Tdk Corporation · TSE:6762

Tdk — FY2025 Earnings Presentation

53 slides from Tdk's earnings presentation, Apr 28, 2025

  1. Slide 1: Full Year Performance Briefing

    Fiscal Year March 2025 Full Year Performance Briefing TDK Corporation IR&SR Group April 28, 2025

  2. Slide 2: Index

    Index 1 FY March 2025 Results Highlights Tetsuji Yamanishi, Senior Executive Vice President & CFO 2 FY March 2026 Projections Tetsuji Yamanishi, Senior Executive Vice President & CFO 3 Progress on Medium-term Plan Noboru Saito, President & CEO 4 Appendix FY March 2024 2025 Full Year Performance Brie

  3. Slide 3: Key points for Today

    Key points for Today • FY March 2025 resulted in record high net sales and all kinds of profits. For shareholder returns, we conducted an upward revision from initial plans to increase dividends. • In FY March 2026, given the heightened uncertainties such as additional tariffs by the United States,

  4. Slide 4: FY March 2025 Results Highlights

    FY March 2025 Results Highlights Tetsuji Yamanishi Senior Executive Vice President & CFO FY March 2025 Full Year Performance Briefing Copyright © TDK Corporation, 2025. 4

  5. Slide 5: FY March 2025 key points

    FY March 2025 key points • Net sales and operating profit reached a record high for the fiscal year, as strong demand from the ICT and the HDD markets continued. Net sales (¥ bn) Operating profit (¥ bn) 2,204.8 224.2 Up 4.8 ％ YoY Up 29.7 ％ YoY • Sales of small capacity batteries, HDD-related compone

  6. Slide 6: FY March 2025 results

    FY March 2025 results • Net sales and operating profit increased year on year. • One-time expenses: ¥20.2 bn Change ▍Exchange rate impact on FY3/24 FY3/25 net sales and operating profit (¥ bn) ¥ bn % (OP) (¥ bn) Net sales 2,103.9 2,204.8 +100.9 +4.8% Net sales Approx. +95.7 Operating profit 172.9 22

  7. Slide 7: Passive Components segment – Full year

    Passive Components segment – Full year • Profit decreased due to a decline in sales to the automotive and the industrial equipment markets. ▍Net sales (1.1)% (¥ bn) 565.6 559.6 • Sales and profit decreased year on year. 200 Ceramic capacitors • Sales decreased to the automotive and the industrial 14

  8. Slide 8: Sensor Application Products segment – Full year

    Sensor Application Products segment – Full year • While sales to the ICT market increased, profit decreased due to a decline in sales to the industrial equipment and the automotive markets. ▍Net sales (¥ bn) +5.0% 70 180.5 189.5 • Profit decreased year on year. 60 Temperature and 47.3 49.2 50.8 48.1

  9. Slide 9: Magnetic Application Products segment – Full year

    Magnetic Application Products segment – Full year • Sales of HDD-related components increased significantly due to a recovery in demand from the HDD market, returning to profitability contributed by the benefits from restructuring. ▍Net sales (¥ bn) +21.4% 184.2 223.6 HDD heads 70 and HDD • Sales in

  10. Slide 10: Energy Application Products segment – Full year

    Energy Application Products segment – Full year • Small capacity batteries posted an increase in sales volume and a significant increase in profit due to a recovery in demand from the ICT market. ▍Net sales (¥ bn) +4.9% 1,121.7 1,176.5 • Profit of small capacity batteries increased year on year 450

  11. Slide 11: Quarterly results by segment

    Quarterly results by segment FY3/24 FY3/25 FY3/25 YoY [C] – [A] QoQ [C] – [B] (¥ bn) Q4 [A] Q3 [B] Q4 [C] ¥ bn % ¥ bn % Capacitors 60.5 57.5 57.2 (3.3) (5.4)% (0.3) (0.5)% Inductive Devices 48.3 51.8 49.0 +0.7 +1.4% (2.9) (5.5)% Other Passive Components 29.7 30.3 28.9 (0.9) (2.9)% (1.4) (4.6)% Passi

  12. Slide 12: Analysis of change in operating profit – Full Year

    Analysis of change in operating profit – Full Year (¥ bn) Operating profit +51.3 Ex-rate fluctuation SG&A expenses One-time USD to JPY: Changes in sales Rationalization, Benefits from Selling price increase expenses 144.48 → 152.66 (incl. changes in cost reduction restructuring fluctuation increase

  13. Slide 13: Cash flows – Full Year

    Cash flows – Full Year FY3/24 FY3/25 Change (¥ bn) Cash flows from operating activities 447.0 445.8 (1.2) Cash flows from investing activities (216.6) (244.8) (28.3) Free cash flow 230.4 201.0 (29.4) Cash flows from financing activities (146.4) (143.3) +3.0 Effects of ex-rate changes 59.8 (10.4) (70

