Consolidated Results May 8, 2009 Mr. Seiji Enami Director & Executive Vice President CFO 1 FY March 2009 (May 8, 2009) 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 undertakes no noobligation obligationtotopublicly publiclyupdate updateororrevise reviseany anyforward-looking forward-lookingstatements statementsafter afterthe theissue issueofofthis this material materialexcept exceptas asprovided providedfor forininlaws lawsand andordinances. 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. 2 FY March 2009 (May 8, 2009) Main Features of Earnings, FY Mar. 2009 ◆Electronics markets Downturn in demand for high-performance electronic devices such as video-related equipment, PCs, HDD and mobile phones. Steep declines in productions of electronic devices. ◆TDK Group ¾ Steep and sudden declines in demand for electronic components ¾ Inventory adjustments, lower operation in 4Q ¾ Implementation of structural reforms ¾ Strong negative impact by JPY appreciation ¾ Consolidation of EPCOS group in 3Q 3 FY March 2009 (May 8, 2009) Consolidated results (excl. EPCOS group) (Unit : Yen billions) Electronic Materials Electronic Devices Recording Devices Others Total sales FY March '08 200.1 209.1 334.7 122.4 866.3 Operating Income 87.2 (40.4) (EPCOS group) (Unit : Yen billions) Sales Operating Income FY March '08 - FY March '09 68.0 (13.9) 4 FY March 2009 (May 8, 2009) FY March '09 145.1 166.2 247.2 100.9 659.4 Change (55.0) (42.9) (87.5) (21.5) (206.9) Change(%) -27.5 -20.5 -26.1 -17.5 -23.9 (127.6) - Statements of income Term Item Net sales Cost of sales Gross profit Selling, general and administrative expenses Gain on business transfer to Imation Corp. Restructuring cost Operating income (loss) Other income (deductions): Interest and dividend income Interest expense Equity in earnings of affiliates Loss (gain) on securities, net Foreign exchange gain (loss) Other-net Total other income (deductions) Income (loss) before income taxes Income taxes Income (loss) before minority interests Minority interests Net income (loss) FY2008 (April 1, 2007 March 31, 2008) (Yen millions) % 866,285 100.0 73.4 635,529 230,756 26.6 158,921 18.3 (15,340) -1.8 87,175 10.1 8,284 (218) 1,969 (2,081) (3,670) 46 4,330 FY2009 (April 1,2008 March 31,2009) (Yen millions) % Change (U.S.$ thousands) (Yen millions) 727,400 100.0 7,422,449 605,943 83.3 6,183,092 121,457 16.7 1,239,357 159,878 22.0 1,631,408 15,884 2.2 162,082 (54,305) -7.5 (554,133) (138,885) (29,586) (109,299) 957 15,340 15,884 (141,480) -16.0 -4.7 -47.4 0.6 - (4,304) (2,118) (18,980) (4,307) (1,722) (224) (31,655) - 0.5 3,980 (2,336) (17,011) (6,388) (5,392) (178) (27,325) -3.7 40,612 (23,836) (173,582) (65,184) (55,020) (1,816) (278,826) 91,505 10.6 (81,630) -11.2 (832,959) (173,135) - 19,948 2.4 (17,041) -2.3 (173,888) (36,989) - 71,557 8.2 (64,589) -8.9 (659,071) (136,146) - 96 0.0 (1,429) -0.2 (14,581) (1,525) - 71,461 8.2 (63,160) -8.7 (644,490) (134,621) - * U.S.