Presentation Material (PDF: 196KB)

Consolidated Results for
1Q of FY March 2016
Tetsuji Yamanishi
Corporate Officer
Copyright© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
-1-
Key points concerning earnings for 1Q of FY March 2016
◆Operating income increased by 88.5% year on year.
We have established a structure whereby profits are generated through
synergies among our 3 core business segments (passive components,
magnetic application and film application segments).
◆ The passive components segment saw a significant 92.3% year on year
increase in operating income, mainly driven by high-frequency
components. This marks a record high quarterly operating income.
◆ The film application products segment (rechargeable batteries) saw
significant year on year increases in both sales and operating income,
owing to the growth in sales to the Chinese and Korean customers
in addition to the North American main customer.
◆Operating income from the magnetic application products segment
declined, reflecting sluggish HDD head sales. We have revised down the
initial forecast for overall HDD market sales volume.
(HDD market sales volume: 530 million units → 490 million units)
Copyright© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
-2-
Consolidated Results for 1Q of FY March 2016
(Yen billions)
Change
FY March 2015
1Q Results
FY March 2016
1Q Results
237.5
279.6
42.1
17.7
9.6
18.1
8.5
88.5
Net Sales
Operating Income
4.0%
Operating Income Margin
Income from Continuing Operations
before Income Taxes
Net Income
Earning Per Share (JPY)
Ex-rate
US$ /JPY
EURO /JPY
Ex-rate impact to Net sales &
Operating Income
Copyright© 2015 TDK Corporation. All rights reserved.
6.5%
Yen billions
%
+2.5pt
-
10.4
18.9
8.5
81.7
5.8
13.1
7.3
125.9
45.73
103.96
102.17
140.17
121.29
134.15
-
-
Depreciated by 18.7%
Appreciated by 4.3%
Net sales:Increased by about 39.3 billion Yen
Operating income:Increased by about 6.1 billion Yen
1Q of Fiscal Year March, 2016
July 31, 2015
-3-
1Q Results - Passive Components Segment
Net Sales
(Yen billions)
147.8
121.9
15/3
◆Ceramic Capacitors
・Sales increased year on year, particularly to the automobile market,
which accounts for around half of total sales.
・Profit margins also improved due to improved productivity.
16/3
Operating Income
(OP margin)
15.0
(Yen billions)
10.1%
◆Inductive Devices
・Sales to the ICT market and the automobile market increased year on year.
・Earnings increased due to an improved product portfolio.
◆High-frequency Components
・Sales of discrete products were firm due to production
capacity expansion.
・Profits increased significantly year on year.
◆Piezoelectric Material Products
・Both revenues and profits increased year on year, mainly due to strong
sales of OIS for camera modules and circuit protection components for
automobile market and industrial equipment market.
7.8
6.4%
15/3
Net Sales 147.8 billion yen (up 21.2% year on year)
Operating Income 15.0 billion yen (up 92.3% year on year)
16/3
15/3: FY March 2015
Copyright© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
-4-
1Q Results - Magnetic Application Products Segment
Net Sales
(Yen billions)
85.2
79.4
Net Sales 79.4 billion yen (down 6.8% year on year)
Operating income 3.8 billion yen (down 47.9% year on year)
◆Recording Devices (HDD Heads)
・The PC market slowed down compared to the previous year, in which
demand for replacement of the retiring Windows XP operating system
was seen, with the HDD market slowing down as well.
As a result, our shipment volume of HDD heads declined significantly.
Both sales and profits for this category declined year on year.
15/3
16/3
Operating Income
(OP margin)
(Yen billions)
7.3
8.6%
3.8
◆Magnets
・Sales to the automobile and ICT markets (for HDDs) decreased.
◆Power Supplies
・Sales to the industrial equipment market of products such as
semiconductor production equipment, FA equipment and measuring
equipment remained strong.
4.8%
15/3
16/3
15/3: FY March 2015
Copyright© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
-5-
1Q Results - Film Application Products Segment
Net Sales
43.2
(Yen billions)
Net sales 43.2 billion yen (up 92.0% year on year)
Operating income 4.7 billion yen (16 times increases
year on year)
22.5
◆Energy Devices (Rechargeable Batteries)
15/3
16/3
Operating Income
(OP margin)
・Both sales and profits increased year on year due to strong sales to
major customer in North America, as well as substantial growth
in sales to the Chinese and Korean market.
