Tdk Corporation · TSE:6762

Tdk — H1 FY March 2013 Earnings Presentation

28 slides from Tdk's earnings presentation, Oct 31, 2012

  1. Slide 1: Performance Briefings First Half of Fiscal Year March, 2013

    Performance Briefings First Half of Fiscal Year March, 2013 TDK Corporation October 31, 2012 Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012 -1-

  2. Slide 2: Agenda and presenters

    ◆Consolidated First Half Results of FY March, 2013 Consolidated Full Year Projections of FY March, 2013 President and CEO Takehiro Kamigama ◆Consolidated 2Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manger of Finance & Accounting Department ◆Recording Device Business Shi

  3. Slide 3: Consolidated First Half Results and Full Year Projections

    Consolidated First Half Results of FY March, 2013 Consolidated Full Year Projections of FY March, 2013 President and CEO, TDK Corporation Takehiro Kamigama Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012 -3-

  4. Slide 4: Consolidated First Half Results of FY March, 2013

    Consolidated First Half Results of FY March, 2013 FY March 2012 FY March 2013 Change Results through 2Q Results through 2Q (Yen billions） (2011.4.1-2011.9.30) (2012.4.1-2012.9.30) Yen billions % Net Sales 416.1 415.6 (0.5) -0.1 Operating Income 14.5 20.4 5.9 40.9 Operating Income Margin 3.5% 4.9% 1.

  5. Slide 5: Features in First Half Results of FY March 2013

    Features in First Half Results of FY March 2013 ◆Consolidated sales decreased 0.1%, operating income increased 40.9% ・Sales of recording devices were below our expectations due to slowdown of HDD market ・Sales increase for communications market in passive components business were below our expectati

  6. Slide 6: Full Year Projections of FY March 2013

    Full Year Projections of FY March 2013 Revised full year projections based on change in business environment and first half results Projections First Half Projections (Yen billions) (As of Apr. 27) Results (As of Oct. 31) Net sales 900.0 415.6 850.0 Operating Income 57.0 20.4 41.0 Income before inco

  7. Slide 7: Full Year Projections – Capex, Depreciation, R&D

    Full Year Projections of FY March 2013 – Capex, Depreciation, R&D Revised full year projections based on change in business environment and first half results Projections First Half Projections (Yen billions) (As of Apr. 27) Results (As of Oct. 31) Capital expenditures 85.0 44.0 80.0 Depreciation an

  8. Slide 8: Dividends Forecast

    Dividends Forecast of FY March 2013 Dividend forecast per a common share Interim dividend 40 yen Year-end dividend 40 yen (forecast) Annual dividend 80 yen (forecast) TDK has revised the year-end dividend forecast to 40 yen from 50 yen, based on the revision of the consolidated projections for the

  9. Slide 9: Initiatives for Second Half of FY March 2013

    Initiatives for Second Half of FY March 2013 Focus on improving profitability with thorough cost management Reliable execution of structural reforms Structural reform effect to be realized in center of passive components business Review of capital expenditure and research and development expenses

  10. Slide 10: Consolidated 2Q Results of FY March, 2013

    Consolidated 2Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012 - 10 -

  11. Slide 11: Consolidated 2Q Results of FY March, 2013

    Consolidated 2Q Results of FY March, 2013 FY March 2012 FY March 2013 Change 2Q Results 2Q Results (Yen billions） (2011.7.1-2011.9.30) (2012.7.1-2012.9.30) Yen billions % Net Sales 209.9 207.0 (2.9) -1.4 Operating Income 8.5 11.2 2.7 31.8 Operating Income Margin 4.0% 5.4% 1.4 pt - Income from Contin

  12. Slide 12: Segment Information (FY2012 2Q vs. FY2013 2Q)

    Segment Information (FY2012 2Q vs. FY2013 2Q, FY2013 1Q vs.FY2013 2Q) YoY Change QoQ Change 2Q of FY 2012 1Q of FY 2013 2Q of FY 2013 （Ｃ）－（Ａ） （Ｃ）－（Ｂ） Jul 1- Sep 30, 2011 Apr 1- Jun 30, 2012 Jul 1- Sep 30, 2012 （Ａ） （B） （C） Yen billions % Yen billions % JPY billion Capacitor 34.2 31.4 29.2 (5.0) -14.6

