Tdk Corporation · TSE:6762
Tdk — Q3 2025 Earnings Presentation
35 slides from Tdk's earnings presentation, Jan 31, 2025
Slide 1: 3rd Quarter Performance Briefing
Fiscal Year March 2025 3rd Quarter Performance Briefing TDK Corporation IR&SR Group January 31, 2025
Slide 2: Index
Index 1 Q3, FY March 2025 Results Highlights and FY March 2025 Projections Tetsuji Yamanishi, Senior Executive Vice President & CFO 2 Appendix Q3, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2025. 2
Slide 3: Q3, FY March 2025 Results Highlights and FY March 2025 Projections
Q3, FY March 2025 Results Highlights and FY March 2025 Projections Tetsuji Yamanishi Senior Executive Vice President & CFO Q3, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2025. 3
Slide 4: Q3 YTD, FY March 2025 key points
Q3 YTD, FY March 2025 key points • Net sales increased and operating profit increased significantly year on year, as strong demand from the ICT and the HDD markets continued. • Operating profit reached a record high for the first nine months of the fiscal year. Net sales (JPY bn) Operating profit (J
Slide 5: Q3 YTD, FY March 2025 results
Q3 YTD, 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) Q3 YTD Q3 YTD JPY bn % (OP) (JPY bn) Net sales Approx. +85.6 Net sales 1,619.0 1,670.5 +51.6 +3.2% OP Approx. +16.8 Operating p
Slide 6: Passive Components segment – Q3 YTD
Passive Components segment – Q3 YTD • Profit decreased due to a decline in sales to the industrial equipment and a slowdown in sales to the automotive markets. ▍Net sales (0.6)% (JPY bn) Results • Sales and profit decreased year on year. 200 427.1 Q3 YTD 424.6 Ceramic capacitors • Sales decreased to
Slide 7: Sensor Application Products segment – Q3 YTD
Sensor Application Products segment – Q3 YTD • While sales to the ICT market increased, profit decreased due to a decline in sales to the industrial equipment and a slowdown in sales to the automotive markets. ▍Net sales +5.7% (JPY bn) Results 70 135.3 143.0 Q3 YTD • Sales increased while profit dec
Slide 8: Magnetic Application Products segment – Q3 YTD
Magnetic Application Products segment – Q3 YTD • 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) +25.0% Results HDD heads 132.4 165.4 70 Q3 YTD and HDD • Sales increased year on year, r
Slide 9: Energy Application Products segment – Q3 YTD
Energy Application Products segment – Q3 YTD • 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 +1.4% (JPY bn) Results 883.5 Q3 YTD 895.9 • Profit of small capacity batteries increas
Slide 10: Q3, FY March 2025 results
Q3, FY March 2025 results • Net sales and operating profit increased year on year. • Operating profit reached a record high for the three months of the fiscal year. FY3/24 FY3/25 Change ▍Exchange rate impact on net sales and operating profit (JPY bn) Q3 Q3 JPY bn % (OP) (JPY bn) Net sales 559.3 581.
Slide 11: Analysis of change in operating profit – Q3
Analysis of change in operating profit – Q3 (JPY bn) Operating profit +5.6 Changes in sales Ex-rate fluctuation Benefits from SG&A expenses One-time USD/JPY: (incl. changes in Rationalization, restructuring increase expenses 147.95 → 152.29 operating rate and Selling price product mix) cost reductio
Slide 12: Quarterly results by segment
Quarterly results by segment FY3/24 FY3/25 FY3/25 YoY [C] – [A] QoQ [C] – [B] (JPY bn) Q3 [A] Q2 [B] Q3 [C] JPY bn % JPY bn % Capacitors 59.4 58.0 57.5 (1.9) (3.1)% (0.5) (0.8)% Inductive Devices 50.7 52.7 51.8 +1.1 +2.3% (0.9) (1.7)% Other Passive Components 30.9 31.2 30.3 (0.6) (2.0)% (0.9) (3.0)%
Slide 13: Cash flows – Q3 YTD
Cash flows – Q3 YTD FY3/24 FY3/25 Change (JPY bn) Q3 YTD Q3 YTD Cash flows from operating activities 333.3 369.0 +35.7 Cash flows from investing activities (147.8) (155.5) (7.6) Free cash flow 185.5 213.5 +28.0 Cash flows from financing activities (90.0) (73.3) +16.7 Effects of ex-rate fluctuation 2
Slide 14: Projections by segment for Q4, FY March 2025
Projections by segment for Q4, FY March 2025 Q4, FY3/25 Q3, FY3/25 Projection Factor Actual (JPY bn)) (% change, vs. Q3) • Sales of some products to the ICT and the industrial equipment market are Passive Components 139.6 (6) ~ (3)% expected to decrease despite unchanged sales of ceramic capacitors
Slide 15: FY March 2025 projections
FY March 2025 projections • Net sales projection have been revised upward reflecting brisk results in the ICT market. FY3/24 FY3/25 Projection Change from FY3/24 results (JPY bn) Actual As of November 2024 As of January 2025 JPY bn % Net sales 2,103.9 2,120.0 2,180.0 +76.1 +3.6% Operating profit 172
Slide 16: Appendix
Appendix Q3, FY March 2025 Performance Briefing Copyright © TDK Corporation, 2025. 16
Slide 17: 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 Inductive Devices 47.5 50.6 50.7 48.3 197.1 50.8 52.7 51.8 Other Passive Components 30.7 32.2 30.9 29.7 123.5 30.7 31.2 30.3 140.7 145.4 141.
