TDK Corporation · TSE:6762

TDK — H1 FY March 2016 Earnings Presentation

26 slides from TDK's earnings presentation, Oct 30, 2015

  1. Slide 1: Performance Briefing First Half of Fiscal Year March, 2016

    Performance Briefing First Half of Fiscal Year March, 2016 TDK Corporation October 30, 2015 Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 -1-

  2. Slide 2: Agenda: Consolidated Results and Full Year Projections

    ◆Consolidated Results for First Half of FY March 2016 Tetsuji Yamanishi, Corporate Officer ◆Consolidated Full Year Projections for FY March 2016 Takehiro Kamigama, President and CEO Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 -2-

  3. Slide 3: Consolidated Results for First Half of FY March 2016

    Consolidated Results for First Half of FY March 2016 Tetsuji Yamanishi Corporate Officer Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 -3-

  4. Slide 4: Key points concerning earnings for First Half

    Key points concerning earnings for First Half of FY March 2016 ◆ 587.6 billion yen, first half sales, was the highest ever. Operating income was 45.6 billion yen, increased by 63% year on year. ◆ Both sales and operating income of passive components achieved record first-half earnings. (Operating in

  5. Slide 5: Consolidated Results for First Half of FY March 2016

    Consolidated Results for First Half of FY March 2016 FY March 2015 FY March 2016 Change Results through 2Q Results through 2Q (Yen billions） (2014.4.1-2014.9.30) (2015.4.1-2015.9.30) Yen billions % Net Sales 502.3 587.6 85.3 17.0 Operating Income 27.9 45.6 17.7 63.4 Operating Income Margin 5.6% 7.8%

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

    First Half Results - Passive Components Segment Net Sales Net Sales 298.0 billion yen (up 18.3% year on year) (Yen billions) 298.0 Operating Income 32.4 billion yen (up 88.4% year on year) 251.8 ◆Ceramic Capacitors ・Sales increased year on year, particularly to the steady automobile market. ・Profit

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

    First Half Results - Magnetic Application Segment Net Sales Net Sales 164.6 billion yen (down 5.6% year on year) (Yen billions) 174.4 Operating income 8.2 billion yen (down 47.8% year on year) 164.6 ◆Recording Devices (HDD Heads) ・The HDD market slowed due to a globally lackluster demand for PCs. ・S

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

    First Half Results - Film Application Segment Net Sales (Yen billions) 107.3 Net sales 107.3 billion yen (up 79.7% year on year) Operating income 16.4 billion yen (up 198.2% year on year) 59.7 ◆Energy Devices (Rechargeable Batteries) ・Sales to major customers in China, South Korea and North America

  9. Slide 9: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes First Half of First Half of Operating Income + 17.7 billion yen FY March 2016 FY March 2015 27.9 billion yen 45.6 billion yen (Yen billions) Benefits from SG&A expenses Rationalization, Restructuring increase cost reduction +1.4 -6.0 Sales price +19.2 Changes in

  10. Slide 10: Consolidated Results for 2Q of FY March 2016

    Consolidated Results for 2Q of FY March 2016 FY March 2015 FY March 2016 Change (Yen billions) 2Q Results 2Q Results Yen billions % Net Sales 264.8 308.1 43.3 16.4 Operating Income 18.3 27.4 9.1 49.7 Operating Income Margin 6.9% 8.9% +2.0pt - Income before Income Taxes 17.0 25.1 8.1 47.6 Net Income

  11. Slide 11: Quarterly Results by Segment

    Quarterly Results by Segment 2Q of 1Q of 2Q of YoY Change QoQ Change (C)-(A) (C)-(B) FY March 2015 FY March 2016 FY March 2016 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 37.3 39.1 39.5 2.2 5.9 0.4 1.0 Inductive Devices 37.1 37.9 38.6 1.5 4.0 0.7 1.8 Other Passive Components

  12. Slide 12: Consolidated Full Year Projections for FY March 2016

    Consolidated Full Year Projections for FY March 2016 Takehiro Kamigama President and CEO Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 - 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 to peak in 3Q and projected to ICT remain on par year on year in 4Q. Chinese and South Korean smartphone production to increase slightly from

  14. Slide 14: Projections for 3Q of FY March 2016 - Image of change in sales

    Projections for 3Q of FY March 2016 -Image of change in sales 2Q of 3Q Projections Segment FY March 2016 (Q on Q Change) Passive Components 150.2 ±0% Magnetic Application Products 85.3 -4%～-6% Film Application Products 64.1 +7%～+9% Other 8.6 Total 308.1 ±0% Forex assumptions US$/Yen 122.31 115.00 EU

  15. Slide 15: Full Year / Dividend Projections

    FY March 2016 Full Year / Dividend Projections TDK keeps initial projections (announced on April 28) unchanged. YoY Change FY March 2015 FY March 2016 Full Year Results Full Year Projections Yen billions % (Yen billions） Net sales 1,082.6 1,180.0 97.4 9.0% Operating income 72.5 95.0 22.5 31.0% Opera

  16. Slide 16: Supplementary Data

    Supplementary Data Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 - 16 -

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

    Quarterly sales and operating income by segment FY March 2015 FY March 2016 (Yen billions) 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 36.5 37.3 37.5 37.6 149.0 39.1 39.5 Inductive Devices 35.7 37.1 38.1 36.4 147.3 37.9 38.6 Other Passive Components 49.7 55.5 67.6 62.8 235.8 70.8 72.1 Passive Com

  18. Slide 18: Projections and Forex sensitivity

    FY March 2016 Projections and Forex sensitivity Expenses (Yen billions) Capital expenditure Depreciation R&D 140 130.0 120 99.7 102.5 100 85.6 90.0 79.9 77.4 82.9 80.2 77.0 80 68.6 70.6 63.4 60 52.6 53.5 40 20 0 12/3 13/3 14/3 15/3 16/3 12/3 133/3 14/3 15/3 16/3 12/3 13/3 14/3 15/3 16/3 Projections

  19. Slide 19: Financial Position

    Financial Position March End, June End, September End, Change from (Yen billions） 2015 2015 2015 June End, 2015 Total Asset 1,404.3 1,467.8 1,445.1 (22.7) Total Liability 646.3 683.9 701.5 17.6 Stockholders's Equity 738.9 763.9 735.7 (28.2) (comprehensive income) (5.9) 12.1 (15.8) (27.9) Stockholder

  20. Slide 20: Cash Flows

    Cash Flows FY March 2015 FY March 2016 YoY Results through Results through (Yen billions) 2Q 2Q Change Operating Cash Flow 43.9 60.9 17.0 Investing Cash Flow (45.0) (67.4) (22.4) Free Cash Flow (1.1) (6.5) (5.4) Financing Cash Flow (18.9) (3.4) 15.5 Effect of exchange rate chagens on cash and cash e

  21. Slide 21: Quarterly sales by applications

    Quarterly sales by applications (1Q of FY March 2015 –2Q of FY March 2016) Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 - 21 -

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

    Passive Components Business quarterly sales by applications (1Q of FY March 2015 –2Q of FY March 2016) Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 - 22 -

  23. Slide 23: Copyright © 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March,

    2005/3 : FY March 2005 Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 - 23 -

  24. Slide 24: Copyright © 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March,

    2005/3 : FY March 2005 Copyright© 2015 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2016 October 30, 2015 - 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: Performance briefing text data and Q&A upload site

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2015/2q_1.htm

TDK — H1 FY March 2016 Earnings Presentation on 6ix