TDK Corporation · TSE:6762
TDK — Q1 FY March 2015 Earnings Presentation
32 slides from TDK's earnings presentation, Jul 31, 2014
Slide 1: Performance Briefing 1Q of Fiscal Year March 2015
Performance Briefing 1Q of Fiscal Year March, 2015 TDK Corporation July 31, 2014 Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 -1-
Slide 2: Agenda: Consolidated Results, Recording Device, High Frequency Components
◆Consolidated Results for 1Q of FY March 2015 Takakazu Momozuka, Corporate Officer ◆Recording Device Business Atsuo Kobayashi, Executive Vice President ◆High Frequency Components Business Hiroyuki Uemura, Executive Vice President Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Yea
Slide 3: Consolidated Results for 1Q of FY March 2015
Consolidated Results for 1Q of FY March 2015 Takakazu Momozuka Corporate Officer Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 -3-
Slide 4: Key points concerning earnings for 1Q of FY March 2015
Key points concerning earnings for 1Q of FY March 2015 ◆Operating income doubled year on year. ◆Earnings from passive components improved by a large margin. Quarterly operating income from this segment was the highest ever, and exceeded that from magnetic application products. Sales to the automobil
Slide 5: Consolidated Results for 1Q of FY March 2015
Consolidated Results for 1Q of FY March 2015 FY March 2014 FY March 2015 Change (Yen billions） 1Q Results 1Q Results Yen billions % Net Sales 234.4 237.5 3.1 1.3 Operating Income 4.5 9.6 5.1 113.3 Operating Income Margin 1.9% 4.0% +2.1pt - Income from Continuing Operations before Income Taxes 5.2 10
Slide 6: 1Q Results - Passive Components Segment
1Q Results - Passive Components Segment Net Sales 123.4 billion yen (up 5.5% year on year) Net Sales (Yen billions) Operating Income 7.8 billion yen (2.8 times increase year on year) 123.4 ◆Ceramic Capacitors 117.0 ・Sales increased year on year, particularly to the automobile market, which accounts
Slide 7: 1Q Results - Magnetic Application Segment
1Q Results - Magnetic Application Segment Net Sales Net Sales 87.1 billion yen (up 1.0% year on year) (Yen billions) 87.1 Operating income 7.1 billion yen (up 54.3% year on year) 86.2 ◆Recording Devices (HDD Heads) ・Although the volume shipped declined, profits increased year on year due to increase
Slide 8: 1Q Results - Film Application Segment
1Q Results - Film Application Segment Net Sales (Yen billions) Net sales 22.5 billion yen (down 15.1% year on year) 26.5 22.5 Operating income 0.3 billion yen (down 85.7% year on year) ◆Energy Devices (Rechargeable Batteries) ・Both revenues and profits declined due to production 14/3 15/3 adjustment
Slide 9: Quarterly Results by Segment
Quarterly Results by Segment 1Q of 4Q of 1Q of YoY Change QoQ Change (C)-(A) (C)-(B) FY March 2014 FY March 2014 FY March 2015 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 33.7 36.1 36.5 2.8 8.3 0.4 1.1 Inductive Devices 35.0 34.9 36.7 1.7 4.9 1.8 5.2 Other Passive Components
Slide 10: Breakdown of Operating Income Changes
Breakdown of Operating Income Changes 1Q of 1Q of Operating Income +5.1 billion yen FY March 2015 FY March 2014 4.5 billion yen 9.6 billion yen (Yen billions) Sales price Changes in sales SG&A expenses Reduction Benefits from +7.9 increase -8.8 Rationalization, Restructuring +0.8 -2.1 cost reduction
Slide 11: Sales Results by Priority Markets
Sales Results by Priority Markets TDK Total (Yen billions) Automotive (Yen billions) 234.4 +1.3% 237.5 60 250 39.9 +14.9% 45.8 200 40 150 20 100 0 FY March 2014 FY March 2015 1Q 1Q 50 (Yen billions) ICT 0 150 129.3 123.3 FY March 2014 FY March 2015 -4.7% 1Q 1Q 100 Automotive ICT* Industrial & Others
Slide 12: Projections for 2Q of FY March 2015
Projections for 2Q of FY March 2015 -Image of change in sales 1Q of 2Q Projections Segment Main factor and premise of projections FY March 2015 (Q on Q Change) Increase in sales of various products for the Passive ICT market (especially communications Components 123.4 +7%～+8% equipment market) and t
Slide 13: Full Year / Dividend Projections
FY March 2015 Full Year / Dividend Projections TDK keeps initial projections (announced on April 28) unchanged. FY March 2014 FY March 2015 Y o Y Change Full Year Results Full Year Projections Yen billions % (Yen billions） Net Sales 984.5 1,050.0 65.5 6.7% Operating Income 36.6 57.0 20.4 55.7% Opera
Slide 14: Recording Device Business
