TDK Corporation · TSE:6762

TDK — FY March 2015 Earnings Presentation

38 slides from TDK's earnings presentation, Apr 28, 2015

  1. Slide 1: Performance Briefing Fiscal Year March, 2015

    Performance Briefing Fiscal Year March, 2015 TDK Corporation April 28, 2015 Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 -1-

  2. Slide 2: Consolidated Results and Full Year Projections

    ◆Consolidated Results for FY March 2015 Takakazu Momozuka, Corporate Officer ◆Consolidated Full Year Projections for FY March 2016 and Mid-Term Policy Takehiro Kamigama, President and CEO Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 -2-

  3. Slide 3: Consolidated Results for FY March 2015

    Consolidated Results for FY March 2015 Takakazu Momozuka Corporate Officer Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 -3-

  4. Slide 4: Highlights of the Operating Results for FY March 2015

    Highlights of the Operating Results for FY March 2015 ◆Net sales exceeded 1 trillion yen and reached a record 1,082.6 billion yen. Record net sales in the Passive Components and Film Application Products segments are on the back of upward sales trends in the automotive market and smartphones for Chi

  5. Slide 5: Consolidated Full Year Results for FY March 2015

    Consolidated Full Year Results for FY March 2015 FY March 2014 FY March 2015 Change Full Year Results Full Year Results (Yen billions） Yen billions % Net sales 984.5 1,082.6 98.1 10.0 Operating income 36.6 72.5 35.9 98.1 Operating income margin 3.7% 6.7% - Income from continuing operations before In

  6. Slide 6: FY March 2015 Results - Passive Components Segment

    FY March 2015 Results - Passive Components Segment Net Sales 541.2 Net Sales 541.2 billion yen (up 14.7% year on year) (Yen billions) 471.7 Operating Income 37.9 billion yen (up 146.1% year on year) 379.6 ●Ceramic Capacitors ・Both sales and profits increased year on year, particularly due to increas

  7. Slide 7: FY March 2015 Results - Magnetic Application Segment

    FY March 2015 Results - Magnetic Application Segment Net Sales (Yen billions) Net sales 369.2 billion yen (up 1.3% year on year) 369.2 337.9 364.3 Operating income 28.7 billion yen (up 2.1% year on year) ● Recording Devices ・Sales increased year on year due to increased sales of HDD suspensions even

  8. Slide 8: Results - Film Application Segment

    FY March 2014 Results - Film Application Segment Net Sales 151.3 (Yen billions) 129.3 Net sales 151.3 billion yen (up 17.0% year on year) 102.9 Operating income 24.6 billion yen (up 83.6% year on year) ● Energy Devices (Rechargeable Batteries) ・Both sales and profits increased year on year due to a

  9. Slide 9: Results by Segment

    FY March 2015 results by Segment FY March 2014 FY March 2015 Change Full Year Results Full Year Results Yen billion ％ Yen billion ％ Yen billion % Capacitors 139.6 14.2 149.0 13.8 9.4 6.7 Inductive devices 140.3 14.3 154.2 14.2 13.9 9.9 Other Passive Components 191.7 19.5 238.0 22.0 46.3 24.2 Passive

  10. Slide 10: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes FY March 2014 Operating Income +35.9 billion yen FY March 2015 36.6 billion yen 72.5 billion yen (Yen billions) Sales price Changes in sales Reduction SG&A expenses +58.1 -53.0 increase Benefits from -11.9 Rationalization, Restructuring (including gain on sales

  11. Slide 11: Quarterly Results by Segment

    FY March 2015 Quarterly Results by Segment 4Q of 3Q of 4Q of YoY Change QoQ Change (C)-(A) (C)-(B) FY March 2014 FY March 2015 FY March 2015 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 36.1 37.5 37.6 1.5 4.2 0.1 0.3 Inductive Devices 34.9 40.3 38.4 3.5 10.0 (1.9) -4.7 Other P

  12. Slide 12: Financial Position

    Financial Position March End, March End, March End, Change (Yen billions) 2013 2014 2015 2014-2015 Total Assets 1,169.6 1,239.6 1,404.3 164.7 Total Liabilities 589.0 587.3 646.3 59.0 Stockholder’s equity 561.2 635.3 738.9 103.6 (comprehensive income) (159.0) (87.1) (5.9) 81.2 Stockholder’s equity ra

  13. Slide 13: Free Cash Flow

    Free Cash Flow Operating cash flow Investment cash flow Free cash flow (Yen billions) 150 142.9 127.3 108.9 100 71.9 50 18.7 15.6 0 -50 (55.4) -100 (90.2) -150 (127.3) FY March 2013 FY March 2014 FY March 2015 Change (Yen billions) FY March 2013 FY March 2014 FY March 2015 2014-2015 Capital Expendit

  14. Slide 14: Consolidated Full Year Projections for FY March 2016 and Mid-Term Policy

    Consolidated Full Year Projections for FY March 2016 and Mid-Term Policy Takehiro Kamigama President and CEO Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 14 -

  15. Slide 15: Consolidated Full Year Projections for FY March 2016

    Consolidated Full Year Projections for FY March 2016 Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 15 -

  16. Slide 16: FY March 2016 Full Year / Dividend Projections

    FY March 2016 Full Year / Dividend Projections 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% Operating income margin 6.7% 8.1% +1.4pt - Income from continuing oper

