TDK Corporation · TSE:6762

TDK — Q3 FY March 2013 Earnings Presentation

29 slides from TDK's earnings presentation, Jan 31, 2013

  1. Slide 1: Performance Briefings 3Q of Fiscal Year March, 2013

    Performance Briefings 3Q of Fiscal Year March, 2013 TDK Corporation January 31, 2013 Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -1-

  2. Slide 2: Agenda and presenters

    ◆Consolidated Results through 3Q of FY March, 2013 Consolidated Full Year Projections of FY March, 2013 President and CEO Takehiro Kamigama ◆Consolidated 3Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manger of Finance & Accounting Department ◆Recording Device Business Shi

  3. Slide 3: Consolidated Results through 3Q and Full Year Projections of FY March 2013

    Consolidated Results through 3Q of FY March, 2013 Consolidated Full Year Projections of FY March, 2013 President and CEO, TDK Corporation Takehiro Kamigama Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -3-

  4. Slide 4: Consolidated Results through 3Q of FY March, 2013

    Consolidated Results through 3Q of FY March, 2013 FY March 2012 FY March 2013 Change Results through 3Q Results through 3Q (Yen billions） (2011.4.1-2011.12.31) (2012.4.1-2012.12.31) Yen billions % Net Sales 607.5 631.0 23.6 3.9 Operating Income 21.9 25.5 3.6 16.4 Operating Income Margin 3.6% 4.0% 0.

  5. Slide 5: Features in 3Q results of FY March 2013

    Features in 3Q results of FY March 2013 z Sales of HDD head was above our expectations, although HDD market was softer than in a typical year. z Sales the communications market increased by 50% from second quarter. 9 Sales of secondary batteries and high frequency components. z Magnet sales were muc

  6. Slide 6: Full Year Projections of FY March 2013

    Full Year Projections of FY March 2013 We revised projected consolidated operating results based on changes in the business environment and foreign currency. Projections 9 months Projections (Yen billions) (As of Oct. 31) Results (As of Jan. 31) Net sales 850.0 631.0 835.0 Operating Income 41.0 25.5

  7. Slide 7: FY March 2013 Dividend Forecast

    FY March 2013 Dividend Forecast ‹Revision of projected dividends per share Interim dividend (results) 40 Yen Year-end dividend (forecast) 30 Yen (previous forecast : 40 Yen) Annual dividend (forecast) 70 Yen (previous forecast : 80 Yen) JPY Dividend Payout ratio % 100 Forecast 80 80 80 80 60 70 57.2

  8. Slide 8: Acceleration of restructuring measures

    Acceleration of restructuring measures Promote business ・Exit non-core businesses portfolio review Optimize production bases ・Further integrate bases worldwide (Targeting bases not already announced for integration) Improve management ・Establish solid business structure efficiency for executing stra

  9. Slide 9: Consolidated 3Q Results of FY March, 2013

    Consolidated 3Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -9-

  10. Slide 10: Consolidated 3Q Results of FY March, 2013

    Consolidated 3Q Results of FY March, 2013 FY March 2012 FY March 2013 Change 3Q Results 3Q Results (Yen billions） (2011.10.1-2011.12.31) (2012.10.1-2012.12.31) Yen billions % Net Sales 191.3 215.4 24.1 12.6 Operating Income 7.4 5.1 (2.3) -31.3 Operating Income Margin 3.9% 2.4% -1.5 pt - Income from

  11. Slide 11: Breakdown of Operating Income Changes

    Breakdown of Operating Income Changes (Yen billions) Operating income : -2.3 Insurance gain (Thai flooding) Decrease in negative impact +0.4 Changes in sales from Thai flooding (including utilization, +3.9 products mix +0.5 7.4 Rationalization, cost reduction +2.8 Restructuring effect +3.8 5.1 Excha

  12. Slide 12: Segment Information: Operating Income and Net Sales

    Segment Information (FY2012 3Q vs. FY2013 3Q, FY2013 2Q vs.FY2013 3Q) YoY Change QoQ Change 3Q of FY 2012 2Q of FY 2013 3Q of FY 2013 （Ｃ）－（Ａ） （Ｃ）－（Ｂ） Oct 1- Dec 31, 2011 July 1- Sep 30, 2012 Oct 1- Dec 31, 2012 （Ａ） （B） （C） JPY billion Yen billions % Yen billions % Capacitor 30.6 29.2 26.6 (4.0) -13.