Recording Device Business Atsuo Kobayashi Executive Vice President Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 14 -
Slide 15: Recording Device Business
Recording Device Business ●HDD market FY March 2014 : About 552 million units (TDK’s estimation on April 28） FY March 2015 : About 535 million units (TDK’s previous forecast on April 28) FY March 2015 : About 552 million units (TDK’s current forecast, increase by 17M units from the previous forecast
Slide 16: Recording Device Business: Medium to long term HDD market
Recording Device Business Medium to long term HDD market The world’s only dedicated HDD head manufacturer. Changes in applications within the market We possess R&D and manufacturing capabilities that enable us to continuously bring the most advanced products in the industry (the highest areal densit
Slide 17: High Frequency Components Business
High Frequency Components Business Hiroyuki Uemura Executive Vice President Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 17 -
Slide 18: High Frequency Components
High Frequency Components Market Target Markets Activities environment Tapping the benefits of reference designs, stepping ・Launch of TD-LTE ⇒ Rapid increase up of activities to encourage replacements. in production of 4G devices ・Increase in number of components due to the transition from three-mod
Slide 19: High Frequency Components: Business strategy
High Frequency Components Business strategy ◆ Expand reference share by redoubling qualification efforts targeting IC manufacturers ◆ Expand our share of the market for competitive discrete products by further strengthening our lineup of such products ◆ Expand our share of the module market by devel
Slide 20: Supplementary Data
Supplementary Data Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 20 -
Slide 21: 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 Inductive Devices 35.0 35.5 34.9 34.9 140.3 36.7 Other Passive Components 48.3 48.8 47.5 47.1 191.7 50.2 Passive Components 117.0 119
Slide 22: Projections: Capex, Depreciation, R&D
FY March 2015 Projections -Capex, Depreciation, R&D- Capital expenditure Depreciation R&D (Yen billions) 120 99.7 100 85.6 82.9 83.0 78.6 80.0 77.3 79.9 77.4 80 68.6 68.0 63.4 60 52.6 52.6 53.5 40 20 0 11/3 12/3 13/3 14/3 15/3 11/3 12/3 13/3 14/3 15/3 11/3 12/3 13/3 14/3 15/3 Projections Projections
Slide 23: Financial Position and Cash Flows
Financial Position and Cash Flows March End, June End, (FYI) Change （JPY billion） 2014 2014 June End, 2013 Total Asset 1,239.6 1,241.3 1.7 1,224.0 Total Liability 587.3 605.2 17.9 615.0 Stockholders's Equity 635.3 618.2 (17.1) 588.7 (comprehensive income) (87.1) (96.8) (9.7) (127.0) Stockholders's E
Slide 24: Cash Flows
Cash Flows FY March 2014 FY March 2015 (Yen billions） 1Q Results 1Q Results Operating Cash Flow 22.8 18.7 Investing Cash Flow (16.0) (18.5) Free Cash Flow 6.8 0.2 Financing Cash Flow 2.7 1.7 Effect of exchange rate chagens on cash and cash equivalents 10.0 (3.4) Cash and Cash Equivalents 233.1 249.3
Slide 25: Annual Sales by applications
Annual Sales by applications (FY March 2011 – FY March 2014) FY11/3 : FY March 2011 Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 25 -
Slide 26: Passive Components Business Annual sales by applications
Passive Components Business Annual sales by applications (FY March 2011 – FY March 2014) FY11/3 : FY March 2011 Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 26 -
Slide 27: Quarterly sales by applications
Quarterly sales by applications (1Q of FY March 2014 –1Q of FY March 2015) Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 27 -
Slide 28: Passive Components Business quarterly sales by applications
Passive Components Business quarterly sales by applications (1Q of FY March 2014 –1Q of FY March 2015) Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 28 -
Slide 29: Copyright © 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015
2005/3 : FY March 2005 Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 29 -
Slide 30: Copyright © 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015
2005/3 : FY March 2005 Copyright© 2014 TDK Corporation. All rights reserved. 1Q of Fiscal Year March, 2015 July 31, 2014 - 30 -
Slide 31: 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 32: Text data including Q&A will be uploaded on website
Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2015/1q_1.htm