TDK Corporation Supplementary data for the 3rd quarter of fiscal year 2005 (October 1, 2004 - December 31, 2004) Contents Forward-Looking Statements P1. Consolidated results P2. Consolidated sales breakdown P3. Consolidated ratio by customer industry (Electronic materials and components) P4. Sales by region (Geographic areas of the buyer) P5. Results and projections of Captial expenditures, Depreciation and amortization, Research and development P6. Consolidated results and projections P7. Managing index of inventory, fixed assets, trade receivables January 31, 2005 TDK Corporation Corporate Communications Dept. Cautionary Statements with Respect of Forward-Looking Statements This material contains forward-looking statements, including projections, plans, policies, management strategies, targets, schedules, understandings and evaluations, about TDK and its group companies that are not historical facts. These forward-looking statements are based on current forecasts, estimates, assumptions, plans, beliefs and evaluations in light of information currently available to management. In preparing forecasts and estimates, TDK and its group companies have used, as their bases, certain assumptions as necessary, in addition to confirmed historical facts. However, due to their nature, there is no guarantee that these statements and assumptions will prove to be accurate in the future . TDK therefore wishes to caution readers that these statements, facts and certain assumptions are subject to a number of risks and uncertainties and may prove to be inaccurate. The electronics markets in which TDK and its group companies operate are highly susceptible to rapid changes. Furthermore, TDK and its group companies operate not only in Japan, but in many other countries. As such, factors that can have significant effects on its results include, but are not limited to, shifts in technology, demand, prices, competition, economic environments and foreign exchange rates. 1. Consolidated results Y on Y growth Quarterly trends Net sales,Operating income/Net sales, Net income/Net sales (%) FY2004 3Q FY2005 3Q (Yen billions) 15 200 150 10.0 9.6 100 Net sales, Operating income/Net sales, Net income/Net sales FY2004 3Q (Yen billions) FY2004 4Q (%) FY2005 3Q 15 150 10 10.0 8.9 7.6 7.0 7.8 Net sales 6.4 5.4 50 0 10 9.6 8.0 100 5 50 0 FY2005 2Q 200 7.0 7.8 FY2005 1Q 6.0 5 0 0 Operating income/Net sales Net income/Net sales Net sales FY2004 FY2005 3Q 3Q Y on Y growth Net sales 181,851 174,657 -7,194 Cost of sales 128,695 127,820 -875 Unit:Yen millions Share of net sales (%) Diff. 70.8 73.2 Selling,general and administrative expenses 35,017 30,115 -4,902 Operating income 18,139 16,722 -1,417 10.0 9.6 14,132 12,209 7.8 7.0 109 106 Operating income/Net sales(%) Net income Net income/Net sales(%) Exchange rate(U.S.$=Yen) Jan. 31, 2005 Operating income/Net sales FY2004 FY2004 FY2005 FY2005 FY2005 3Q 4Q 1Q 2Q 3Q Q on Q growth -4.0% Net sales 181,851 160,732 157,891 160,879 174,657 13,778 8.6% -0.7% Cost of sales 128,695 117,492 112,549 116,227 127,820 11,593 10.0% Unit:Yen millions Change Share of net sales (%) -14.0% Selling,general and administrative expenses -7.8% Operating income -13.6% Net income Diff. Change 70.8 73.1 71.3 72.2 73.2 35,017 31,077 31,317 31,788 30,115 -1,673 -5.3% 18,139 12,163 14,025 12,864 16,722 3,858 30.0% 10.0 7.6 8.9 8.0 9.6 14,132 8,712 10,163 9,706 12,209 2,503 25.8% 7.8 5.4 6.4 6.0 7.0 109 107 110 110 106 Operating income/Net sales(%) -1,923 Net income/Net sales Net income/Net sales(%) Exchange rate(U.S.