Slide 1: 3rd Quarter Performance Briefing
Fiscal Year March 2024 3rd Quarter Performance Briefing TDK Corporation IR&SR Group January 31, 2024
Slide 2: Index
Index 1 Q3, FY March 2024 Results Highlights Tetsuji Yamanishi, Executive Vice President 2 FY March 2024 Projections Tetsuji Yamanishi, Executive Vice President 3 Appendix © TDK Corporation 2024 Q3, FY March 2024 Performance Briefing IR&SR Group, January 31, 2024 2
Slide 3: Q3, FY March 2024 Results Highlights
Q3, FY March 2024 Results Highlights Tetsuji Yamanishi Executive Vice President © TDK Corporation 2024 Q3, FY March 2024 Performance Briefing IR&SR Group, January 31, 2024 3
Slide 4: Q3 (YTD), FY March 2024 key points
Q3 (YTD), FY March 2024 key points • While sales to the automotive market increased, both net sales and operating profit decreased year on year due to the sluggish industrial equipment market on top of the slowdown in the ICT and the HDD markets. Net sales (JPY bn) Operating profit (JPY bn) 1,619.0
Slide 5: Q3 YTD, FY March 2024 results
Q3 YTD, FY March 2024 results • Net sales and operating profit decreased year on year. FY3/23 FY3/24 Change ▍Exchange rate impact on net sales and operating profit (JPY bn) Q3 YTD Q3 YTD JPY bn % (OP) (JPY bn) Net sales Approx. +58.0 Net sales 1,709.0 1,619.0 (90.0) (5.3)% OP Approx. +17.2 Operating
Slide 6: Q3, FY March 2024 results
Q3, FY March 2024 results • Net sales decreased while operating profit increased year on year. FY3/23 FY3/24 Change ▍Exchange rate impact on net sales and operating profit (JPY bn) Q3 Q3 JPY bn % (OP) (JPY bn) Net sales 587.0 559.3 (27.7) (4.7)% Net sales Approx. +22.5 Operating profit 68.4 70.2 +1.
Slide 7: Passive Components segment – Q3 YTD
Passive Components segment – Q3 YTD • While sales to the automotive market increased, both sales and profit decreased year on year due to a decline in sales to the ICT and the industrial equipment markets. ▍Net sales (JPY bn) (3.2)% • Sales increased while profit decreased year on year. Results Cera
Slide 8: Sensor Application Products segment – Q3 YTD
Sensor Application Products segment – Q3 YTD • Sales increased while profit decreased year on year due to a decline in sales to the industrial equipment and the ICT markets, despite an increase in sales to the automotive market. ▍Net sales +3.6% (JPY bn) Results 70 130.6 135.3 Q3 YTD • Sales and pro
Slide 9: Magnetic Application Products segment – Q3 YTD
Magnetic Application Products segment – Q3 YTD • Sales and profit decreased year on year as sales to the HDD market remained significantly below the previous year’s level. ▍Net sales (JPY bn) (15.9)% Results HDD heads 157.3 132.4 • While both sales and profit decreased year on year for 70 Q3 YTD and
Slide 10: Energy Application Products segment – Q3 YTD
Energy Application Products segment – Q3 YTD • Profitability of rechargeable batteries further improved, despite a decrease in sales to the ICT market. ▍Net sales (5.4)% (JPY bn) Results 933.8 Q3 YTD 883.5 • Sales decreased while profit increased year on year. 450 400 342.3 331.4 • Sales decreased d
Slide 11: Analysis of change in operating profit – Q3
Analysis of change in operating profit – Q3 (JPY bn) Operating profit +1.8 Changes in sales Ex-rate fluctuation Benefits from SG&A expenses Restructuring USD/JPY: (incl. changes in Rationalization, restructuring increase costs 141.75 → 147.95 operating rate and Selling price product mix) cost reduct
Slide 12: Quarterly results by segment
