Consolidated Results 3Q of FY March 2010 (October 1, 2009 – December 31, 2009) and Projections for FY March 2010 February 2, 2010 Mr. Seiji Enami Director & Executive Vice President CFO 3Q of FY March 2010 (February 2, 2010) 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. 3Q of FY March 2010 (February 2, 2010) 2 Consolidated Results 3Q of FY2010 3Q of FY2009 Term Item Net sales Operating income (loss) Income (loss) before income taxes Net income (loss) attributable to TDK Corp. Per common share : Net income (loss) attributable to TDK Corp. / Basic Change (Oct. 1, 2008 - Dec. 31, 2008) (October 1, 2009 - December 31, 2009) (Yen millions) (Yen millions) % % (U.S.$ thousands) (Yen millions) Change(%) 191,779 (5,109) 100.0 -2.7 211,662 12,093 100.0 5.7 2,300,674 131,446 19,883 17,202 10.4 - (15,129) -7.9 9,879 4.7 107,380 25,008 - (14,317) -7.5 8,826 4.2 95,935 23,143 - Yen (111.00) Average rate for the period US$ = Yen Euro = Yen Forex Impact : 3Q of FY '09 96.4 127.0 Net sales Operating income Yen 68.42 U.S.$ 0.7 Change 3Q of FY '10 Appreciation by 6.9% 89.7 Depreciation by 4.4% 132.7 Negative Yen 11.5 billion (approx.) Negative Yen 3.7 billion (approx.) * U.S.$1=Yen 92, for convenience only. 3Q of FY March 2010 (February 2, 2010) 3 Supplementary data 3Q of FY2010 (Unit : Yen millions, %) Net sales Operating income Income before income taxes Net income TDK (excl. EPCOS) EPCOS EPCOS Goodwill Yen millions 168,721 13,021 % 100.0% 7.7% Yen millions 42,941 985 % 100.0% 2.3% 10,983 6.5% 825 1.9% -1,929 9,423 5.6% 630 1.5% -1,227 3Q of FY2010 (Unit : Yen millions, %) Net sales Operating income Income before income taxes Net income 3Q of FY March 2010 (February 2, 2010) Yen millions -1,913 TDK group Yen millions 211,662 12,093 % 100.0% 5.7% 9,879 4.7% 8,826 4.2% 4 Comparison (Year on Year) (excl. EPCOS) (Unit : Yen billions) Electronic Materials Electronic Devices Recording Devices Others Total sales 3Q of FY '09 32.0 38.4 58.4 27.1 155.9 Operating Income (2.1) (EPCOS) (Unit : Yen billions) Sales Operating Income * EPCOS Goodwill 3Q of FY '09 35.9 (3.0) - 3Q of FY '10 34.7 39.7 73.6 20.8 168.7 13.0 Change 2.6 1.2 15.2 (6.3) 12.8 Change(%) 8.3 3.2 26.1 -23.2 8.2 15.1 - 3Q of FY '10 42.9 1.0 (1.9) Change 7.1 4.0 (1.9) Change(%) 19.7 - 3Q of FY '10 211.7 12.1 Change 19.9 17.2 Change(%) 10.4 - * Before the deduction of goodwill depreciation (Total) (Unit : Yen billions) Sales Operating Income 3Q of FY '09 191.8 (5.1) 3Q of FY March 2010 (February 2, 2010) 5 Statements of operations Term 3Q of FY2009 (Oct. 1, 2008 Dec. 31, 2008) (Yen millions) Item % Net sales Cost of sales Gross profit Selling, general and administrative expenses Restructuring cost Operating income (loss) 191,779 100.0 154,427 80.5 37,352 19.5 38,854 20.3 3,607 1.9 (5,109) -2.7 Other income (deductions): Interest and dividend income Interest expense Gain (loss) on securities, net Foreign exchange gain (loss) Other-net Total other income (deductions) 1,293 (1,061) (5,251) (4,535) (466) (10,020) 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. 