Presentation Material (PDF: 144KB)

Consolidated Results 1Q of FY March 2009
July 31, 2008
Mr. Seiji Enami
Director & Executive Vice President
FY March 2009 (July 31, 2008)
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
managementstrategies,
strategies,targets,
targets,schedules,
schedules,understandings
understandingsand
andevaluations,
evaluations,about
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.
TDK
Group
therefore
wishes
to
caution
readers
that,
being
subject
to
risks,
uncertainties
factors. TDK Group therefore wishes to caution readers that, being subject to risks, 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
undertakes
no
noobligation
obligationtotopublicly
publiclyupdate
updateororrevise
reviseany
anyforward-looking
forward-lookingstatements
statementsafter
afterthe
theissue
issueofofthis
this
material
except
as
provided
for
in
laws
and
ordinances.
material except as provided for in laws and ordinances.
The
Theelectronics
electronicsmarkets
marketsininwhich
whichTDK
TDKGroup
Groupoperates
operatesare
arehighly
highlysusceptible
susceptibletotorapid
rapidchanges.
changes.
Risks,
Risks,uncertainties
uncertaintiesand
andother
otherfactors
factorsthat
thatcan
canhave
havesignificant
significanteffects
effectson
onTDK
TDKGroup
Groupinclude,
include,but
but
are
arenot
notlimited
limitedto,
to,shifts
shiftsinintechnology,
technology,fluctuations
fluctuationsinindemand,
demand,prices,
prices,interest
interestand
andforeign
foreign
exchange
exchangerates,
rates,and
andchanges
changesinineconomic
economicenvironments,
environments,conditions
conditionsofofcompetition,
competition,laws
lawsand
and
regulations.
regulations.
FY March 2009 (July 31, 2008)
2
Consolidated results
Term
Item
Net sales
Operating income
Income before income taxes
Net income
Per common share :
Net income / Basic
Net income / Diluted
Stockholders' equity
1Q of FY2008
(April 1, 2007 - June 30, 2007)
(Yen millions)
%
206,699
16,129
20,181
16,022
100.0
7.8
9.8
7.8
Yen 122.07
Yen 121.90
Yen 5,810.72
1Q of FY2009
(April 1, 2008 - June 30, 2008)
(Yen millions)
190,623
5,393
5,577
4,446
Change
% (U.S.$ thousands) (Yen millions) Change(%)
100.0 1,798,330
(16,076)
-7.8
-66.6
50,877
2.8
(10,736)
(14,604)
52,613
-72.4
2.9
2.3
41,943
(11,576)
-72.3
Yen
34.48
Yen
34.46
Yen 5,693.10
U.S.$ 0.33
U.S.$ 0.33
U.S.$ 53.71
U.S.$1=Yen 106, for convenience only.
FY March 2009 (July 31, 2008)
3
Forex Impact
Average rate for the period
US$ = Yen
Euro = Yen
1Q of FY08
120.82
162.75
1Q of FY 09
104.56
163.44
Net sales
Operating income
FY March 2009 (July 31, 2008)
Change
Appreciation by 13.5%
Depreciation by 0.4%
Negative Yen 21.5 billion
Negative Yen 6.6 billion
4
Main features 1Q of FY Mar. 09
●HDD heads
# TDK was unable to compensate fully for lower sales due to price falls and
foreign exchange movements through increased sales volume and
improvements to its product mix.
●Electronic components except HDD heads
# Capacitor sales fell due to larger-than-expected price falls and foreign
exchange movements.
# Sales of inductive devices were flat, with demand strong for some products
but weak for others.
# Power supplies were impacted by falling semiconductor-related investment.
# Rare earth magnets, ferrite magnets and ferrite cores were affected by
soaring materials prices.
# Energy device sales rose on the back of higher demand.
●From 2 segments to 1 segment due to the business transfer of
recording media
FY March 2009 (July 31, 2008)
5
Sales Breakdown
Term
Product
Electronic materials
Electronic devices
Recording devices
Others
Total sales
Overseas sales
Note:
1Q of FY2008
1Q of FY2009
(April 1, 2008 - June 30, 2008)
Amount
Amount
Ratio to
(April 1, 2007 - June 30, 2007)
Amount
Ratio to
(Yen millions) sales (%) (Yen millions) sales (%) (U.S.$ thousands)
49,703
49,981
70,416
36,599
206,699
167,756
24.0
24.2
34.1
17.7
100.0
81.2
45,671
48,675
72,445
23,832
190,623
158,158
24.0
430,859
25.5
459,198
38.0
683,443
12.5
224,830
100.0 1,798,330
83.0 1,492,057
Change
(Yen millions) Change(%)
(4,032)
(1,306)
2,029
(12,767)
(16,076)
(9,598)
-8.1
-2.6
2.9
-34.9
-7.8
-5.7
Recording media results are now included in the “others” sector.
