TDK Corporation · TSE:6762

TDK — H1 FY March 2015 Earnings Presentation

35 slides from TDK's earnings presentation, Oct 31, 2014

  1. Slide 1: Performance Briefing First Half of Fiscal Year March 2015

    Performance Briefing First Half of Fiscal Year March, 2015 TDK Corporation October 31, 2014 Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 -1-

  2. Slide 2: Consolidated Results and Full Year Projections

    ◆Consolidated Results for First Half of FY March 2015 Takakazu Momozuka, Corporate Officer ◆Consolidated Full Year Projections for FY March 2015 Takehiro Kamigama, President and CEO Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 -2-

  3. Slide 3: Consolidated Results for First Half of FY March 2015

    Consolidated Results for First Half of FY March 2015 Takakazu Momozuka Corporate Officer Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 -3-

  4. Slide 4: Key points concerning earnings for First Half

    Key points concerning earnings for First Half of FY March 2015 ◆ 502.3 billion yen, first half sales, was the highest ever. Operating income was 27.9 billion yen, increased by 64% year on year. ◆Passive components achieved record first-half earnings (doubled year on year). There were strong sales to

  5. Slide 5: Consolidated Results for First Half of FY March 2015

    Consolidated Results for First Half of FY March 2015 FY March 2014 FY March 2015 Change Results through 2Q Results through 2Q (Yen billions） (2013.4.1-2013.9.30) (2014.4.1-2014.9.30) Yen billions % Net Sales 483.8 502.3 18.5 3.8 Operating Income 17.0 27.9 10.9 64.1 Operating Income Margin 3.5% 5.6%

  6. Slide 6: First Half Results - Passive Components Segment

    First Half Results - Passive Components Segment Net Sales Net Sales 255.8 billion yen (up 8.2% year on year) (Yen billions) 255.8 Operating Income 17.6 billion yen (up 95.6% year on year) 236.4 ◆ Ceramic Capacitors ・Sales increased year on year, particularly to the steady automobile market. ・Profit

  7. Slide 7: First Half Results - Magnetic Application Segment

    First Half Results - Magnetic Application Segment Net Sales Net Sales 177.5 billion yen (down 0.9% year on year) (Yen billions) 177.5 Operating income 15.3 billion yen (up 23.4% year on year) 179.1 ◆ Recording Devices (HDD Heads) ・Although the volume shipped declined, profits were almost the same as

  8. Slide 8: First Half Results - Film Application Segment

    First Half Results - Film Application Segment Net Sales (Yen billions) 59.2 59.7 Net sales 59.7 billion yen (up 0.8% year on year) Operating income 5.5 billion yen (up 1.9% year on year) ◆Energy Devices (Rechargeable Batteries) ・Despite slow sales in 1Q due to a major North American customer 14/3 15

  9. Slide 9: Breakdown of Operating Income Changes (First Half)

    Breakdown of Operating Income Changes (First Half) First Half of First Half of FY March 2014 Operating Income + 10.9 billion yen FY March 2015 17.0 billion yen 27.9 billion yen (Yen billions) Sales price Changes in sales Reduction +19.9 -21.4 Benefits from SG&A expenses Rationalization, Restructurin

  10. Slide 10: Consolidated Results for 2Q of FY March 2015

    Consolidated Results for 2Q of FY March 2015 FY March 2014 FY March 2015 Change (Yen billions） 2Q Results 2Q Results Yen billions % Net Sales 249.4 264.8 15.4 6.2 Operating Income 12.5 18.3 5.8 46.4 Operating Income Margin 5.0% 6.9% +1.9pt - Income from Continuing Operations before Income Taxes 12.9

  11. Slide 11: Quarterly Results by Segment

    Quarterly Results by Segment 2Q of 1Q of 2Q of YoY Change QoQ Change (C)-(A) (C)-(B) FY March 2014 FY March 2015 FY March 2015 (Yen billions) (A) (B) (C) Yen billions % Yen billions % Capacitors 35.1 36.5 37.3 2.2 6.3 0.8 2.2 Inductive Devices 35.5 36.7 38.8 3.3 9.3 2.1 5.7 Other Passive Components

  12. Slide 12: Sales Results by Priority Markets

    Sales Results by Priority Markets (Yen billions) TDK Total (Yen billions) Automotive 600 502.3 100 +14.3% 92.6 483.8 +3.8% 81.0 500 80 60 400 40 300 20 200 0 First Half of First Half of 100 FY March 2014 FY March 2015 0 (Yen billions) ICT First Half of First Half of 300 271.7 Flat 271.3 FY March 201

  13. Slide 13: Recording Device Business

    Recording Device Business ●HDD market in FY March 2015 *TDK’s estimation About 535 million units (end of April) About 552 million units (end of July) About 560 million units (Current estimation, increase by 8 million units from the previous estimation) ●Shipment index Recording Device Sales (Left, i

  14. Slide 14: Consolidated Full Year Projections for FY March 2015

    Consolidated Full Year Projections for FY March 2015 Takehiro Kamigama President and CEO Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 - 14 -

  15. Slide 15: Market trend in the second half

    Market trend in the second half Priority Market Trend Markets Chinese smartphone production to shift from an adjustment phase in 2Q to ICT recovery in 3Q. Strong North American smartphone production to peak in 3Q, with a year- on-year increase also projected for 4Q. HDD market expected to continue o

  16. Slide 16: Second half trend of main products

    Second half trend of main products Segments Products Second Half Trend Inductive Increase in sales of metal inductors (thin-film, multilayer) devices Increase in sales of high-frequency coil (multilayer) Passive High-frequency Components Increase in sales of discrete products components Piezoelectri

