Slide 1: Full Year Performance Briefing
Fiscal Year March 2024 Full Year Performance Briefing TDK Corporation IR&SR Group April 26, 2024
Slide 2: Index
Index 1 FY March 2024 Results Highlights Tetsuji Yamanishi, Senior Executive Vice President 2 FY March 2025 Projections Noboru Saito, President & CEO 3 Overview of New Medium Term Plan Noboru Saito, President & CEO 4 Appendix © TDK Corporation 2024 FY March 2024 Full Year Performance Briefing IR&SR
Slide 3: FY March 2024 Results Highlights
FY March 2024 Results Highlights Tetsuji Yamanishi Senior Executive Vice President © TDK Corporation 2024 FY March 2024 Full Year Performance Briefing IR&SR Group, April 26, 2024 3
Slide 4: FY March 2024 key points
FY March 2024 key points • Amid sluggish demand in the industrial equipment, the ICT, and the HDD markets, operating profit reached new record highs on the back of sales to the automotive market*. Net sales (JPY bn) Operating profit (JPY bn) 2,103.9 172.9 down 3.5 ％ YoY Up 2.4 ％ YoY • As a result of
Slide 5: FY March 2024 results
FY March 2024 results • Net sales decreased while operating profit increased year on year and reached new record highs. • One-time expenses: 19.8 bn JPY Change ▍Exchange rate impact on FY3/23 FY3/24 net sales and operating profit (JPY bn) JPY bn % (OP) (JPY bn) Net sales 2,180.8 2,103.9 (76.9) (3.5)
Slide 6: Passive Components segment – Full year
Passive Components segment – Full year • 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) (2.3)% • Sales increased while profit decreased year on year. 578.8 565
Slide 7: Sensor Application Products segment – Full year
Sensor Application Products segment – Full year • 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 (JPY bn) +6.5% 70 169.5 180.5 60 Temperature and • Sales
Slide 8: Magnetic Application Products segment – Full year
Magnetic Application Products segment – Full year • While sales decreased year on year reflecting the sluggish HDD market, there have been signs of improvement after a bottoming out. ▍Net sales (JPY bn) (8.2)% (200.6) (184.2) HDD heads • While sales decreased year on year due to sluggish 70 and HDD
Slide 9: Energy Application Products segment – Full year
Energy Application Products segment – Full year • Sales decreased on the back of a decline in sales price resulting from lower material price, while profit increased due to cost reduction efforts. ▍Net sales (JPY bn) (4.4)% 1,173.4 1,121.7 • Sales decreased while profit increased year on year. 450 4
Slide 10: Quarterly results by segment
Quarterly results by segment FY3/23 FY3/24 YoY (C)-(A) QoQ (C)-(B) (JPY bn) Q4(A) Q3(B) Q4(C) JPY bn % JPY bn % Capacitors 58.3 59.4 60.5 +2.2 +3.7% +1.1 +1.8% Inductive Devices 46.3 49.2 46.8 +0.5 +1.0% (2.4) (4.9)% Other Passive Components 33.0 32.4 31.2 (1.7) (5.2)% (1.2) (3.6)% Passive Component
Slide 11: Analysis of change in operating profit – Full Year
Analysis of change in operating profit – Full Year • Operating profit increased year on year reflecting continued cost reduction efforts and restructuring despite the rapid changes in the market environment. (JPY bn) Operating profit +4.1 Ex-rate fluctuation USD/JPY: SG&A expenses 135.46 → 144.48 de
Slide 12: Cash flows – Full Year
Cash flows – Full Year FY3/23 FY3/24 Change (JPY bn) Cash flows from operating activities 262.8 447.0 +184.2 Cash flows from investing activities (234.4) (216.6) +17.8 Free cash flow 28.4 230.4 +202.0 Cash flows from financing activities 14.9 (146.4) (161.3) Effects of ex-rate changes 23.5 59.8 36.2
Slide 13: FY March 2025 Projections
FY March 2025 Projections Noboru Saito President & CEO © TDK Corporation 2024 FY March 2024 Full Year Performance Briefing IR&SR Group, April 26, 2024 13
Slide 14: Assumptions for performance forecast - key market predictions