  14. Slide 14: FY March 2026 Projections

    FY March 2026 Projections FY March 2025 Full Year Performance Briefing Copyright © TDK Corporation, 2025. 14

  15. Slide 15: Assumptions for performance forecast - key market predictions

    Assumptions for performance forecast - key market predictions • Growth in each market will depend on the impact of additional tariffs while the xEV market is expected to expand. Base scenario Risk scenario FY3/25 FY3/26 FY3/26 (Production volume: Actual Forecast % of YoY Forecast % of YoY Unit mn) (

  16. Slide 16: FY March 2026 projections

    FY March 2026 projections • We used a base scenario and risk scenario to formulate performance forecasts as additional tariffs enacted since the start of the new US administration have made economic environment projections difficult. Base scenario Risk scenario FY3/25 FY3/26 YoY Change FY3/26 YoY Ch

  17. Slide 17: Projections by segment for FY March 2026

    Projections by segment for FY March 2025 FY3/26 forecast (YoY) FY3/25 Assumed exchange Assumed exchange Factor in base scenario Actual (¥ bn)) rates: FY3/26 basis rates:FY3/25 basis • Sales of ceramic capacitors to the automotive market are expected to Passive increase. Components 559.6 (1) ~ +2% +4

  18. Slide 18: Operating profit projections for FY March 2026

    Operating profit projections for FY March 2026 （¥ bn） Growth in real terms (20.0) (45.0) +20.8 Benefits from One-time Changes in sales restructuring expenses (incl. changes in Rationalization, SG&A expenses decrease operating rate and cost reduction increase Ex-rate fluctuation product mix) USD to J

  19. Slide 19: Capex, Depreciation, and R&D expenses – Projections

    Capex, Depreciation, and R&D expenses – Projections Capex Depreciation and amortization R&D expenses (¥ bn) 350 300 291.3 275.7 280.0 253.6 260.0 250 212.2 218.6 225.3 206.3 205.0 190.5 196.2 188.9 200 177.0 179.5 165.3 148.4 150 127.4 100 50 0 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/21 FY3/22

  20. Slide 20: Shareholder returns

    Shareholder returns • Dividends for FY March 2025 are expected to increase by an upward revision from initial plans. • For FY March 2026, even in the risk scenario, we maintain dividends of ¥30 per share. (¥) Annual dividends *1 Dividend payout ratio 30.0 30.0 30 80.0 70.0 25 23.2 21.2 60.0 20 50.0

  21. Slide 21: Progress on Medium-term Plan

    Progress on Medium-term Plan Noboru Saito President & CEO FY March 2025 Full Year Performance Briefing Copyright © TDK Corporation, 2025. 21

  22. Slide 22: “Control the Controllable”

    “Control the Controllable” We will ensure that we control things within our ability to control Assumed measures against risk scenario • Production structure that adapts to demand volume influenced by macroeconomic decline Demand • Enhance the capabilities of products with a competitive advantage ahe

  23. Slide 23: Financial KPI progress

    Financial KPI progress • For FY March 2025, we achieved the initial targets. We have not changed the targets in the final year of the Medium-term Plan. FY3/26 FY3/24 FY3/25 FY3/27 Base scenario Risk scenario Net sales [¥ bn] 2,500.0 Growth (CAGR) 2,103.9 2,204.8 2,200.0 2,120.0 (approx. 5%) ROE 7.9%

  24. Slide 24: Change of capital allocation plan (FY3/25 to FY3/27 accumulated)

    Change of capital allocation plan (FY3/25 to FY3/27 accumulated) • Allocate the expected OCF increase from the initial plan to Capex. Considering the market environment, allocate to strategic investments and shareholder returns. As of May.2024 As of Apr.2025 Base scenario (¥ bn) (¥ bn) +250.0 150.0

  25. Slide 25: Progress on Key points of the Medium-term Plan

    Progress on Key points of the Medium-term Plan 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

  26. Slide 26: Progress of business portfolio management

    Progress of business portfolio management We are advancing business portfolio management Key growth area ▍Business portfolio map Sales proportion % Profit base Growing • Have evolved from the previous double- High axis investment allocation map to a 58% 14% double-axis business portfolio map. Minimu

  27. Slide 27: Improve profitability of Business to be intensively monitored

    Progress of business portfolio management Improve profitability of Business to be intensively monitored • As of Investor Day May.2024, 27 CBUs were selected as Business to be intensively monitored. Profit base Growing • 1 CBU was transferred to Profit Base, 7 CBUs were transferred to the best owner,

  28. Slide 28: TDK constantly contributes to the entire AI ecosystem

    Progress of business portfolio management TDK constantly contributes to the entire AI ecosystem Profit base Growing Making data Storing and Profit enhancement recording more Regulating current stabilizing electricity Challenging Next efficient Strategic restructuring generation Storing electricity P

