Consolidated Results (April 1, 2009 – March 31, 2010) April 30, 2010 Mr. Takakazu Momozuka Finance & Accounting Department General Manager FY March 2010 (April 30, 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. FY March 2010 (April 30, 2010) 2 Consolidated sales results (Supplementary data) FY2010 (Unit : Yen millions, %) Net sales Operating income Income before income taxes Net income TDK (excl. EPCOS) EPCOS Goodwill EPCOS Yen millions 639,890 31,690 % 100.0% 5.0% Yen millions 168,968 -1,480 % 100.0% -0.9% 28,616 4.5% -1,888 -1.1% -4,821 21,424 3.3% -5,121 -3.0% -2,783 FY2010 (Unit : Yen millions, %) Net sales Operating income Income before income taxes Net income Yen millions -4,436 TDK group Yen millions 808,858 25,774 % 100.0% 3.2% 21,907 2.7% 13,520 1.7% 3 Consolidated sales results by Quarter EPCOS results Consolidated results ( Before the deduction of goodwill depreciation) (Excluding EPCOS) Net Sales and OP ratio 300 10% 250 0% 200 -10% 150 -20% 100 -30% 50 -40% 0 -50% 4Q 1Q 2Q 3Q 4Q Net Sales 107.0 144.6 161.1 168.7 165.5 Operating Income (52.7) 0.1 10.1 13.0 8.4 -49.2% 0.1% 6.3% 7.7% 5.1% OP ratio FY Mar. 2009 FY Mar. 2010 FY March 2010 (April 30, 2010) Net Sales (Yen in billions) Net Sales (Yen in billions) Net Sales and OP ratio 60 10% 50 0% 40 -10% 30 -20% 20 -30% 10 -40% 0 4Q 1Q 2Q 3Q 4Q Net Sales 32.1 37.0 43.2 42.9 45.9 Operating Income (5.7) (3.7) 0.1 1.0 1.2 -17.7% -10.1% 0.3% 2.3% 2.6% OP ratio FY Mar. 2009 FY Mar. 2010 4 -50% Sales by product (Year on Year) (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 4Q of FY '10 34.5 38.2 72.1 20.7 165.5 Change 13.6 9.2 33.2 2.5 58.5 Change(%) 65.1 31.6 85.7 13.5 54.7 Operating Income (52.7) 8.4 61.1 - (EPCOS) (Unit : Yen billions) Sales Operating Income * EPCOS Goodwill 4Q of FY '09 32.1 (5.7) (5.2) 4Q of FY '10 45.9 1.2 (1.3) Change 13.8 6.9 3.9 Change(%) 42.9 - * Before the deduction of goodwill depreciation (Total) (Unit : Yen billions) Sales Operating Income 4Q of FY '09 139.1 (63.6) 4Q of FY '10 211.3 8.3 Change 72.3 71.9 Change(%) 52.0 5 Statements of operations Term Item FY2009 (April 1, 2008 March 31, 2009) (Yen millions) % FY2010 (April 1,2009 March 31,2010) (Yen millions) Change % (U.S.$ thousands) 100.0 76.4 23.6 19.8 0.6 3.2 8,697,398 6,642,753 2,054,645 1,724,580 52,925 277,140 3,130 (4,010) (1,678) (1,363) (1,118) 1,172 (3,867) -0.5 33,656 (43,118) (18,043) (14,656) (12,022) 12,602 (41,581) (Yen millions) Cha nge(% ) Net sales Cost of sales Gros s profit Selling, general and administrative expenses Restructuring cost Operating income (loss) 727,400 100.0 605,943 83.3 16.7 121,457 159,878 22.0 2.2 15,884 -7.5 (54,305) 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 inc ome (deductions) 3,980 (2,336) (17,011) (6,388) (5,392) (178) (27,325) -3.7 (81,630) -11.2 21,907 2.7 235,559 103,537 - (17,041) -2.3 9,025 1.1 97,043 26,066 - (64,589) -8.9 12,882 1.6 138,516 77,471 - (1,429) -0.2 -0.1 (6,860) 791 - (63,160) -8.7 1.7 145,376 76,680 - Income (loss) before inc ome taxes Income taxes Net income (loss) Less:Net income (loss) attributable to noncontrolling interests Net income (loss) attributable to TDK Corp. 808,858 617,776 191,082 160,386 4,922 25,774 (638) 13,520 81,458 11.2 2.0 11,833 69,625 57.3 508 0.3 (10,962) -69.0 80,079 - (850) (1,674) 15,333 5,025 4,274 1,350 23,458 - Note: U.S.