TDK Corporation · TSE:6762

TDK — Q2 FY March 2012 Earnings Presentation

29 slides from TDK's earnings presentation, Oct 31, 2011

  1. Slide 1: Performance Briefings 2Q of Fiscal Year March, 2012

    Performance Briefings 2Q of Fiscal Year March, 2012 TDK Corporation October. 31, 2011 1

  2. Slide 2: Agenda and presenters

    ◆Consolidated First Half Results of FY March, 2012 Consolidated Full Year Projections of FY March, 2012 President and CEO Takehiro Kamigama ◆Consolidated 2Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manger of Finance & Accounting Department ◆Passive Components Business H

  3. Slide 3: Consolidated First Half Results and Full Year Projections of FY March 2012

    Consolidated First Half Results of FY March, 2012 Consolidated Full Year Projections of FY March, 2012 President and CEO, TDK Corporation Takehiro Kamigama 3

  4. Slide 4: Consolidated First Half Results of FY March, 2012

    Consolidated First Half Results of FY March, 2012 FY March 2011 FY March 2012 Change Results through 2Q Results through 2Q (Yen billions） (2010.4.1-2010.9.30) (2011.4.1-2011.9.30) Yen billions % Net Sales 442.2 417.2 (25.1) -5.7 Operating Income 37.2 13.8 (23.4) -62.9 Operating Income Margin 8.4% 3.

  5. Slide 5: Features in First Half Results of FY March, 2012

    Features in First Half Results of FY March, 2012 ◆Electronics Market Trend ●A gradual auto market recovery centered on Japanese market was evident ●Production of smartphones and tablet devices rose year on year ●Production of flat-screen TVs, notebook PCs and HDDs was around the same level as the co

  6. Slide 6: Current state of damage by the flood in Thailand

    Current state of damage by the flood in Thailand Company Name Area Products Current status Rare-earth magnet Plant is inundated and operation is recording media suspended TDK Thailand Co., Ltd Rojana To start alternative production another ,and sensors countries excluding Thailand Operation is suspe

  7. Slide 7: Full year projections of FY March, 2012

    Full year projections of FY March, 2012 Term FY2012 FY2012 FY2011 (April 1, 2011 - (April 1, 2011 - (April 1, 2010 - March 31, 2012) March 31, 2012) March 31, 2011) vs. FY2011 Forecast in Changes Forecast in June'11and Actual October'11 July'11 Item (Yen billions) (Yen billions) (Yen billions) (Yen

  8. Slide 8: Dividends Forecast of FY March 2012

    Dividends Forecast of FY March 2012 ‹Dividend forecast per a common share Interim dividend 40 yen Year-end dividend 40 yen (forecast) Annual dividend 80 yen (forecast) TDK has revised the year-end dividend forecast to 40 yen from 50 yen, based on the revision of the consolidated projections for the

  9. Slide 9: Initiatives for Second Half of FY March, 2012

    Initiatives for Second Half of FY March, 2012 Implement initiatives for strengthening manufacturing capability and improving earning power ¾Optimize production sites ¾Reduce approx. 11,000 jobs in the TDK Group worldwide ¾Implement measures targeting unprofitable businesses and products 9Sale of org

  10. Slide 10: Consolidated 2Q Results of FY March, 2012

    Consolidated 2Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department 10

  11. Slide 11: Consolidated 2Q Results of FY March, 2012

    Consolidated 2Q Results of FY March, 2012 2Q results of FY 2011 2Q results of FY 2012 Change (Yen billions） (2010.7.1-2010.9.30) (2011.7.1-2011.9.30) Yen billions % Net Sales 220.3 210.4 (9.9) -4.5 Operating Income 17.0 8.1 (8.8) -52.0 Operating Income Margin 7.7% 3.9% -3.8 pt - Income before Income

  12. Slide 12: Net Sales Comparison 2Q of FY 2011 vs. 2Q of FY 2012

    Net Sales Comparison 2Q of FY 2011 vs. 2Q of FY 2012 2Q results of FY 2011 2Q results of FY 2012 Change (2010.7.1-2010.9.30) (2011.7.1-2011.9.30) Yen billions ％ Yen billions ％ Yen billions % Capacitors 37.7 17.1 34.2 16.2 (3.5) -9.5 Inductive devices 33.6 15.2 31.4 14.9 (2.2) -6.5 Other Passive Comp

  13. Slide 13: Quarterly Results by segment (2Q vs. 2Q)

    Quarterly Results by segment (2Q of FY 2011 vs. 2Q of FY 2012) 2Q results of FY 2011 2Q results of FY 2012 Q on Q change （2010.7.1～2010.9.30） （2011.7.1～2011.9.30） Yen billions ％ Yen billions ％ Yen billions % Passive Components 108.7 49.3 99.9 47.5 (8.9) -8.1 Net sales Magnetic Applicatons Products 9

  14. Slide 14: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes Operating Income : - 23.4 billion yen Rationalization, Cost reduction・ Purchased materials savings +5.3 billion yen Changes in sales and Products mix +13.3 billion yen SG&A expenses increase （including decrease in restructuring 37.2 cost by 800 million yen) -3.0

