Tdk Corporation · TSE:6762

Tdk — H1 FY March 2017 Earnings Presentation

26 slides from Tdk's earnings presentation, Nov 1, 2016

  1. Slide 1: Performance Briefing First Half of Fiscal Year March 2017

    Performance Briefing First Half of Fiscal Year March, 2017 TDK Corporation November 1, 2016 Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 -1-

  2. Slide 2: Agenda

    ◆Consolidated Results for First Half of FY March 2017 Tetsuji Yamanishi, Corporate Officer ◆Consolidated Full Year Projections for FY March 2017 Shigenao Ishiguro, President and CEO ◆Q&A Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 -2-

  3. Slide 3: Consolidated Results for First Half of FY March 2017

    Consolidated Results for First Half of FY March 2017 Tetsuji Yamanishi Corporate Officer Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 -3-

  4. Slide 4: Key points concerning earnings for First Half of FY March 2017

    Key points concerning earnings for First Half of FY March 2017 ◆ Net sales declined 1.4% and operating income declined 2.9% year on year. Net income increased 3.8% year on year. ◆ The passive components segment secured a year on year increase in operating income, driven by improved earnings on high-

  5. Slide 5: Consolidated Results for First Half of FY March 2017

    Consolidated Results for First Half of FY March 2017 FY March 2016 FY March 2017 Change Results through 2Q Results through 2Q (Yen billions) (2015.4.1-2015.9.30) (2016.4.1-2016.9.30) Yen billions % Net Sales 587.6 579.2 (8.4) -1.4 Operating Income 45.6 44.3 (1.3) -2.9 Operating Income Margin 7.8% 7.

  6. Slide 6: First Half Results - Passive Components Segment

    First Half Results - Passive Components Segment (Yen billions) Net Sales Net Sales 281.7 billion yen (down 6.9% year on year) 302.5 281.7 Operating Income 36.7 billion yen (up 13.3% year on year) ◆ Ceramic Capacitors ・Sales decreased year on year. ・Sales to the automobile market increased, while sal

  7. Slide 7: First Half Results - Magnetic Application Products Segment

    First Half Results - Magnetic Application Products Segment Net Sales Net Sales 166.3 billion yen (up 1.0% year on year) (Yen billions) 164.6 166.3 Operating income 4.1 billion yen (down 50.0% year on year) ◆ HDD Heads ・Sales increased year on year. ・HDD head sales were stronger than initially projec

  8. Slide 8: First Half Results - Film Application Products Segment

    First Half Results - Film Application Products Segment Net Sales Net sales 117.0 billion yen (up 10.2% year on year) (Yen billions) 106.2 117.0 Operating income 20.1 billion yen (up 18.9% year on year) ◆ Energy Devices (Rechargeable Batteries) ・Sales increased year on year. ・Sales for smartphones in

  9. Slide 9: Quarterly Results by Segment

    Quarterly Results by Segment 2Q of 1Q of 2Q of YoY Change QoQ Change (C)-(A) (C)-(B) FY March 2016 FY March 2017 FY March 2017 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 39.5 34.4 33.7 (5.8) -14.7 (0.7) -2.0 Inductive Devices 40.2 35.7 35.5 (4.7) -11.7 (0.2) -0.6 Other Passi

  10. Slide 10: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes First Half of First Half of Operating Income -1.3 billion yen FY March 2017 FY March 2016 45.6 billion yen 44.3 billion yen (Yen billions) Sales price Changes in sales Reduction +39.6 (39.0) Rationalization, Benefits from SG&A expenses cost reduction Restructuri

  11. Slide 11: Consolidated Results for 2Q of FY March 2017

    Consolidated Results for 2Q of FY March 2017 FY March 2016 FY March 2017 Change (Yen billions) 2Q Results 2Q Results Yen billions % Net Sales 308.1 300.4 (7.7) -2.5 Operating Income 27.4 27.8 0.4 1.5 Operating Income Margin 8.9% 9.3% +0.4pt - Income before Income Taxes 25.1 27.9 2.8 11.2 Net Income

