Tdk Corporation · TSE:6762

Tdk — FY March 2022 Earnings Presentation

37 slides from Tdk's earnings presentation, May 11, 2022

  1. Slide 1: Performance Briefing Fiscal Year March 2022

    Performance Briefing Fiscal Year March 2022 TDK Corporation IR&SR Group May 11, 2022

  2. Slide 2: Consolidated Results and Projections Agenda

    ●Consolidated Results for FY March 2022 Tetsuji Yamanishi, Executive Vice President ●Consolidated Full Year Projections for FY March 2023 Noboru Saito, President & CEO © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11, 2022  2

  3. Slide 3: Consolidated Results for FY March 2022

    Consolidated Results for FY March 2022 Tetsuji Yamanishi Executive Vice President © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11, 2022  3

  4. Slide 4: Key points concerning earnings for FY March 2022

    Key points concerning earnings for FY March 2022 Despite negative effects of the conflict between the U.S. and China as well as the COVID-19 pandemic, demand for electronic components remained robust as a result of the normalization of social and economic activities and the recovery of production ac

  5. Slide 5: Consolidated full year results for FY March 2022

    Consolidated full year results for FY March 2022 FY March 2021 FY March 2022 Change full year results full year results (Yen billions) Yen billions % Net sales 1,479.0 1,902.1 423.1 28.6 Operating income 111.5 166.7 55.1 49.4 Operating income margin 7.5% 8.8% +1.3 pt - Income before income taxes 121

  6. Slide 6: FY March 2022 results - Passive Components segment

    FY March 2022 results - Passive Components segment Net sales Net sales 505.2 billion yen (up 24.1% year on year) (Yen billions) 505.2 Operating income 77.7 billion yen (up 93.2% year on year) 407.1 ● Ceramic Capacitors ¬ Sales and profit increased year on year. ¬ Sales increased to the automotive ma

  7. Slide 7: FY March 2022 results - Sensor Application Products segment

    FY March 2022 results - Sensor Application Products segment Net sales Net sales 130.8 billion yen (up 60.8% year on year) (Yen billions) Operating income 2.7 billion yen (up ―% year on year) 130.8 ● Sensors 81.3 ¬ The segment achieved profitability due to a significant increase in sales and profit f

  8. Slide 8: FY March 2022 results - Magnetic Application Products segment

    FY March 2022 results - Magnetic Application Products segment Net sales Net Sales 248.4 billion yen (up 24.7% year on year) (Yen billions) 248.4 Operating income 4.6 billion yen (up ―% year on year) 199.3 ● HDD Heads and HDD Suspension Assemblies ¬ Sales and profit of HDD heads increased year on yea

  9. Slide 9: FY March 2022 results - Energy Application Products segment

    FY March 2022 results - Energy Application Products segment Net sales Net sales 965.3 billion yen (up 30.4% year on year) 965.3 (Yen billions) Operating income 123.2 billion yen (down 16.4% year on year) 740.2 ● Energy Devices (Rechargeable Batteries) ¬ Sales increased while profit decreased year on

  10. Slide 10: Breakdown of operating income changes

    Breakdown of operating income changes FY March 2021 Operating income +55.1 billion yen FY March 2022 111.5 billion yen 166.7 billion yen (Yen billions) Benefits from SG&A expenses Rationalization, increase Sales price restructuring cost reduction (64.5) reduction +4.6 Changes in sales +24.3 +89.5 (1

  11. Slide 11: Quarterly results by segment

    FY March 2022 quarterly results by segment YoY change QoQ change 4Q of 3Q of 4Q of (C)-(A) (C)-(B) FY March 2021 FY March 2022 FY March 2022 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 44.3 50.8 50.4 6.1 13.8 (0.4) -0.7 Inductive Devices 39.0 47.0 45.7 6.8 17.4 (1.2) -2.6 Oth

