TDK Corporation · TSE:6762

TDK — Q3 FY March 2014 Earnings Presentation

31 slides from TDK's earnings presentation, Jan 31, 2014

  1. Slide 1: Performance Briefings 3Q of Fiscal Year March, 2014

    Performance Briefings 3Q of Fiscal Year March, 2014 TDK Corporation January 31, 2014 Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 -1-

  2. Slide 2: Agenda: Consolidated Results and Business Segments

    ◆Consolidated 3Q Results of FY March, 2014 Consolidated Full Year Projections of FY March, 2014 Takakazu Momozuka, Corporate Officer ◆Magnetic Application Products Business and Film Application Products Business Atsuo Kobayashi, Executive Vice President ◆Passive Components Business Hiroyuki Uemura,

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

    Consolidated 3Q Results of FY March, 2014 Consolidated Full Year Projections of FY March, 2014 Takakazu Momozuka Corporate Officer Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 -3-

  4. Slide 4: Consolidated 3Q Results of FY March, 2014

    Consolidated 3Q Results of FY March, 2014 FY March 2013 FY March 2014 Change 3Q Results 3Q Results (Yen billions） (2012.10.1-2012.12.31) (2013.10.1-2013.12.31) Yen billions % Net Sales 213.3 258.6 45.3 21.2 Operating Income 5.0 17.6 12.6 252.0 Operating Income Margin 2.3% 6.8% +4.5pt - Income from C

  5. Slide 5: FY March 2014 3Q Segment Highlights

    FY March 2014 3Q Segment Highlights Brackets show year-on-year change ◆Passive Components: Net sales 117.1 billion yen (up 25.8%), operating income 6.1 billion yen (compared with 1.8 billion yen operating loss in FY March 2013 3Q) -Ceramic capacitors returned to profitability after a loss in FY Marc

  6. Slide 6: Breakdown of Operating Income Changes (3Q)

    Breakdown of Operating Income Changes (3Q) (Yen billions) Operating income : +12.6 SG&A expenses decrease (including gain from sales of assets 2.0) +0.4 Rationalization, cost reduction 17.6 +5.3 Proceed from Benefits from insurance Restructuring of Thai flooding +0.9 -0.4 Sales price Rare earth mate

  7. Slide 7: Segment Information: Operating Income

    Segment Information YoY Change QoQ Change 3Q of FY 2013 2Q of FY 2014 3Q of FY 2014 （Ｃ）－（Ａ） （Ｃ）－（Ｂ） Oct 1- Dec 31, 2012 Jul 1- Sep 30, 2013 Oct 1- Dec 31, 2013 （Ａ） （B） （ C） (Yen billions) Yen billions % Yen billions % Capacitor 26.6 35.1 34.7 8.1 30.5 (0.4) -1.1 Inductive Device 30.6 35.5 34.9 4.3 1

  8. Slide 8: Consolidated Results through 3Q of FY March, 2014

    Consolidated Results through 3Q of FY March, 2014 FY March 2013 FY March 2014 Change Results through 3Q Results through 3Q (Yen billions） (2012.4.1-2012.12.31) (2013.4.1-2013.12.31) Yen billions % Net Sales 625.4 743.4 118.0 18.9 Operating Income 25.3 34.4 9.1 36.0 Operating Income Margin 4.0% 4.6%

  9. Slide 9: Full Year Projections of FY March 2014

    Full Year Projections of FY March 2014 FY March 2014 FY March 2014 Y o Y Change FY March 2013 Previous Full Year Revised Full Year (Yen billions） Full Year Results Yen billions % Projections Projections Net Sales 844.2 930.0 985.0 140.8 16.7% Operating Income 21.7 30.0 37.0 15.3 70.5% Operating Inco

  10. Slide 10: Dividends Forecast of FY March 2014

    Dividends Forecast of FY March 2014 TDK keeps initial dividends forecast (on April 26) unchanged. Dividend forecast per a common share Interim dividend 30 yen Year-end dividend 40 yen (forecast) Annual dividend 70 yen (forecast) Copyright© 2014 TDK Corporation. All rights reserved. Performance Brie

  11. Slide 11: Restructuring Progress

    Restructuring Progress ■FY March 2014 Planned Restructuring ◇Exit non-core businesses Promote business ・Withdraw from LTO business (Production ended in 3Q and planned for 4Q) portfolio review ・Withdraw from Blu-ray Disc business (Planned for 4Q) ◇Further integrate bases worldwide Optimize (Targeting