Assumptions for performance forecast - key market predictions • The ICT market is on the way to recovery while the xEV market is expected to expand. FY3/24 FY3/25 YoY (Unit mn) Actual Forecast Automobile* 89 91 +2% xEV 21.9 26.4 +21% Smartphone 1,129 1,144 +1% 5G Smartphone 639 672 +5% HDD 116 120 +
Slide 15: FY March 2025 projections
FY March 2025 projections FY3/24 FY3/25 Change (YoY) [B] – [A] (JPY bn) Actual [A] Projection [B] JPY bn % Net sales 2,103.9 2,105.0 +1.1 +0.1% Operating profit 172.9 180.0 +7.1 +4.1% OP margin 8.2% 8.6% +0.4pts - Profit before tax 179.2 184.0 +4.8 +2.7% Net profit attributable to owners of parent 1
Slide 16: Shareholder returns
Shareholder returns (JPY) Annual dividends * Dividend payout ratio 80.0 120.0 120 116.0 70.0 106.0 100 60.0 80 60.0 78.3 50.0 39.3% 60.0 35.2% 35.3% 35.6% 40.0 60 30.4% 30.0 22.6% 40 20.0 20 10.0 0 0.0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 Projection Projection IFRS * Dividends are calculated on
Slide 17: Capex, Depreciation, and R&D expenses – Projections
Capex, Depreciation, and R&D expenses – Projections Capex Depreciation and amortization R&D expenses (JPY bn) 350 300 291.3 275.7 250.0 250 212.2 218.6 200 206.3 173.4 190.5 190.0 177.0 220.0 150 148.4 179.5 188.9 125.0 165.3 100 117.5 127.4 50 0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/20 FY3/
Slide 18: Projections by segment for FY March 2025
Projections by segment for FY March 2025 FY3/24 FY3/25 Factor Actual Projection (YoY) (JPY bn) • Sales of ceramic capacitors to the automotive are expected to increase. Passive Components 565.6 +4 ~ +7% • Sales of inductive devices to the automotive market are expected to increase. • Sales of magnet
Slide 19: Overview of New Medium Term Plan
Overview of New Medium Term Plan © TDK Corporation 2024 FY March 2024 Full Year Performance Briefing IR&SR Group, April 26, 2024 19
Slide 20: New medium term plan: Overview
New medium term plan: Overview • The new medium term plan uses backcasting from what we want to be from long-term perspective and vision. • Strengthen business portfolio management and accelerate growth followed by improving capital efficiency. • Growth trend: EX: The electrification of powertrain
Slide 21: New medium term plan: Projection for free cash flow
New medium term plan: Projection for free cash flow Total FCF over the three years Target 260.0 bn JPY Total FCF over the three years 156.0 bn JPY Increase cash generating ability Value Creation 2023 New medium term Plan • Improved the earning capacity of Passive Components and Sensor Application Pr
Slide 22: Appendix
Appendix © TDK Corporation 2024 FY March 2024 Full Year Performance Briefing IR&SR Group, April 26, 2024 22
Slide 23: 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 60.5 245.0 Inductive Devices 49.3 52.8 50.1 46.3 198.5 46.7 49.3 49.2 46.8 192.0 Other Passive Components 34.7 37.0 33.1 33.0 137.8 31.5 33.5
Slide 24: Financial position
Financial position Change March 31, 2022 March 31, 2023 March 31, 2024 (JPY bn) (vs. March 31, 2023) Total assets 3,041.7 3,147.0 3,415.3 +268.3 Total liabilities 1,737.9 1,684.2 1,700.4 +16.2 Total equity attributable to owners of parent 1,300.3 1,458.4 1,707.3 +248.9 Ratio of equity attributable t
Slide 25: Capex, Depreciation, and R&D expenses – Full Year
Capex, Depreciation, and R&D expenses – Full Year FY3/23 FY3/24 Change (JPY bn) Capex 275.7 218.6 (57.1) (Purchase of tangible and intangible assets) Depreciation and amortization 206.3 190.5 (15.7) % to net sales 9.5% 9.1% (0.4)pts R&D expenses 179.5 188.9 +9.4 % to net sales 8.2% 9.0% +0.8pts ▍Cap
Slide 26: Cash flows
Cash flows Operating activities Investment activities Free cash flow 447.0 (JPY bn) 262.8 270.0 230.4 222.4 230.9 180.4 179.0 28.4 15.0 (0.6) (42.0) Incl. advance payments (102.6) of about 110.0 bn JPY to secure stable supply of battery materials. (231.4) (234.4) (216.6) (255.0) (281.5) FY3/20 FY3/2