  15. Slide 15: Quarterly Results by segment (1Q vs. 2Q)

    Quarterly Results by segment (1Q of FY 2012 vs. 2Q of FY 2012) 1Q results of FY 2012 2Q results of FY 2012 Q on Q change （2011.4.1～2011.6.30） （2011.7.1～2011.9.30） Yen billions ％ Yen billions ％ Yen billions % Passive Components 101.7 49.2 99.9 47.5 (1.8) -1.8 Net sales Magnetic Applicatons Products 8

  16. Slide 16: Financial Position

    Financial Position Q on Q （JPY billion） Mar End, 2010 Jun End, 2011 Sep End, 2011 Change Total Asset 1,060.9 1,065.7 1,049.8 -15.9 Total Liability 521.1 533.3 537.5 4.2 Interest-bearing Debt 245.0 250.8 268.0 17.2 Stockholders's Equity 534.3 527.0 499.2 -27.8 (comprehensive income) -218.0 -222.7 -25

  17. Slide 17: Full year projections of FY March, 2012 (latest vs. July)

    Full year projections of FY March, 2012 (the latest projections vs. projections in July) Term FY2012 FY2012 (April 1, 2011 - (April 1, 2011 - vs. projections announced March 31, 2012) March 31, 2012) in July Forecast in Forecast in June'11and Changes October'11 July'11 Item (Yen billions) (Yen billi

  18. Slide 18: Passive Components Business

    Passive Components Business Hiroyuki Uemura Senior Vice President 18

  19. Slide 19: Passive Components Business Quarterly Overview (1Q vs. 2Q)

    Passive Components Business Quarterly Overview（1Q vs. 2Q) Sector Net sales in 1Q Net sales in 2Q Sales status Change % ●Ceramic capacitors Capacitors Increased sales for auto market 1Q 36.1 billion yen Decreased sales for IT home electronics applications centered on flat-screen 2Q 34.2 billion yen T

  20. Slide 20: Recording Device Business

    Recording Device Business Atsuo Kobayashi General Manager, Senior Vice President 20

  21. Slide 21: HDD Head shipment index and sales projections

    Recording Device Business ●HDD Head shipment index FY March'11 FY March'12 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Index 100 100 102 95 95 99 73 106 Results Projections Index transition based on shipment volume in 1Q of FY March 2011 as 100 ●Sales projections in FY March 2012 Results in FY March 2011 Results and pr

  22. Slide 22: Supplementary Data

    {TDK Supplementary Data 22

  23. Slide 23: Expenses

    Expenses FY March 2011 FY March 2012 Change Results through 2Q Results through 2Q (Yen billions） (2010.4.1-2010.9.30) (2011.4.1-2011.9.30) Yen billions % Capital expenditures 33.8 53.5 19.7 58.3 Depreciation and amortization 37.8 37.3 (0.4) -1.1 Research and development 26.4 26.4 0.0 0.2 23

  24. Slide 24: Quarterly Results Breakdown

    Quarterly Results (2Q vs. 2Q) (1Q vs. 2Q) YoY Change QoQ Change 2Q of FY 2011 1Q of FY 2012 2Q of FY 2012 （Ｃ）－（Ａ） （Ｃ）－（Ｂ） Jul 1- Sep 30, 2010 Apr 1- Jun 30, 2011 Jul 1- Sep 30, 2011 （Ａ） （B） （C） Yen billions % Yen billions % Yen billions Net Sales 220.3 206.8 210.4 (9.9) -4.5 3.6 1.7 Passive Componen

  25. Slide 25: 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 Net Sales 221.9 220.3 219.9 213.6 875.7 206.8 210.4 Passive Components 104.7 108.7 107.1 105.5 425.6 101.7 99.9 Capacitors 38.0 37.7 35.2 34.5 145.4 36.1 34.2 Inductive Device

  26. Slide 26: Net Sales, Operating Income and R&D history charts

    {TDK (iilions of yen) Net Sales & Overseas Sales Ratio (09) Milons of yen Operating Income, Net Income & Operating Income Ratio a 1,000,000 100 100,000 a 2 SF Netsales 10 mO== Overseas sales ratio (%) so 80,000 D x 8 800,000 80 60,000 m8 728 743 720 ¢ ‘ 65! 70 ones 655,792 657,853 40,000 7 33,300 44

  27. Slide 27: Total Assets, Equity, Dividends, ROE and Employees

    ‘800,000 600,000 400,000 200,000 140.00 120.00 100.00 60.00 20.00 Total Assets, Stockholders’ Equity & Stockholders’ Equity Ratio 1 ‘747,337 i i i 19 794 SP Totalassets SSR Stockhoklers’ equity s=O== Stockholders’ equity ratio(%) | = | | 20023 = 2003/3 2004/3, 2005/3 2006/3 Dividends per Common Shar

  28. Slide 28: Cautionary Statements with Respect to Forward-Looking Statements

    Cautionary Statements with Respect to Forward-Looking Statements This Thismaterial materialcontains containsforward-looking forward-lookingstatements, statements,including includingprojections, projections,plans,plans,policies, policies, management managementstrategies, strategies,targets, targets,s

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TDK — Q2 FY March 2012 Earnings Presentation on 6ix