 projection (QoQ) Q1, FY3/25 Assumed exchange rates: Assumed exchange rates: Factor Actual (JPY bn)) Beginning-of-period Q1 basis Passive • Sales of products to the industrial equipment market are expected to Components 143.1 (4) ~ (1)% +2 ~ +5%

  14. Slide 14: FY March 2025 projections

    FY March 2025 projections • There are no changes to the projections that was announced on April 26, 2024. FY3/24 FY3/25 Change (YoY) [B] – [A] (JPY bn) Actual [A] Projection [B] JPY bn % Net sales 2,103.9 2,105.0 +1.1 +0.1% Operating profit 172.9 180.0 +7.1 +4.1% Operating profit margin 8.2% 8.6% +0

  15. Slide 15: Appendix

    Appendix Q1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 15

  16. Slide 16: Quarterly sales and operating profit by segment

    Quarterly sales and operating profit by segment FY3/24 FY3/25 (JPY bn) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Capacitors 62.5 62.6 59.4 60.5 245.0 61.5 Inductive Devices 47.5 50.6 50.7 48.3 197.1 50.8 Other Passive Components 30.7 32.2 30.9 29.7 123.5 30.7 140.7 145.4 141.0 138.5 565.6 143.1 Net Sales

  17. Slide 17: Financial position

    Financial position March 31, 2024 June 30, 2024 Change (JPY bn) Total assets 3,415.3 3,683.3 +268.0 Total liabilities 1,700.4 1,810.8 +110.5 Total equity attributable to owners of parent 1,707.3 1,864.1 +156.8 Ratio of equity attributable to owners of parent 50.0% 50.6% +0.6pts Cash and cash equival

  18. Slide 18: Capex, Depreciation, R&D - Q1

    Capex, Depreciation, R&D - Q1 FY3/24 FY3/25 Change (JPY bn) Q1 Q1 Capex 60.7 42.8 (17.9) Depreciation 47.4 47.2 (0.2) % to net sales 9.4% 9.1% -0.3pts R&D 43.9 61.0 +17.1 % to net sales 8.7% 11.8% +3.0pts ▍Capex ▍Depreciation, % to net sales ▍R&D, % to net sales （JPY bn） （%） 80 80 20 80 20 60.7 61.0

  19. Slide 19: Capex, Depreciation, and R&D expenses – Projections

    Capex, Depreciation, and R&D expenses – Projections Capex Depreciation and amortization R&D expenses (JPY bn) 350 300 291.3 275.7 250.0 250 212.2 218.6 200 206.3 173.4 190.5 190.0 177.0 220.0 150 148.4 179.5 188.9 125.0 165.3 100 117.5 127.4 50 0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/20 FY3/

  20. Slide 20: Cash flows - Q1

    Cash flows - Q1 FY3/24 FY3/25 Change (JPY bn) Q1 Q1 Cash flows from operating activities 57.4 72.6 +15.2 Cash flows from investing activities (49.5) (55.8) (6.2) Free cash flow 7.9 16.9 +9.0 Cash flows from financing activities 16.0 (22.4) (38.3) Effects of exchange rate changes on 26.2 38.1 +11.9 c

  21. Slide 21: Cash flows

    Cash flows Operating activities Investing activities Free cash flow 447.0 (JPY bn) 262.8 270.0 230.4 222.4 230.9 180.4 179.0 28.4 15.0 (0.6) (42.0) Incl. advance payments (102.6) of about 110.0 bn JPY to secure stable supply of battery materials. (231.4) (234.4) (216.6) (255.0) (281.5) FY3/20 FY3/21

  22. Slide 22: Shareholder returns

    Shareholder returns (JPY) Annual dividends * Dividend payout ratio 80.0 120.0 120 116.0 70.0 106.0 100 60.0 80 60.0 78.3 50.0 39.3% 60.0 35.2% 35.3% 35.6% 40.0 60 30.4% 30.0 22.6% 40 20.0 20 10.0 0 0.0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 Projection IFRS * Dividends are calculated on the basis

  23. Slide 23: Annual sales by market (FY3/20 – FY3/24)

    Annual sales by market (FY3/20 – FY3/24) All ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) 2,500 0 (JPY bn) (JPY bn) 2,180.8 2,103.9 1,207.6 1,191.8 0 500 463.5 1,142.5 2,000 1,902.1 0 418.7 1,200 0 913.7 1,479.0 400 330.4 821.6 1,500 1,363.0 0 900 8.8% 8.2% 0 300 245.3 248.6 7.2% 7.6% 7.7% Net sa