  29. Slide 29: We will help boost sales for the entire AI ecosystem

    Progress of business portfolio management We will help boost sales for the entire AI ecosystem Profit base Growing • Steadily capture demand for AI data centers, a projected growth market, and peripheral ecosystems Profit enhancement • Transform the business models used for the software business, et

  30. Slide 30: Contribute to predictive maintenance for industrial machinery

    Contribute to AI ecosystem CASE 01 Contribute to predictive maintenance for industrial machinery Profit base Growing edgeRX, which was designed using advanced AI and edge computing technology, Profit enhancement conducts real-time monitoring, makes observations concerning predictive Challenging Next

  31. Slide 31: Contribute to AI devices

    Contribute to AI ecosystem CASE 02 Contribute to AI devices • The key to the spread of smart glasses is the realization of functionality in compact and stylish devices. Profit base Growing Profit enhancement • TDK is focusing on the development of ultra-compact, low-power consumption products for st

  32. Slide 32: Contribute to semiconductor manufacturing equipment

    Contribute to AI ecosystem CASE 03 Contribute to semiconductor manufacturing equipment Profit base Growing • In the 2.5/3D advanced packages, technology innovation at backend process is required. Supporting Profit enhancement manufacturing • By combining manufacturing and materials, TDK will contrib

  33. Slide 33: Pre-financial capital that backs TDK’s Value creation

    Pre-financial capital that backs TDK’s Value creation • TDK constantly contributes to the entire AI ecosystem Future Ferrite Tree New Business RF devices for quantum Unique computer Group’s Culture LN薄膜 FCLM SpinPD Photo acoustic glucose SAW filter monitoring Thin-film RF Multilayer RF component Neu

  34. Slide 34: My commitment as President & CEO

    My commitment as President & CEO(Material from Investor Day May.2024) • We have formulated our vision of what we want to be 10 years from now (Long-term Vision). We have back-casted from our vision for 10 years to identify the path to enhancing our corporate value. • Based on our materials × process

  35. Slide 35: Appendix

    Appendix FY March 2025 Full Year Performance Briefing Copyright © TDK Corporation, 2025. 35

  36. Slide 36: 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 57.5 57.2 234.3 Inductive Devices 47.5 50.6 50.7 48.3 197.1 50.8 52.7 51.8 49.0 204.3 Other Passive Components 30.7 32.2 30.9 29.7 123.5 30.7 31.2

  37. Slide 37: Capex, Depreciation, and R&D expenses – Full Year

    Capex, Depreciation, and R&D expenses – Full Year FY3/24 FY3/25 Change (¥ bn) Capex 218.6 225.3 +6.7 (Purchase of tangible and intangible assets) Depreciation and amortization 190.5 196.2 +5.7 % to net sales 9.1% 8.9% (0.2)pts R&D expenses 188.9 253.6 +64.7 % to net sales 9.0% 11.5% +2.5pts ▍Capex ▍

  38. Slide 38: Progress on ROIC by segment

    Progress on ROIC by segment • We will strengthen businesses with high profitability and capital efficiency to achieve higher operating profit margins and BizROA (ROIC). ▍Chart for growth and capital efficiency by segment ▍Net sales, BizROA by segment (¥ bn) FY3/24 FY3/25 FY3/27 30% FY3/25 FY3/24 Net

  39. Slide 39: Financial position

    Financial position Change from March 31, 2023 March 31, 2024 March 31, 2025 (¥ bn) March 31, 2024 Total assets 3,147.0 3,415.3 3,541.4 +126.1 Total liabilities 1,684.2 1,700.4 1,730.2 +29.8 Total equity attributable to owners of parent 1,458.4 1,707.3 1,800.1 +92.7 Ratio of equity attributable to ow

  40. Slide 40: Cash flows

    Cash flows Operating activities Investment activities Free cash flow 447.0 445.8 (¥ bn) 370.0 262.8 230.4 230.9 201.0 179.0 70.0 28.4 (0.6) Incl. advance payments (102.6) of about 110.0 bn ¥ to secure stable supply of battery materials. (231.4) (234.4) (216.6) (244.8) (281.5) (300.0) FY3/21 FY3/22 F

  41. Slide 41: Annual sales by market (FY3/21 – FY3/25)

    Annual sales by market (FY3/21 – FY3/25) All ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) 2,500 0 (JPY bn) (JPY bn) 2,180.8 2,103.9 2,204.8 1,500 0 500 463.5 447.9 1,308.2 2,000 1,902.1 0 1,207.6 1,191.8 418.7 1,200 1,142.5 0 1,479.0 400 330.4 913.7 1,500 10.2% 0 8.8% 8.2% 300 900 7.6% 7.7% 0 Net

