Consolidated 2Q Results of FY March, 2014 Takakazu Momozuka Corporate Officer Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2014 Oct 31, 2013 -1- Consolidated 2Q Results of FY March, 2014 (Yen billions） FY March 2013 2Q Results FY March 2014 2Q Results (2012.7.1-2012.9.30) (2013.7.1-2013.9.30) Net Sales Operating Income Change Yen billions % 205.0 249.8 44.8 21.9 11.1 12.4 1.3 11.7 5.4% Operating Income Margin (0.4pt) 5.0% - Income from Continuing Operations before Income Taxes 9.5 12.7 3.2 33.7 Income from continuing Operations 6.5 9.2 2.7 41.5 Loss from discontinued operations -0.1 -3.2 (3.1) - Net income (loss) attributable to noncontrolling interests 1.2 -0.1 (1.3) - Net Income 5.3 6.0 0.7 Earning Per Share (JPY) 41.74 47.95 US$ (JPY) 78.67 98.28 99.02 131.11 EURO (JPY) Ex-rate impact to Net sales & Operating Income 13.2 - - Deppreciated by 25.9% Deppreciated by 33.4% Net sales：Increased by about 43.2 billion Yen Operating income：Increased by about 7.2 billion Yen Note: Data tape business is presented as discontinued operation in above results Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2014 Oct 31, 2013 -2- Breakdown of Operating Income Changes (2Q) (Yen billions) SG&A expenses decrease (including restructuring cost decrease by 1.6) +1.4 Operating income : +1.3 Changes in sales +1.9 Rationalization, cost reduction +4.4 Sales price Reduction -10.2 11.1 Benefits from Restructuring +1.8 Proceed from insurance of Thai flooding -5.2 12.4 Exchange fluctuation （US$=Yen 99.02) +7.2 FY March 2014 2Q FY March 2013 2Q ※Discontinued operation (Data tape business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2014 Oct 31, 2013 -3- Restructuring Progress ■FY March 2014 Planned Restructuring Promote business portfolio review ◇Exit non-core businesses ・Withdraw from LTO business (Planning to end production in 2H and exit) ・Withdraw from Blu-ray Disc business (Planned for 2H) Optimize production bases ◇Further integrate bases worldwide (Planned for 2H) (Targeting bases not already announced for integration) ■Restructuring costs Incurred approx. 3.7 billion yen in 1H of planned 10.0 billion yen restructuring costs for FY March 2014 (announced end of April) ■Expected benefits Still projecting benefits announced at the end of April of approx. 8.0 billion yen in FY March 2015 Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings First Half of Fiscal Year March, 2014 Oct 31, 2013 -4- Segment Information YoY Change （Ｃ）－（Ａ） QoQ Change （Ｃ）－（Ｂ） 2Q of FY 2013 Jul 1- Sep 30, 2012 （Ａ） 1Q of FY 2014 Apr 1- Jun 30, 2013 （B） 2Q of FY 2014 Jul 1- Sep 30, 2013 （C） Yen billions Capacitor 29.2 33.7 35.1 5.9 20.2 1.4 4.2 Inductive Device 29.6 35.0 35.5 5.9 19.9 0.5 1.4 Other Passive Comp 31.7 48.3 48.8 17.1 53.9 0.5 1.0 90.6 117.0 119.4 28.8 31.8 2.4 2.1 55.8 27.6 60.2 26.0 66.3 10.5 18.8 6.1 10.1 26.6 (1.0) -3.6 0.6 2.3 83.4 25.8 86.2 27.0 92.9 33.1 9.5 11.4 6.7 7.8 7.3 28.3 6.1 22.6 5.2 205.0 4.7 234.9 4.4 249.8 (0.8) -15.4 (0.3) -6.4 44.8 21.9 14.9 6.3 (2.5) 2.8 6.2 8.7 - 3.4 121.4 13.2 4.6 (5.4) -40.9 3.2 69.6 2.0 (0.8) (1.8) -36.0 1.2 60.0 Other 5.0 (0.5) 7.8 3.2 (0.8) (0.3) - 0.0 - 8.6 (4.2) 16.4 (4.0) 1.2 7.9 7.8 90.7 Corporate and Eliminations 15.2 (4.1) 0.1 - 0.2 - 11.1 4.4 12.4 1.3 11.7 8.0 181.8 (Yen billions) Net Sales Passive Components Recording Divices Other Magnetic Application Products Magnetic Application Products Film Application Products Other Total Passive Components Operating Income Magnetic Application Products Film Application Products Sub total Total Operating Income margin Ex- US$ rate EURO Copyright© 2013 TDK Corporation. All rights reserved. 5.4% 1.9% 5.0% Yen 78.67 Yen 98.74 Yen 99.02 Yen 98.28 Yen 128.96 Yen 131.11 -0.4pt % Yen billions - +3.1pt % - ※Discontinued operation (Data tape business) were deducted in above results Performance Briefings First Half of Fiscal Year March, 2014 Oct 31, 2013 -5- Financial Position （Yen billions） March End, 2013 June End, 2013 Sep End, 2013 Change 1,169.6 1,224.0 1,220.7 Total Liability 589.0 615.0 617.2 2.2 Stockholders's Equity 561.2 588.7 588.6 (0.1) (comprehensive income) (159.0) (127.0) (126.1) 0.9 Stockholders's Equity ratio 48.0% 48.1% 48.2% Cash and Cash equivalents(*1) 223.5 244.8 242.5 (2.3) Interest-bearing Debt(*2) 295.6 304.4 294.5 (9.9) Net Cash(*3) (72.1) (59.6) (52.0) 7.6 Total Asset (3.3) +0.1pt *1: Cash and Cash equivalents + Short-term investments *2: Short-term debt + Current installments of long-term debt + Long-term debt, excluding current installments *3: Cash and Cash equivalents - Interest-bearing Debt FY March 2013 Results through 2Q FY March 2014 Results through 2Q Capital Expenditures 44.0 29.3 (14.7) Depreciation and amotization 36.1 41.2 5.1 （Yen billions） Copyright© 2013 TDK Corporation. All rights reserved. Change Performance Briefings First Half of Fiscal Year March, 2014 Oct 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 First Half of Fiscal Year March, 2014 Oct 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/2014/2q_1.htm