Tdk Corporation · TSE:6762

Tdk — Investor Day (May 2024)

55 slides from Tdk's investor day presentation, May 22, 2024

Slide 1: TDK Transformation
TDK Transformation TDK IR SR 2024 5 22
Slide 3: 1.
1. RHE Vay
Slide 6: TDK Transformation
TDK Transformation TDK Transformation Accelerating transformation for a sustainable future • • No.1 TDK Transformation Transformation TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 6
Slide 7: Transformation and Advancement of Technology
Transformation Medical/Health Care Beyond 5G Renewable Energy Robotics IoT AR/VR Mobility ADAS/EV Transformation Social of Technology Advancement Green Digital Transformation Transformation Transformation TDK TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 7
Slide 10: 2.
By PHAR = at HlO e HOBO
Slide 12: FCF and cash flow results
▍ FCF +529 1,073 FCF CVC 378 • 542 CJV 164 • • 3,801 4,500 CF CF • 7,500 7,856 9,000 8,888 • EBITDA EBITDA 65% 74% 1,917 1,500 • 1,266 652 1,200 200 • 220 • 100 TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 12
Slide 13: 3.
tH 3. an PAAR
Slide 16: KPI
KPI • 24.03 27.03 [ ] * 21,039 25,000 5% 10% ROE 7.9% 10% 15 ROA ROIC WACC 5.3% 7.0% 8% 12% 8.2% 11% 15% 50% 50% D/E 0.4 0.3 0.4 TME 67pt 75pt KPI 80% 80% ※ CO2 22.03 42.9% 23.3% 42.0% ※CO2 SBTi Scope1+2 CO2 24 3 144 /US$ 135 /US$ 135 /US$ TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 16
Slide 17: M&A and cash flow history
• M&A ▍ 3 25.03 27.03 3 3,400 3,000 2015 2017 2023 2008 MICRONAS InvenSense ICSense Qeexo 2024 2005 EPCOS 2,000 ATL 2022 2002 2009 CATL IT JV 2017 1,000 2007 SAW Qualcomm CF HDD CF 0 FY00/3 FY2000/3 FY05/3 FY2005/3 FY10/3 FY2010/3 FY15/3 FY2015/3 FY20/3 FY2020/3 FY25/3 FY2025/3 FY2025/3 FY2000/3 FY2
Slide 18: ROA (ROIC) portfolio
• 2 2 • ▍ % ▍ Profit base Growing 58% 14% ROA (ROIC) Profit enhancement 5% Challenging Next generation 13% ROA Strategic restructuring 5% (ROIC) 4% • ROA ROIC / • 10% WACC7% TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 18
Slide 20: ROA and ROIC by segment
• ROA ROIC ▍ ▍ ROA ROIC 30.0% FY24/3 FY27/3 CAGR 14,790 21,039 25,000(5%) 4,071 5,656 CAGR 5-8% 20.0% FY27/3 813 1,805 CAGR 8-11% 10.0% 1,993 1,842 CAGR 8-11% FY27/3 FY24/3 FY24/3 7,402 11,217 CAGR 2-5% 0.0% FY27/3 7.6% 8.2% 11.0% ROA ROIC 5.2% 5.3% 8.0% -10.0% 7.7% 15.0% FY24/3 ― 1.2% 8.0% -20.0% -
Slide 23: FY25/3 to FY27/3 FCF
FY25/3 FY27/3 • FCF 1,500 1,034 • 35 • CF CF 1,500 542 • • M&A • 10,000 8,888 3,200 3,801 • 2,000 1,917 800 652 P/L 600 1,266 • • 400 220 • • 7,000 7,856 TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 23
Slide 25: 4
4
Slide 28: Market-in and Concept-out
• Market-in TDK First - to - Market Concept-out ▍ Business ▍ TDK Ventures Company R&D&IP Customers Next-Gen Energy & Connectivity & HQ Materials Cleantech Computing Sales & TDK Marketing Ventures External Consutants Industrial Mobility Healthtech TDK Investor Day 2024 Copyright © TDK Corporation, 20
Slide 29: TDK Ventures CVC funds
• CVC • 37 US$350mn Energy Clean Tech Next-Gen Materials Fund 1 $50M LED Seven Seas Scope Global Investments Li Fund 2 Industrial $150M Connectivity & AgTech & Health Tech Seven Seas Scope Global Investments Computing AI Fund EX1 Mobility $150M Decarbonization Fund European & North American Focus TD
Slide 33: M&A history and growth
• ▍ • • • ▍ ▍ • Before 2000 After 2000 • Micronas, InvenSense and more EPCOS Japan MPT 11,195 LAMBDA M&A Original ATL 73,751 TDK Non- Headway Japan 16,507 SAE Original TDK TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 33
Slide 34: Governance and management
▍ ▍ • • • TDK • • M&A PMI • • BC/BG 50% 18 9 Empowerment Transparency Michael Pocsatko Andreas Keller Albert Ong Ji Bin Geng Werner Lohwasser Diversity/Inclusion Accountability ECM Empowerment Transparency Business Company/Group Roshan Thapliya Ludger Trockel Joe Kit Chu Lam Jim Tran TDK Investor Da
Slide 38: Business segments and products
5 Passive Components Sensor Application Products Energy Application Products Magnetic Application Products
Slide 39: Passive components ROA and ROIC
• ▍ ROA ROIC 5~8% • • ADAS 5,788 5,656 5,078 • ROA • 16.4% 17.0% 15.0% ROIC • 15.1% 16.3% 9.5% 7.7% • FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 • ▍ • Share No.2 35-40% Share No.2 15-20% • Share No.1 • 45-50% Share No.1 • 55-60% Share No.1 • 50-55% TDK Investor Day 2024 Copyright © TDK Corporation, 2
Slide 40: MLCC and xEV
• ▍ ▍ MLCC ▍ 12% High Voltage 2 Contactor 1.9 Piezo Protection Inductor MLCC FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 FY28/3 FY29/3 TDK ▍ vs xEV 1 ▍ MLCC ▍ MLCC 5,000 6,000 8,000 10,000 Inductor 450 600 650 700 100 140 160 180 MLCC Nashik TDK Investor Day 2024 Copyright
Slide 41: Sensor application products ROA and ROIC
• Create different and Connect ▍ ROA ROIC • First-to-Market / Market- in 8~11% Concept-out • 1,695 1,805 8.0% 1,308 6.3% • 3.3% -0.2% 3.5% • ROA 1.2% ROIC -1.2% • FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 • ▍ • Share No.1 • 35-40% • Share No.3 20-25% • Share No.3 • 15-20% • TDK Investor Day 2024 Cop
Slide 42: DX and EX business
• DX EX ▍ 8 11% 6% Ind&HA Market-in ICT System Auto FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 FY28/3 FY29/3 Module TDK ▍ TDK / ICT/ TMR Parts Material Concept-out TMR TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 42
Slide 43: Magnetic application ROA and ROIC
▍ ROA ROIC 2,484 8~11% • MAMR HAMR ROA 3.3% 2,006 4.0% ROIC 1,842 • 1.8% -12.2% • HDD Tri-SA -22.0% -19.3% -28.1% FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 • ▍ • Share No.3 20-25% Share No.1 40-45% MAMR HAMR • • TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 43
Slide 44: HDD heads HGA
HGA • HDD MAMR HAMR Tri-SA ▍ ▍ HGA Enterprise Nearline 3.5" 2.5" (M Head) 2.3 2.1 2.0 2023 2027 2023 2027 2023 2027 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 FY28/3 FY29/3 IDC Worldwide Global DataSphere,Forecast, 2023-2027 (#US50554523) MAMR IDC Worldwide StorageSphere Forecast, 2023-2027 (#US50673423) TD
Slide 45: Energy application ROA and ROIC
• ▍ ROA ROIC • No.1 • No.1 2~5% • 11,734 11,217 9,653 21.5% 18.0% • ROA 15.6% ROIC 15.1% • 17.4% • 12.8% 12.6% • FY22/3 FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 • • ▍ • Share No.1 • 50-60% • Share No.1 15-20% • TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 45
Slide 47: Customer service, technology, operational excellence
• ▍ • Superior Customer Service 20% ( ) 10% • • Technology Advancement • • Operational excellence QCD FY23/3 FY24/3 FY25/3 FY26/3 FY27/3 FY28/3 FY29/3 ▍ 100% 10 15 90% 6,000 80% 70% 20 25 60% 15,000 0 5 10 15 20 25 30 TDK Investor Day 2024 Copyright © TDK Corporation, 2024. 47
Slide 48: New Business
Photo electronics Healthtech New Business RF devices for quantum computer LN FCLM Photo acoustic SpinPD Agritech glucose SAW filter monitoring Multilayer RF Thin-film RF InCellSense Neuromorphic device component component Cardio- Thin-film vascular inductor Motion sensor Plasma application monitorin
Slide 50: Appendix
Appendix Beyond 5