  13. Slide 13: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes Operating income : +2.7 11.2 billion yen Decrease in negative impact by earthquake Income from insurance +0.6 billion yen (Thai flooding) +5.2 8.5 billion yen Changes in sales (including utilization, products mix -2.9 Restructuring effect +2.7 Rationalization, c

  14. Slide 14: Projections for FY March 2013 – Image of change in sales

    Projections for FY March 2013 – Image of change in sales 3Q 4Q 1Q 2Q Segment Projections Projections Remarks Results Results (versus 2Q) (versus 3Q) Sales of high-frequency Passive components 91.5 90.6 ＋8～10％ ＋3～5% components and inductive devices will be mainly increased Magnetic application 88.2 8

  15. Slide 15: Recording Device Business

    Recording Device Business Shigenao Ishiguro General Manager of Data Storage & Thin Film Technology Components BG Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012 - 15 -

  16. Slide 16: Recording Device Business

    Recording Device Business ●HDD market FY March 2013 (TDK’s forecast as of July-end) : About 660 million units FY March 2013 (TDK’s forecast as of October-end) : About 575 million units ●Shipment index Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention) HDD Head Shipment Index

  17. Slide 17: Supplementary Data

    Supplementary Data Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012 - 17 -

  18. Slide 18: Quarterly sales and operating income by segment

    Quarterly sales and operating income by segment FY March 2012 FY March 2013 Yen billions 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 36.1 34.2 30.6 31.6 132.4 31.4 29.2 Inductive Devices 32.9 31.4 28.6 28.4 121.2 28.2 29.6 Other Passive Components 32.8 34.4 30.4 30.5 128.0 31.8 31.7 Passive Compo

  19. Slide 19: Quarterly sales by applications

    Quarterly sales by applications (1Q of FY2012 –2Q FY2013) ＜Quarterly sales by applications＞ 25.8% 23.6% 22.6% 20.7% 20.4% 20.3% Industrial Equipment and Others 12.9% 14.3% 17.2% 18.4% 17.5% 16.6% Automobile 14.7% 15.5% 18.0% 15.2% 14.3% 15.4% Communication Products 46.6% 46.5% 42.2% 45.7% 47.8% 47.8

  20. Slide 20: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes First Half of First Half of FY 2012 Operating income : +5.9 FY 2013 14.5 billion yen 20.4 billion yen Income from insurance (Thai flooding) +5.4 Decrease in negative impact by earthquake Restructuring +3.6 billion yen effect 20.4 Decrease in +5.2 billion yen neg

  21. Slide 21: Financial Position

    Financial Position March End, June End, Sep End, Q on Q （JPY billion） 2012 2012 2012 Change Total Asset 1,072.8 1,046.5 1,048.1 1.6 Total Liability 560.8 561.8 563.4 1.6 Interest-bearing Debt 272.8 280.7 284.1 3.4 Stockholders's Equity 498.2 470.7 469.6 -1.0 (comprehensive income) -230.8 -257.8 -264

  22. Slide 22: Projections – Capex, Depreciation, R&D

    FY March 2013 Projections –Capex, Depreciation, R&D- Capital expenditure Depreciation R&D (JPY billion) 100 99.7 85.0 83.8 82.0 78.6 79.9 80 77.6 80.0 78.0 64.4 Revision Revision 60 53.9 53.0 52.6 53.0 51.0 40 Revision 20 0 10/3 11/3 12/3 13/3 13/3 10/3 11/3 12/3 13/3 10/3 11/3 12/3 Projections Proj

  23. Slide 23: Dividend Forecast

    FY March 2013 Dividend Forecast Revision of projected dividends per share Interim dividend 40 Yen Year-end dividend 40 Yen (forecast) ←Previous forecast : 50 Yen Annual dividend 80 Yen (forecast) ←Previous forecast : 90 Yen JPY Dividend Payout ratio % 100 Forecast 80 80 80 80 80 60 57.2 50.4 60 60

  24. Slide 24: Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012

    Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012 - 24 -

  25. Slide 25: Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012

    Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2013 October 31, 2012 - 25 -

  26. Slide 26: Reference information regarding segment reclassification

    Reference information regarding segment reclassification Since FY March 2012 (=previous fiscal year), TDK has had three reporting segments— Passive Components, Magnetic Application Products and Film Application Products— as well as Other, which includes products not included in these three reporting

  27. Slide 27: 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 s

  28. Slide 28: Text data including Q&A to be uploaded

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2013/2q_1.htm

TDK — H1 FY March 2013 Earnings Presentation on 6ix