TDK Corporation (6762) FY 2014 Third Quarter Financial Results (U.S. GAAP) (4) Notes Concerning Going Concern Assumptions Nothing to report. (5) Segment Information TDK has 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 segments. In accordance with the provisions of ASC No.205-20, “Presentation of Financial Statements – Discontinued Operations”, the figures relating to the data tape business are excluded from FY2014. The prior year’s figures are also excluded to conform to the presentation used for FY2014. Film Application Products included the data tape business in past financial statements. For details of net sales, refer to page 18. [9-month-period results] Net sales by industry segment The 9-month-period of FY2013 (April 1, 2012 December 31, 2012) (Yen millions) External customers Passive Components Intersegment Total External customers Magnetic Application Products Intersegment Total External customers Film Application Products Intersegment Total External customers Other Intersegment Total Intersegment eliminations Total 275,231 2,483 277,714 255,827 241 256,068 78,299 2,203 80,502 15,997 14,022 30,019 (18,949) 625,354 % 44.0 40.9 12.5 2.6 100.0 The 9-month-period of FY2014 (April 1, 2013 December 31, 2013) (Yen millions) % 353,568 47.5 2,224 355,792 274,789 37.0 336 275,125 101,565 13.7 2,208 103,773 13,453 1.8 6,662 20,115 (11,430) 743,375 100.0 (U.S.$ thousands) Change (Yen millions) Change(%) 3,367,314 78,337 21,181 (259) 3,388,495 78,078 2,617,038 18,962 3,200 95 2,620,238 19,057 967,286 23,266 21,028 5 988,314 23,271 128,124 (2,544) 63,448 (7,360) 191,572 (9,904) (108,857) 7,519 7,079,762 118,021 28.5 -10.4 28.1 7.4 39.4 7.4 29.7 0.2 28.9 -15.9 -52.5 -33.0 18.9 Segment profit (loss) by industry segment The 9-month-period of FY2013 (April 1, 2012 December 31, 2012) (Yen millions) Passive Components Magnetic Application Products Film Application Products Other Sub total Corporate and Eliminations Operating income (7,118) 35,252 10,625 (1,437) 37,322 (11,994) 25,328 Note: U.S.$1=Yen 105, for convenience only. 15 % -2.6 13.8 13.6 -9.0 6.0 4.1 The 9-month-period of FY2014 (April 1, 2013 December 31, 2013) (Yen millions) % (U.S.$ thousands) Change (Yen millions) Change(%) 15,117 4.3 143,972 22,235 22,692 8.3 216,114 (12,560) -35.6 11,606 11.4 110,533 981 9.2 (2,434) -18.1 (23,181) (997) 46,981 6.3 447,438 9,659 25.9 (12,629) (120,276) (635) 34,352 4.6 327,162 9,024 35.6 TDK Corporation (6762) FY 2014 Third Quarter Financial Results (U.S. GAAP) [3rd quarter results] Net sales by industry segment 3Q of FY2013 (October 1, 2012 December 31, 2012) (Yen millions) External customers Passive Components Intersegment Total External customers Magnetic Application Products Intersegment Total External customers Film Application Products Intersegment Total External customers Other Intersegment Total Intersegment eliminations Total 93,135 976 94,111 84,215 34 84,249 30,932 701 31,633 5,034 4,789 9,823 (6,500) 213,316 % 43.7 39.5 14.5 2.3 100.0 3Q of FY2014 (October 1, 2013 December 31, 2013) (Yen millions) % Change (U.S.$ thousands) (Yen millions) Change(%) 117,137 45.3 1,115,591 24,002 6,571 690 (286) 1,122,162 23,716 117,827 911,800 11,524 95,739 37.0 143 15 (19) 911,943 11,505 95,754 394,657 10,507 41,439 16.0 7,181 754 53 401,838 10,560 42,193 41,257 4,332 1.7 (702) 21,229 (2,560) 2,229 62,486 (3,262) 6,561 (35,124) 2,812 (3,688) 258,647 100.0 2,463,305 45,331 25.8 -29.3 25.2 13.7 -55.9 13.7 34.0 7.6 33.4 -13.9 -53.5 -33.2 21.3 Segment profit (loss) by industry segment 3Q of FY2013 (October 1, 2012 December 31, 2012) (Yen millions) Passive Components Magnetic Application Products Film Application Products Other Sub total Corporate and Eliminations Operating income (1,752) 7,524 3,556 (551) 8,777 (3,745) 5,032 % -1.9 8.9 11.5 -10.9 4.1 2.4 3Q of FY2014 (October 1, 2013 December 31, 2013) (Yen millions) % 6,084 5.2 10,256 10.7 6,471 15.6 (796) -18.4 22,015 8.5 (4,433) 17,582 6.8 (U.S.$ thousands) (Yen millions) Change(%) 57,943 7,836 97,676 2,732 36.3 61,629 2,915 82.0 (7,581) (245) 209,667 13,238 150.8 (42,219) (688) 167,448 12,550 249.4 Note: U.S.$1=Yen 105, for convenience only. (6) Notes Concerning Significant Changes in Stockholders’ Equity Nothing to report. 16 Change