  24. Slide 24: Quarterly sales by market (FY3/24 – FY3/25)

    Quarterly sales by market (FY3/24 – FY3/25) All ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) +5.1 % +13.1 % 0 (JPY bn) (JPY bn) 600 556.3 559.3 503.4 518.8 118.3 116.6 116.8 117.5 350 320.4 336.3 484.9 0 120 111.8 296.9 500 300 262.5 272.6 100 400 12.6% 0 Net sales 250 10.6% 11.2% 80 300 200 0 OP

  25. Slide 25: Annual sales by market – Passive Components

    Annual sales by market (FY3/20 – FY3/24) Passive Components ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) 600 578.8 565.6 0 (JPY bn) (JPY bn) 507.8 300 285.7 500 256.1 150 0 395.5 407.1 16.3% 211.8 400 15.1% 0 200 168.7 172.1 100 75.7 78.8 81.5 300 9.9% 9.8% 9.5% Net sales 72.3 68.1 0 200 OP margi

  26. Slide 26: Quarterly sales by market – Passive Components

    Quarterly sales by market (FY3/24 – FY3/25) Passive Components ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) 140.7 145.4 141.0 138.5 143.1 +7.4 % +15.4 % 0 150 (JPY bn) (JPY bn) 0 0 80 72.3 72.7 74.1 71.6 13.2% 66.7 12.1% 0 30 100 0 10.0% 9.7% 60 Net sales 19.4 0 18.1 20 16.0 16.9 0 40 14.6 OP mar

  27. Slide 27: Annual sales by market – Sensor Application Products

    Annual sales by market (FY3/20 – FY3/24) Sensor Application Products ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) (JPY bn) (JPY bn) 200 180.5 169.5 0.14 80.9 80 72.5 75.9 0.12 80 150 130.8 61.2 0.1 60 56.1 60 6.3% 0.08 Net sales 46.2 100 77.9 81.3 36.4 0.06 40 34.4 40 OP margin 25.8 3.3% 20.6 50

  28. Slide 28: Quarterly sales by market – Sensor Application Products

    Quarterly sales by market (FY3/24 – FY3/25) Sensor Application Products ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) 47.3 49.2 +6.3 % +58.2 % 50 45.2 44.1 (JPY bn) (JPY bn) 0 38.8 25 22.3 25 22.0 22.8 40 0 9.3% 9.6% 19.0 19.3 20.3 20.2 18.6 19.7 0 20 20 30 Net sales 0 15 15 12.4 20 0 OP margin 10

  29. Slide 29: Annual sales by region (FY3/20 – FY3/24)

    Annual sales by region (FY3/20 – FY3/24) 100% ▍Japan ▍Americas 21.6% 18.7% 20.4% 19.6% 21.4% (JPY bn) (JPY bn) 80% 200 176.4 184.6 200 172.7 Asia and others 60% 149.0 148.7 China 160 160 52.4% 56.8% 55.7% 54.8% 53.1% 129.9 110.4 117.2 Europe 120 120 96.1 96.7 40% Americas Japan 80 80 20% 10.9% 10.0%

  30. Slide 30: Quarterly sales by region (FY3/24 – FY3/25)

    Quarterly sales by region (FY3/24 – FY3/25) 100% ▍Japan ▍Americas 18.6% 21.2% 21.1% 24.7% 23.9% (JPY bn) (8.3)% (JPY bn) (10.4)% 80% 60 60 49.5 45.8 44.9 44.4 42.1 60% Asia and others 40.0 38.7 53.5% 40 40 33.9 36.2 35.8 54.4% 55.8% 48.1% 52.2% China 40% Europe Americas 20 20 20% 10.8% 10.5% Japan 9

  31. Slide 31: Financial information: 10-year historical trend

    Financial information: 10-year historical trend ▍Operating profit, Net profit attributable to owners of parent, ▍Net sales, Overseas sales ratio OP margin (JPY mn) Net sales Overseas sales ratio (JPY mn) Operating profit Net profit attributable to owners of parent OP margin 91.4% 92.1% 91.1% 91.1% 9

  32. Slide 32: Financial information: 10-year historical trend

    Financial information: 10-year historical trend ▍Total assets, Total equity attributable to owners of parent, Ratio of equity attributable to owners of parent ▍ROIC, ROE, ROA Total assets Total equity attributable to owners of parent (JPY mn) Ratio of equity attributable to owners of parent ROIC ROE

  33. Slide 33: Status of inclusion in Indices / Evaluation by external organizations

    Status of inclusion in Indices / Evaluation by external organizations ▍Indices ▍Evaluation by JPX Prime 150 Index Sompo Sustainability Index external organizations An index composed by market capitalization An index compiled based on the results of the Buna-no- based on two measures of value creatio

  34. Slide 34: 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

  35. Slide 35: 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/en/ir/ir_events/conference/2025/1q_1.html

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