Consolidated Full Year Results of FY March, 2011 Consolidated 4Q Results of FY March, 2011 Takakazu Momozuka General Manager, Finance & Accounting Department 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 strategies, targets, schedules, understandings and evaluations, about management strategies, targets, schedules, understandings and evaluations, aboutTDK TDKororits its group groupcompanies companies(TDK (TDKGroup). Group). These Theseforward-looking forward-lookingstatements statementsare arebased basedon onthe thecurrent current forecasts, estimates, assumptions, plans, beliefs and evaluations of TDK Group in light forecasts, estimates, assumptions, plans, beliefs and evaluations of TDK Group in lightofof information informationcurrently currentlyavailable availabletotoit,it,and andcontain containknown knownand andunknown unknownrisks, risks,uncertainties uncertaintiesand and other factors. TDK Group therefore wishes to caution readers that, being subject to risks, other factors. TDK Group therefore wishes to caution readers that, being subject to 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 electronics markets in which TDK Group operates are highly susceptible to The electronics markets in which TDK Group operates are highly susceptible torapid 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. 2 Consolidated Full Year Results of FY March, 2011 FY March 2010 Full Year Results Yen billion ％ FY March 2011 Full Year Results Yen billion ％ Change Yen billion % Net Sales Capacitors 133.1 16.5 145.4 16.6 12.3 9.2 Inductive devices 112.0 13.8 135.8 15.5 23.8 21.3 Other 119.7 14.8 150.0 17.1 30.2 25.2 364.8 45.1 431.1 49.2 66.3 18.2 Recording devices 280.0 34.6 257.5 29.4 -22.5 -8.0 Other 103.7 12.8 111.0 12.7 7.2 7.0 383.7 47.4 368.5 42.1 -15.3 -4.0 Other 60.3 7.5 76.1 8.7 15.8 26.2 Total 808.9 100.0 875.7 100.0 66.9 8.3 -10.3 -2.8 24.7 5.7 35.0 - 46.7 12.2 46.9 12.7 0.2 0.4 5.2 8.6 5.5 7.2 0.3 5.8 2.6 - 38.0 147.7 Passive Components Magnetic Application Products Operating Income Passive Components Magnetic Application Products Other Corporate and eliminations Total -13.3 -15.9 25.8 3.2 63.8 7.3 3 Breakdown of Operating Income Changes Operating Income : + 38.0 billion yen Rationalization, Cost reduction・ Purchased materials savings +22.2 billion yen SG&A expenses decrease （including decrease in restructuring cost by 8.3 billion yen) +2.2 billion yen Changes in sales and Products mix +73.1billion yen Sales price reduction （-4.2%) -39.7 billion yen Impact by big earthquake -1.8 billion yen 63.8 billion yen Exchange fluctuation （US$=Yen 85.73) -18.0 billion yen 25.8 billion yen FY March 2010 FY March 2011 4 Financial Position （JPY billion） March End, 2010 March End, 2011 Change 1,091.5 1,060.9 -30.6 Total Liability 541.8 521.1 -20.7 Interest-bearing Debt 270.1 245.0 -25.1 Stockholders's Equity 543.8 534.3 -9.5 (comprehensive income) -172.1 -218.0 -45.9 Stockholders's Equity ratio 49.8% 50.4% 0.6pt Total Asset 5 Quarterly Results (4Q of FY2010 vs. 4Q of FY 2011) (JPY billion） Net Sales FY March 2010 4Q Results Income before Income Taxes % 2.2 1.0 8.3 9.4 1.1 13.3 3.9% 4.4% +0.5pt 11.0 8.9 -2.1 -19.1 3.5 6.6 3.1 88.6 US$ Yen 90.69 Yen 82.31 EURO Yen 125.49 Yen 112.66 Ex-rate impact to Net sales & Operating Income JPY billion 213.6 Net Income Ex-rate Change 211.3 Operating Income Operating Income Margin FY March 2011 4Q Results - Appreciation by 9.2% Appreication by 10.2% Net sales：Lowered 18.8 billion Yen Operating income：Lowered 5.3 billion Yen 6 Quarterly Results of FY March 2011 (3Q vs. 4Q) 3Q results of FY 2011 4Q results of FY 2011 （2010.10.1 ～ 2010.12.31 ） （2011.1.1 ～2011.3.31 ） Yen billion Passive Components Net sales Magnetic Applicatons Products Other Total Passive Components Operating Income Magnetic Application Products Other Corporate and eliminations Total ％ Yen billion ％ Q on Q change Yen billion % 108.4 49.3 108.1 50.6 -0.3 -0.3 90.8 41.3 85.2 39.9 -5.6 -6.2 20.7 9.4 20.3 9.5 -0.4 -1.9 219.9 100.0 213.6 100.0 -6.3 -2.9 6.3 5.8 5.0 4.6 -1.3 -20.6 11.5 12.7 6.8 8.0 -4.7 -40.9 2.0 9.4 0.8 3.9 -1.2 -60.0 -0.7 - -7.7 -45.3 -2.5 17.2 -3.2 7.8 9.4 4.4 7