TDK — Investor Day (May 2024) on 6ix

Tdk — Investor Day (May 2024)

Slide 1: TDK Transformation

Slide 2: Agenda

Slide 3: 1.

Slide 4: Key messages: ROIC and WACC

Slide 5: TDK Value Structure

Slide 6: TDK Transformation

Slide 7: Transformation and Advancement of Technology

Slide 8: TDK Transformation

Slide 9: Transformation and R&D

Slide 10: 2.

Slide 11: Value Creation 2023

Slide 12: FCF and cash flow results

Slide 13: 3.

Slide 14: FY21/3 to FY33/3 plan

Slide 15: FCF and WACC

Slide 16: KPI

Slide 17: M&A and cash flow history

Slide 18: ROA (ROIC) portfolio

Slide 19: SAW business

Slide 20: ROA and ROIC by segment

Slide 21: xEV, ADAS and IoT growth

Slide 22: ROA, ROIC and B/S

Slide 23: FY25/3 to FY27/3 FCF

Slide 24: Shareholder returns

Slide 25: 4

Slide 26: Green and Digital Transformation

Slide 27: • TDK

Slide 28: Market-in and Concept-out

Slide 29: TDK Ventures CVC funds

Slide 30: TDK Investor Day 2024 Copyright © TDK Corporation, 2024 .

Slide 31: Human Machine Interface

Slide 32: Sensors portfolio

Slide 33: M&A history and growth

Slide 34: Governance and management

Slide 35: KPI and CO2

Slide 36: ERM PDCA

Slide 37: Quality First

Slide 38: Business segments and products

Slide 39: Passive components ROA and ROIC

Slide 40: MLCC and xEV

Slide 41: Sensor application products ROA and ROIC

Slide 42: DX and EX business

Slide 43: Magnetic application ROA and ROIC

Slide 44: HDD heads HGA

Slide 45: Energy application ROA and ROIC

Slide 46: Sohna

Slide 47: Customer service, technology, operational excellence

Slide 48: New Business

Slide 49: Summary

Slide 50: Appendix

Slide 51: TDK history

Slide 52: TDK overview

Slide 53: Quality First

Slide 54: WACC and Quality

Slide 55: TDK Investor Day 2024 Copyright © TDK Corporation, 2024 .