Consolidated results 2Q.FY March,2011 Mr. Takakazu Momozuka General Manager Finance & Accounting Department FY March,2011(October 28,2010) 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 management strategies, targets, schedules, understandings and evaluations, about TDK or its group companies strategies, targets, schedules, understandings and evaluations, about TDK or its group companies (TDK (TDKGroup). Group). These Theseforward-looking forward-lookingstatements statementsare arebased basedon onthe thecurrent currentforecasts, forecasts,estimates, estimates, assumptions, assumptions,plans, plans,beliefs beliefsand andevaluations evaluationsofofTDK TDKGroup Groupininlight lightofofinformation informationcurrently currentlyavailable availabletotoit,it, and andcontain containknown knownand andunknown unknownrisks, risks,uncertainties uncertaintiesand andother otherfactors. factors.TDK TDKGroup Grouptherefore thereforewishes wishestoto caution cautionreaders readersthat, that,being beingsubject subjecttotorisks, risks,uncertainties uncertaintiesand andother otherfactors, factors,TDK TDKGroup’s Group’sactual actualresults, results, performance, achievements or financial position could be materially different from any future results, performance, achievements or financial position could be materially different from any future results, performance, performance,achievements achievementsororfinancial financialposition positionexpressed expressedororimplied impliedby bythese theseforward-looking forward-looking statements, statements,and andTDK TDKGroup Groupundertakes undertakesno noobligation obligationtotopublicly publiclyupdate updateororrevise reviseany anyforward-looking 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 not limited limitedto, to,shifts shiftsinintechnology, technology,fluctuations fluctuationsinindemand, demand,prices, prices,interest interestand andforeign foreignexchange exchangerates, rates,and and changes changesinineconomic economicenvironments, environments,conditions conditionsofofcompetition, competition,laws lawsand andregulations. regulations. FY March,2011(October 28,2010) 2 Consolidated results 2Q.FY March,2011 2Q FY2010 2Q FY2011 (July 1.2009 - Sep 30.2009) (July 1.2010 - Sep 30.2010) ％ Yen millions Net Sales 204,305 Yen millions ％ Change Yen millions ％ 100.0 220,309 100.0 16,004 7.8 87.7 Operating Income(Loss) 9,047 4.4 16,979 7.7 7,932 Income before income tax（Loss) 6,371 3.1 15,826 7.2 9,455 148.4 Net income(Loss) attributable to TDK Corp 4,356 2.1 11,593 5.3 7,237 166.1 Per common share Net income(loss) attributable to TDK Corp/Basic Yen(33.77) Yen(89.87) Exchange rate US $ vs JP Yen EURO vs JP Yen Yen appreciation Yen 93.73 Yen 133.75 Yen 85.88 Yen 110.67 Net sales：Lowered 18.9 billion Yen Ex-rate impact to Net sales & Operating Income Operating income：Lowered 5.2 billion Yen FY March,2011(October 28,2010) 3 8.4% 17.3% Net sales comparison FY 2Q Mar’11 vs FY 2Q Mar’10 2Q of FY2010 2Q of FY2011 (July 1.2009 - Sep 30.2009) (July 1.2010 - Sep 30.2010) Yen billion ％ Yen billion ％ Change Yen billion ％ Capacitors 33.6 16.4 37.7 17.1 4.2 12.4 Inductive・devices 28.9 14.2 34.3 15.6 5.4 18.6 Other 31.3 15.3 37.5 17.0 6.2 19.8 Passive compnents TTL 93.8 Recording devices 71.0 34.8 65.3 29.7 (5.7) (8.0) Other 25.2 12.3 26.9 12.2 1.7 6.7 Magnetic application products TTL 45.9 109.5 49.7 15.7 16.8 96.3 47.1 92.2 