$=Yen) TDK Corporation Supplementary data P1 2. Consolidated sales breakdown Y on Y growth Quarterly trends Consolidated sales breakdown Consolidated sales breakdown (Yen billions) (Yen billions) 200 200 Electronic materials 150 150 Electronic materials Electronic devices 100 100 Electronic devices 50 Recording devices 0 Recording media & systems Recording devices 50 Recording media & systems 0 FY2004 3Q FY2005 3Q FY2004 3Q Recording media & systems Semiconductors & others Recording devices Electronic devices Electronic materials Unit:Yen millions Electronic materials and components FY2004 FY2005 3Q 3Q 142,134 144,185 Y on Y growth Diff. FY2005 1Q Recording media & systems Semiconductors & others Electronic devices Electronic materials Unit:Yen millions Change 2,051 FY2004 4Q Electronic materials and 1.4% components FY2005 2Q FY2005 3Q Recording devices FY2004 FY2004 FY2005 FY2005 FY2005 3Q 4Q 1Q 2Q 3Q Q on Q growth 142,134 126,376 130,468 131,896 144,185 12,289 9.3% Diff. Change Electronic materials 42,998 43,002 4 0.0% Electronic materials 42,998 41,518 44,763 46,273 43,002 -3,271 -7.1% Electronic devices 28,957 30,571 1,614 5.6% Electronic devices 28,957 26,591 28,248 29,263 30,571 1,308 4.5% Recording devices 65,425 65,351 -74 -0.1% Recording devices 65,425 53,257 52,163 51,170 65,351 14,181 27.7% Semiconductors & others 4,754 5,261 507 10.7% Semiconductors & others 4,754 5,010 5,294 5,190 5,261 71 1.4% Recording media & systems 39,717 30,472 -9,245 -23.3% Recording media & systems 39,717 34,356 27,423 28,983 30,472 1,489 5.1% 181,851 174,657 -7,194 181,851 160,732 157,891 160,879 174,657 13,778 8.6% Total Jan. 31, 2005 -4.0% Total TDK Corporation Supplementary data P2 3. Consolidated ratio by customer industry (Electronic materials and components) Y on Y growth Consolidated ratio by customer industry (Electronic materials and components) Quarterly trends Consolidated ratio by customer industry (Electronic materials and components) IT home electronics appliances IT home electronics appliances Networks Car Networks Car Others FY2004 3Q FY2005 3Q Others IT home electronics appliances High-speed, large-capacity networks FY2004 3Q FY2004 4Q FY2005 1Q FY2005 2Q FY2005 3Q Car electronics Others Unit: % IT home electronics appliances Others FY2004 FY2005 Y on Y growth 3Q 3Q Change 67% 67% 0.7% =AV+Office equip. High-speed, large-capacity networks 9% 9% 7.6% 8% FY2004 FY2004 FY2005 FY2005 FY2005 Q on Q growth 3Q 4Q 1Q 2Q 3Q Change IT home electronics appliances 67% 63% 63% 62% 67% 18.7% High-speed, large-capacity networks 9% 9% 10% 11% 9% -4.9% 9% 8.5% Car electronics 8% 9% 9% 9% 9% 3.6% 16% 19% 18% 18% 15% -10.7% =Automobile 16% =Home appliance + Industrial machinery + Parts + Others Jan. 31, 2005 IT home electronics appliances =Communication equip. =Automobile Others Unit: % High-speed, large-capacity networks =AV+Office equip. =Communication equip. Car electronics Car electronics 15% -2.1% Others =Home appliance + Industrial machinery + Parts + Others TDK Corporation Supplementary data P3 4. Sales by region (Geographic areas of the buyer) Y on Y growth Quarterly trends Sales by region and share of overseas sales (Yen billions) FY2004 3Q 200 FY2005 3Q 74.6% 71.8% 150 Japan 100 Americas Europe FY2004 3Q (Yen billions) 80% 200 Sales by region and share of overseas sales FY2004 4Q 74.6% FY2005 1Q FY2005 2Q FY2005 3Q 72.9% 72.1% 71.8% 74.6% 80% 60% 150 60% Japan 40% Americas 100 50 20% Asia 0 40% Europe 50 0% 20% Asia Japan Americas 0 Europe Asia (excluding Japan) and others Share of overseas sales Unit:Yen millions FY2004 FY2005 3Q 3Q 0% Asia (excluding Japan) and others Americas Share of overseas sales Y on Y growth Diff. Unit:Yen millions Change Europe Japan FY2004 FY2004 FY2005 FY2005 FY2005 3Q 4Q 1Q 2Q 3Q Q on Q growth Diff. Change Japan 46,224 49,287 3,063 6.6% Japan 46,224 40,896 42,778 44,854 49,287 4,433 9.9% Americas 24,622 19,840 -4,782 -19.4% Americas 24,622 21,707 20,577 19,711 19,840 129 0.7% Europe 22,247 18,697 -3,550 -16.0% Europe 22,247 22,716 17,328 18,876 18,697 -179 -0.9% Asia (excluding Japan) and others 88,758 86,833 -1,925 -2.2% Asia (excluding Japan) and others 88,758 75,413 77,208 77,438 86,833 9,395 12.1% 181,851 174,657 -7,194 -4.0% Total 181,851 160,732 157,891 160,879 174,657 13,778 8.6% Total Share of overseas sales Jan. 31, 2005 74.6% 71.8% Share of overseas sales 74.6% TDK Corporation Supplementary data 74.6% 72.9% 72.1% 71.8% P4 5. Results and projections of Captial expenditures, Depreciation and amortization, Research and development January 31, 2005 Unit:Yen millions FY 2005 FY 2005 Projections on Oct. 28 Projections on Jan. 31 Capital expenditures 44,866 55,000 55,000 Depreciation and amortization 51,233 54,000 54,000 Research and development 34,495 39,000 39,000 (Share of net sales) <Net sales> Jan. 31, 2005 FY 2004 [Results] 5.2% 658,862 5.7% 680,000 TDK Corporation Supplementary data 5.9% 660,000 P5 6. Consolidated results and projections January 31, 2005 FY 2004 [Results] Unit:Yen millions,% (Yen mill.) Net sales Electronic materials and components Electronic materials Electronic devices Recording devices Semiconductors and others Recording media and systems FY 2005 FY 2005 Projections on Oct. 28 Projections on Jan. 31 Y on Y growth (%) (Yen mill.) (%) (Yen mill.) (%) 658,862 100.0% 680,000 100.0% 660,000 100.0% 0.2% 522,862 79.4% 548,500 80.7% 544,100 82.4% 4.1% 166,818 107,999 230,105 17,940 25.3% 27.1% 3.4% 175,700 117,500 229,900 21,000 26.6% 2.7% 184,400 119,100 222,300 22,700 3.2% 5.3% 8.8% -0.1% 17.1% 136,000 20.6% 131,500 19.3% 115,900 17.6% -14.8% 16.4% 35.0% 17.5% 32.7% 17.8% 34.8% Operating income 54,322 8.2% 60,000 8.8% 60,000 9.1% Income before income taxes 55,603 8.4% 62,000 9.1% 62,000 9.4% Net income 42,101 6.4% 46,500 6.8% 44,500 6.7% Exchange rate (U.S.$=Yen) (%) 113 108 108 * * An average exchange rate of Yen105=US$1 for fiscal 2005 from the forth quarter. Jan. 31, 2005 TDK Corporation Supplementary data P6 7. Managing index of inventory, fixed asset, trade receivables Unit:Yen millions Inventory turnover,Fixed asset turnover,Trade receivables turnover 20 03 03 /6 03 /9 03 /1 2 04 /3 FY 20 04 04 /6 04 /9 04 /1 2 05 /3 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Inventory turnover Fixed asset turnover 03/9 03/12 04/3 Total assets 747,337 760,487 750,715 761,128 770,319 Inventory 73,917 76,942 77,663 76,070 77,301 1.5 1.5 1.4 1.3 1.4 225,907 222,772 216,670 210,333 208,945 2.5 2.7 3.0 3.4 3.1 140,023 138,814 141,343 159,175 138,331 2.8 2.7 2.6 2.6 2.6 608,880 153,216 163,063 181,851 160,732 Inventory turnover (months) Fixed asset Fixed asset turnover (times) Times 3.5 03/6 FY 2004 FY months 3.5 FY 2003 Trade receivables Trade receivables turnover (months) Net sales Unit:Yen millions FY 2004 04/6 04/9 04/12 05/3 FY 2005 Trade receivables turnover Total assets 770,319 792,179 807,913 806,163 Inventory 77,301 82,143 87,429 78,941 1.4 1.6 1.6 1.4 208,945 213,515 216,753 211,846 3.0 3.0 3.0 3.3 138,331 141,068 143,671 149,591 2.5 2.7 2.7 2.6 658,862 157,891 160,879 174,657 Inventory turnover (months) Fixed asset Fixed asset turnover (times) # Inventory turnover Quarter:Inventory in the end of each quarter / Average monthly sales in the quarter Trade receivables Full Year:Inventory in the end of FY / Average monthly sales in the FY Trade receivables turnover (months) Net sales # Fixed asset turnover Quarter:(Sales in the each quarter) * 4 / Average fixed asset in the each quarter Full Year:Net sales / Average fixed asset # Trade receivables turnover Quarter:Trade receivable in the end of each quarter / Average monthly sales in the quarter Full Year:Trade receivable in the end of FY / Average monthly sales in the FY Jan. 31, 2005 TDK Corporation Supplementary data P7