Slide 27: Annual sales by market (FY3/20 – FY3/24)
Annual sales by market (FY3/20 – FY3/24) All (JPY bn) ▍Automotive ▍ICT 2,500 2,180.8 2,103.9 (JPY bn) (JPY bn) 463.5 1,207.6 1,191.8 2,000 1,902.1 500 418.7 1,200 1,142.5 1,479.0 400 330.4 913.7 1,500 1,363.0 245.3 248.6 900 821.6 300 1,000 600 200 500 300 100 0 0 0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/2
Slide 28: 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 +10.7 % (1.3) % 600 556.3 559.3 (JPY bn) (JPY bn) 510.5 503.4 484.9 418.7 463.5 1,207.6 1,191.8 500 471.9 357.4 360 334.5 336.3 320.4 400 111.1 111.8 118.3 116.6 116.8 120 109.2 280.4 272.6 102.8 262.5 95.6 235.2 3
Slide 29: Annual sales by market – Passive Components
Annual sales by market (FY3/20 – FY3/24) Passive Components ▍Automotive ▍ICT (JPY bn) 600 578.8 565.6 (JPY bn) (JPY bn) 507.8 500 300 285.7 407.1 256.1 150 395.5 400 211.8 200 168.7 172.1 100 300 81.5 75.7 78.8 72.3 68.1 200 100 50 100 0 0 0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/20 FY3/21 FY3/22 FY
Slide 30: Quarterly sales by market – Passive Components
Quarterly sales by market (FY3/23 – FY3/24) Passive Components (JPY bn) ▍Automotive ▍ICT 153.5 +11.6% (5.8)% 142.4 145.3 145.4 141.0 138.5 150 137.6 140.7 (JPY bn) (JPY bn) 256.1 285.7 72.3 68.1 80 72.3 72.7 74.1 100 66.1 65.7 63.5 66.7 60.8 30 60 19.6 21.0 18.1 20 18.1 19.4 16.0 50 40 13.7 14.6 20
Slide 31: Annual sales by market – Sensor Application Products
Annual sales by market (FY3/20 – FY3/24) Sensor Application Products (JPY bn) ▍Automotive ▍ICT 200 180.5 169.5 (JPY bn) (JPY bn) 80.9 75.9 150 80 72.5 130.8 80 61.2 56.1 60 60 100 77.9 81.3 46.2 40 36.4 34.4 40 25.8 50 20.6 20 20 0 0 0 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/20 FY3/21 FY3/22 FY3/23 F
Slide 32: 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 +32.2% +4.6% 50.0 45.9 45.6 45.2 (JPY bn) (JPY bn) 39.0 39.0 38.8 61.2 80.9 72.5 75.9 40.0 22.3 21.7 20.9 22.0 22.8 20.3 18.6 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
Slide 33: Annual sales by region (FY3/20 – FY3/24)
Annual sales by region (FY3/20 – FY3/24) 100% ▍Japan ▍Americas 21.6% 18.7% 20.4% 19.6% 21.4% (JPY bn) (JPY bn) 80% 200 176.4 184.6 200 172.7 Asia and others 60% 149.0 148.7 China 160 160 52.4% 56.8% 55.7% 54.8% 53.1% 129.9 110.4 117.2 Europe 120 120 96.1 96.7 40% Americas Japan 80 80 20% 10.9% 10.0%
Slide 34: Quarterly sales by region (FY3/23 – FY3/24)
Quarterly sales by region (FY3/23 – FY3/24) 100% ▍Japan ▍Americas +4.6 % △13.9% 20.8% 19.5% 16.9% 18.6% 21.2% 21.1% 21.7% 24.7% (JPY bn) (JPY bn) 80% 176.4 184.6 172.7 148.7 60 60 48.3 49.5 44.1 45.8 44.9 44.4 45.1 43.5 43.5 43.5 60% Asia and others 40.5 40.6 40.0 38.7 52.2% 58.8% 48.8% 53.5% 40 40
Slide 35: Financial information: 10-year historical trend
Financial information: 10-year historical trend ▍Operating profit, Net profit attributable to owners of parent, ▍Net sales, Overseas sales ratio OP margin Operating profit (JPY mn) Net sales Overseas sales ratio (JPY mn) Net profit attributable to owners of parent 91.4% 92.1% 91.1% 91.1% 91.8% 91.9%
Slide 36: 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 ▍ROIC, ROE, ROA Total assets Total equity attributable to owners of parent (JPY mn) Ratio of equity attributable to owners of parent ROIC ROE
Slide 37: Status of inclusion in Indices / Evaluation by external organizations
Status of inclusion in Indices / Evaluation by external organizations ▍Indices ▍Evaluation by JPX Prime 150 Index Sompo Sustainability Index external organizations An index composed by market capitalization An index compiled based on the results of the Buna-no- based on two measures of value creatio
Slide 38: 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 39: 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/2024/4q_1.html