Quarterly results by segment FY3/23 FY3/24 FY3/24 YoY [C] – [A] QoQ [C] – [B] (JPY bn) Q3 [A] Q2 [B] Q3 [C] JPY bn % JPY bn % Capacitors 62.1 62.6 59.4 (2.7) (4.4)% (3.2) (5.2)% Inductive Devices 50.1 49.3 49.2 (0.9) (1.8)% (0.1) (0.2)% Other Passive Components 33.1 33.5 32.4 (0.7) (2.1)% (1.1) (3.4
Slide 13: Cash flows – Q3 YTD
Cash flows – Q3 YTD FY3/23 FY3/24 Change (JPY bn) Q3 YTD Q3 YTD Operating cash flow 184.2 333.3 +149.1 Investing cash flow (177.5) (147.8) +29.7 Free cash flow 6.7 185.5 +178.8 Financing cash flow 20.8 (90.0) (110.8) Effects of ex-rate changes 8.4 24.7 +16.4 Cash and cash equivalents 475.2 626.5 +15
Slide 14: FY March 2024 Projections
FY March 2024 Projections © TDK Corporation 2024 Q3, FY March 2024 Performance Briefing IR&SR Group, January 31, 2024 14
Slide 15: Projections by segment for Q4, FY March 2024
Projections by segment for Q4, FY March 2024 FY3/24 Factor (JPY bn)) Q3 Q4 Projection (QoQ) • Sales of ceramic capacitors to the automotive market are expected to increase. Passive Components 141.0 ±0 ~ +3% • Sales of inductive devices to the ICT market are expected to decrease. Sensor Application •
Slide 16: FY March 2024 projections
FY March 2024 projections • FY March 2024 projections have been revised reflecting the results Q3 YTD. FY3/23 FY3/24 Projection Change (YoY) [B] – [A] Actual [A] As of Apr. 2023 As of Aug. 2023 As of Jan. 2024 [B] JPY bn % (JPY bn) Net sales 2,180.8 2,020.0 1,970.0 2,090.0 (90.8) (4.2)% Operating pr
Slide 17: Appendix
Appendix © TDK Corporation 2024 Q3, FY March 2024 Performance Briefing IR&SR Group, January 31, 2024 17
Slide 18: Quarterly sales and operating profit by segment
Quarterly sales and operating profit by segment FY3/23 FY3/24 (JPY bn) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Capacitors 58.3 63.7 62.1 58.3 242.5 62.5 62.6 59.4 Inductive Devices 49.3 52.8 50.1 46.3 198.5 46.7 49.3 49.2 Other Passive Components 34.7 37.0 33.1 33.0 137.8 31.5 33.5 32.4 142.4 153.5 145.
Slide 19: Capex, Depreciation, and R&D expenses – Q3 YTD
Capex, Depreciation, and R&D expenses – Q3 YTD FY3/23 FY3/24 Change (JPY bn) Q3 YTD Q3 YTD Capex 220.3 156.6 (63.7) (Purchase of tangible and intangible assets) Depreciation and amortization 155.7 142.9 (12.7) % to net sales 9.1% 8.8% (0.3)pts R&D expenses 134.6 138.6 +4.0 % to net sales 7.9% 8.6% +
Slide 20: Capex, Depreciation, and R&D expenses – Projections
Capex, Depreciation, and R&D expenses – Projections Capex Depreciation and amortization R&D expenses (JPY bn) 350 FY3/24 FY3/24 FY3/24 Projections Projections Projections 300 291.3 275.7 240.0 250 230.0 212.2 206.3 200 180.0 190.0 180.0 173.6 173.4 177.0 179.5 165.3 170.0 148.4 150 125.0 127.4 115.2
Slide 21: Financial position
Financial position Change March 31, 2023 September 30, 2023 December 31, 2023 (JPY bn) (vs. March 31) Total assets 3,147.0 3,417.6 3,314.4 +167.4 Total liabilities 1,684.2 1,779.7 1,697.0 +12.8 Total equity attributable to owners of parent 1,458.4 1,631.1 1,609.6 +151.2 Ratio of equity attributable
Slide 22: Cash flow projections
Cash flow projections FY3/24 (JPY bn) Operating cash flow Investing cash flow Free cash flow Projections 400.0 340.0 262.8 222.4 230.9 179.0 140.3 180.4 180.0 80.0 28.4 0.1 (0.6) Incl. advance (42.0) payments of about 110.0 bn JPY to secure (102.6) stable supply of battery (140.2) materials. (220.0)
Slide 23: Annual sales by market (FY3/19 – FY3/23)
