Consolidated 2Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department 1 Consolidated 2Q Results of FY March, 2012 2Q results of FY 2011 2Q results of FY 2012 (Yen billions） Net Sales (2010.7.1-2010.9.30) (2011.7.1-2011.9.30) Change Yen billions % 220.3 210.4 (9.9) -4.5 17.0 8.1 (8.8) -52.0 7.7% 3.9% -3.8 pt - Income before Income Taxes 15.8 7.4 (8.5) -53.5 Net Income 11.6 4.3 (7.3) -62.9 Earning Per Share (JPY) 89.87 33.30 (56.57) - Operating Income Operating Income Margin Ex-rate US$ Yen 85.88 Yen 77.96 Appreciation by 9.2% EURO Yen 110.67 Yen 110.42 Appreciation by 0.2% Ex-rate impact to Net sales & Operating Income Net sales：Lowered about 14.7 billion Yen Operating income：Lowered about 5.0 billion Yen Earthquake impact to Net sales & Operating Income Net sales：Lowered about 1.1billion Yen Operating income：Lowered about 0.6 billion Yen 2 Net Sales Comparison 2Q of FY 2011 vs. 2Q of FY 2012 2Q results of FY 2011 2Q results of FY 2012 (2010.7.1-2010.9.30) Yen billions ％ (2011.7.1-2011.9.30) Yen billions ％ Change Yen billions % Net Sales Capacitors 37.7 17.1 34.2 16.2 (3.5) -9.5 Inductive devices 33.6 15.2 31.4 14.9 (2.2) -6.5 Other Passive Components 37.5 17.0 34.4 16.4 (3.1) -8.3 (8.8) -8.1 (12.0) -18.4 Passive Components 108.7 49.3 99.9 47.5 Recording devices 65.3 29.7 53.3 25.4 Other Magnetic Application Products 26.9 12.2 31.2 14.8 Magnetic Application Products 92.2 41.9 84.5 40.2 (7.7) -8.4 Other 19.3 8.8 26.0 12.3 6.7 34.7 Total 220.3 210.4 100.0 (9.9) -4.5 100.0 4.3 16.0 3 Quarterly Results by segment (2Q of FY 2011 vs. 2Q of FY 2012) 2Q results of FY 2011 2Q results of FY 2012 （2010.7.1～2010.9.30） （2011.7.1～2011.9.30） Yen billions ％ Yen billions ％ Q on Q change Yen billions % 108.7 49.3 99.9 47.5 (8.9) -8.1 Magnetic Applicatons Products 92.2 41.9 84.5 40.2 (7.7) -8.4 Other 19.3 8.8 26.0 12.3 6.7 34.5 220.3 100.0 210.4 100.0 (9.9) -4.5 Passive Components Net sales Total 2Q results of FY 2011 2Q results of FY 2012 （2010.7.1～2010.9.30） （2011.7.1～2011.9.30） Yen billions Operating Income Passive Components Magnetic Application Products Other Corporate and eliminations Total % of sales Yen billions % of sales Q on Q change Yen billions % 7.3 6.7 1.3 1.3 (6.0) -82.5 12.5 13.6 8.8 10.4 (3.7) -29.8 1.7 8.8 1.7 6.7 0.0 2.9 0.8 - (4.5) 17.0 (3.7) 7.7 8.1 3.9 (8.8) -52.0 4 Breakdown of Operating Income Changes Operating Income : - 23.4 billion yen Rationalization, Cost reduction・ Purchased materials savings +5.3 billion yen Changes in sales and Products mix +13.3 billion yen SG&A expenses increase （including decrease in restructuring cost by 800 million yen) -3.0 billion yen 37.2 billion yen Sales price reduction （-4.9%) -21.4 billion yen Impact by big earthquake -3.6 billion yen Impact by change of pension plan -3.1 billion yen 13.8 billion yen Exchange fluctuation （US$=Yen 79.84) -10.9 billion yen First Half of FY 2011 First half of FY 2012 5 Quarterly Results by segment (1Q of FY 2012 vs. 2Q of FY 2012) 1Q results of FY 2012 2Q results of FY 2012 （2011.4.1～2011.6.30） （2011.7.1～2011.9.30） Yen billions ％ Yen billions ％ Q on Q change Yen billions % 101.7 49.2 99.9 47.5 (1.8) -1.8 Magnetic Applicatons Products 82.7 40.0 84.5 40.2 1.8 2.2 Other 22.4 10.8 26.0 12.3 3.6 16.1 206.8 100.0 