  12. Slide 12: 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 Fiscal Year March 2022 IR&SR Group  May 11, 2022  12

  13. Slide 13: FY March 2023 full year / dividend projections

    FY March 2023 full year / dividend projections FY March 2022 FY March 2022 FY March 2023 YoY change full year results full year results full year projections (U.S. GAAP) (IFRS) (IFRS) Yen billions % (Yen billions) (announced on May 11, 2022) Net sales 1,902.1 1,902.1 2,200.0 297.9 15.7 Operating pro

  14. Slide 14: Market forecast of FY March 2023

    Market forecast of FY March 2023 Production Trend (Unit: Mil. unit) FY2022 FY2023 (YoY) Automobile* 79 83 (+5%) therein xEV 10.1 14.4 (+43%) Smartphone 1,319 1,319 (±0%) therein 5G Smartphone 586 663 (+13%) HDD 250 231 (-8%) therein Nearline 75 77 (+3%) Notebook PC 258 240 (-7%) Tablet 165 152 (-8%)

  15. Slide 15: Projections for FY March 2023 - Image of changes in sales

    Projections for FY March 2023 - Image of changes in sales (Yen billions) FY March 2023 FY March 2022 Segment full year projections full year results (YoY change) Passive Components 505.2 +7～+10% Sensor Application Products 130.8 +13～+16% Magnetic Application Products 248.4 +15～+18% Energy Applicatio

  16. Slide 16: Progress of Medium-Term Plan

    Progress of Medium-Term Plan © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11, 2022  16

  17. Slide 17: Medium-Term Plan "Value Creation 2023"

    Medium-Term Plan "Value Creation 2023" © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11, 2022  17

  18. Slide 18: Progress of Medium-Term Plan

    Progress of Medium-Term Plan (Yen billions) Net sales (Yen billions) Operating income / OP margin / ROE 2,500.0 250.0 240.0 2,200.0 15.1% 15.0% Operating income Mid-term target Including gain 1,902.1 Mid-term on valuation of 14.0% ROE 14% 2,000.0 target 200.0 OP margin investment securities 185.0 13

  19. Slide 19: Key points of future initiatives by segments

    Key points of future initiatives by segments Mid-term FY22/3 FY23/3 Segment Net sales Actual Forecast Key points of future initiatives CAGR  Respond to changes in the structure of the automotive market and customer composition and expand sales and profit mainly related to EVs and ADAS fields Passiv

  20. Slide 20: New MLCC factory construction plan

    New MLCC factory construction plan Outline  New building with the capability of integrated production from materials to finished products 1. Construction site：106-163, 2 Jiwari, Goto, Wagacho,  Compact, high-performance, highly reliable Kitakami-shi, Iwate products for automotive applications 2. T

  21. Slide 21: Joint Ventures with CATL in Energy Application Products Business

    Joint Ventures with CATL in Energy Application Products Business © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11, 2022  21

  22. Slide 22: JVs with CATL

    JVs with CATL GWh 1,000 300 300 250 250 LIB 200 200 Global Market 150 150 (FY2025) 100 100 （TDK estimate） 50 50 0 0 Biz Area EV・Grid ESS RESS, E-motorcycle ICT (Products) (Large LIB) Industrial (Small LIB) (Medium LIB) JVs CATL ATL Material to pack for large/mid LIB Material to pack for small/mid LI

  23. Slide 23: Composition of the holding company and JVs

    Composition of the holding company and JVs Name： Xiamen Ampeak Technology Limited ATL CATL Location： Xiamen, Fujian Province, China Capital： 2,201 million RMB 100% Business： Holding company for 2 joint ventures of CATL and ATL Ampeak Name： Xiamen Ampack Technology Limited Location： Xiamen, Fujian Pr

  24. Slide 24: Medium- to long-term directions

    Medium- to long-term directions (GWh) 400 Mid LIB global market forecast （TDK forecast, GWh）  Synergies from JVs 300 • Product portfolio 200 • Technical resources 100 • Operation 0 FY22/03 2022 FY24/03 2024 FY31/03 2030 (Yen billions) Mid LIB business image 500.0 5,000 (at TDK stand-alone) 400.0 4,

  25. Slide 25: Supplementary Data

    Supplementary Data © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11, 2022  25

