Supplementary data for the 1st quarter FY March 2007 (April 1, 2006 – June 30, 2006) July 27, 2006 Corporate Communications Dept. July 27, 2006 1Q, FY March 2007 1 Cautionary Statements with Respect to Forward-Looking Statements This Thismaterial materialcontains containsforward-looking forward-lookingstatements, statements,including includingprojections, projections,plans, plans,policies, policies, management strategies, targets, schedules, understandings and evaluations, about management strategies, targets, schedules, understandings and evaluations, aboutTDK TDKand anditsits group groupcompanies companies(TDK (TDKGroup). Group). These Theseforward-looking forward-lookingstatements statementsare arebased basedon onthe thecurrent current forecasts, forecasts,estimates, estimates,assumptions, assumptions,plans, plans,beliefs beliefsand andevaluations evaluationsofofTDK TDKGroup Groupininlight lightofof information informationcurrently currentlyavailable availabletotoit,it,and andcontain containknown knownand andunknown unknownrisks, risks,uncertainties uncertaintiesand andother other factors. factors.TDK TDKGroup Grouptherefore thereforewishes wishestotocaution cautionreaders readersthat, that,being beingsubject subjecttotorisks, risks,uncertainties uncertainties and andother otherfactors, factors,TDK TDKGroup’s Group’sactual actualresults, results,performance, performance,achievements achievementsororfinancial financialposition position could couldbe bematerially materiallydifferent differentfrom fromany anyfuture futureresults, results,performance, performance,achievements achievementsororfinancial financial position positionexpressed expressedororimplied impliedby bythese theseforward-looking forward-lookingstatements, statements,and andTDK TDKGroup Groupundertakes undertakesno no obligation to publicly update or revise any forward-looking statements after the issue of this material obligation to publicly update or revise any forward-looking statements after the issue of this material except exceptas asprovided providedfor forininlaws lawsand andordinances. ordinances. The electronics markets in which TDK The electronics markets in which TDKGroup Groupoperates operatesare arehighly highlysusceptible susceptibletotorapid rapidchanges. changes. Risks, uncertainties and other factors that can have significant effects on TDK Group include, Risks, uncertainties and other factors that can have significant effects on TDK Group include,but but are arenot notlimited limitedto, to,shifts shiftsinintechnology, technology,fluctuations fluctuationsinindemand, demand,prices, prices,interest interestand andforeign foreignexchange exchange rates, rates,and andchanges changesinineconomic economicenvironments, environments,conditions conditionsofofcompetition, competition,laws lawsand andregulations. regulations. July 27, 2006 1Q, FY March 2007 2 Sales by major customer industry (Electronic materials and components segment) 1st Quarter, FY Mar. ‘07 YoY IT Home Electronics High-Speed, Large Capacity Networks Car Electronics + + + + Sales Weight 17% 67 ％ 24% 8 ％ 9% 9 ％ Others 18% 16 ％ Electronic materials & components (ex. Lambda Power) July 27, 2006 1Q, FY March 2007 3 Capital expenditures, Depreciation and amortization, Research and development Unit:JPY Billion FY March 2006 [Results] FY March 2007 FY March 2007 Projections Apr. 27 '06 Projections July 27 '06 Capital expenditures 73.9 70.0 70.0 Depreciation and amortization 58.5 62.0 62.0 Research and development 45.5 47.0 47.0 5.7% 5.7% 5.7% (Share of net sales) <Net sales> July 27, 2006 795.2 820.0 1Q, FY March 2007 820.0 4 Consolidated results and projections Unit:Yen millions,% FY March 2006 [Results] (Yen mill.) FY March 2007 (%) (%) 100.0% 820,000 100.0% 820,000 100.0% 3.1% 687,750 86.5% 718,000 87.6% 718,000 87.6% 4.4% Electronic materials 180,766 22.7% 198,300 24.2% 196,700 24.0% 