210.4 100.0 3.6 1.7 Passive Components Net sales Total 1Q results of FY 2012 2Q results of FY 2012 （2011.4.1～2011.6.30） （2011.7.1～2011.9.30） Yen billions % of sales Yen billions % of sales Q on Q change Yen billions % Operating Income Passive Components 3.8 3.7 1.3 1.3 (2.5) -65.8 Magnetic Application Products 7.6 9.1 8.8 10.4 1.2 15.8 Other 1.5 6.7 1.7 6.7 0.2 13.3 3.5 - 2.5 44.6 Corporate and eliminations Total (7.2) 5.6 (3.7) 2.7 8.1 3.9 6 Financial Position （JPY billion） Mar End, 2010 Jun End, 2011 Sep End, 2011 Q on Q Change 1,060.9 1,065.7 1,049.8 -15.9 Total Liability 521.1 533.3 537.5 4.2 Interest-bearing Debt 245.0 250.8 268.0 17.2 Stockholders's Equity 534.3 527.0 499.2 -27.8 (comprehensive income) -218.0 -222.7 -258.2 -35.5 Stockholders' Equity ratio 50.4% 49.4% 47.6% -1.8% Total Asset 7 Full year projections of FY March, 2012 (the latest projections vs. projections in July) Term Item Net Sales Operating Income Income before income taxes Net income attributable to TDK FY2012 FY2012 (April 1, 2011 March 31, 2012) (April 1, 2011 March 31, 2012) Forecast in October'11 (Yen billions) Forecast in June'11and July'11 (Yen billions) 820.0 35.0 30.0 20.0 vs. projections announced in July Changes (Yen billions) 890.0 67.0 65.0 50.0 -70.0 -32.0 -35.0 -30.0 Production adjustment in flat TV, PC, and PC related device market Production adjustment at main customers in mobile phone market Negative impact caused by flooding in Thailand Change of forex assumption Profit increase by activities to improve earning structure in second half +/-(%) -7.9 -47.8 -53.8 -60.0 Average Ex-rate projections from 3Q of FY March 2012 onward US$=76 yen (Previous assumption : 80 yen) EURO=105 yen (Previous assumption : 110 yen) 8 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 TDKor orits 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 achievementsor or financial financialposition positioncould couldbe bematerially materiallydifferent differentfrom fromany anyfuture futureresults, results,performance, performance, achievements or financial position expressed or implied by these forward-looking achievements or financial position expressed or implied by these 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 but are 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, exchange rates, and changes in economic environments, conditions of competition,laws lawsand and regulations. Also, since the purpose of these materials is only to give readers a general outline regulations. Also, since the purpose of these materials is only to give readers a general outlineofof business businessperformance, performance,many manynumerical numericalvalues valuesare areshown shownininunits unitsofofaabillion billionyen. yen.Because Because original originalvalues, values,which whichare aremanaged managedininunits unitsofofaamillion millionyen, yen,are arerounded roundedoff, off,the thetotals, totals, differences, differences,etc. etc.shown shownininthese thesematerials materialsmay mayappear appearinaccurate. inaccurate.IfIfdetailed detailedfigures figuresare are necessary, please refer to our financial statements and supplementary materials. necessary, please refer to our financial statements and supplementary materials. 9