41.9 (4.0) (4.2) Other 14.3 7.0 18.6 8.4 4.3 30.0 Net Sales 204.3 100.0 220.3 100.0 16.0 FY March,2011(October 28,2010) 4 7.8 Segment information 2Q’Mar11 vs 2Q’Mar10 Net sales by industry segment 2Q FY2010 2Q FY2011 (July 1.2009 - Sep 30.2009) Yen billion (July 1.2010 - Sep 30.2010) ％ Yen billion ％ Change Yen billion ％ Passive components 93.8 45.9 109.5 49.7 15.7 16.8 Magnetic Application Prodcuts 96.3 47.1 92.2 41.9 (4.0) (4.2) 14.3 204.3 7.0 100.0 18.6 220.3 8.4 100.0 4.3 16.0 30.0 Others Total Net Sales Segment profit(loss) by industry segment 2Q FY2010 2Q FY2011 (July 1.2009 - Sep 30.2009) Yen billion Passive components (July 1.2010 - Sep 30.2010) ％ Yen billion ％ 7.8 Change Yen billion ％ 0.2 0.2 7.3 6.6 7.1 - Magnetic Application Prodcuts 11.3 11.8 12.5 13.6 1.2 10.8 Others sub total 1.2 12.7 8.6 6.2 1.7 21.5 9.0 9.8 0.4 8.8 36.3 69.1 Corporate and Eliminations (3.7) (0.8) 0.0 7.9 87.7 (Loss) Total Operating income(loss) FY March,2011(October 28,2010) 9.0 (4.5) 4.4 17.0 5 7.7 Statement of operation in 2Q, FY March 2011 results [2nd quarter results] Term Item Net sales Cost of sales Gross profit Selling, general and administrative expenses Restructuring cost 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 Net income Less:Net income (loss) attributable to noncontrolling interests Net income attributable to TDK Note: 2Q of FY2010 (July 1, 2009 Sept. 30, 2009) (Yen millions) 204,305 156,011 48,294 38,493 754 9,047 % (Yen millions) 100.0 76.4 23.6 18.8 0.4 4.4 220,309 163,996 56,313 39,334 16,979 480 (1,349) (1,104) (703) (2,676) -1.3 306 (759) (977) 277 (1,153) 6,371 3.1 2,079 4,292 (64) 4,356 U.S.$1=Yen 84, for convenience only. FY March,2011(October 28,2010) 2Q of FY2011 (July 1, 2010 Sep. 30, 2010) 6 Change % (U.S.$ thousands) 100.0 74.4 25.6 17.9 7.7 2,622,726 1,952,333 670,393 468,262 202,131 (Yen millions) Change(%) 16,004 7,985 8,019 841 (754) 7,932 7.8 5.1 16.6 2.2 87.7 -0.5 3,643 (9,036) (11,631) 3,298 (13,726) (174) 590 127 980 1,523 - 15,826 7.2 188,405 9,455 148.4 1.0 4,188 1.9 49,857 2,109 101.4 2.1 11,638 5.3 138,548 7,346 171.2 -0.0 45 0.0 536 109 - 2.1 11,593 5.3 138,012 7,237 166.1 Breakdown of Operating Income Changes （Unit：Billion Yen) 7.9 【Change in operating income total】 Change in sales and products mix 19.8 Rationalization and cost reduction and Purchased materials saving SG&A expenses Increase (3.0) Exchange fluctuations（US$=Yen 93.7=>85.9) (5.2) Sales price reduction（4.4％） FY March,2011(October 28,2010) (10.2) 7 6.5 Segment information 1Q’Mar11 vs 2Q’Mar11 Net sales by industry segment 1Q FY2011 2Q FY2011 (Apr 1.2010 - Jun 30.2010) Yen billion (July 1.2010 - Sep 30.2010) ％ Yen billion ％ Change Yen billion ％ Passive components 105.1 47.3 109.5 49.7 4.4 4.2 Magnetic Application Prodcuts 100.3 45.2 92.2 41.9 (8.0) (8.0) Others Total Net Sales 16.6 221.9 7.5 100.0 18.6 220.3 8.4 100.0 2.0 (1.6) 12.2 Segment profit(loss) by industry segment 1Q FY2011 2Q FY2011 (Apr 1.2010 - Jun 30.2010) Yen billion (July 1.2010 - Sep 30.2010) ％ Yen billion ％ (0.7) Change Yen billion ％ 6.2 5.9 7.3 6.6 1.1 Magnetic Application Prodcuts 16.1 16.0 12.5 13.6 (3.5) (22.0) Others sub total 1.1 23.3 6.3 10.5 1.7 21.5 9.0 9.8 0.6 (1.8) 59.8 Corporate and Eliminations (3.1) (1.4) 45.3 (3.2) (16.0) Passive components Total Operating income(loss) FY March,2011(October 28,2010) 20.2 (4.5) 9.1 17.0 8 7.7 17.6 (7.8) FY March,2011(October 28,2010) 9