Slide 18: Capex, Depreciation, and R&D expenses – Q3 YTD
Capex, Depreciation, and R&D expenses – Q3 YTD FY3/24 FY3/25 Change (JPY bn) Q3 YTD Q3 YTD Capex 156.6 162.4 +5.8 (Purchase of tangible and intangible assets) Depreciation and amortization 142.9 144.5 +1.5 % to net sales 8.8% 8.6% (0.2)pts R&D expenses 138.6 187.3 +48.7 % to net sales 8.6% 11.2% +2.
Slide 19: 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 FY3/25 Projections Projections 300 291.3 275.7 250.0 250.0 250 240.0 240.0 212.2 218.6 206.3 200 190.5 190.0 179.5 188.9 173.4 177.0 165.3 148.4 150 125.0 127.4 117.5 100 50 0 FY3
Slide 20: Financial position
Financial position Change from March 31, 2024 September 30, 2024 December 31, 2024 (JPY bn) March 31, 2024 Total assets 3,415.3 3,512.8 3,786.2 +370.9 Total liabilities 1,700.4 1,781.8 1,882.5 +182.1 Total equity attributable to owners of parent 1,707.3 1,720.4 1,892.9 +185.5 Ratio of equity attribu
Slide 21: Cash flows
Cash flows Operating activities Investing activities Free cash flow FY3/25 Projection (JPY bn) 447.0 440.0 370.0 262.8 222.4 230.9 230.4 179.0 200.0 180.4 120.0 28.4 (0.6) (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 22: 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 23: 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 24: 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) (2.6)% (JPY bn) +8.6% 581.0 0 600 556.3 559.3 570.7 346.7 337.5 919.2 998.1 503.4 518.8 484.9 0 118.3 116.6 116.8 117.5 336.3 346.1 355.2 500 120 111.8 110.2 109.9 320.4 296.9 320 272.6 400 12.6%
Slide 25: 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 26: Quarterly sales by market – Passive Components
Quarterly sales by market (FY3/24 – FY3/25) Passive Components ▍Net sales, OP margin ▍Automotive ▍ICT (JPY bn) +1.1% +1.8% 140.7 145.4 141.0 138.5 143.1 141.9 139.6 0 (JPY bn) (JPY bn) 150 0 211.7 213.9 52.1 53.0 0 80 72.3 72.7 74.1 71.6 70.2 72.1 13.2% 66.7 12.1% 0 30 100 10.0% 10.6% 0 60 9.7% 8.6%
Slide 27: 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 28: 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) +1.0% +19.0% 60 (JPY bn) (JPY bn) 49.2 50.8 48.1 0 58.6 59.2 57.2 68.1 47.3 45.2 25 30 50 44.1 0 22.3 26.0 38.8 9.6% 20.3 20.2 19.5 19.4 9.3% 19.0 19.3 25 22.0 22.8 22.4 40 0 20 7.
Slide 29: 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 30: 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% 21.3% 24.7% 23.9% 23.4% (JPY bn) (7.6)% (JPY bn) (7.5)% 80% 60 140.2 129.6 112.5 104.0 60 60% Asia and others 49.5 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 54.4% 55.8% 48.1% China 33.8 52.
Slide 31: 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 32: 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 33: Status of inclusion in Indices / Evaluation by external organizations
Status of inclusion in Indices / Evaluation by external organizations ▍Evaluation by ▍Indices external organizations JPX Prime 150 Index Sompo Sustainability Index WICI Japan Integrated An index composed by market capitalization An index compiled based on the results of the Buna-no- Report Award 202
Slide 34: 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 35: Q&A text data upload information
Text data including Q&A of performance briefing will be uploaded on following site. https://www.tdk.com/en/ir/ir_events/conference/2025/3q_1.html