  26. Slide 26: Financial position

    Financial position Change March end, 2020 March end, 2021 March end, 2022 (Yen billions) 2021-2022 Total assets 1,943.4 2,401.4 3,086.9 685.5 Total liabilities 1,094.8 1,395.1 1,742.9 347.8 Stockholder’s equity 844.0 1,003.5 1,340.6 337.0 (comprehensive income) (190.1) (82.7) 100.8 183.6 Stockholder

  27. Slide 27: Cash flows

    Cash flows (Yen billions) Operating cash flow Investment cash flow Free cash flow 300 222.4 222.8 200 180.4 169.6 100 (8.7) 0 March end, 2020 March end, 2021 March end, 2022 (42.0) (111.6) (100) (200) (231.5) (300) (281.2) Change March end, 2020 March end, 2021 March end, 2022 (Yen billions) 2021-20

  28. Slide 28: Quarterly sales and operating income by segment

    Quarterly sales and operating income by segment FY March 2021 FY March 2022 (Yen billions) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 33.3 38.6 41.9 44.3 158.2 47.1 49.8 50.8 50.4 198.1 Inductive Devices 27.4 34.6 39.0 39.0 140.0 42.0 45.2 47.0 45.7 179.9 Other Passive Components 23.6 26.2 28.5

  29. Slide 29: FY March 2023 projections and forex sensitivity

    FY March 2023 projections and forex sensitivity Expenses (Yen billions) Capital expenditure Depreciation R&D 350.0 291.4 300.0 300.0 250.0 212.4 200.0 190.0 200.0 173.6 173.4 168.7 163.8 150.0 140.3 125.0 117.5 127.0 106.6 115.2 100.0 50.0 0.0 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 FY19/3 FY20/3 FY21/3

  30. Slide 30: Annual sales by markets

    Annual sales by markets (FY March 2021 - FY March 2022) (Note) In accordance with the redefinition of markets in 1Q of FY2022, the prior year’s sales are also reclassified to conform to the new segmentation. © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11, 2

  31. Slide 31: Passive Components business annual sales by markets

    Passive Components business annual sales by markets (FY March 2021 - FY March 2022) (Note) In accordance with the redefinition of markets in 1Q of FY2022, the prior year’s sales are also reclassified to conform to the new segmentation. © TDK Corporation  2022 Performance Briefing Fiscal Year March

  32. Slide 32: Quarterly sales by markets

    Quarterly sales by markets (FY March 2021 - FY March 2022) (Note) In accordance with the redefinition of markets in 1Q of FY2022, the prior year’s sales are also reclassified to conform to the new segmentation. © TDK Corporation  2022 Performance Briefing Fiscal Year March 2022 IR&SR Group  May 11

  33. Slide 33: Passive Components business quarterly sales by markets

    Passive Components business quarterly sales by markets (FY March 2021 - FY March 2022) (Note) In accordance with the redefinition of markets in 1Q of FY2022, the prior year’s sales are also reclassified to conform to the new segmentation. © TDK Corporation  2022 Performance Briefing Fiscal Year Mar

  34. Slide 34: Net sales, operating income and R&D history

    Net sales & overseas sales ratio (Millions of yen) Operating income, net income & operating income ratio (%) (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 Operating income 1,800,000 90.0 208,660 1,902,124 Net income (loss) 200,000 20.0 1,600,000

  35. Slide 35: Total assets, equity, ROE and dividends per share

    Total assets, stockholders' equity & stockholders' equity ratio (%) (%) ROI・ROE・ROA (Millions of yen) 25 3,200,000 3,086,924 70.0 ROI Total assets ROE 2,800,000 Stockholders' equity 60.0 ROA 19.8 Stockholders' equity ratio (%) 20 2,401,433 2,400,000 47.7 50.0 52.6 15.9 51.3 43.3 1,992,480 43.4 15.1

  36. Slide 36: 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

  37. Slide 37: Text data including Q&A to 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/2022/4q_1.html

TDK — FY March 2022 Earnings Presentation on 6ix