TDK Corporation · TSE:6762

TDK — FY2011 Earnings Presentation

33 slides from TDK's earnings presentation, Apr 27, 2011

  1. Slide 1: Earning Release Conference Fiscal Year March, 2011

    Earning Release Conference Fiscal Year March, 2011 TDK Corporation April. 27, 2011 1

  2. Slide 2: Agenda and presenters

    ◆Consolidated Full Year Results of FY March, 2011 Consolidated Full Year Projections of FY March, 2012 President and CEO Takehiro Kamigama ◆Consolidated Full Year Results of FY March, 2011 Consolidated 4Q Results of FY March, 2011 Takakazu Momozuka General Manager, Finance & Accounting Department ◆P

  3. Slide 3: Consolidated Full Year Results FY March 2011 and Projections FY March 2012

    Consolidated Full Year Results of FY March, 2011 Consolidated Full Year Projections of FY March, 2012 President and CEO, TDK Corporation Takehiro Kamigama 3

  4. Slide 4: Consolidated Full Year Results of FY March, 2011

    Consolidated Full Year Results of FY March, 2011 FY March 2010 FY March 2011 Change (JPY billion） Full Year Results Full Year Results JPY billion % Net Sales 808.9 875.7 66.9 8.3 Operating Income 25.8 63.8 38.0 147.7 Operating Income Margin 3.2% 7.3% +4.1pt - Income before Income Taxes 21.9 60.1 38.

  5. Slide 5: Features in full year results of FY March, 2011

    Features in full year results of FY March, 2011 ◆Impact of the Great East Japan Earthquake ・Net sales declined about 1.1 billion yen Operating income declined about 1.8 billion yen ・Production cutbacks in the automobile market materialized immediately after the earthquake ・TDK is monitoring trends i

  6. Slide 6: Features in full year results of FY March, 2011

    Features in full year results of FY March, 2011 ◆Sales of passive components increased 18.2% year on year ・Sales of inductive devices rose for a wide range of finished products. ・Sales of high-frequency components increased substantially for smartphones. ・Sales of aluminum electrolytic capacitors an

  7. Slide 7: Sales in the three priority areas increased substantially

    Features in full year results of FY March, 2011 TDK Group / Sales transition by applications Communications JPY billion Car Electronics JPY billion Other JPY billion 160 146.4 120 110.6 250 227.2 95.9 140 100 179.1 114.9 200 120 100 80 65.7 Up15% 140.4 Up27% 100 Up27% 150 60 80 Up46% 100 Up28% 60 Up

  8. Slide 8: Change in sales composition by applications

    Features in full year results of FY March, 2011 Change in sales composition by applications 727.4 billion yen 875.7 billion yen 140.4 19% 227.2 26% 65.7 IT Home Electronics 391.5 421.3 9% 44% 58% Communications 100 Car Electronics 110.6 14% Others 13% 146.4 17% FY March 2009 FY March 2011 ・Sales com

  9. Slide 9: Full year projections and dividend projections of FY March, 2012

    Full year projections and dividend projections of FY March, 2012 ‹ TDK has not issued consolidated operating projections and dividend projections for fiscal 2012 having decided it cannot do so reasonably at this time due to uncertainty surrounding the production levels of finished products, which af

  10. Slide 10: Measures in response to the Great East Japan Earthquake going forward

    Measures in response to the Great East Japan Earthquake going forward 【Current Status】 ◆The 25 affected business sites have all resumed production and operation ◆Anxiety in supply chain has been already terminated excluding a part of materials 【Measures in response to the eqrthquake going forward】 ◆

  11. Slide 11: Future Strategy: Focused area and products

    Future Strategy 【Focused area and products】 ‹ Communications area ¾Small size ceramic capacitor ¾High Frequency Inductor ¾Module products with IC embedded substrate ‹ Car Electronics area ¾DC-DC converter ¾Power capacitor (Film capacitor) ¾Sensor Module products with IC embedded substrate ‹ IT Home

