TDK Corporation · TSE:6762

TDK — FY March 2013 Earnings Presentation

32 slides from TDK's earnings presentation, Apr 26, 2013

  1. Slide 1: Performance Briefings Fiscal Year March, 2013

    Performance Briefings Fiscal Year March, 2013 TDK Corporation April 26, 2013 Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 -1-

  2. Slide 2: Agenda and presenters

    ◆Consolidated Full Year Results of FY March, 2013 Consolidated Full Year Projections of FY March, 2014 Takehiro Kamigama President and CEO ◆Consolidated Full Year Results of FY March, 2013 Consolidated 4Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manger of Finance & Acco

  3. Slide 3: Consolidated Full Year Results of FY March 2013 and Projections for FY March 2014

    Consolidated Full Year Results of FY March, 2013 Consolidated Full Year Projections of FY March, 2014 Takehiro Kamigama President and CEO Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 -3-

  4. Slide 4: Consolidated Full Year Results of FY March, 2013

    Consolidated Full Year Results of FY March, 2013 FY March 2012 FY March 2013 Change Full Year Results Full Year Results (Yen billions） (2011.4.1-2012.3.31) (2012.4.1-2013.3.31) Yen billions % Net Sales 814.5 851.6 37.1 4.6 Operating Income 18.7 21.6 3.0 15.8 Operating Income Margin 2.3% 2.5% 0.2 pt

  5. Slide 5: Review of FY March 2013

    Review of FY March 2013 ◆Consolidated sales up 4.6%, operating income up 15.8% year on year ‡ Significant downward revision to initial projections two consecutive fiscal year ‡ Sales of passive components for communications market were below our expectations ‡ “Sales of Industrial equipment and othe

  6. Slide 6: Full Year Projections of FY March 2014

    Full Year Projections of FY March 2014 FY March 2013 FY March 2014 Change (JPY billion） Full Year Results Full Year Projections JPY billion % Net Sales 851.6 930.0 78.4 9.2 Operating Income 21.6 30.0 8.4 38.9 Operating Income Margin 2.5% 3.2% 0.7pt - Net income from continuing 18.9 28.0 9.1 48.1 ope

  7. Slide 7: Points of business activities in FY March 2014

    Points of business activities in FY March 2014 ●Road to the target ●Establishment of strong business base for growth ●Growth scenario Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 -7-

  8. Slide 8: Road to the target

    Road to the target Implemented structural reform to respond to changes in the business environment (FY March 2012 – FY March 2014) Realize the target zTo optimize business portfolio (FY March 2015 onward) zTo optimize production bases zTo improve cost structure •Exit non-core business zTo prioritize

  9. Slide 9: Establishment of strong business base for growth

    Establishment of strong business base for growth ‹FY March 2013：Implemented restructuring centered on passive components business ‹FY March 2014：Final stage in business portfolio optimization and restructuring ・To withdraw or sell Blu-ray Disc business Promote business (by the end of March in 2014)

  10. Slide 10: Growth Scenario

    Growth Scenario points of each segment To concentrate management resources on growing market and core business TDK position this business as center of growth strategy and Passive revitalize this business for pillar of profit of the company ・High frequency components for communications equipment such

  11. Slide 11: Consolidated Full Year and 4Q Results of FY March 2013

    Consolidated Full Year Results of FY March, 2013 Consolidated 4Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 11 -

  12. Slide 12: Results of FY March 2013 by segment

    Results of FY March 2013 by segment FY March 2012 FY March 2013 Change Full Year Results Full Year Results Yen billion ％ Yen billion ％ Yen billion % Capacitors 132.4 16.3 118.0 13.9 (14.4) -10.9 Inductive devices 121.2 14.9 119.6 14.0 (1.6) -1.3 Other Passive Components 128.0 15.7 142.1 16.7 14.0 11

  13. Slide 13: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes FY March 2012 Operating Income +3.0 billion yen FY March 2013 18.7 billion yen 21.6 billion yen Changes in sales Decrease in (including utilization, negative impact products mix) by change of -15.4 pension plan Insurance gain +3.1 (Thai flooding) +6.7 Benefits f

