TDK Corporation (6762) FY 2014 First 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. Net sales by industry segment 1Q of FY2013 (April 1, 2012 June 30, 2012) (Yen millions) External customers Intersegment Passive Components Total External customers Magnetic Application Products Intersegment Total External customers Film Application Products Intersegment Total External customers Other Intersegment Total Intersegment eliminations Ｔotal 91,480 738 92,218 88,180 161 88,341 23,232 820 24,052 5,761 4,975 10,736 (6,694) 208,653 1Q of FY2014 (April 1, 2013 June 30, 2013) % 43.8 42.3 11.1 2.8 100.0 (Yen millions) % Change (U.S.$ thousands) (Yen millions) Change(%) 117,027 49.5 1,182,091 25,547 8,677 859 121 1,190,768 25,668 117,886 870,657 (1,985) 86,195 36.4 2,949 131 292 873,606 (1,854) 86,487 288,929 5,372 28,604 12.1 7,414 734 (86) 296,343 5,286 29,338 47,576 (1,051) 4,710 2.0 22,364 (2,761) 2,214 69,940 (3,812) 6,924 (41,404) 2,595 (4,099) 236,536 100.0 2,389,253 27,883 27.9 16.4 27.8 -2.3 81.4 -2.1 23.1 -10.5 22.0 -18.2 -55.5 -35.5 13.4 Segment profit (loss) by industry segment 1Q of FY2013 (April 1, 2012 June 30, 2012) (Yen millions) Passive Components Magnetic Application Products Film Application Products Other Sub total Corporate and Eliminations Operating income 1Q of FY2014 (April 1, 2013 June 30, 2013) % (2,867) 14,570 2,110 (427) 13,386 (4,163) 9,223 -3.1 16.5 9.1 -7.4 6.4 4.4 (Yen millions) % 2,822 2.4 4,623 5.4 1,564 5.5 (822) -17.5 8,187 3.5 (4,207) 3,980 1.7 (U.S.$ thousands) (Yen millions) Change(%) 28,505 5,689 46,697 (9,947) -68.3 15,798 (546) -25.9 (8,303) (395) 82,697 (5,199) -38.8 (42,495) (44) 40,202 (5,243) -56.8 Note: U.S.$1=Yen 99, for convenience only. (6) Notes Concerning Significant Changes in Stockholders’ Equity Nothing to report. (7) Consolidated Supplementary Information 1. Exchange rates used for conversion Term Item The end of the period As of June 30, 2012 US$=Yen Euro=Yen 79.31 98.74 15 As of June 30, 2013 US$=Yen Euro=Yen 98.59 128.53 Change TDK Corporation (6762) FY 2014 First Quarter Financial Results (U.S. GAAP) 2. Sales by region 1Q of FY2013 (April 1, 2012 June 30, 2012) Term Region Americas Europe Asia and others Overseas sales total Japan Net sales Notes: (Yen millions) 14,003 27,965 136,334 178,302 30,351 208,653 % 6.7 13.4 65.4 85.5 14.5 100.0 1Q of FY2014 (April 1, 2013 June 30, 2013) (Yen millions) (U.S.$ thousands) % 21,928 9.3 221,495 35,091 14.8 354,455 156,245 66.1 1,578,232 213,264 90.2 2,154,182 23,272 9.8 235,071 236,536 100.0 2,389,253 Change (Yen millions) 7,925 7,126 19,911 34,962 (7,079) 27,883 Change(%) 56.6 25.5 14.6 19.6 -23.3 13.4 1. Overseas sales are based on the location of the customers. 2. The figures for FY2013 are restated based on current calculation method for sales by region. 3. U.S.$1=Yen 99, for convenience only. 3. Company group As of June 30, 2013, TDK had 120 consolidated subsidiaries (12 in Japan and 108 overseas). TDK also had 7 affiliates (5 in Japan and 2 overseas), the financial statements for which are accounted for by the equity method. 4. Overview of net sales by product Term Product Capacitors Inductive devices Other Passive Components Recording devices Other Magnetic Application Products Film Application Products Other Ｔotal Term 1Q of FY2013 (April 1, 2012 June 30, 2012) (Yen millions) % 2Q of FY2013 (July 1, 2012 September 30, 2012) (Yen millions) % 3Q of FY2013 (October 1, 2012 December 31, 2012) (Yen millions) % 31,434 28,206 31,840 91,480 59,926 28,254 15.1 13.5 15.2 43.8 28.7 13.6 29,246 29,629 31,741 90,616 55,798 27,634 14.1 14.3 15.4 43.8 27.0 13.3 26,600 30,573 35,962 93,135 60,177 24,038 12.3 14.2 16.7 43.2 27.9 11.2 88,180 42.3 83,432 40.3 84,215 39.1 23,232 11.1 5,761 2.8 208,653 100.0 27,743 13.4 5,202 2.5 206,993 100.0 1Q of FY2014 (April 1, 2013 June 30, 2013) (Yen millions) (U.S.$ thousands) % Product Capacitors 33,739 14.3 Inductive devices 34,969 14.8 Other 48,319 20.4 117,027 49.5 Passive Components 25.4 Recording devices 60,210 11.0 25,985 Other Magnetic Application 86,195 36.4 Products 28,604 12.1 Film Application Products Other 4,710 2.0 236,536 100.0 Ｔotal Note: U.S.$1=Yen 99, for convenience only. 340,798 353,222 488,071 1,182,091 608,182 262,475 870,657 288,929 47,576 2,389,253 16 33,018 15.3 5,034 2.4 215,402 100.0 4Q of FY2013 (January 1, 2013 March 31, 2013) (Yen millions) % 30,706 31,162 42,515 104,383 57,633 24,487 82,120 13.9 14.1 19.3 47.3 26.1 11.1 37.2 28,628 13.0 5,396 2.5 220,527 100.0