8.8% Electronic devices 154,680 19.5% 195,600 23.9% 191,700 23.4% 23.9% Recording devices 315,928 39.7% 282,700 34.5% 289,000 35.2% -8.5% 36,376 4.6% 41,400 5.0% 40,600 5.0% 11.6% 107,430 13.5% 102,000 12.4% 102,000 12.4% -5.1% Electronic materials and components Other electronic components Recording media (Yen mill.) (%) (Yen mill.) Growth YoY 795,180 Net sales (%) FY March 2007 Projections Apr. 27 '06 Projections July 27 '06 Operating income 60,523 7.6% 82,000 10.0% 82,000 10.0% 35.5% Income before income taxes 66,103 8.3% 88,000 10.7% 88,000 10.7% 33.1% Net income 44,101 5.5% 61,000 7.4% 61,000 7.4% 38.3% Exchange rate (JPY/U.S.$) July 27, 2006 113 110 1Q, FY March 2007 111 5 Sales (Yen million) Sales and Operating income ratio 250,000 15.0% 200,000 12.0% 150,000 9.0% 100,000 6.0% 50,000 3.0% 0 Sales Operating income ratio 1Q 2Q 4Q 1Q 2Q 3Q 4Q 1Q 0.0% 157,227 160,265 174,218 166,143 167,422 182,965 222,654 222,139 203,640 9.1% 8.3% FY Mar. 05 July 27, 2006 3Q 9.9% 8.9% 7.7% 8.3% FY Mar. 06 1Q, FY March 2007 9.6% 5.0% 8.8% FY Mar. 07 6 Share of sales by products(1Q of FY Mar. 07) Recording media 12% Other electronic components 6% Sales and Operating income ratio of Electronic materials and components Electronic devices 23% Sales (Yen millions) Recording devices 36% Electronic materials 23% 250,000 15.0% 200,000 12.0% 150,000 9.0% 100,000 6.0% 50,000 3.0% 0 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 0.0% 129,804 131,282 143,746 140,382 143,328 157,392 192,091 194,939 180,131 Sales Operating income ratio 11.8% 11.8% 13.6% FY Mar. 05 July 27, 2006 4Q 1Q, FY March 2007 12.2% 10.7% 10.7% FY Mar. 06 11.6% 10.2% 10.9% FY Mar. 07 7 Share of sales by products(1Q of FY Mar. 07) Recording media 12% Other electronic components 6% Recording devices 36% Electronic materials 23% Electronic devices 23% Sales of Electronic materials Sales (Yen millions) 60,000 50,000 40,000 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 44,763 46,273 43,002 40,762 41,047 45,042 47,613 47,064 47,666 FY Mar. 05 July 27, 2006 1Q, FY March 2007 FY Mar. 06 FY Mar. 07 8 Share of sales by products(1Q of FY Mar. 07) Recording media 12% Other electronic components 6% Recording devices 36% Electronic materials 23% Electronic devices 23% Sales of Electronic devices Sales (Yen millions) 50,000 40,000 30,000 20,000 10,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 28,248 29,263 30,571 28,305 28,687 32,265 46,979 46,749 46,351 FY Mar. 05 July 27, 2006 1Q, FY March 2007 FY Mar. 06 FY Mar. 07 9 Share of sales by products(1Q of FY Mar. 07) Recording media 12% Other electronic components 6% Recording devices 36% Electronic materials 23% Electronic devices 23% Sales of Recording devices Sales (Yen millions) 100,000 80,000 60,000 40,000 20,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 52,163 51,170 65,351 65,894 68,464 71,824 85,736 89,904 73,788 FY Mar. 05 July 27, 2006 1Q, FY March 2007 FY Mar. 06 FY Mar. 07 10 Share of sales by products(1Q of FY Mar. 07) Recording media 12% Other electronic components 6% Recording devices 36% Electronic materials 23% Electronic devices 23% Sales of Other electronic components Sales (Yen millions) 20,000 10,000 0 1Q 2Q Sales 4,630 3Q 4,576 4,822 FY Mar. 05 July 27, 2006 1Q, FY March 2007 4Q 5,421 1Q 2Q 3Q 4Q 1Q 5,130 8,261 11,763 11,222 12,326 FY Mar. 06 FY Mar. 07 11 Share of sales by products(1Q of FY Mar. 07) Recording media 12% Other electronic components 6% Electronic materials 23% Sales and Operating income ratio of Recording media Electronic devices 23% Sales (Yen millions) Recording devices 36% 40,000 0.0% 30,000 -10.0% 20,000 -20.0% 10,000 -30.0% 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 27,423 28,983 30,472 25,761 24,094 25,573 30,563 27,200 23,509 Operating income ratio -3.3% -7.3% -7.6% -9.1% -10.4% -6.7% -3.0% -31.9% -7.0% FY Mar. 05 July 27, 2006 1Q, FY March 2007 FY Mar. 06 -40.0% FY Mar. 07 12