(Yen billions)
4.7
10.9%
0.3
1.3%
15/3
16/3
15/3: FY March 2015
Copyright© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
-6-
Quarterly Results by Segment
(Yen billions)
1Q of
FY March 2015
(A)
4Q of
FY March 2015
(B)
1Q of
FY March 2016
(C)
YoY Change
(C)-(A)
Yen billions
QoQ Change
(C)-(B)
%
Yen billions
%
Net Sales
Capacitors
36.5
37.6
39.1
2.6
7.1
1.5
4.0
Inductive Devices
35.7
36.4
37.9
2.2
6.2
1.5
4.1
Other Passive Components
49.7
62.8
70.8
21.1
42.5
8.0
12.7
121.9
136.9
147.8
25.9
21.2
10.9
8.0
59.1
26.2
62.6
25.9
54.6
24.8
(4.5)
-7.6
(8.0)
-12.8
(1.4)
-5.3
(1.1)
-4.2
85.2
22.5
7.8
237.5
88.5
44.1
10.3
279.9
79.4
43.2
9.2
279.6
(5.8)
-6.8
(9.1)
-10.3
20.7
92.0
(0.9)
-2.0
1.4
17.9
(1.1)
-10.7
42.1
17.7
(0.3)
-0.1
7.8
8.0
15.0
7.2
92.3
7.0
87.5
7.3
0.3
(0.5)
14.8
(5.2)
6.3
9.4
0.6
24.3
(5.0)
3.8
4.7
0.4
23.9
(5.8)
(3.5)
-47.9
(2.5)
-39.7
4.4
-
(4.7)
-50.0
0.9
-
(0.2)
-33.3
9.1
61.5
(0.4)
-1.6
-
(0.8)
-
9.6
19.4
18.1
88.5
(1.3)
-6.7
4.0%
6.9%
6.5% +2.5pt
- -0.4pt
-
Passive Components
Recording Devices
Other Magnetic Application Products
Magnetic Application Products
Film Application Products
Other
Total
Passive Components
Operating Income
Magnetic Application Products
Film Application Products
Other
Sub total
Corporate and Eliminations
Total
Operating Income margin
Ex- US$/JPY
rate EURO/JPY
Copyright© 2015 TDK Corporation. All rights reserved.
102.17
140.17
119.21
134.74
1Q of Fiscal Year March, 2016
(0.6)
8.5
121.29
134.15
July 31, 2015
-7-
Breakdown of Operating Income Changes
1Q of
FY March 2015
9.6 billion yen
Operating Income
+8.5 billion yen
1Q of
FY March 2016
18.1 billion yen
(Yen billions)
Changes in sales
+11.3
Sales price
Reduction
(13.7)
Rationalization,
cost reduction
+6.6
Benefits from
Restructuring
+0.7
SG&A expenses
increase
(2.5)
18.1
Exchange
fluctuation
(US$=Yen 121.29)
+6.1
9.6
Copyright© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
-8-
Projections for 2Q of FY March 2016 -Image of change in sales
Segment
1Q of
FY March 2016
2Q Projections
(Q on Q Change)
Main factor and premise of projections
Passive
Components
147.8
+3%~+4%
Increase in sales of various products for the
ICT market and the automobile market
Magnetic
Application
Products
79.4
+4%~+5%
Increase in sales of HDD heads on the back
of recovery in demand
+30%+α
Increase in sales of rechargeable batteries
for the ICT market (sales growth driven by
higher demand for new product to be
launched by our primary customer)
Film Application
Products
43.2
Other
9.2
Total
279.6
+8%~+10%
Forex assumptions
US$/Yen
EURO/Yen
121.29
134.15
Copyright© 2015 TDK Corporation. All rights reserved.
115.00
130.00
1Q of Fiscal Year March, 2016
July 31, 2015
-9-
FY March 2016 Full Year / Dividend Projections
TDK keeps initial projections (announced on April 28) unchanged.
(Yen billions)
Net sales
FY March 2015
Full Year Results
YoY Change
%
Yen billions
1,082.6
1,180.0
97.4
9.0%
72.5
95.0
22.5
31.0%
6.7%
8.1%
+1.4pt
-
49.4
65.0
15.6
31.6%
392.78
515.92
-
-
-
-
Operating income
Operating income margin
Net income
Earning per share (JPY)
FY March 2016
Full Year Projections
1st half : 40
2nd half : 50
Annual: 90
1st half : 60
2nd half : 60
Annual : 120
US$/JPY
109.84
115.00
-
EURO/JPY
138.88
130.00
-
Dividends (JPY)
Ex-rate
Copyright© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
- 10 -
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 the TDK Group in light of the information currently available to it, and
contain known and unknown risks, uncertainties, and other factors. The TDK Group therefore wishes to
caution readers that, being subject to risks, uncertainties, and other factors, the 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 the TDK Group undertakes no obligation to publicly update or revise any forwardlooking statements after the issue of this material except as provided for in laws and ordinances.
The electronics markets in which the TDK Group operates are highly susceptible to rapid changes, risks,
uncertainties, and other factors that can have significant effects on the TDK Group including, but 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© 2015 TDK Corporation. All rights reserved.
1Q of Fiscal Year March, 2016
July 31, 2015
- 11 -
Text data including Q&A of performance briefing will be uploaded on following site
http://www.global.tdk.com/ir/ir_events/conference/2016/1q_1.htm