U.S.$1=Yen 106, for convenience only.
FY March 2009 (July 31, 2008)
6
Statements of income
Term
Item
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income (deductions):
Interest and dividend income
Interest expense
Foreign exchange gain (loss)
Other-net
Total other income (deductions)
Income before income taxes
Income taxes
Income before minority interests
1Q of FY2008
(April 1, 2007 June 30, 2007)
(Yen
millions)
206,699
150,632
56,067
39,938
16,129
100.0
72.9
27.1
19.3
7.8
(Yen
millions)
190,623
148,415
42,208
36,815
5,393
%
Change
(U.S.$
thousands)
100.0 1,798,330
77.9 1,400,142
22.1
398,188
347,311
19.3
2.8
50,877
(Yen
millions)
Change(%)
(16,076)
(2,217)
(13,859)
(3,123)
(10,736)
-7.8
-1.5
-24.7
-7.8
-66.6
(1,322)
(51)
(2,333)
(162)
(3,868)
-95.5
2.0
1,118
(79)
(698)
(157)
184
0.1
10,547
(745)
(6,585)
(1,481)
1,736
20,181
9.8
5,577
2.9
52,613
(14,604)
-72.4
4,051
2.0
1,340
0.7
12,642
(2,711)
-66.9
16,130
7.8
4,237
2.2
39,971
(11,893)
-73.7
108
0.0
-0.1
(1,972)
(317)
-
16,022
7.8
2.3
41,943
(11,576)
-72.3
2,440
(28)
1,635
5
4,052
Minority interests
Net income
%
1Q of FY2009
(April 1,2008 June 30,2008)
(209)
4,446
Note:
U.S.$1=Yen 106, for convenience only.
FY March 2009 (July 31, 2008)
7
Breakdown of Operating Income Changes
1st Quarter of FY March 2009
(Unit:Yen billions)
-10.7
[ Changes in operating income Total]
Changes in sales and product mix
1.2
Rationalization and cost reductions and Purchased materials saving
4.6
Exchange fluctuations(1U.S.$=Yen 120.82 -> 104.56)
-6.6
-10.1
Sales price discounts(5.0%)
SG & A expenses decrease
0.0
FY March 2009 (July 31, 2008)
8
FY2009 1Q Improvement Initiatives
Concrete Initiatives
# Mass production of capacitors began ahead of the late-August
scheduled commencement. TDK will work urgently to recoup its
investment by quickly improving production efficiency in the business as a
whole.
# Improve profitability in HDD heads via increased production efficiency
by putting into effect initiatives planned in fiscal 2008.
# Work to improve product mix in inductive devices
# Accelerate steps to fully integrate power supply operations with DenseiLambda KK.
FY March 2009 (July 31, 2008)
9
Comparison of 4Q & 1Q
(Unit : Yen billions)
Sales
Electronic Materials
Electronic Devices
Recording Devices
Others
Total sales
Operating Income
4Q of FY08
1Q of FY09
Change
46
51
88
23
208
46
49
72
24
191
△0
△3
△ 15
1
△ 17
13
5
△8
FY March 2009 (July 31, 2008)
10
Projections for 1H of FY March 2009
Consolidated
(Unit:Yen billions)
Net sales
1H of FY09
Apr. 28, 2008
1H of FY09
Jul.31, 2008
July 31, 2008
Change
from Apr. 28
420.0
402.0
(18.0)
Operating income
33.0
22.0
(11.0)
Income before income taxes
35.0
23.0
(12.0)
Net income
27.0
17.5
(9.5)
Exchange rate (U.S.$=Yen)
100
102 *
* An average yen-U.S. dollar exchange rate of Yen100 is assumed from the
second quarter of fiscal 2009.
TDK has revised its projections for the first half of fiscal 2009, based on actual results for
the first quarter and second-quarter projections.
FY March 2009 (July 31, 2008)
11
Projections for FY March 2009
Consolidated
July 31, 2008
(Unit:Yen billions)
FY 2009
Apr. 28, 2008
1H of FY09
Jul.31, 2008
2H of FY09
No change
FY 2009
Jul.31, 2008
Change
from Apr. 28
880.0
402.0
460.0
862.0
△ 18.0
Operating income
80.0
22.0
47.0
69.0
△ 11.0
Income before income taxes
85.5
23.0
50.5
73.5
△ 12.0
Net income
65.0
17.5
38.0
55.5
△ 9.5
100
102 *
100
101 *
Net sales
Exchange rate (U.S.$=Yen)
* An average yen-U.S. dollar exchange rate of Yen100 is assumed from the
second quarter of fiscal 2009.
There has been no change to second-half projections because of an uncertain outlook
for the operating environment.
FY March 2009 (July 31, 2008)
12