Slide 1: First Half Performance Briefing, Fiscal Year March 2025
Fiscal Year March 2025 First Half Performance Briefing TDK Corporation IR&SR Group November 1, 2024
Slide 2: Index
Index 1 H1, FY March 2025 Results Highlights Tetsuji Yamanishi, Senior Executive Vice President & CFO 2 FY March 2025 Projections Noboru Saito, President & CEO 3 Appendix H1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 2
Slide 3: H1, FY March 2025 Results Highlights
H1, FY March 2025 Results Highlights Tetsuji Yamanishi Senior Executive Vice President & CFO H1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 3
Slide 4: H1, FY March 2025 key points
H1, 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. • Operating profit reached a record high for the first half of the fiscal year. Net sales (JPY bn) Operating profit (JPY bn)
Slide 5: H1, FY March 2025 results
H1, FY March 2025 results • Net sales and operating profit increased year on year. FY3/24 FY3/25 Change ▍Exchange rate impact on net sales and operating profit H1 H1 JPY bn % (OP) (JPY bn) (JPY bn) Net sales 1,059.7 1,089.5 +29.8 +2.8% Net sales Approx. +71.4 OP Approx. +13.6 Operating profit 85.5 1
Slide 6: Passive Components segment
Passive Components segment • While sales to the ICT market increased, profit decreased due to a decrease in sales to the industrial equipment and a slowdown in sales to the automotive markets. ▍Net sales (0.4)% (JPY bn) 286.2 H1 results 285.0 • Sales and profit decreased year on year. 200 Ceramic ca
Slide 7: Sensor Application Products segment
Sensor Application Products segment • While sales to the ICT and the automotive markets increased, profit decreased due to a decline in sales to the industrial equipment market. ▍Net sales +10.2% (JPY bn) 86.1 H1 results 94.9 60 49.2 50.8 • Sales increased year on year. 50 47.3 45.2 44.1 Temperature
Slide 8: Magnetic Application Products segment
Magnetic Application Products segment • Sales of HDD-related components increased significantly due to a continued recovery in demand from the HDD market, returning to profitability. ▍Net sales (JPY bn) +33.6% 83.1 H1 results 110.9 HDD heads 70 and HDD • Sales increased year on year, returning to pr
Slide 9: Energy Application Products segment
Energy Application Products segment • Small capacity batteries posted an increase in sales volume and a significant increase in profit due to a continued recovery in demand from the ICT market. ▍Net sales (JPY bn) (1.2)% 450 578.9 H1 results 572.0 • Profit of small capacity batteries increased year
Slide 10: Analysis of change in operating profit
Analysis of change in operating profit (JPY bn) Operating profit +47.8 Exchange rate Changes in sales fluctuation Selling price Rationalization, Benefits from SG&A expenses one-time expenses (incl. deterioration in fluctuation cost reduction restructuring increase USD/JPY: decrease 140.83 → 152.76 o
Slide 11: Q2, FY March 2025 results
Q2, FY March 2025 results • Net sales and operating profit increased year on year. FY3/24 FY3/25 Change ▍Exchange rate impact on net sales and operating profit (JPY bn) Q2 Q2 JPY bn % (OP) (JPY bn) Net sales 556.3 570.7 +14.4 +2.6% Net sales Approx. +17.6 Operating profit 59.2 75.4 +16.2 +27.3% OP A
Slide 12: Quarterly results by segment
Quarterly results by segment FY3/24 FY3/25 FY3/25 YoY [C] – [A] QoQ [C] – [B] (JPY bn) Q2 [A] Q1 [B] Q2 [C] JPY bn % JPY bn % Capacitors 62.6 61.5 58.0 (4.6) (7.4)% (3.5) (5.7)% Inductive Devices 50.6 50.8 52.7 +2.1 +4.2% +1.9 +3.7% Other Passive Components 32.2 30.7 31.2 (1.0) (3.2)% +0.5 +1.5% Pas
Slide 13: Cash flows – H1
Cash flows – H1 FY3/24 FY3/25 Change (JPY bn) H1 H1 Cash flows from operating activities 204.6 205.9 +1.3 Cash flows from investing activities (98.5) (100.0) (1.5) Free cash flow 106.0 105.9 (0.2) Cash flows from financing activities (17.5) (32.8) (15.2) Effects of ex-rate fluctuation 47.7 (26.4) (7
Slide 14: FY March 2025 Projections
FY March 2025 Projections Noboru Saito President & CEO H1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 14
Slide 15: Assumptions for performance forecast - key market predictions
Assumptions for performance forecast - key market predictions • While production volume for the ICT market is expected to increase, the forecast for automobile production volume (especially BEVs) has been revised downward. FY3/25 Forecast FY3/24 As of April 2024 As of November 2024 Actual (A) (Produ
Slide 16: Projections by segment for Q3, FY March 2025
Projections by segment for Q3, FY March 2025 Q3, FY3/25 projection (QoQ) Q2, FY3/25 Assumed exchange rates: Assumed exchange rates: Factor Actual (JPY bn)) Beginning-of-period Q2 basis Passive • Sales of products to the industrial equipment market are expected to Components 141.9 (6) ~ (3)% (1) ~ +2