  13. Slide 13: Change in operating income projections for FY March 2013

    Change in operating income projections for FY March 2013 (Yen billions) Forex assumption Operating income : -22.0 Forex assumption for second half in forth quarter US$：77 Yen US$：85 Yen EURO：100 Yen EURO：115 Yen Forex Forex in third quarter： fluctuation US$：81.17 Yen +5.1 EURO：105.28 Yen 41.0 Quanti

  14. Slide 14: Projections for FY March 2013 – Image of change in sales

    Projections for FY March 2013 – Image of change in sales 4Q 1Q 2Q 3Q Segment Projections Remarks Results Results Results (versus 3Q) Passive components 91.5 90.6 93.1 +2～4% Magnetic Sales of HDD head and application 88.2 83.4 84.2 -8～-10% Magnet will decrease products Film Sales of secondary battery

  15. Slide 15: Recording Device Business

    Recording Device Business Shigenao Ishiguro General Manager of Data Storage & Thin Film Technology Components BG Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 15 -

  16. Slide 16: Recording Device Business

    Recording Device Business ●HDD market FY March 2013 (TDK’s forecast as of October-end) : About 575 million units FY March 2013 (TDK’s forecast as of January-end) : About 566 million units ●Shipment index Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention) HDD Head Shipment Ind

  17. Slide 17: Supplementary Data

    Supplementary Data Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 17 -

  18. Slide 18: Quarterly sales and operating income by segment

    Quarterly sales and operating income by segment FY March 2012 FY March 2013 Yen billions 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Capacitors 36.1 34.2 30.6 31.6 132.4 31.4 29.2 26.6 Inductive Devices 32.9 31.4 28.6 28.4 121.2 28.2 29.6 30.6 Other Passive Components 32.8 34.4 30.4 30.5 128.0 31.8 31.7 36.

  19. Slide 19: Annual Sales by applications (FY2009/Mar – FY2012/Mar)

    Annual Sales by applications (FY2009/Mar – FY2012/Mar) 100% ¥727bn ¥809bn ¥872bn ¥815bn 90% 17.3% 16.8% 17.2% 23.9% Consumer Products 80% 70% 25.4% Recording Devices (HDD 29.3% 34.5% heads & Suspensions) 60% 34.0% 50% Industrial Equipment and 24.7% others 40% 24.7% 22.1% 30% 19.3% Communications 54%

  20. Slide 20: Passive Components Business Annual sales by applications

    Passive Components Business Annual sales by applications (FY2009/Mar –FY2012/Mar) 100% ¥286bn ¥365bn ¥426bn ¥382bn 19.1% 15.8% Consumer Products 22.3% 31.0% 80% 35.1% Industrial Equipment and 34.9% 60% 35.6% others 29.7% 40% 78% 84% 25.4% 81% 24.5% Communications 21.9% 69% 20.9% 20% 21.3% 20.7% 24.6

  21. Slide 21: Quarterly sales by applications (1Q/FY2012/Mar – 3Q/FY2013/Mar)

    Quarterly sales by applications (1Q/FY2012/Mar –3Q/FY2013/Mar) ¥206bn ¥210bn ¥191bn ¥207bn ¥209bn ¥207bn ¥215bn 100% Consumer Products 90% 20.0% 21.4% 20.5% 17.8% 19.3% 21.1% 17.2% 80% Recording Devices (HDD 70% 21.7% 27.9% 27.9% 26.6% 25.2% 28.5% 26.7% heads & Suspensions) 60% 50% Industrial Equipm

  22. Slide 22: Passive Components Business quarterly sales by applications

    Passive Components Business quarterly sales by applications (1Q/FY2012/Mar –3Q/FY2013/Mar) ¥102bn ¥100bn ¥90bn ¥90bn ¥92bn ¥91bn ¥93bn 100% 19.4% 19.1% 18.3% 17.0% 17.7% 17.0% 15.7% Consumer Products 80% 30.9% 30.4% 27.3% 33.0% 30.2% 31.7% Industrial Equipment 60% 35.5% and others 40% 81% 81% 25.4%

  23. Slide 23: Financial Position

    Financial Position March End, Sep End, Dec End, Q on Q （JPY billion） 2012 2012 2012 Change Total Asset 1,072.8 1,048.1 1,125.0 76.9 Total Liability 560.8 563.4 581.0 17.6 Interest-bearing Debt 272.8 284.1 288.5 4.4 Stockholders's Equity 498.2 469.6 526.5 56.9 (comprehensive income) -230.8 -264.3 -20

  24. Slide 24: Full Year Projections – Capex, Depreciation, R&D

    Full Year Projections of FY March 2013 – Capex, Depreciation, R&D Projections Results Projections (Yen billions) (As of Oct. 31) through 3Q (As of Jan. 31) Capital expenditures 80.0 63.3 80.0 Depreciation and amortization 78.0 56.2 78.0 Research and development 51.0 39.3 51.0 Copyright© 2013 TDK Cor

  25. Slide 25: Copyright © 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year

    Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 25 -

  26. Slide 26: Copyright © 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year

    Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 26 -

  27. Slide 27: Reference information regarding segment reclassification

    Reference information regarding segment reclassification Since FY March 2012 (=previous fiscal year), TDK has had three reporting segments— Passive Components, Magnetic Application Products and Film Application Products— as well as Other, which includes products not included in these three reporting

  28. Slide 28: 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 s

  29. Slide 29: Text data including Q&A 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/2013/3q_1.htm

TDK — Q3 FY March 2013 Earnings Presentation on 6ix