Consolidated Full Year Results of FY March, 2013 Consolidated 4Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 -1- Results of FY March 2013 by segment FY March 2012 Full Year Results Yen billion ％ Capacitors 132.4 16.3 Inductive devices 121.2 128.0 FY March 2013 Full Year Results Yen billion ％ Change Yen billion % 13.9 (14.4) -10.9 14.9 118.0 119.6 14.0 (1.6) -1.3 15.7 142.1 16.7 14.0 11.0 381.6 46.9 44.6 (2.0) -0.5 25.6 27.4 24.8 11.9 Other Magnetic Application Products 208.7 107.7 379.6 233.5 13.2 104.4 12.3 (3.3) -3.0 Magnetic Application Products 316.4 38.8 39.7 21.5 6.8 11.4 13.2 19.9 21.5 Other 92.7 23.8 337.9 112.6 2.9 21.4 2.5 (2.4) -10.1 Total 814.5 100.0 Other Passive Components Net Sales Passive Components Recording devices Applied Film Products Passive Components Operating Income Magnetic Application Products Applied Film Products Other Sub total Corporate and eliminations Total Copyright© 2013 TDK Corporation. All rights reserved. (6.6) 39.0 -1.7 851.6 (11.1) 12.3 37.1 11.0 (1.9) -5.0 6.3 6.7 12.4 (1.8) 11.0 6.2 98.5 -8.3 3.1 - 4.2 36.7 4.3 2.8 8.4 2.3 (15.0) 21.6 (4.8) 33.8 -20.3 (15.1) 18.7 Performance Briefings Fiscal Year March, 2013 100.0 37.1 4.6 -2.9 (4.4) - 0.1 2.5 3.0 April 26, 2013 15.8 -2- Breakdown of Operating Income Changes FY March 2012 18.7 billion yen Operating Income Changes in sales (including utilization, products mix) -15.4 Decrease in negative impact by change of pension plan +3.1 Benefits from restructuring +12.9 Rationalization, cost reduction +16.7 SG&A expenses Decrease (including restructuring Cost) +6.5 FY March 2013 21.6 billion yen +3.0 billion yen Decrease in negative impact by earthquake +3.6 Insurance gain (Thai flooding) +6.7 Decrease in negative impact by Thai flooding +4.9 Decrease in gain of land sales -6.7 FY March 2013 21.6 FY March 2012 18.7 Exchange fluctuation （US$=Yen 83.03) +4.1 Rare earth material price fluctuation -7.4 Sales price reduction -26.1 Copyright© 2013 TDK Corporation. All rights reserved. (Yen billions) Performance Briefings Fiscal Year March, 2013 April 26, 2013 -3- Financial Position （JPY billion） March End, 2012 March End, 2013 Change 1,072.8 1,169.6 96.8 Total Liability 560.8 589.0 28.2 Stockholders's Equity 498.2 561.2 63.0 (comprehensive income) (230.8) (159.0) 71.8 Stockholders's Equity ratio 46.4% 48.0% 1.6pt Cash and Cash equivalents 173.4 223.5 50.1 Interest-bearing Debt 272.8 295.6 22.8 Net Cash (99.4) (72.1) 27.3 Total Asset Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 2013 -4- Segment Information (4Q of FY2012 vs. 4Q of FY2013, 3Q vs. 4Q） 4Q of FY 2013 Jan 1- Mar 31, 2013 （C） YoY Change （Ｃ）－（Ａ） QoQ Change （Ｃ）－（Ｂ） 4Q of FY 2012 Jan 1- Mar 31, 2012 （Ａ） 3Q of FY 2013 Oct 1- Dec 31, 2012 （B） Capacitor 31.6 26.6 30.7 (0.9) -2.8 4.1 15.4 Inductive Device 28.4 30.6 31.2 2.8 9.9 0.6 2.0 Other Passive Comp 30.5 36.0 42.5 12.0 39.3 6.5 18.1 90.5 93.1 104.4 13.9 15.4 11.3 12.1 Recording Divices 58.2 60.2 (0.6) -1.0 (2.6) -4.3 Other Magnetic Application Products 24.0 84.2 33.0 5.0 (5.2) -17.5 0.5 2.1 -6.5 (2.1) -2.5 4.4 18.2 (4.4) -13.3 0.8 17.4 0.4 8.0 Total 207.0 215.4 82.1 28.6 5.4 220.5 (5.7) Other 29.7 87.8 24.2 4.6 57.6 24.5 13.5 6.5 5.1 2.4 Passive Components -13.2 -1.8 (3.9) 9.3 - (2.1) - Magnetic Application Products 14.0 -0.5 7.5 3.6 (12.2) -87.1 (5.7) -76.0 2.2 - (1.9) -52.8 -2.6 -2.3 -0.9 -3.2 -0.6 8.8 -3.7 5.1 1.8 1.7 (0.3) 2.3 - 0.3 - (0.8) (3.0) (3.8) 1.5 - (9.6) - (2.1) - 0.7 - (0.6) - (8.9) - -1.5% 2.4% -1.7% -0.2pt - -4.1pt - JPY billion Net Sales Passive Components Magnetic Application Products Film Application Products Operating Income Film Application Products Other Sub total Corporate and Eliminations Total Operating Income margin Ex- US$ rate EURO Copyright© 2013 TDK Corporation. All rights reserved. Yen 79.27 Yen 81.17 Yen 92.20 Yen 103.94 Yen 105.28 Yen 121.74 Performance Briefings Fiscal Year March, 2013 Yen billions % Yen billions April 26, 2013 % -5- Projections for FY March 2014 – Image of change in sales Segment FY March 2013 Results FY March 2014 Projections (vs. FY March 2013) Main factor and premise of projections Increase in sales of high frequency components, inductive devices, circuit protection components for information and communication equipment Gradual recovery of aluminum and film capacitors for industrial equipment market Stable increase of sales for automobile market Passive components 379.6 +15～+20% Magnetic application products 337.9 -2～0% Film application products 112.6 +15～+20% Other 21.4 - Total 851.6 930.0 Mainly due to maturation of HDD market Increase in sales of secondary battery and functional film (ITO film) for information and communication market - Forex assumption Forex $/Yen Forex EURO/Yen 83.03 90.00 107.05 118.00 Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2013 April 26, 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 Fiscal Year March, 2013 April 26, 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/2013/4q_1.htm