$1=Yen 93, for convenience only. 6 Breakdown of Operating Income Changes (Unit:Yen billions) 80.1 [ Changes in operating income Total] Changes in sales and product mix 45.5 Rationalization and cost reductions and Purchased materials saving 50.2 SG & A expenses decrease (Including restructuring cost 26.4 Bil Yen) 23.9 Exchange fluctuations(1U.S.$=Yen 100.7 -> 92.9) -12.8 Sales price reduction(5.4%) -34.8 EPCOS Operating Income 7.3 EPCOS Goodwill 0.8 FY March 2010 (April 30, 2010) 7 Balance sheets (Assets) ASSETS Term 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, 2009 (Yen millions) % 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 Change As of March 31, 2010 (Yen millions) % (U.S.$ thousands) 5,782,226 1,429,935 729,818 240,914 1,820,957 1,129,774 430,828 56,590 (32,721) 43,880 4,437 46,638 (615) (5,029) 5,953,882 412,086 3,421,559 2,120,237 100.0 11,736,108 (66,168) 3,277 (30,440) (39,005) (9,578) 537,747 132,984 67,873 22,405 169,349 105,069 40,067 49.3 553,711 38,324 318,205 197,182 100.0 1,091,458 50.7 Note: U.S.$1=Yen 93, for convenience only. FY March 2010 (April 30, 2010) (Yen millions) 8 Balance sheets (Liabilities and Equity) LIABILITIES AND EQUITY Term As of March 31, 2009 (Yen millions) Item Current liabilities 199,621 71,049 3,497 50,970 63,314 1,942 Short-term debt Current installments of long-term debt Trade payables Accrued expenses Income taxes payables Other current liabilities % 18.1 8,849 Noncurrent liabilities Long-term debt, excluding current installments Retirement and severance benefits Deferred income taxes 338,374 Other noncurrent liabilities Total liabilities As of March 31, 2010 (Yen millions) 251,377 79,946 10,554 84,988 63,249 3,541 % 23.0 290,412 2,702,978 859,634 113,484 913,849 680,097 38,075 97,839 9,099 30.8 (U.S.$ thousands) 26.6 Change (Yen millions) 51,756 8,897 7,057 34,018 (65) 1,599 250 3,122,710 (47,962) 210,083 179,554 1,930,688 (30,529) 98,007 84,304 906,495 (13,703) 14,284 16,000 11,312 15,242 121,634 163,893 (2,972) (758) 537,995 48.9 541,789 49.6 5,825,688 3,794 32,641 64,257 20,772 32,641 61,124 21,823 350,978 657,247 234,656 605,622 606,445 6,520,914 Accumulated other comprehensive income (loss) (162,741) (172,092) (1,850,451) (9,351) Treasury stock Total stockholders' equity (6,333) 554,218 (66,505) 5,846,839 148 (10,462) Common stock Additional paid-in capital Legal reserve Retained earnings Noncontrolling interests Total equity TOTAL 8,823 563,041 1,101,036 50.3 (6,185) 543,756 0.8 5,913 51.1 549,669 100.0 1,091,458 49.8 0.6 63,581 50.4 5,910,420 100.0 11,736,108 (3,133) 1,051 823 (2,910) (13,372) (9,578) Note: U.S.$1=Yen 93, for convenience only. 9 Restructuring expenditures in FY2010 and Effects Restructuring expenditures in FY2010 :13Bil Yen Expected effect in FY2011：10Bil Yen FY March 2010 (April 30, 2010) 10