$1=Yen 98, for convenience only. 5 FY March 2009 (May 8, 2009) Change(%) Breakdown of Operating Income Changes FY March 2009 (Unit:Yen billions) -141.5 [ Changes in operating income Total] Changes in sales and product mix -58.5 Rationalization and cost reductions and Purchased materials saving 25.8 SG & A expenses decrease 10.8 Exchange fluctuations(1U.S.$=Yen 114.4 -> 100.7) -18.9 Sales price discounts(5.7%) -40.1 Restructuring cost -31.4 "Gain on business transfer to Imation Corp." decrease -15.3 -8.0 EPCOS group 6 Restructuring cost -0.7 Goodwill and others -5.2 FY March 2009 (May 8, 2009) Comparison with our projections on Feb. 9 FY March 2009 FY March 2009 Difference between the projections and [Projections [Results] on Feb. 9] the results (Unit:Yen billions) Incl. EPCOS group in 2H [Projections [Results] on Feb. 9] Net sales 741.0 727.4 (13.6) 68.0 68.0 Operating loss (38.0) (54.3) (16.3) (12.0) (13.9) Income before loss taxes (46.0) (81.6) (35.6) (14.0) (14.4) Net loss (42.0) (63.2) (21.2) (14.0) (12.6) 100 101 Exchange rate (U.S.$=Yen) 7 FY March 2009 (May 8, 2009) Balance sheets (Assets) ASSETS Term As of March 31, 2009 (Yen millions) Item Current assets Cash and cash equivalents Short-term investments Marketable securities Net trade receivables Inventories Other current assets Noncurrent assets Investments in securities Net property, plant and equipment Other assets TOTAL As of March 31, 2008 Change from As of Dec. 31, 2008 March 31, 2008 (Yen millions) (U.S.$ thousands) (Yen millions) 4,909,765 1,690,867 244,827 183,347 1,252,153 1,078,408 460,163 462,820 166,105 1,179 3,986 157,118 88,816 45,616 49.5 18,337 (400) 22,814 13,982 (34,407) 16,868 (520) 515,020 177,207 8,099 1,001 143,482 128,059 57,172 45.3 (33,863) (11,502) 15,894 16,967 (20,771) (22,375) (12,076) 6,325,296 357,623 3,557,602 2,410,071 100.0 11,235,061 472,713 68,714 267,149 136,850 935,533 50.5 621,228 147,166 55,653 (33,667) 355,881 81,496 209,694 99,337 165,503 1,136,248 54.7 (1,349) (20,606) (7,236) 26,493 (35,212) % 481,157 165,705 23,993 17,968 122,711 105,684 45,096 43.7 619,879 35,047 348,645 236,187 1,101,036 56.3 % 100.0 (Yen millions) Change from Dec. 31, 2008 % (Yen millions) 100.0 * U.S.$1=Yen 98, for convenience only. 8 FY March 2009 (May 8, 2009) Balance sheets (LIABILITIES AND STOCKHOLDERS' EQUITY) LIABILITIES AND STOCKHOLDERS' EQUITY Term (Yen millions) As of March 31, 2008 Change from As of Dec. 31, 2008 March 31, 2008 (U.S.$ thousands) (Yen millions) 199,621 71,049 3,497 50,970 63,314 1,942 8,849 18.1 2,036,949 724,990 35,684 520,102 646,061 19,816 90,296 161,961 8,898 294 76,391 63,834 7,660 4,884 17.3 37,660 62,151 3,203 (25,421) (520) (5,718) 3,965 407,280 233,217 17,473 70,833 71,581 2,532 11,644 35.8 (207,659) (162,168) (13,976) (19,863) (8,267) (590) (2,795) Noncurrent liabilities Long-term debt, excluding current installments 338,374 30.8 3,452,796 53,311 5.7 285,063 85,056 7.5 253,318 210,083 2,143,704 152 209,931 7,163 202,920 Retirement and severance benefits 98,007 14,284 16,000 537,995 48.9 1,000,072 145,755 163,265 5,489,745 33,990 5,998 13,171 215,272 23.0 64,017 