Annual sales by market (FY3/19 – FY3/23) All (JPY bn) ▍Automotive ▍ICT 2,500 2,180.8 (JPY bn) (JPY bn) 2,000 1,902.1 418.7 1,207.6 400 1,200 1,142.5 330.4 1,381.8 1,479.0 1,500 1,363.0 253.7 245.3 248.6 821.6 913.7 300 900 809.8 1,000 200 600 500 100 300 0 0 0 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/
Slide 24: Quarterly sales by market (FY3/23 – FY3/24)
Quarterly sales by market (FY3/23 – FY3/24) All (JPY bn) ▍Automotive ▍ICT 611.5 587.0 +9.7% (5.5)% 600 556.3 559.3 (JPY bn) (JPY bn) 510.5 503.4 500 471.9 346.7 972.3 919.2 315.9 357.4 360 334.5 336.3 320.4 400 111.8 118.3 116.6 120 111.1 109.2 280.4 102.8 262.5 95.6 235.2 300 240 80 200 40 120 100
Slide 25: Annual sales by market – Passive Components
Annual sales by market (FY3/19 – FY3/23) Passive Components ▍Automotive ▍ICT (JPY bn) 600 575.9 507.8 500 (JPY bn) (JPY bn) 433.4 395.5 407.1 255.5 150 400 250 211.8 300 200 168.8 168.7 172.1 100 76.3 75.7 78.8 81.5 150 72.3 200 100 50 100 50 0 0 0 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/19 FY3/20 FY
Slide 26: Quarterly sales by market – Passive Components
Quarterly sales by market (FY3/23 – FY3/24) Passive Components (JPY bn) ▍Automotive ▍ICT 153.5 142.4 145.3 145.4 141.0 +9.9% (11.2)% 150 137.6 140.7 (JPY bn) (JPY bn) 211.7 192.6 80 72.3 72.7 100 66.1 65.7 63.5 66.7 58.6 60.8 30 52.1 60 19.6 21.0 18.1 18.1 19.4 20 50 40 13.7 14.6 20 10 0 0 0 Q1 Q2 Q
Slide 27: Annual sales by market – Sensor Application Products
Annual sales by market (FY3/19 – FY3/23) Sensor Application Products (JPY bn) ▍Automotive ▍ICT 169.5 150 (JPY bn) (JPY bn) 130.8 80 72.5 80 61.2 56.1 100 60 76.5 77.9 81.3 60 46.2 39.2 36.4 40 34.4 40 25.8 50 17.4 20.6 20 20 0 0 0 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23
Slide 28: Quarterly sales by market – Sensor Application Products
Quarterly sales by market (FY3/23 – FY3/24) Sensor Application Products (JPY bn) ▍Automotive ▍ICT 47.3 49.2 +30.4% (0.8)% 50.0 45.9 45.6 (JPY bn) (JPY bn) 39.0 39.0 38.8 57.6 57.2 40.0 58.6 21.7 20.9 22.0 22.8 44.9 20.3 19.0 19.3 20 30.0 20 15.2 16.0 16.3 15.1 14.9 13.7 12.4 20.0 10 10 10.0 0.0 0 0
Slide 29: Financial information: 10-year historical trend
Financial information: 10-year historical trend ▍Net sales, Overseas sales ratio ▍Operating profit, Net profit, OP margin (JPY mn) Net sales Overseas sales ratio (JPY mn) Operating profit Net profit OP margin 91.9% 208,660 2,500,000 90.5% 91.4% 92.1% 91.1% 91.1% 91.8% 91.9% 92.1% 92.2% 2,180,817 200
Slide 30: Financial information: 10-year historical trend
Financial information: 10-year historical trend ▍Total assets, Total equity attributable to owners of parent, Ratio of equity attributable to owners of parent ▍ROI, ROE, ROA Total assets Total equity attributable to owners of parent (JPY mn) Ratio of equity attributable to owners of parent ROI ROE R
Slide 31: Status of inclusion in the ESG Index / Recognition by investors and rating agencies
Status of inclusion in the ESG Index / Recognition by investors and rating agencies ▍Index Funds ▍Ratings FTSE4Good Index Series Sompo Sustainability Index An index compiled based on the results of the Buna-no- An index provided by FTSE Russell that was Mori Environmental Questionnaire and ESG Manag
Slide 32: 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
Slide 33: Text data including Q&A of performance briefing will be uploaded on following site. https://www.tdk.com/en/ir/ir_even…
Text data including Q&A of performance briefing will be uploaded on following site. https://www.tdk.com/en/ir/ir_events/conference/2024/3q_1.html