  12. Slide 12: Consolidated Full Year Projections for FY March 2017

    Consolidated Full Year Projections for FY March 2017 Shigenao Ishiguro President and CEO Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 - 12 -

  13. Slide 13: Market trend in the second half

    Market trend in the second half The arrow symbol “→” denotes changes from first-half trend Priority Market Trend Markets North American smartphone production is expected to peak in 3Q but to decline year on year. Chinese smartphone production is expected to maintain the level of the first half in th

  14. Slide 14: Projections for 3Q of FY March 2017

    Projections for 3Q of FY March 2017 -Image of change in sales (Yen billions) 2Q of 3Q Projections Segment FY March 2017 (Q on Q Change) Passive Components 144.0 ±0% Magnetic Application Products 83.9 ±0% Film Application Products 65.2 +6%～+8% Other 7.3 － Total 300.4 +1%～+3% Forex assumptions US$/Yen

  15. Slide 15: Full Year / Dividend Projections

    FY March 2017 Full Year / Dividend Projections FY March 2017 FY March 2017 Y o Y Change FY March 2016 Full Year Projections Full Year Projections Full Year Results Yen billions % (Yen billions) (announced Apr. 28) (Revised) Net Sales 1,152.3 1,160.0 1,140.0 (12.3) -1.1 Operating Income 93.4 74.0 76.

  16. Slide 16: Supplementary Data

    Supplementary Data Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 - 16 -

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

    Quarterly sales and operating income by segment FY March 2016 FY March 2017 (Yen billions) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 39.1 39.5 36.4 35.4 150.4 34.4 33.7 Inductive Devices 39.7 40.2 38.9 36.3 155.1 35.7 35.5 Other Passive Components 71.4 72.6 68.2 65.8 278.0 67.6 74.8 Passive Com

  18. Slide 18: Projections and Forex sensitivity

    FY March 2017 Projections and Forex sensitivity Expenses (Yen billions) 250 Capital expenditure Depreciation R&D 200.0 200 190.0 160.7 150 102.5 95.0 90.0 90.0 90.0 100 85.6 82.9 80.2 83.2 84.9 77.4 70.6 68.6 63.4 53.5 50 0 13/3 14/3 15/3 16/3 17/3 17/3 13/3 14/3 15/3 16/3 17/3 17/3 13/3 14/3 15/3 1

  19. Slide 19: Financial Position

    Financial Position March End, June End, September End, Change from (Yen billions) 2016 2016 2016 June End, 2016 Total Asset 1,450.6 1,416.0 1,483.5 67.5 Total Liability 765.9 808.3 874.8 66.5 Stockholders's Equity 675.4 599.3 601.6 2.3 (comprehensive income) (102.3) (183.2) (195.4) (12.2) Stockholde

  20. Slide 20: Cash Flows

    Cash Flows FY March 2016 FY March 2017 YoY Results through 2Q Results through 2Q Change (Yen billions) Operating Cash Flow 60.9 54.6 (6.3) Investing Cash Flow (67.4) (87.5) (20.1) Free Cash Flow (6.5) (32.9) (26.4) Financing Cash Flow (3.4) 62.3 65.7 Effect of exchange rate chagens on cash and cash

  21. Slide 21: Quarterly sales by applications

    Quarterly sales by applications (1Q of FY March 2016 –2Q of FY March 2017) Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 - 21 -

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

    Passive Components Business quarterly sales by applications (1Q of FY March 2016 –2Q of FY March 2017) Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 - 22 -

  23. Slide 23: Copyright © 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March,

    2007/3 : FY March 2007 Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 - 23 -

  24. Slide 24: Copyright © 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March,

    2007/3 : FY March 2007 Copyright© 2016 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2017 November 1, 2016 - 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 of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_ev…

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2017/2q_1.htm

TDK — H1 FY March 2017 Earnings Presentation on 6ix