Slide 1: Performance Briefings Fiscal Year March, 2012
Performance Briefings Fiscal Year March, 2012 TDK Corporation April. 27, 2012 Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -1-
Slide 2: Agenda and presenters
◆Consolidated Full Year Results of FY March, 2012 Consolidated Full Year Projections of FY March, 2013 Takehiro Kamigama, President and CEO ◆Consolidated Results of FY March, 2012 Consolidated 4Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting D
Slide 3: Change in reporting segment and discontinued operations note
TDK has changed the reporting segment in FY March 2012. Please see Page 15 for detail In accordance with the provisions of ASC No.205-20, “Presentation of Financial Statements-Discontinued Operations”, operating results relating to the display business are deducted. Also reclassifications are made t
Slide 4: Consolidated Full Year Results of FY March 2012 and Projections
Consolidated Full Year Results of FY March, 2012 Consolidated Full Year Results of FY March, 2013 Takehiro Kamigama President and CEO Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -4-
Slide 5: Consolidated Full Year Results of FY March, 2012
Consolidated Full Year Results of FY March, 2012 FY March 2011 FY March 2012 Change (JPY billion） Full Year Results Full Year Results JPY billion % Net Sales 871.9 814.5 (57.4) -6.6 Operating Income 64.3 18.7 (45.6) -70.9 Operating Income Margin 7.4% 2.3% -5.1pt - Net income from continuing operatio
Slide 6: Features in full year results
Features in full year results of FY March 2013 ◆Consolidated sales decreased 6.6%, operating income decreased by 70.9% ・Slowdown in electronics market due to the Great East Japan Earthquake and flooding in Thailand ・JPY appreciation continued (over 80 yen / US$) ・Sales of IT home electronics area su
Slide 7: Features in full year results – sales transition by applications
Features in full year results –sales transition by applications- Sales exposure of communications, automobiles and other (industrial equipment etc) increased to 57.4% Sales ratio of automobiles rose to 15.6% with steady sales increase Sales ratio of IT home electronics decreased to 42.6% due to weak
Slide 8: Full year projections and dividend projections of FY March 2013
Full year projections and dividend projections of FY March 2013 FY March 2012 FY March 2013 Change (JPY billion） Full Year Results Full Year Projections JPY billion % Net Sales 814.5 900.0 85.5 10.5 Operating Income 18.7 57.0 38.3 204.8 Operating Income Margin 2.3% 6.3% 4pt - Net income from continu
Slide 9: Establish solid earning base and business development
Business development from this fiscal year onward Establish solid earning base by implementation of restructuring measures) zReorganization of sites and optimization of workforce zCost reduction zImplement measures focusing on unprofitable business and products Sustainable growth with growth bus
Slide 10: Growth strategy for focus areas
Growth strategy for focus areas - Market Requirement Requirement What TDK should do for Hardware for Components Wireless Smaller, lower profile Offer smaller, higher performing Multi function Components to realize communications market Multi-band Next-generation and miniaturization and multi-functio
Slide 11: Growth strategy - Next generation information and communications market
Growth strategy -Next generation information and communications market - ●Human-originated digital data volumes continue to grow ●Cloud computing is accelerating both the concentration of digital data (data center expansion) and explosion of digital data (cloud-computing terminal diffusion such as s
Slide 12: Growth strategy - Energy related market
Growth strategy -Energy related market - The equipping of automobiles with electrical devices continues to gather pace against a backdrop of stricter fuel consumption and safety regulations around the world and soaring fuel prices. This leads to electrification of automobile and also this is promoti
Slide 13: Growth strategy - Energy related market
Growth strategy -Energy related market - Due to the shift to renewable energy and adoption of smart grids, demands for power electronics devices are expected to expand steadily over the medium and long terms. Steady business expansion with wide range of products and good customer base Passive compon
Slide 14: Consolidated Results of FY March 2012 and 4Q Results
Consolidated Results of FY March, 2012 Consolidated 4Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 14 -
Slide 15: About the change of reporting segment
About the change of reporting segment TDK newly has three reporting segments: “Passive Components” and “Magnetic Application Products” and “Film Application Products”, as well as “Other”, which includes products not included in these three reporting segments. Previous segment Previous Classification
Slide 16: Results of FY March 2012 by segment
Results of FY March 2012 by segment FY March 2011 FY March 2012 Change Full Year Results Full Year Results Yen billion ％ Yen billion ％ Yen billion % Capacitors 145.4 16.7 132.4 16.3 (13.0) -9.0 Inductive devices 130.2 14.9 121.2 14.9 (9.0) -6.9 Other Passive Components 150.0 17.2 128.0 15.7 (21.9) -
