TDK Corporation · TSE:6762

TDK — Q1 FY March 2014 Earnings Presentation

25 slides from TDK's earnings presentation, Jul 31, 2013

  1. Slide 1: Performance Briefings 1Q of Fiscal Year March, 2014

    Performance Briefings 1Q of Fiscal Year March, 2014 TDK Corporation July 31, 2013 Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 -1-

  2. Slide 2: Change in Scope of Responsibilities; Consolidated 1Q Results; Recording Device Business

    ◆Change in Scope of Responsibilities of Executive Vice Presidents Atsuo Kobayashi Executive Vice President ◆Consolidated 1Q Results of FY March, 2014 Takakazu Momozuka Corporate Officer ◆Recording Device Business Atsuo Kobayashi Executive Vice President Copyright© 2013 TDK Corporation. All rights re

  3. Slide 3: Change in Scope of Responsibilities of Executive Vice Presidents

    Change in Scope of Responsibilities of Executive Vice Presidents Atsuo Kobayashi Executive Vice President Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 -3-

  4. Slide 4: Change in Scope of Responsibilities of Executive Vice Presidents

    Change in Scope of Responsibilities of Executive Vice Presidents President Takehiro Kamigama Executive Vice President Executive Vice President Atsuo Kobayashi Hiroyuki Uemura Capacitors Recording Devices Power Inductive Devices Magnets (HDD head) Supplies Piezoelectric High- Sensors Applied Other ma

  5. Slide 5: Consolidated 1Q Results of FY March, 2014

    Consolidated 1Q Results of FY March, 2014 Takakazu Momozuka Corporate Officer Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 -5-

  6. Slide 6: Consolidated 1Q results of FY March 2014

    Consolidated 1Q results of FY March 2014 FY March 2013 FY March 2014 Change (Yen billions） 1Q Results 1Q Results Yen billions % Net Sales 208.7 236.5 27.9 13.4 Operating Income 9.2 4.0 (5.2) -56.8 Operating Income Margin 4.4% 1.7% -3.0pt - Income before Income Taxes 8.8 4.5 (4.3) -48.9 Net Income 4.

  7. Slide 7: Features in 1Q results of FY March 2014

    Features in 1Q results of FY March 2014 ◆Consolidated sales increased 13.4%, operating income decreased 56.8% ●Sales to the automotive and industrial equipment markets continued to increase after bottoming out in the third quarter of FY March 2013 ●Passive components was profitable for the first tim

  8. Slide 8: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes (Yen billions) Operating Income -5.2 billion yen Changes in sales 9.2 (5.0) SG&A expenses increase (including restructuring Benefits from cost increase restructuring by 0.5) 2.4 (1.6) Sales price reduction Rationalization, (7.9) Rare earth cost reduction 4.0 Exc

  9. Slide 9: Operating Income: Segment Information

    Segment Information (FY2013 1Q vs.FY2014 1Q, FY2013 4Q vs. FY2014 1Q) YoY Change QoQ Change 1Q of FY 2013 4Q of FY 2013 1Q of FY 2014 （Ｃ）－（Ａ） （Ｃ）－（Ｂ） Apr 1- Jun 30, 2012 Jan 1- Mar 31, 2013 Apr 1- Jun 30, 2013 (Yen billions) （Ａ） （B） （C） Yen billions % Yen billions % Capacitor 31.4 30.7 33.7 2.3 7.3

  10. Slide 10: Financial Position

    Financial Position March End, June End, (Ref. June End, （Yen billions） Change 2013 2013 2012) Total Asset 1,169.6 1,224.0 54.4 1,047 Total Liability 589.0 615.0 26.0 562 Stockholders's Equity 561.2 588.7 27.5 471 (comprehensive income) (159.0) (127.0) 32.0 (258) Stockholders's Equity ratio 48.0% 48.

  11. Slide 11: Full Year Projections of FY March 2014

    Full Year Projections of FY March 2014 FY March 2013 FY March 2014 Change (Yen billions） Full Year Results Full Year Projections Yen billions % 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 - Income before income taxes 18.9 28.0 9.1 48.1 N

  12. Slide 12: Recording Device Business

    Recording Device Business Atsuo Kobayashi Executive Vice President Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 - 12 -

  13. Slide 13: Recording device business

    Recording device business ●HDD market FY March 2013 (TDK’s estimation） : About 570 million units FY March 2014 (TDK’s forecast, same as previous forecast) : About 530 million units ●Shipment index Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention) HDD Head Shipment Index (Rig

  14. Slide 14: Supplementary Data

    Supplementary Data Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 - 14 -

  15. Slide 15: FY March 2014 Projections - Capex, Depreciation, R&D

    FY March 2014 Projections –Capex, Depreciation, R&D- (Yen billions) Capital expenditure Depreciation R&D 120 99.7 100 85.6 84.0 78.6 77.3 79.9 77.9 80 73.0 60 57.0 52.6 52.6 53.9 40 20 0 11/3 12/3 13/3 14/3 11/3 12/3 13/3 14/3 11/3 12/3 13/3 14/3 Projections Projections Projections Copyright© 2013 T

  16. Slide 16: Quarterly sales and operating income by segment

    Quarterly sales and operating income by segment FY March 2013 FY March 2014 Yen billions 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 31.4 29.2 26.6 30.7 118.0 33.7 Inductive Devices 28.2 29.6 30.6 31.2 119.6 35.0 Other Passive Components 31.8 31.7 36.0 42.5 142.1 48.3 Passive Components 91.5 90.6

  17. Slide 17: Cash Flow

    Cash Flow FY March 2013 FY March 2014 Remarks (Yen billions） 1Q Results 1Q Results Decreased 1.3 billion yen <Increase factor> Operating Increase in depreciation: 2.9 billion yen Cash Flow 21.5 22.8 Decrease in inventory: 6.3 billion yen <Decrease factor> Decrease in net income: 4.0 billion yen Decr

  18. Slide 18: 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 1Q of Fiscal Year March, 2014 July 31, 2013 - 18 -

  19. Slide 19: 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 1Q of Fiscal Year March, 2014 July 31, 2013 - 19 -

  20. Slide 20: Quarterly sales by applications

    Quarterly sales by applications (1Q of FY March 2013 –1Q of FY March 2014) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 - 20 -

  21. Slide 21: Passive Components Business quarterly sales by applications

    Passive Components Business quarterly sales by applications (1Q of FY March 2013 –1Q of FY March 2014) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 - 21 -

  22. Slide 22: Copyright © 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year

    Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 - 22 -

  23. Slide 23: Copyright © 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year

    Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 1Q of Fiscal Year March, 2014 July 31, 2013 - 23 -

  24. Slide 24: 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

  25. Slide 25: Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_ev…

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2014/1q_1.htm

TDK — Q1 FY March 2014 Earnings Presentation on 6ix