  17. Slide 17: Projections for 3Q - Passive Components

    Projections for 3Q of FY March 2015 -Image of change in sales (Yen billions) Passive Components (2Q→3Q) 132.4 +3%～+4% 123.4 1Q 2Q 3Q Foreign Exchange rate 1Q results 2Q results 3Q assumptions US$/JPY 102.17 103.86 105.00 Euro/JPY 140.17 137.77 135.00 Copyright© 2014 TDK Corporation. All rights reser

  18. Slide 18: Projections for 3Q - Magnetic Application Products

    Projections for 3Q of FY March 2015 -Image of change in sales (Yen billions) Magnetic application products (2Q→3Q) 87.1 90.4 +1%～+2% 1Q 2Q 3Q Foreign Exchange rate 1Q results 2Q results 3Q assumptions US$/JPY 102.17 103.86 105.00 Euro/JPY 140.17 137.77 135.00 Copyright© 2014 TDK Corporation. All rig

  19. Slide 19: Projections for 3Q - Film Application Products

    Projections for 3Q of FY March 2015 -Image of change in sales (Yen billions) Film application products (2Q→3Q) +20%+α 37.2 22.5 1Q 2Q 3Q Foreign Exchange rate 1Q results 2Q results 3Q assumptions US$/JPY 102.17 103.86 105.00 Euro/JPY 140.17 137.77 135.00 Copyright© 2014 TDK Corporation. All rights r

  20. Slide 20: Projections for 3Q - Total

    Projections for 3Q of FY March 2015 -Image of change in sales (Yen billions) Total (2Q→3Q) 264.8 +5%～+6% 237.5 1Q 2Q 3Q Foreign Exchange rate 1Q results 2Q results 3Q assumptions US$/JPY 102.17 103.86 105.00 Euro/JPY 140.17 137.77 135.00 Copyright© 2014 TDK Corporation. All rights reserved. First Ha

  21. Slide 21: FY March 2015 Full Year / Dividend Projections

    FY March 2015 Full Year / Dividend Projections Upward revision from initial announcement figures (April 28) FY March 2015 FY March 2015 Y o Y Change FY March 2014 Full Year Projections Full Year Projections Full Year Results Yen billions % (Yen billions） (announced Apr. 28) (Revised) Net Sales 984.5

  22. Slide 22: Sales and operating income trend

    Sales and operating income trend Significant improvement in passive components business. Company-wide profitability is improving through a more balanced earning structure. Sales : Yen billions Operating income : Yen billions 300 Operating Income(Right) Sales(Left) 30 250 25 200 20 150 15 100 10 50 5

  23. Slide 23: Supplementary Data

    Supplementary Data Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 - 23 -

  24. Slide 24: 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 37.3 Inductive Devices 35.0 35.5 34.9 34.9 140.3 36.7 38.8 Other Passive Components 48.3 48.8 47.5 47.1 191.7 50.2 56.2 Passive Compo

  25. Slide 25: FY March 2015 Projections - Capex, Depreciation, R&D

    FY March 2015 Projections -Capex, Depreciation, R&D- Capital expenditure Depreciation R&D (Yen billions) 120 99.7 100 90.0 85.6 82.9 83.0 83.0 80.0 79.9 77.4 80 68.6 68.0 68.0 63.4 60 52.6 53.5 40 20 0 3/12 3/13 3/14 3/15 3/15 3/12 3/13 3/14 3/15 3/15 3/12 3/13 3/14 3/15 3/15 Previous Current Previo

  26. Slide 26: Financial Position

    Financial Position March End, June End, Sep End, Change from （Yen billions） 2014 2014 2014 June End, 2014 Total Asset 1,239.6 1,241.3 1,312.3 71.0 Total Liability 587.3 605.2 620.2 15.0 Stockholders's Equity 635.3 618.2 673.7 55.5 (comprehensive income) -87.1 -96.8 -51.9 44.9 Stockholders's Equity r

  27. Slide 27: Cash Flows

    Cash Flows FY March 2014 FY March 2015 YoY (Yen billions） Results through 2Q Results through 2Q Change Operating Cash Flow 57.3 43.9 (13.4) Investing Cash Flow -23.0 -45.0 (22.0) Free Cash Flow 34.3 -1.1 (35.4) Financing Cash Flow -21.4 -18.9 2.5 Effect of exchange rate chagens on cash and cash equi

  28. Slide 28: Annual Sales by applications (FY March 2011 – FY March 2014)

    Annual Sales by applications (FY March 2011 – FY March 2014) FY11/3 : FY March 2011 Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 - 28 -

  29. Slide 29: 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. First Half of Fiscal Year March, 2015 October 31, 2014 - 29 -

  30. Slide 30: Quarterly sales by applications

    Quarterly sales by applications (1Q of FY March 2014 –2Q of FY March 2015) Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 - 30 -

  31. Slide 31: Passive Components Business quarterly sales by applications

    Passive Components Business quarterly sales by applications (1Q of FY March 2014 –2Q of FY March 2015) Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 - 31 -

  32. Slide 32: Copyright © 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March,

    2005/3 : FY March 2005 Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 - 32 -

  33. Slide 33: Copyright © 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March,

    2005/3 : FY March 2005 Copyright© 2014 TDK Corporation. All rights reserved. First Half of Fiscal Year March, 2015 October 31, 2014 - 33 -

  34. Slide 34: 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

  35. Slide 35: Text data including Q&A of performance briefing

    Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2015/2q_1.htm

TDK — H1 FY March 2015 Earnings Presentation on 6ix