3Q of FY2010 (October 1, 2009 December 31, 2009) (Yen millions) % Change (U.S.$ thousands) 211,662 100.0 2,300,674 158,167 74.7 1,719,207 53,495 25.3 581,467 41,535 19.6 451,467 (133) -0.0 (1,446) 12,093 5.7 131,446 (Yen millions) 19,883 3,740 16,143 2,681 (3,740) 17,202 10.4 2.4 43.2 6.9 - (957) 138 4,214 5,176 (765) 7,806 - -5.2 336 (923) (1,037) 641 (1,231) (2,214) -1.0 3,652 (10,032) (11,272) 6,967 (13,381) (24,066) (15,129) -7.9 9,879 4.7 107,380 25,008 - (667) -0.3 1,054 0.5 11,456 1,721 - (14,462) -7.6 8,825 4.2 95,924 23,287 - (145) -0.1 144 - (14,317) -7.5 23,143 - (1) 8,826 -0.0 4.2 (11) 95,935 * U.S.$1=Yen 92, for convenience only. 3Q of FY March 2010 (February 2, 2010) Change(%) 6 Breakdown of Operating Income Changes (Unit:Yen billions) 17.2 [ Changes in operating income Total] Changes in sales and product mix 21.4 Rationalization and cost reductions and Purchased materials saving 15.8 SG & A expenses decrease (Incl. -2.3 billion Yen of Structural Reform cost) Exchange fluctuations(1U.S.$=Yen 96.4 -> 89.7) Sales price reduction(6.8%) EPCOS Goodwill 3Q of FY March 2010 (February 2, 2010) 0.9 -3.6 -15.4 -1.9 7 Balance sheets (Assets) ASSETS Term As of December 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 522,735 140,259 62,393 12,946 163,298 101,106 42,733 585,763 36,941 328,733 220,089 1,108,498 % 47.2 (U.S.$ thousands) As of March 31, 2009 (Yen millions) % Change from Change from Sep. As of Sep. 30, 2009 March 31, 2009 30, 2009 (Yen millions) (Yen millions) % 5,681,902 1,524,554 678,185 140,718 1,774,978 1,098,978 464,489 481,157 165,705 23,993 17,968 122,711 105,684 45,096 43.7 41,578 (25,446) 38,400 (5,022) 40,587 (4,578) (2,363) 488,837 135,664 42,417 15,746 157,750 95,699 41,561 44.9 33,898 4,595 19,976 (2,800) 5,548 5,407 1,172 6,366,989 401,532 3,573,185 2,392,272 100.0 12,048,891 619,879 35,047 348,645 236,187 1,101,036 56.3 (34,116) 600,092 1,894 36,836 (19,912) 332,931 (16,098) 230,325 7,462 1,088,929 55.1 (14,329) 105 (4,198) (10,236) 19,569 52.8 100.0 100.0 * U.S.$1=Yen 92, for convenience only. 3Q of FY March 2010 (February 2, 2010) (Yen millions) 8 Balance sheets (Liabilities and Equity) LIABILITIES AND EQUITY Term Item As of December 31, 2009 (Yen millions) % (U.S.$ thousands) As of March 31, 2009 (Yen millions) % Change from Change from Sep. As of Sep. 30, 2009 March 31, 2009 30, 2009 (Yen millions) (Yen millions) % (Yen millions) Current liabilities Short-term debt Current installments of long-term debt Trade payables Accrued expenses Other current liabilities 234,896 74,990 9,385 82,373 57,605 10,543 21.2 2,553,217 815,109 102,011 895,358 626,141 114,598 199,621 71,049 3,497 50,970 63,314 10,791 18.1 35,275 3,941 5,888 31,403 (5,709) (248) 224,119 74,282 7,223 75,146 57,506 9,962 20.6 Noncurrent liabilities Long-term debt, excluding current installments 333,183 30.0 3,621,554 338,374 30.8 (5,191) 333,784 30.6 203,973 2,217,098 210,083 (6,110) 205,868 (1,895) Retirement and severance benefits Other noncurrent liabilities Total liabilities 99,451 29,759 568,079 1,080,989 323,467 6,174,771 98,007 30,284 