Consolidated Results (April 1, 2009 – June 30, 2009) August 6, 2009 Mr. Seiji Enami Director & Executive Vice President CFO 1Q of FY March 2010 (August 6, 2009) 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 TDKororitsits 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 and other otherfactors. factors.TDK TDKGroup Grouptherefore thereforewishes wishestotocaution cautionreaders readersthat, that,being beingsubject subjecttotorisks, risks, uncertainties uncertaintiesand andother otherfactors, factors,TDK TDKGroup’s Group’sactual actualresults, results,performance, performance,achievements achievementsoror financial financialposition positioncould couldbe bematerially materiallydifferent differentfrom fromany anyfuture futureresults, results,performance, performance, achievements achievementsororfinancial financialposition positionexpressed expressedororimplied impliedby bythese theseforward-looking forward-lookingstatements, statements, and TDK Group undertakes no obligation to publicly update or revise any forward-looking and TDK Group undertakes no obligation to publicly update or revise any forward-looking statements statementsafter afterthe theissue issueofofthis thismaterial 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 butare arenot notlimited limitedto, to,shifts shiftsinintechnology, technology,fluctuations fluctuationsinindemand, demand,prices, prices,interest interestand andforeign foreign exchange rates, and changes in economic environments, conditions of competition, laws exchange rates, and changes in economic environments, conditions of competition, lawsand and regulations. regulations. 1Q of FY March 2010 (August 6, 2009) 2 Consolidated Results Term Item Net sales Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to TDK Corp. 1Q of FY2010 (April 1, 2009 - June 30, 2009) 1Q of FY2009 (April 1, 2008 - June 30, 2008) (Yen millions) % (Yen millions) Change % (U.S.$ thousands) (Yen millions) Change(%) 100.0 1,891,104 -4.8 (9,077) -2.0 (9,038) (37,969) 190,623 5,393 100.0 2.8 181,546 (3,645) 5,577 2.9 (5,418) -3.0 (56,438) (10,995) - 4,446 2.3 (3,216) -1.8 (33,500) (7,662) - Per common share : Net income (loss) attributable to TDK Corp. / Basic Net income (loss) attributable to TDK Corp./ Diluted Average rate for the period US$ = Yen Euro = Yen Yen 34.48 Yen (24.93) U.S.$ (0.26) Yen 34.46 Yen (24.93) U.S.$ (0.26) 1Q of FY '09 104.6 163.4 1Q of FY '10 97.4 132.7 Net sales Operating income 1Q of FY March 2010 (August 6, 2009) Change Appreciation by 6.9% Appreciation by 18.8% Negative Yen 10.1 billion Negative Yen 2.5 billion 3 Supplementary data 1Q of FY2010 (Unit : Yen millions, Net sales Operating income Income before income taxes Net income TDK (excl. EPCOS) % Yen millions 144,610 100.0% 128 0.1% TDK-EPCOS Eliminations EPCOS TDK group Yen millions 36,953 △ 3,772 % 100.0% -10.2% Yen millions △ 17 △1 Yen millions 181,546 △ 3,645 % 100.0% -2.0% 1,154 0.8% △ 4,014 -10.9% △ 2,558 △ 5,418 -3.0% 2,988 2.1% △ 4,017 -10.9% △ 2,187 △ 3,216 -1.8% (Incl. 2,557 million Yen of Dividends paid from EPCOS in TDK-EPCOS Eliminations) 1Q of FY March 2010 (August 6, 2009) 4 Operating Results Highlights ◆ Electronics Market ¾ Production of finished products, which plummeted in the fall of 2008, has gradually increased. However, production levels were low in comparison with the same period of fiscal 2009. ◆ TDK Group ★ Sales prices continued declining due to unfavorable supply-demand dynamics. ★ Passive components shipments, although down year on year, were higher than the fourth quarter (JanuaryMarch) of fiscal 2009. ★ HDD head shipments recovered strongly, increasing even in year-on-year terms. 1Q of FY March 2010 (August 6, 2009) 5 Sales by product (Year on Year) (Unit : Yen billions) Electronic Materials Electronic Devices Recording Devices Others Total sales 1Q of FY '09 45.7 48.7 72.4 23.8 190.6 1Q of FY '10 28.5 34.0 62.6 56.5 181.5 (EPCOS) (Unit : Yen billions) Sales 1Q of FY '09 - 1Q of FY '10 37.0 1Q of FY March 2010 (August 6, 2009) Change (17.2) (14.7) (9.9) 32.7 (9.1) Change(%) -37.7 -30.2 -13.7 137.3 -4.8 6 Statements of operations Term 1Q of FY2009 (April 1, 2008 June 30, 2008) (Yen millions) Item Net sales Cost of sales Gross profit Selling, general and administrative expenses Restructuring cost Operating income (loss) 190,623 148,415 42,208 36,815 5,393 Other income (deductions): Interest and dividend income Interest expense Foreign exchange gain (loss) Other-net Total other income (deductions) Income (loss) before income taxes Income taxes Net income (loss) Less：Net income (loss) attributable to noncontrolling interests Net income (loss) attributable to TDK Corp. 1,118 (79) (698) (157) 184 % 100.0 77.9 22.1 19.3 2.8 1Q of FY2010 (April 1,2009 June 30,2009) (Yen millions) % Change (U.S.