Consolidated 3Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -1- Consolidated 3Q Results of FY March, 2013 (Yen billions） Net Sales FY March 2012 3Q Results FY March 2013 3Q Results (2011.10.1-2011.12.31) (2012.10.1-2012.12.31) 191.3 215.4 7.4 Operating Income Margin Income from Continuing Operations before Income Taxes Change Yen billions % 24.1 12.6 5.1 (2.3) -31.3 3.9% 2.4% -1.5 pt - 3.6 2.9 (0.7) -18.9 Net Income -11.6 0.4 12.1 Earning Per Share (JPY) -90.24 3.33 Operating Income Ex-rate US$ Yen 77.35 EURO Yen 104.30 Ex-rate impact to Net sales & Operating Income Yen 81.17 Yen 105.28 - - Deppreciated by 4.9% Deppreciated by 0.9% Net sales：Increased about 8.7 billion yen Operating income：Increased about 1.3 billion yen ※Discontinued operation (Display business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -2- Breakdown of Operating Income Changes (Yen billions) Operating income : -2.3 Decrease in negative impact from Thai flooding +3.9 Changes in sales (including utilization, products mix +0.5 7.4 Insurance gain (Thai flooding) +0.4 Rationalization, cost reduction +2.8 Restructuring effect +3.8 Exchange fluctuation （US$=Yen 81.17) +1.3 Sales price reduction -5.9 5.1 Decrease in gain of land sales -4.0 Rare earth material price fluctuation -3.7 SG&A expenses increase -1.4 3Q of FY March 2012 Copyright© 2013 TDK Corporation. All rights reserved. 3Q of FY March 2013 Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -3- Segment Information JPY billion (FY2012 3Q vs. FY2013 3Q, FY2013 2Q vs.FY2013 3Q) 3Q of FY 2012 Oct 1- Dec 31, 2011 （Ａ） 2Q of FY 2013 July 1- Sep 30, 2012 （B） 3Q of FY 2013 Oct 1- Dec 31, 2012 （C） YoY Change （Ｃ）－（Ａ） Yen billions QoQ Change （Ｃ）－（Ｂ） % Yen billions % Net Sales Capacitor 30.6 29.2 26.6 (4.0) Inductive Device 28.6 29.6 30.6 2.0 Other Passive Comp 30.4 31.7 36.0 89.5 90.6 42.0 26.0 55.8 27.6 68.0 28.2 83.4 27.7 5.7 191.3 5.2 207.0 215.4 Passive Components 1.5 -2.5 -1.8 Magnetic Application Products 7.0 2.9 13.2 5.0 7.5 0.5 7.5 (5.7) -43.2 0.7 23.8 (1.4) -28.0 -0.7 10.8 -0.5 15.2 3.6 -0.6 0.1 - (0.1) - (1.9) -18.1 (6.4) -42.1 -3.4 7.4 -4.1 11.2 8.8 -3.7 (0.4) - 5.1 (2.3) -31.3 (6.1) -54.5 3.9% 5.4% - - - - Passive Components Recording Divices Other Magnetic Application Products Magnetic Application Products Film Application Products Other Total Operating Income Film Application Products Other Sub total Corporate and Eliminations Total Operating Income margin Ex- US$ rate EURO Copyright© 2013 TDK Corporation. All rights reserved. (2.6) -8.9 7.0 1.0 3.4 5.6 18.4 4.3 13.6 93.1 3.6 4.1 2.5 2.8 60.2 18.2 43.3 4.4 7.9 24.0 84.2 (2.0) -7.7 (3.6) 16.2 23.8 0.8 1.0 4.9 17.3 5.3 19.1 (0.7) -11.7 (0.2) -3.8 24.1 12.6 8.4 4.1 - 0.7 - 33.0 5.0 (3.3) 2.4% Yen 77.35 Yen 78.67 Yen 81.17 Yen 104.03 Yen 98.28 Yen 105.28 -13.1 -13.0 0.4 - ※Discontinued operation (Display business) were deducted in above results Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -4- Change in operating income projections for FY March 2013 (Yen billions) Forex assumption for second half US$：77 Yen EURO：100 Yen Operating income : -22.0 Forex fluctuation +5.1 Forex assumption in forth quarter US$：85 Yen EURO：115 Yen Forex in third quarter： US$：81.17 Yen EURO：105.28 Yen 41.0 Quantity change (Including lower cost improvement than expected) -18.4 19.0 Loss from lower capacity Negative impact Restructuring utilization from rare earth cost material market -5.2 -1.0 price -2.5 Previous projections (Oct. 2012) Copyright© 2013 TDK Corporation. All rights reserved. Current projections (Jan. 2013) Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -5- Projections for FY March 2013 – Image of change in sales Segment 1Q Results 2Q Results 3Q Results 4Q Projections (versus 3Q) Passive components 91.5 90.6 93.1 +2～4% Magnetic application products 88.2 83.4 84.2 -8～-10% 23.2 27.7 33.0 Other 5.8 5.2 5.0 -5～-10% Total 208.7 207.0 215.4 -5% 80.27 Copyright© 2013 TDK Corporation. All rights reserved. 78.67 81.17 Sales of HDD head and Magnet will decrease Sales of secondary battery will decrease due to production -17～-19% adjustment in a certain customer Film application products Forex $/¥ Remarks 85.00 (Assumption in 4Q) Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -6- Cautionary Statements with Respect to Forward-Looking Statements This material contains forward-looking statements, including projections, plans, policies, management strategies, targets, schedules, understandings and evaluations, about TDK or its group companies (TDK Group). These forward-looking statements are based on the current forecasts, estimates, assumptions, plans, beliefs and evaluations of TDK Group in light of information currently available to it, and contain known and unknown risks, uncertainties and other factors. TDK Group therefore wishes to caution readers that, being subject to risks, uncertainties and other factors, TDK Group’s actual results, performance, achievements or financial position could be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements, and TDK Group undertakes no obligation to publicly update or revise any forward-looking statements after the issue of this material except as provided for in laws and ordinances. The electronics markets in which TDK Group operates are highly susceptible to rapid changes. Risks, uncertainties and other factors that can have significant effects on TDK Group include, but are not limited to, shifts in technology, fluctuations in demand, prices, interest and foreign exchange rates, and changes in economic environments, conditions of competition, laws and regulations. Also, since the purpose of these materials is only to give readers a general outline of business performance, many numerical values are shown in units of a billion yen. Because original values, which are managed in units of a million yen, are rounded off, the totals, differences, etc. shown in these materials may appear inaccurate. If detailed figures are necessary, please refer to our financial statements and supplementary materials. Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -7- Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2013/3q_1.htm