  17. Slide 17: Projections for FY March 2016 - Image of change in sales

    Projections for FY March 2016 -Image of change in sales (Yen billions) FY March 2016 FY March 2015 Segment Full Year Projections Full Year Results (YoY Change) Passive Components 541.2 +7～+10% Magnetic Application Products 369.2 ±0% Film Application Products 151.3 +25%+α Other 20.9 - Total 1,082.6 1

  18. Slide 18: Points of FY March 2016: Market Environment and Key Themes

    Points of FY March 2016 Segment The Market Environment and Key Themes Passive Components Share expansion of thin-film and multi-layered products in (Inductive Devices) the ICT and automotive markets Sales growth of small, high performance discrete components Passive Components (TC-SAW, BAW) as a res

  19. Slide 19: Mid-Term Policy

    Mid-Term Policy (FY March 2016 – FY March 2018) Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 19 -

  20. Slide 20: Priority Markets, Priority Businesses and New Business

    Priority Markets, Priority Businesses and New Business Automobile Priority Five Businesses ・Inductive Devices ・High-frequency Components New ・Piezoelectric Material Product Business ・HDD Heads ・Rechargeable Batteries Industrial ICT equipment / Energy Copyright© 2015 TDK Corporation. All rights reser

  21. Slide 21: Sales Growth Projections by Priority Markets

    Sales Growth Projections by Priority Markets Sales ratio for Automobile market to be 30% FY March 2015 FY March 2018 17% 30% ■Automobile ■ICT* ■Industrial & Others ■Consumer *Includes HDD Heads and HDD Suspensions Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 -

  22. Slide 22: New businesses in growth fields

    New businesses in growth fields Aim for over 100.0 billion yen or more in sales by FY March 2018 Thin-film Sensors for components automobile and industrial equipment Wearable Energy units for Healthcare automobile and industrial equipment Copyright© 2015 TDK Corporation. All rights reserved. TDK Cor

  23. Slide 23: Sales Growth of Priority Five Businesses & New Business

    Sales Growth of Priority Five Businesses & New Business ■Priority Five Businesses ■New Business ■Others 8% 1% 70% 74% FY March 2015 FY March 2018 Target Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 23 -

  24. Slide 24: Operating results and mid-term projections

    Operating results and mid-term projections (Yen billions) (Yen billions) 1,600 160 Sales (left) Operating Income (Right) 1,400 140 1,200 120 1,000 100 800 80 600 60 400 40 200 20 0 0 12/3 13/3 14/3 15/3 16/3 18/3 *Forex assumptions after FY March 2016 onward ：US$ 115 yen, EURO 130 yen Copyright© 201

  25. Slide 25: Monozukuri innovation (Zero defect quality)

    Monozukuri innovation (Zero defect quality) Industrial 4.0 Pursuit of Monitoring network with the sensor and ICT zero defects Real time control of manufacturing process Construct an origin control scheme Big data analyses ⇒ feedback to Monozukuri Monozukuri innovation Inventory control innovation En

  26. Slide 26: Growth Investment

    Growth Investment (Yen billions) Total investment over the next 3 years FY March 2016 (Mid-Term Business Plan) Projections Capital 350.0～ Expenditure 130.0 400.0 R&D About 230.0 77.0 Investment ●Construction of new factory buildings in the Akita area ●Production capacity increase in the 5 core busin

  27. Slide 27: Growth Investment and Return to Shareholders

    Management Target in Mid-Term Growth • Investment in new products, new businesses, and M&A Investment • Increase production capacity of existing businesses Return to • Stabilize or increase dividends through EPS growth Shareholders • Target a 30% dividend payout ratio FY March 2015 FY March 2018 Res

  28. Slide 28: Supplementary Data

    Supplementary Data Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 28 -

  29. Slide 29: Quarterly sales and operating income by segment

    Quarterly sales and operating income by segment FY March 2014 FY March 2015 Yen billions 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 33.7 35.1 34.7 36.1 139.6 36.5 37.3 37.5 37.6 149.0 Inductive Devices 35.0 35.5 34.9 34.9 140.3 36.7 38.8 40.3 38.4 154.2 Other Passive Components 48.3 48.8 47.5 47

  30. Slide 30: FY March 2016 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 90.0 85.6 82.9 79.9 77.4 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

  31. Slide 31: Annual Sales by applications

    Annual Sales by applications (FY March 2012 – FY March 2015) Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 31 -

  32. Slide 32: Passive Components Business Annual sales by applications

    Passive Components Business Annual sales by applications (FY March 2012– FY March 2015) Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 32 -

  33. Slide 33: Quarterly sales by applications

    Quarterly sales by applications (1Q of FY March 2014 –4Q of FY March 2015) Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 33 -

  34. Slide 34: Passive Components Business quarterly sales by applications

    Passive Components Business quarterly sales by applications (1Q of FY March 2014 –4Q of FY March 2015) Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 34 -

  35. Slide 35: TDK Corporation April 28, 2015

    Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 35 -

  36. Slide 36: TDK Corporation April 28, 2015

    Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 36 -

  37. Slide 37: 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

  38. Slide 38: Text data including Q&A to be uploaded online

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2015/4q_1.htm Copyright© 2015 TDK Corporation. All rights reserved. TDK Corporation April 28, 2015 - 38 -

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