Slide 17: Breakdown of Operating Income Changes
Breakdown of Operating Income Changes FY March 2011 Operating income : -45.6 FY March 2012 64.3 billion yen 18.7 billion yen SG&A expenses decrease （including sale of land) +3.8 Restructuring effect +9.7 Rationalization, Changes in sales Cost reduction, (including utilization, +8.0 products mix +3.8
Slide 18: Financial position
Financial position （JPY billion） March End, 2011 March End, 2012 Change Total Asset 1,060.9 1,072.8 12.0 Total Liability 521.1 560.8 39.7 Interest-bearing Debt 245.0 272.8 27.8 Stockholders's Equity 534.3 498.2 -36.1 (comprehensive income) -218.0 -230.8 -12.9 Stockholders's Equity ratio 50.4% 46.4%
Slide 19: Segment Information (4Q results)
Segment Information (4Q of FY2011 vs. 4Q of FY2012, 3Q vs. 4Q 4Q results of 3Q results of 4Q results of YoY Change QoQ Change FY March 2011 FY March 2012 FY March 2012 (C)-(A) (C)-(B) Jan 1- Mar 31, 2011 Oct 1- Dec 31, 2011 Jan 1- Mar 31, 2012 JPY JPY % % JPY billion (A) (B) (C) billion billion Capa
Slide 20: Restructuring measures - current status
Restructuring measures –current status- Each restructuring measure proceeding as planned Item Current status Production Announced reorganization of 7 plants out of total 19 plants located in Tohoku region site Changes in number of employees in TDK worldwide End of September in 2011: 88,449 jobs Jobs
Slide 21: Restructuring measures - cost and effect
Restructuring measures –current status- Announced on January 31 Announcement on April 27 in 2012 in 2012 JPY billion ・First half results : 1.5 ・First half results : 1.5 FY March ・Second half results : 12.3 ・Second half results : 11.5 2012 ・Full year projections : 13.8 ・Full year projections : 13.0 R
Slide 22: Recording Device Business
Recording Device Business Atsuo Kobayashi Senior Vice President General Manager of Data Storage & Thin Film Technology Components Business Group Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 22 -
Slide 23: Recording device business
Recording device business ●HDD market FY March 2012 (TDK’s estimation) : About 600 million units FY March 2013 (TDK’s forecast) : About 700 million units ●HDD Market is being recovered from flooding in Thailand as TDK expected Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention
Slide 24: Supplementary Data
Supplementary Data Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 24 -
Slide 25: Quarterly sales and operating income
Quarterly sales and operating income Sales (left) Operating income (right) OP margin 250.0 10.0% 220.8 219.3 218.8 213.0 206.2 209.9 207.0 9.2% 8.0% 191.3 200.0 7.8% 7.9% 6.0% (JPY billion) 150.0 20.3 4.6% 4.0% 4.0% 200 3.9% (%) 17.0 17.2 2.9% 2.0% 100.0 150 0.0% 9.8 8.5 100 50.0 7.4 6.0 -1.5% -2.0%
Slide 26: Quarterly sales and operating income by segment
Quarterly sales and operating income by segment FY March 2011 FY March 2012 Yen billions 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 38.0 37.7 35.2 34.5 145.4 36.1 34.2 30.6 31.6 132.4 Inductive Devices 32.1 33.6 32.6 31.9 130.2 32.9 31.4 28.6 28.4 121.2 Other Passive Components 34.6 37.5 39.3 38
Slide 27: Temporary factors affecting FY March 2012
Temporary factors affecting FY March 2012 (JPY billion) Forex impact ・Sales :-about 50.9 ・Operating income :-about 15.1 Earthquake impact ・Sales ：-about 5.4 ・Operating income：-about 3.5 Thailand flooding impact ・Sales ：-about 14.7 ・Operating income：-about 4.9 One off charge associated with the chang
Slide 28: FY March 2013 Projections
FY March 2013 Projections (JPY billion) Sales (left) Operating income (right) OP margin 1,000 10.0% 900.0 871.9 808.9 814.5 7.4% 800 727.4 6.3% 5.0% 600 3.2% (JPY billion) 2.3% 60.0 64.3 57.0 400 0.0% 40.0 200 25.8 20.0 -5.0% 18.7 0 0 -7.5% -200 -54.3 -10.0% -50.0 2013/3 2009/3 2010/3 2011/3 2012/3
Slide 29: FY March 2013 Projections - Capex, Depreciation, R&D
FY March2013 Projections –Capex, Depreciation, R&D- (JPY billion) Capital expenditure Depreciation R&D 120 99.7 100 85.0 83.8 79.9 82.0 78.6 77.6 80 64.4 60 53.9 53 52.6 53.0 40 20 0 10/3 11/3 12/3 13/3 13/3 10/3 11/3 12/3 13/3 10/3 11/3 12/3 Projections Projections Projections Copyright© 2012 TDK C
Slide 30: FY March 2013 projections - Dividend
FY March 2013 projections - Dividend - JPY % Dividend Payout ratio 100 60 57.2 90 80 80 Projections 80 Projections 60 40 60 28.3 40 22.8 20 20 0 0 2010/3 2011/3 2012/3 2013/3 Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 30 -
Slide 31: Sales by applications (FY March 2009 - FY March 2012)
Sales by applications (FY March 2009 –FY March 2012) JPY billion 140.4 19.3% 179.1 22.1% 215.5 24.7% 201.2 24.7% 65.7 9.0% 95.9 11.9% 110.5 12.7% 126.8 15.6% 100 13.8% 114.9 14.2% 143.6 16.5% 421.3 57.9% 139.6 17.1% 418.9 51.8% 402.3 46.1% 346.9 42.6% 2009/3 2010/3 2011/3 2012/3 IT Home Electronics
Slide 32: Quarterly sales by applications
Quarterly sales by applications (FY March 20 –FY March 2012) ＜Quarterly sales by applications＞ 23.1% 24.0% 25.2% 27.8% 26.7% 25.6% 24.8% 23.1% Other (including inductrial equipment) 12.7% 12.0% 12.5% 12.7% 14.1% 19.9% 13.3% 16.9% Automobiles 15.4% 17.0% 17.6% 16.0% 16.8% 16.9% 19.6% 17.9% Communicat
Slide 33: 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
Slide 34: TDK
i TDK