Slide 17: FY March 2025 projections
FY March 2025 projections • FY March 2025 projection and dividend projection have been revised upward reflecting brisk results in the ICT market. FY3/24 FY3/25 Projection Change (YoY) (JPY bn) Actual As of April 2024 As of November 2024 JPY bn % Net sales 2,103.9 2,105.0 2,120.0 +16.1 +0.8% Operatin
Slide 18: Progress of new Medium-term Plan: key points
Progress of new Medium-term Plan: key points Enhance business 1 Strengthen management focusing on cash flows 2 portfolio management 3 Evolve the Ferrite Tree (Pre-financial capital) （Emphasizing ROIC） Accelerate management Ongoing initiatives aimed at Toward increasing asset profitability focused on
Slide 19: Appendix
Appendix H1, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2024. 19
Slide 20: Cash flows
Cash flows Operating activities Investing activities Free cash flow FY3/25 Projection (JPY bn) 447.0 370.0 262.8 270.0 222.4 230.9 230.4 180.4 179.0 120.0 28.4 (0.6) 15.0 (42.0) Incl. advance payments of about 110.0 bn JPY (102.6) to secure stable supply of battery materials. (231.4) (234.4) (216.6)
Slide 21: Shareholder returns
Shareholder returns FY3/25 (JPY) Annual dividends* Dividend payout ratio Projection 30 80.0 30 80.0 28.0 70.0 70.0 25 23.2 25 24.0 21.2 60.0 60.0 20 20 50.0 50.0 12.0 15.7 15 35.2% 35.3% 40.0 15 35.6% 40.0 12.0 33.2% 39.3% 30.0 30.0 10 30.4% 22.6% 10 20.0 20.0 5 5 10.0 10.0 0 0.0 0 0.0 FY3/20 FY3/21
Slide 22: 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 58.0 Inductive Devices 47.5 50.6 50.7 48.3 197.1 50.8 52.7 Other Passive Components 30.7 32.2 30.9 29.7 123.5 30.7 31.2 140.7 145.4 141.0 138.5 565.6 1
Slide 23: Capex, Depreciation, and R&D expenses - H1
Capex, Depreciation, and R&D expenses - H1 FY3/24 FY3/25 Change (JPY bn) H1 H1 Capex 114.4 93.5 (21.0) (Purchase of tangible and intangible assets) Depreciation and amortization 94.6 95.0 +0.3 % to net sales 8.9% 8.7% -0.2pts R&D expenses 90.1 123.2 +33.1 % to net sales 8.5% 11.3% +2.8pts ▍Capex ▍De
Slide 24: Capex, Depreciation, and R&D expenses – Projections
Capex, Depreciation, and R&D expenses – Projections Capex Depreciation and amortization R&D expenses (JPY bn) 350 FY3/25 Projections 300 291.3 275.7 250.0 250 240.0 212.2 218.6 220.0 200 206.3 173.4 190.5 190.0 179.5 188.4 177.0 165.3 150 148.4 125.0 127.4 117.5 100 50 0 FY3/20 FY3/21 FY3/22 FY3/23
Slide 25: Financial position
Financial position March 31, 2024 June 30, 2024 September 30, 2024 Change (JPY bn) Total assets 3,415.3 3,683.3 3,512.8 (170.5) Total liabilities 1,700.4 1,810.8 1,781.8 (29.1) Total equity attributable to owners of parent 1,707.3 1,864.1 1,720.4 (143.7) Ratio of equity attributable to owners of par
Slide 26: 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
Slide 27: 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) (JPY bn) (1.1)% (JPY bn) +10.3% 0 642.9 600 556.3 559.3 570.7 230.1 227.7 582.9 503.4 518.8 346.1 484.9 0 120 111.8 118.3 116.6 116.8 117.5 110.2 350 320.4 336.3 500 296.9 100 300 262.5 272.6 400 12.6% 13
Slide 28: 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
Slide 29: Quarterly sales by market: Passive Components
Quarterly sales by market (FY3/24 – FY3/25) Passive Components ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) +2.0% +7.2% 140.7 145.4 141.0 138.5 143.1 141.9 0 (JPY bn) (JPY bn) 150 0 139.0 141.8 35.1 32.7 0 80 72.3 72.7 74.1 71.6 70.2 13.2% 66.7 12.1% 0 30 100 10.0% 10.6% 0 60 9.7% Net sales 19.4
Slide 30: 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
Slide 31: 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) +3.8% +32.8% 60 (JPY bn) (JPY bn) 49.2 50.8 0 39.7 45.7 47.3 45.2 25 38.3 30 50 44.1 0 22.3 34.4 26.0 38.8 9.6% 20.3 20.2 19.5 9.3% 19.0 19.3 25 22.0 22.8 40 0 20 7.6% Net sales 20
Slide 32: 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%
Slide 33: 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% 23.4% (6.6)% (10.7)% 24.7% 23.9% (JPY bn) (JPY bn) 80% 90.7 60 60 84.7 78.6 49.5 44.9 70.2 45.8 44.4 42.1 42.7 60% Asia and others 40.0 38.7 53.5% 40 40 33.9 36.2 35.8 34.4 54.4% 55.8% 48.1% 52.2% China 55.3% 40% Eur
Slide 34: 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
Slide 35: 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
Slide 36: 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
Slide 37: 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 38: Text data including Q&A will be uploaded on following site
Text data including Q&A of performance briefing will be uploaded on following site. https://www.tdk.com/en/ir/ir_events/conference/2025/2q_1.html