Strategy of Priority Five Businesses Inductive Devices High Frequency Components Piezoelectric Material Products Rechargeable Batteries HDD Heads Corporate Officer Shigenao Ishiguro Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 1 - About the HDD market ＜About the HDD market size and changes＞ 800 Flooding in Thailand 700 611 649 607 HDD Ship (M HDD) 600 511 HDD market size trend 568 554 564 556 549 542 500 < 2,5" 400 3.5" 300 Nearline Highend 200 100 0 FY FY FY FY FY FY FY FY FY FY March March March March March March March March March March 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Growth in parallel with PC Copyright© 2014 TDK Corporation. All rights reserved. Transition period Tapping the high-capacity storage market ※TDK’s estimation FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 2 - Changes in the HDD market HDD market shifting from mobility to capacity High-capacity HDDs to sustain the era of big data <Key Success Factors> 1) Continued development of new head products for multidisk HDD 2) Accelerated development of assisted recording (with TAMR being most promising) and establishment of the TAMR business Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 3 - About the HDD heads market HDD heads market size trend ※TDK’s estimation Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 4 - HDD heads overview ① –2014: Starting up high-capacity storage business ② –2017: Introduce SMR*1 and DSA*2 technologies for new multi-disk HDD ③ 2017–: Target set at 50% share of TAMR head market *1: Shingle MR *2: Dual Stage Actuator Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 5 - Cautionary Statements with Respect to Forward-Looking Statements Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 6 -