$ thousands) 181,546 100.0 1,891,104 146,420 80.7 1,525,208 35,126 19.3 365,896 37,348 20.5 389,042 1,423 0.8 14,823 (3,645) (37,969) -2.0 (Yen millions) Change(%) (9,077) (1,995) (7,082) 533 1,423 (9,038) -4.8 -1.3 -16.8 1.4 - (674) (942) 54 (395) (1,957) - 0.1 444 (1,021) (644) (552) (1,773) -1.0 4,625 (10,635) (6,709) (5,750) (18,469) 5,577 2.9 (5,418) -3.0 (56,438) (10,995) - 1,340 0.7 (1,705) -1.0 (17,761) (3,045) - 4,237 2.2 (3,713) -2.0 (38,677) (7,950) - -0.1 (497) -0.2 (5,177) (288) - 2.3 (3,216) -1.8 (33,500) (7,662) - (209) 4,446 * U.S.$1=Yen 96, for convenience only. 1Q of FY March 2010 (August 6, 2009) 7 Breakdown of Operating Income Changes (Unit:Yen billions) -9.0 [ Changes in operating income Total] Changes in sales and product mix -13.5 13.7 Rationalization and cost reductions and Purchased materials saving SG & A expenses decrease (Incl. -0.5 billion Yen of Restructuring cost) 4.1 Exchange fluctuations(1U.S.$=Yen 104.6 -> 97.4) -2.5 Sales price discounts(4.7%) -7.1 EPCOS (Incl. -0.9 billion Yen of Restructuring cost) 1Q of FY March 2010 (August 6, 2009) -3.7 8 Balance sheets (Assets) ASSETS Term As of June 30, 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 % 501,505 158,065 34,923 17,646 142,157 98,844 49,870 44.8 618,135 36,322 344,647 237,166 1,119,640 55.2 100.0 (U.S.$ thousands) As of March 31, 2009 (Yen millions) % Change from March 31, 2009 (Yen millions) 481,157 165,705 23,993 17,968 122,711 105,684 45,096 43.7 20,348 (7,640) 10,930 (322) 19,446 (6,840) 4,774 6,438,906 619,879 35,047 378,354 348,645 3,590,073 236,187 2,470,479 11,662,917 1,101,036 56.3 (1,744) 1,275 (3,998) 979 18,604 5,224,011 1,646,510 363,782 183,813 1,480,802 1,029,625 519,479 100.0 * U.S.$1=Yen 96, for convenience only. 1Q of FY March 2010 (August 6, 2009) 9 Balance sheets (Liabilities and Equity) LIABILITIES AND EQUITY Term As of June 30, 2009 (Yen millions) Item % (U.S.$ thousands) As of March 31, 2009 (Yen millions) % Change from March 31, 2009 (Yen millions) Current liabilities Short-term debt Current installments of long-term debt Trade payables Accrued expenses Other current liabilities 230,309 84,505 5,781 66,617 62,453 10,953 20.6 2,399,052 880,260 60,219 693,927 650,552 114,094 199,621 71,049 3,497 50,970 63,314 10,791 18.1 30,688 13,456 2,284 15,647 (861) 162 Noncurrent liabilities Long-term debt, excluding current installments 337,212 30.1 3,512,625 338,374 30.8 (1,162) 207,360 2,160,000 210,083 (2,723) Retirement and severance benefits 99,513 30,339 567,521 1,036,594 316,031 5,911,677 98,007 30,284 537,995 1,506 55 29,526 32,641 64,355 21,176 594,258 340,010 670,365 220,583 6,190,188 32,641 64,257 20,772 605,622 (161,805) (1,685,469) (162,741) (6,310) 544,315 (65,729) 5,669,948 (6,333) 554,218 Other noncurrent liabilities Total liabilities Common stock Additional paid-in capital Legal reserve Retained earnings Accumulated other comprehensive income (loss) Treasury stock Total stockholders' equity Noncontrolling interests Total equity TOTAL 7,804 552,119 1,119,640 50.7 48.6 0.7 49.3 100.0 81,292 8,823 5,751,240 563,041 11,662,917 1,101,036 1Q of FY March 2010 (August 6, 2009) 48.9 98 404 (11,364) 936 50.3 23 (9,903) 0.8 51.1 100.0 (1,019) (10,922) 18,604 * U.S.$1=Yen 96, for convenience only. 10 Comparison of 4Q & 1Q (excl. EPCOS) (Unit : Yen billions) Electronic Materials Electronic Devices Recording Devices Others Total sales 4Q of FY '09 20.9 29.0 38.8 18.2 107.0 1Q of FY '10 28.5 34.0 62.6 19.6 144.6 Change 7.6 4.9 23.7 1.4 37.6 Change(%) 36.2 17.0 61.2 7.5 35.2 0.1 52.8 - Operating Income (52.7) (EPCOS) (Unit : Yen billions) Sales Operating Income 4Q of FY '09 32.1 (10.9) 1Q of FY '10 37.0 (3.7) Change 4.9 7.2 Change(%) 15.1 - (Total) (Unit : Yen billions) Sales Operating Income 4Q of FY '09 139.1 (63.6) 1Q of FY '10 181.5 (3.6) Change 42.4 60.0 Change(%) 30.5 - 1Q of FY March 2010 (August 6, 2009) 11 Projections for FY March 2010 Consolidated August 6, 2009 (Unit:Yen billions) Net sales 1Q of FY Mar. '10 [Results] 181.5 2Q of FY Mar. '10 [Projections] 1H of FY Mar. '10 [Projections] 2H of FY Mar. '10 [Projections] FY Mar. '10 [Projections] 188.5 370.0 347.8 717.8 Operating income (3.6) 7.1 3.5 10.0 13.5 Income before income taxes (5.4) 5.9 0.5 6.4 6.9 Net income (3.2) 5.7 2.5 2.7 5.2 97 90 94 90 92 Exchange rate (U.S.$=Yen) * An average yen-U.S. dollar exchange rate of ¥90 and an average yen-euro exchange rate of ¥120 are assumed from the second quarter of fiscal 2010. "Net income" is equivalent to "Net income attributable to TDK Corp.". 1Q of FY March 2010 (August 6, 2009) 12