  12. Slide 12: Consolidated 4Q Results of FY March, 2011

    Consolidated Full Year Results of FY March, 2011 Consolidated 4Q Results of FY March, 2011 Takakazu Momozuka General Manager, Finance & Accounting Department 12

  13. Slide 13: Consolidated Full Year Results of FY March, 2011 by segment

    Consolidated Full Year Results of FY March, 2011 FY March 2010 FY March 2011 Change Full Year Results Full Year Results Yen billion ％ Yen billion ％ Yen billion % Capacitors 133.1 16.5 145.4 16.6 12.3 9.2 Inductive devices 112.0 13.8 135.8 15.5 23.8 21.3 Other 119.7 14.8 150.0 17.1 30.2 25.2 Net Sale

  14. Slide 14: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes Operating Income : + 38.0 billion yen Rationalization, Cost reduction・ Purchased materials savings +22.2 billion yen SG&A expenses Changes in sales and decrease Products mix （including decrease +73.1billion yen in restructuring cost by 8.3 billion yen) +2.2 bill

  15. Slide 15: Financial Position

    Financial Position （JPY billion） March End, 2010 March End, 2011 Change Total Asset 1,091.5 1,060.9 -30.6 Total Liability 541.8 521.1 -20.7 Interest-bearing Debt 270.1 245.0 -25.1 Stockholders's Equity 543.8 534.3 -9.5 (comprehensive income) -172.1 -218.0 -45.9 Stockholders's Equity ratio 49.8% 50.4

  16. Slide 16: Quarterly Results (4Q of FY2010 vs. 4Q of FY2011)

    Quarterly Results (4Q of FY2010 vs. 4Q of FY 2011) FY March 2010 FY March 2011 Change (JPY billion） 4Q Results 4Q Results JPY billion % Net Sales 211.3 213.6 2.2 1.0 Operating Income 8.3 9.4 1.1 13.3 Operating Income Margin 3.9% 4.4% +0.5pt - Income before Income Taxes 11.0 8.9 -2.1 -19.1 Net Income

  17. Slide 17: Quarterly Results of FY March 2011 (3Q vs. 4Q)

    Quarterly Results of FY March 2011 (3Q vs. 4Q) 3Q results of FY 2011 4Q results of FY 2011 Q on Q change （2010.10.1～2010.12.31） （2011.1.1～2011.3.31） Yen billion ％ Yen billion ％ Yen billion % Passive Components 108.4 49.3 108.1 50.6 -0.3 -0.3 Net sales Magnetic Applicatons Products 90.8 41.3 85.2 39.

  18. Slide 18: Passive Components Business

    Passive Components Business Shinichi Araya Director, Senior Vice President 18

  19. Slide 19: Passive components business

    Passive components business Net Sales of passive components business ◆Passive Components Segment 431.1 billion yen Net sales：431.1 billion yen, increased by 18.2% year on year Operating income：24.7 billion yen (operating loss of 10.3 billion 364.8 billion yen 150.0 in previous fiscal year） 119.7 ＜Br

  20. Slide 20: Passive components: sales in three priority areas increased

    Passive components business / Sales transition by applications Communications Car Electronics Other JPY billion JPY billion JPY billion 120 108.1 200 100 88.7 77.6 158.5 100 80 150 129.9 76.1 80 62.7 60 49.8 Up14% 60 Up42% 100 85.2 Up22% 40 Up56% 40 Up21% Up52% 50 20 20 0 0 0 2009/3 2010/3 2011/3 20

  21. Slide 21: Passive components: change in sales composition by applications

    Passive components business / Sales transition by applications Change in sales composition by applications 286.4 billion yen 431.1 billion yen 75.8 85.2 88.7 18% 30% 31% IT Home Electronics 158.5 36% Communications 108.1 Car Electronics 25% Others 49.8 62.7 17% 88.7 22% 21% FY March 2009 FY March 20

  22. Slide 22: Recording Device Business

    Recording Device Business Atsuo Kobayashi General Manager, Senior Vice President 22