8,286 2,829 322,723 57,531 6,278 14,084 492,336 43.3 40,476 8,006 1,916 45,659 8,823 0.8 90,030 3,684 0.4 5,139 8,469 0.8 354 32,641 64,257 20,772 605,622 333,071 655,684 211,959 6,179,816 32,641 63,887 19,510 688,719 370 1,262 (83,097) 32,641 64,172 20,519 667,054 85 253 (61,432) (162,741) (1,660,622) (81,583) (81,158) (142,609) (20,132) (6,333) 554,218 1,101,036 (64,622) 50.3 5,655,286 100.0 11,235,061 Current liabilities Short-term debt Current installments of long-term debt Trade payables Accrued expenses Income taxes payables Other current liabilities Deferred income taxes Other noncurrent liabilities Total liabilities Minority interests Common stock Additional paid-in capital Legal reserve Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total stockholders' equity TOTAL FY March 2009 (May 8, 2009) % (6,597) 716,577 76.6 935,533 100.0 (Yen millions) (Yen millions) Change from Dec. 31, 2008 % Item 9 As of March 31, 2009 (6,334) 264 (162,359) 635,443 165,503 1,136,248 % 55.9 100.0 (Yen millions) 1 (81,225) (35,212) *U.S.$1=Yen 98, for convenience only. Consolidated results in 4Q (excl. EPCOS group) (Unit : Yen billions) Electronic Materials Electronic Devices Recording Devices Others Total sales 4Q of FY08 45.9 51.4 87.9 22.7 207.9 Operating Income 13.3 (EPCOS group) (Unit : Yen billions) Sales Operating Income 10 4Q of FY08 - FY March 2009 (May 8, 2009) 4Q of FY09 20.9 29.0 38.8 18.2 107.0 (52.7) 4Q of FY09 32.1 (10.9) Change (25.0) (22.3) (49.1) (4.5) (100.9) Change(%) -54.5 -43.5 -55.8 -19.6 -48.5 (66.0) - Comparison of 3Q & 4Q (excl. EPCOS group) (Unit : Yen billions) Electronic Materials Electronic Devices Recording Devices Others Total sales 3Q of FY09 32.0 38.4 58.4 27.1 155.9 4Q of FY09 20.9 29.0 38.8 18.2 107.0 Change (11.1) (9.4) (19.5) (8.9) (48.9) Change(%) -34.7 -24.4 -33.5 -32.8 -31.4 Operating Income (2.1) (52.7) (50.5) - (EPCOS group) (Unit : Yen billions) Sales Operating Income 3Q of FY09 35.9 (3.0) 4Q of FY09 32.1 (10.9) Change (3.8) (7.9) Change(%) -10.5 - 11 FY March 2009 (May 8, 2009) Capital expenditures, Depreciation and amortization, Research and development May 8, 2009 Unit:Yen billions FY March 2008 [Results] FY March 2009 [Results] Capital expenditures 84.3 100.0 Depreciation and amortization 71.3 89.6 95.6 :TDK 4.4 :EPCOS 75.9 :TDK 8.4 :EPCOS FY March 2010 Projections on May 8, '09 41.0 81.0 5.2 :Goodwill Research and development (Share of net sales) <Net sales> 12 57.4 57.6 6.6% 7.9% 866.3 FY March 2009 (May 8, 2009) 727.4 52.1 :TDK 5.5 :EPCOS 53.0 7.4% 717.8 Capital expenditures (excl. EPCOS group) (Unit : Yen billions) Cash flow basis 1Q of FY09 2Q of FY09 31.1 36.6 3Q of FY09 4Q of FY09 16.3 FY March 2009 11.6 95.6 (excl. EPCOS group) (Unit : Yen billions) Approval basis 1Q of FY09 2Q of FY09 5.8 20.7 3Q of FY09 4Q of FY09 12.3 FY March 2009 5.7 The capital expenditure plan was modified due to a sudden and steep decline in electronic components demand Original Plan : 70.0 billion JPY Results : about 44.6 billion JPY 13 FY March 2009 (May 8, 2009) 44.6