  14. Slide 14: Financial Position

    Financial Position March End, March End, Change （JPY billion） 2012 2013 Total Asset 1,072.8 1,169.6 96.8 Total Liability 560.8 589.0 28.2 Stockholders's Equity 498.2 561.2 63.0 (comprehensive income) (230.8) (159.0) 71.8 Stockholders's Equity ratio 46.4% 48.0% 1.6pt Cash and Cash equivalents 173.4 2

  15. Slide 15: Segment Information (4Q FY2012 vs 4Q FY2013)

    Segment Information (4Q of FY2012 vs. 4Q of FY2013, 3Q vs. 4Q） YoY Change QoQ Change 4Q of FY 2012 3Q of FY 2013 4Q of FY 2013 （Ｃ）－（Ａ） （Ｃ）－（Ｂ） Jan 1- Mar 31, 2012 Oct 1- Dec 31, 2012 Jan 1- Mar 31, 2013 （Ａ） （B） （C） JPY billion Yen billions % Yen billions % Capacitor 31.6 26.6 30.7 (0.9) -2.8 4.1 15.

  16. Slide 16: Projections for FY March 2014 – Image of change in sales

    Projections for FY March 2014 – Image of change in sales FY March 2014 FY March 2013 Main factor and premise of Segment Projections projections Results (vs. FY March 2013) Increase in sales of high frequency components, inductive devices, circuit protection components Passive for information and com

  17. Slide 17: Passive Components Business

    Passive Components Business Hiroyuki Uemura Executive Vice President Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 17 -

  18. Slide 18: Capacitor

    Passive components business - points of main products Ceramic Capacitor ‡Completed sites consolidation worldwide in FY March 2013 ‡Established stable earning structure by restructuring effects ‡To shift resources to growth strategy in FY March 2014 セラミック ‡Automotive market is the highest prioritized

  19. Slide 19: High Frequency Components

    Passive components business - points of main products ‡To improve profitability and increase sales by launching module and SAW device ‡Production capacity of SAW filter (including duplexer) is being increased ・To respond to recent order increase ・To respond to demand increase (both discrete and modu

  20. Slide 20: Inductive Device

    Passive components business - points of main products ‡Full product line-up of power inductors ・Stable production by optimization of customers’ portfolio ・To expand production capacity and sales of metal power inductors Inductive ・To provide flexible solutions with full range of products to customer

  21. Slide 21: Recording Device Business

    Recording Device Business Shigenao Ishiguro General Manager of Data Storage & Thin Film Technology Components BG Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 21 -

  22. Slide 22: Recording Device Business

    Recording Device Business ●HDD market FY March 2013 (TDK’s forecast ) : About 570 million units FY March 2014 (TDK’s forecast ) : About 530 million units ●Shipment index Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention) HDD Head Shipment Index (Right) (JPY billion) (shipment

  23. Slide 23: Supplementary Data

    Supplementary Data Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 23 -

  24. Slide 24: 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 26.6 30.7 118.0 Inductive Devices 32.9 31.4 28.6 28.4 121.2 28.2 29.6 30.6 31.2 119.6 Other Passive Components 32.8 34.4 30.4 30

  25. Slide 25: Annual Sales by applications (FY2009/Mar – FY2013/Mar)

    Annual Sales by applications (FY2009/Mar – FY2013/Mar) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 25 -

  26. Slide 26: Passive Components Business Annual sales by applications

    Passive Components Business Annual sales by applications (FY2009/Mar –FY2013/Mar) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 26 -

  27. Slide 27: Quarterly sales by applications

    Quarterly sales by applications (1Q/FY2012/Mar –4Q/FY2013/Mar) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 27 -

  28. Slide 28: Passive Components Business quarterly sales by applications

    Passive Components Business quarterly sales by applications (1Q/FY2012/Mar –4Q/FY2013/Mar) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 28 -

  29. Slide 29: Performance Briefings Fiscal Year March, 2013 April 26, 2013

    Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 29 -

  30. Slide 30: Performance Briefings Fiscal Year March, 2013 April 26, 2013

    Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 - 30 -

  31. Slide 31: 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

  32. Slide 32: Text data including Q&A of performance briefing

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2013/4q_1.htm

TDK — FY March 2013 Earnings Presentation on 6ix