537,995 1,444 (525) 30,084 98,786 29,130 557,903 665 629 10,176 Common stock Additional paid-in capital Legal reserve Retained earnings 32,641 61,276 21,677 603,003 354,793 666,043 235,620 6,554,381 32,641 64,257 20,772 605,622 (2,981) 905 (2,619) 32,641 64,487 21,431 598,296 (3,211) 246 4,707 (177,384) (1,928,087) (162,741) (14,643) (187,060) 9,676 (6,191) 535,022 (67,293) 5,815,457 (6,333) 554,218 142 (19,196) (6,196) 523,599 48.1 5 11,423 0.7 48.8 100.0 (2,030) 9,393 19,569 Accumulated other comprehensive income (loss) Treasury stock Total stockholders' equity Noncontrolling interests Total equity TOTAL 5,397 540,419 1,108,498 3Q of FY March 2010 (February 2, 2010) 51.2 48.3 58,663 0.5 48.8 5,874,120 100.0 12,048,891 8,823 563,041 1,101,036 48.9 50.3 0.8 51.1 100.0 (3,426) 7,427 (22,622) 531,026 7,462 1,088,929 * U.S.$1=Yen 92, for convenience only. 51.2 9 10,777 708 2,162 7,227 99 581 (601) Comparison of 2Q & 3Q (excl. EPCOS) (Unit : Yen billions) Electronic Materials Electronic Devices Recording Devices Others Total sales 2Q of FY '10 33.7 36.6 70.8 20.0 161.1 3Q of FY '10 34.7 39.7 73.6 20.8 168.7 Change 0.9 3.0 2.8 0.9 7.6 Change(%) 2.8 8.3 3.9 4.3 4.7 Operating Income 10.1 13.0 2.9 28.9 (EPCOS) (Unit : Yen billions) Sales Operating Income * EPCOS Goodwill 2Q of FY '10 43.2 0.1 (1.2) 3Q of FY '10 42.9 1.0 (1.9) Change (0.3) 0.9 (0.7) Change(%) -0.6 713.2 3Q of FY '10 211.7 12.1 Change 7.4 3.1 Change(%) 3.6 34.8 * Before the deduction of goodwill depreciation (Total) (Unit : Yen billions) Sales Operating Income 2Q of FY '10 204.3 9.0 3Q of FY March 2010 (February 2, 2010) 10 Consolidated Results (9-month-period) Term Item Net sales Operating income Income (loss) before income taxes Net income (loss) attributable to TDK Corp. Per common share : Net income (loss) attributable to TDK Corp. / Basic The 9-moth-period of FY2009 The 9-month-period of FY2010 Change (April 1, 2008 - Dec. 31, 2008) (April 1, 2009 - December 31, 2009) (Yen millions) (Yen millions) % % (U.S.$ thousands) (Yen millions) Change(%) 100.0 100.0 6,494,707 1.6 597,513 9,197 588,316 1.6 2.9 88.7 9,272 17,495 190,163 8,223 (303) -0.1 10,832 1.8 117,739 11,135 - (2,449) -0.4 9,966 1.7 108,326 12,415 - Yen (18.99) Average rate for the period US$ = Yen Euro = Yen Forex Impact : Yen 77.26 U.S.$ 0.8 Change 9-month of FY '09 9-month of FY '10 Appreciation by 9.0% 102.9 93.6 Appreciation by 11.9% 151.1 133.0 Net sales Operating income Negative Yen 42.1 billion (approx.) Negative Yen 12.4 billion (approx.) * U.S.$1=Yen 92, for convenience only. 3Q of FY March 2010 (February 2, 2010) 11 Projections February 2, 2010 (Unit:Yen billions) FY March 2009 FY March 2010 [Results] [Projections] Change Change (%) Net sales 727.4 795.0 67.6 9.3% Operating income -54.3 22.0 76.3 - Income before income taxes -81.6 14.0 95.6 - Net income -63.2 7.0 70.2 - 101 93 * Exchange rate (U.S.$=Yen) * An average yen-U.S. dollar exchange rate of ¥90 and an average yen-euro exchange rate of ¥120 are assumed in the fourth quarter of fiscal 2010. 3Q of FY March 2010 (February 2, 2010) 12