  23. Slide 23: Recording device business

    Recording device business Net sales of recording device segment ◆Recoding device Segment Net sales：257.5 billion yen, decreased by 8% year on year Sale of HDD head decreased due to the JPY appreciation against the U.S. dollar and price reduction 280.0 257.5 Shipment Index JPY billion FY March'10 FY

  24. Slide 24: Supplementary Data

    TDK Supplementary Data 24

  25. Slide 25: Expenses / Foreign exchange sensitivity

    Expenses / Foreign exchange sensitivity FY2010 FY2011 Change (JPY billion） Full Year Results Full Year Results Yen billion % Capital expenditures 64.4 78.6 14.2 22.0 Depreciation and amortization 83.8 77.6 -6.2 -7.4 Research and development 53.9 53.0 -0.9 -1.7 US$ 92.89 85.73 Appreciation by 7.7% Ex

  26. Slide 26: Business overview in Passive components (3Q vs 4Q)

    Business overview in Passive components（3Q vs 4Q) Sector Net sales in 3Q Net sales in 4Q Sales status Change % Ceramic capacitors Capacitors Slightly increased sales for automobiles 35.2 billion yen Decreased sales for PCs, AV equipment and communication device 34.5 billion yen Aluminum & Film capac

  27. Slide 27: Quarterly Results (4Q vs. 4Q) (3Q vs. 4Q)

    Quarterly Results (4Q vs. 4Q) (3Q vs. 4Q) YoY Change QoQ Change 4Q of FY 2010 3Q of FY 2011 4Q of FY 2011 （Ｃ）－（Ａ） （Ｃ）－（Ｂ） Jan 1- Mar 31, 2010 Oct 1- Dec 31, 2010 Jan 1- Mar 31, 2011 （Ａ） （B） （C） Yen billion % JPY billion % JPY billion Net Sales 211.3 219.9 213.6 2.3 1.1 -6.3 -2.9 Passive Components 9

  28. Slide 28: Quarterly Sales and Operating Income by Segment

    Quarterly Sales and Operating Income by Segment FY March 2010 FY March 2011 （JPY billion） １Q ２Q ３Q ４Q Total １Q ２Q ３Q ４Q Total Net Sales 181.5 204.3 211.7 211.3 808.8 221.9 220.3 219.9 213.6 875.7 Passive Components 80.2 93.8 94.3 96.5 364.8 105.1 109.5 108.4 108.1 431.1 Breakdown Magnetic Applicatio

  29. Slide 29: Quarterly Sales by Segment

    Quarterly Sales by Segment FY March 2010 FY March 2011 （JPY billion） １Q ２Q ３Q ４Q Total １Q ２Q ３Q ４Q Total Net Sales 181.5 204.3 211.7 211.3 808.8 221.9 220.3 219.9 213.6 875.7 Passive Components 80.2 93.8 94.3 96.5 364.8 105.1 109.5 108.4 108.1 431.1 Capacitors 28.8 33.6 34.6 36.1 133.1 38 37.7 35.2

  30. Slide 30: Net Sales, R&D and Capital Expenditures trends

    TDK (lions of yen) Net Sales & Overseas Sales Ratio (%) 1,000,000 12 ESP Net sales 866 814 * sm Overseas sales ratio (%) an = 73 800,000 . 6 4 600,000 2 0 400,000 2 4 200,000 2 8 0 -10 20023 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 20093 2010/3 ne (Mitions of yen) Research and Development & Ratio t

  31. Slide 31: Total Assets, Equity, ROE, Dividends, Employees

    (Maions of ye) Total Assets, Stockholders’ Equity & Stockholders’ Equity Ratio Ce.) ROI, ROE & ROA 4,000,000 0 5 794 1,101,096 4,091,458 1,060,853 se 764 » 10 800,000 923,503 989,304 70 808,001 raga rargay_ 70819 pecri2 6 5 702,419 600,000 fl ener 7 ssanes |spe2'? 543,756 [534273 0 40 400,000 » © 20

  32. Slide 32: 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

  33. Slide 33: TDK

TDK — FY2011 Earnings Presentation on 6ix