  12. Slide 12: Financial Position

    Financial Position March End, Sep End, Dec End, Change from （Yen billions） 2013 2013 2013 Sep End Total Asset 1,169.6 1,220.7 1,311.8 91.1 Total Liability 589.0 617.2 648.7 31.5 Stockholders's Equity 561.2 588.6 645.9 57.3 (comprehensive income) (159.0) (126.1) (75.3) 50.8 Stockholders's Equity rati

  13. Slide 13: Magnetic Application Products Business, Film Application Products Business

    Magnetic Application Products Business Film Application Products Business Atsuo Kobayashi Executive Vice President Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 13 -

  14. Slide 14: Magnetic Application Products Business

    Magnetic Application Products Business Magnetic Application Products ◆Recording Devices (HDD Heads) -3Q shipments exceeded expectations when 2Q results were announced due to higher demand for use in new game consoles and higher demand for replacing PCs running Windows XP (*Shipment index on next pag

  15. Slide 15: Magnetic Application Products Business: Recording Device

    Magnetic Application Products Business Recording Device ●HDD market FY March 2013 : About 570 million units (TDK’s estimation） FY March 2014 : About 550 million units (TDK’s forecast, increased by 10 million units from the previous forecast in October) ●Shipment index Recording Device Sales (Left, i

  16. Slide 16: Film Application Products Business

    Film Application Products Business Film Application Products ◆ Energy Devices (Rechargeable Batteries) -Strong growth in sales for use in smartphones and tablet devices -Smartphones and tablet devices currently positioned as most important markets -Continue expanding customer base and conducting R&D

  17. Slide 17: Passive Components Business

    Passive Components Business Hiroyuki Uemura Executive Vice President Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 17 -

  18. Slide 18: Passive Components: Ceramic Capacitors, Inductive Devices

    Passive Components ●Focus on expanding sales in three core fields (automotive, ICT*, and industrial equipment) *ICT: Information and Communications Technology ◆ Ceramic Capacitors -Continue to improve earnings by strengthening products for automotive applications -Increase sales of applied products

  19. Slide 19: Passive Components: High-frequency Components

    Passive Components ●Focus on expanding sales in three core fields (automotive, ICT*, and industrial equipment) *ICT: Information and Communications Technology ◆ High-frequency Components -Drop in sales of modules and discrete products due to production cutbacks by major smartphone manufacturer and l

  20. Slide 20: Supplementary Data

    Supplementary Data Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 20 -

  21. Slide 21: 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 79.9 83.0 78.6 77.3 77.9 80 73.0 72.0 63.0 60 53.9 57.0 52.6 52.6 40 20 0 11/3 12/3 13/3 14/3 14/3 11/3 12/3 13/3 14/3 14/3 11/3 12/3 13/3 14/3 14/3 Previous Revised Previo

  22. Slide 22: 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 35.1 34.7 Inductive Devices 28.2 29.6 30.6 31.2 119.6 35.0 35.5 34.9 Other Passive Components 31.8 31.7 36.0 42.5 142.1 48.3 48.8 47.

  23. Slide 23: Cash Flow

    Cash Flow FY March 2013 FY March 2014 Remarks Results through 3Q Results through 3Q (Yen billions） Increased 17.8 billion yen <Main increase factor> Increase in net income: 4.2 billion yen Operating Increase in depreciation: 5.6 billion yen Cash Flow 67.7 85.5 Increase in trade payables: 7.8 billion

  24. Slide 24: Annual Sales by Applications (FY2009/Mar – FY2013/Mar)

    Annual Sales by applications (FY2009/Mar – FY2013/Mar) Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 24 -

  25. Slide 25: Passive Components Business Annual Sales by Applications

    Passive Components Business Annual sales by applications (FY2009/Mar –FY2013/Mar) Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 25 -

  26. Slide 26: Quarterly Sales by Applications

    Quarterly sales by applications (1Q of FY March 2013 –3Q of FY March 2014) Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 26 -

  27. Slide 27: Passive Components Business Quarterly Sales by Applications

    Passive Components Business quarterly sales by applications (1Q of FY March 2013 –3Q of FY March 2014) Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 27 -

  28. Slide 28: Copyright © 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year

    Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 28 -

  29. Slide 29: Copyright © 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year

    Copyright© 2014 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2014 January 31, 2014 - 29 -

  30. Slide 30: 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

  31. Slide 31: Performance Briefing Text Data and Q&A Availability

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2014/3q_1.htm

TDK — Q3 FY March 2014 Earnings Presentation on 6ix