  42. Slide 42: Quarterly sales by market (FY3/24 – FY3/25)

    Quarterly sales by market (FY3/24 – FY3/25) All ▍Net sales, OP margin ▍Automotive ▍ICT (3.4)% +9.8% (JPY bn) (JPY bn) (JPY bn) 581.0 0 600 556.3 559.3 570.7 463.5 447.9 1,191.8 1,308.2 518.8 534.3 503.4 484.9 346.1 355.2 500 0 118.3 116.6 116.8 117.5 110.4 336.3 120 111.8 110.2 109.9 320.4 296.9 310

  43. Slide 43: Annual sales by market – Passive Components

    Annual sales by market (FY3/21 – FY3/25) Passive Components ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) 600 578.8 565.6 559.6 0 (JPY bn) (JPY bn) 507.8 300 285.7 281.2 500 256.1 150 0 407.1 16.3% 211.8 400 15.1% 0 200 172.1 100 78.8 81.5 300 9.8% 9.5% Net sales 72.3 68.1 68.0 0 200 6.1% OP margi

  44. Slide 44: Quarterly sales by market – Passive Components

    Quarterly sales by market (FY3/24 – FY3/25) Passive Components ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) (1.6)% (0.2)% 140.7 145.4 141.0 138.5 143.1 141.9 139.6 135.1 0 (JPY bn) (JPY bn) 150 0 285.7 281.2 68.1 68.0 0 13.2% 80 72.3 72.7 74.1 71.6 70.2 72.1 12.1% 0 66.7 67.3 30 100 10.0% 10.6% 0

  45. Slide 45: Annual sales by market – Sensor Application Products

    Annual sales by market (FY3/21 – FY3/25) Sensor Application Products ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) 189.5 (JPY bn) (JPY bn) 200 180.5 169.5 0.14 80.9 79.5 100 0.12 80 88.8 150 130.8 61.2 80 72.5 75.9 0.1 60 46.2 56.1 100 81.3 6.3% 0.08 Net sales 60 0.06 40 34.4 OP margin 40 3.3% 25.

  46. Slide 46: 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) (1.7)% +17.0% 60 (JPY bn) (JPY bn) 49.2 50.8 48.1 0 80.9 79.5 75.9 88.8 47.3 45.2 46.5 30 50 44.1 0 25 22.3 26.0 38.8 9.3% 9.6% 19.0 19.3 20.3 20.2 19.5 19.4 20.4 25 22.0 22.8 22.4

  47. Slide 47: Annual sales by region (FY3/21 – FY3/25)

    Annual sales by region (FY3/21 – FY3/25) 100% ▍Japan ▍Americas 18.7% 20.4% 19.6% 21.4% 23.7% (¥ bn) (¥ bn) 80% 200 184.6 174.4 200 176.4 172.7 Asia and others 60% 149.0 140.1 China 160 160 148.7 56.8% 55.7% 54.8% 53.1% 129.9 54.1% Europe 117.2 120 120 40% 96.7 Americas Japan 80 80 20% 10.0% 9.2% 9.6

  48. Slide 48: Quarterly sales by region (FY3/24 – FY3/25)

    Quarterly sales by region (FY3/24 – FY3/25) 100% ▍Japan ▍Americas (5.5)% (5.8)% 18.6% 21.2% 21.1% 21.3% 24.7% 23.9% 23.4% 26.4% (¥ bn) (¥ bn) 80% 184.6 174.4 148.7 140.1 60 60 60% Asia and others 49.5 44.9 40.0 45.8 44.9 44.4 44.8 38.7 53.5% 42.1 42.7 40 33.9 36.2 35.8 34.4 36.1 54.4% 55.8% 48.1% Ch

  49. Slide 49: 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 (¥ mn) Net sales Overseas sales ratio (¥ mn) Operating profit Net profit attributable to owners of parent OP margin 224,192 92.1% 91.1% 91.1% 91.

  50. Slide 50: 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 (¥ mn) Ratio of equity attributable to owners of parent ROIC ROE R

  51. Slide 51: Evaluation by external organizations

    Status of inclusion in Indices / Evaluation by external organizations ▍Indices FTSE4Good FTSE Blossom FTSE Blossom JPX Prime 150 Index Japan Sector Index Series Japan Index Relative Index Morningstar Japan MSCI ESG Leaders ex-REIT Gender Indexes ※1 ※2 ※2 Diversity Tilt Index ※1,2 THE INCLUSION OF TD

  52. Slide 52: 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

  53. Slide 53: Text data including Q&A of performance briefing

    Text data including Q&A of performance briefing will be uploaded on following site. https://www.tdk.com/en/ir/ir_events/conference/2025/4q_1.html

TDK — FY2025 Earnings Presentation on 6ix