Presentation Material (PDF: 108KB)

Consolidated Results
for 3Q of FY March 2016
Consolidated Full Year Projections
for FY March 2016
Tetsuji Yamanishi
Corporate Officer
Copyright© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-1-
Key points concerning earnings for 3Q of FY March 2016
◆Net sales and operating income achieved historical highs for both the third
quarter and the nine-month period. The third-quarter operating income
margin was 10% on a companywide basis.
◆Operating income of passive components and film application products
achieved historical highs for both the third quarter and the nine-month period.
◆HDD market in FY March 2016 *TDK’s estimation
About 463 million units (Previous estimation)
About 452 million units (Current estimation)
◆Growth strategies (announced projects)
・Acquisition of Hutchinson Technology Incorporated (HDD suspension
business)
・Acquisition of Micronas Semiconductor Holding AG (Sensor business)
・Forming a joint venture with Qualcomm Incorporated (high-frequency
components business)
・Transfer of Renesas Semiconductor Manufacturing’s Tsuruoka factory
(thin-film components business)
・Business Cooperation with Trigence Semiconductor (SESUB business)
Copyright© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-2-
Consolidated Results for 3Q of FY March 2016
(Yen billions)
Net Sales
Operating Income
FY March 2015
3Q Results
FY March 2016
3Q Results
Change
Yen billions
%
300.4
301.7
1.3
0.4
25.2
30.3
5.1
20.2
8.4%
Operating Income Margin
10.0%
+1.6pt
-
Income before Income Taxes
22.2
29.9
7.7
34.7
Net Income
16.4
24.9
8.5
51.8
130.24
197.83
114.25
142.79
121.41
133.05
Earning Per Share (JPY)
US$ (JPY)
EURO (JPY)
Ex-rate impact to Net sales &
Operating Income
-
-
Depreciated by 6.3%
Appreciated by 6.8%
Net sales:Increased by about 15.2 billion Yen
Operating income:Increased by about 4.1 billion Yen
Forex Sensitivity (impact by 1 (one) yen change)
・US$ : Sales 5.0 billion yen, Operating Income 1.4 billion yen)
Copyright© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-3-
3Q Results - Passive Components Segment
Net Sales
(Yen billions)
143.2
141.5
Net Sales 141.5 billion yen (down 1.2% year on year)
Operating Income 17.5 billion yen (up 53.5% year on year)
◆ Ceramic Capacitors
・Sales were level year on year with strong sales to the automotive market
offset by a decline in sales to the industrial machinery market.
15/3
16/3
Operating Income
(OP margin)
(Yen billions)
11.4
17.5
12.4%
◆ Inductive Devices
・Sales were level year on year with an increase in sales to the automotive
market driven by electrification automobiles offset by a decline in sales
to the ICT market and the industrial machinery market.
◆ High-frequency Components
・Sales were level year on year with brisk sales of discrete products for
smartphones offset by a decline in Wi-Fi module sales.
・Profit margins also improved significantly year on year due to increased
productivity and improved product portfolio.
8.0%
15/3
16/3
◆ Piezoelectric Material Products
・Sales increased year on year due to sales growth in OIS for camera
modules.
15/3 : FY March 2015
Copyright© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-4-
3Q Results - Magnetic Application Segment
Net Sales
Net Sales 81.8 billion yen (down 18.5% year on year)
Operating income 4.7 billion yen (down 39.0% year on year)
(Yen billions)
100.4
81.8
◆ Recording Devices (HDD Heads)
・ Shipment volume declined significantly year on year.
15/3
16/3
Operating Income
(OP margin)
(Yen billions)
7.7
7.7%
4.7
◆ Magnets
・ Sales for the HDD market declined, and also declined for the
automotive (xEV*) and industrial machinery markets due to the
decline in oil prices and the economic slowdown in China.
◆ Power Supplies
・ Sales to the industrial equipment market of products such as
semiconductor manufacturing equipment and measuring equipment
remained strong.
5.7%
15/3
16/3
*xEV : EV, HEV, PHEV
15/3 : FY March 2015
Copyright© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-5-
3Q Results - Film Application Segment
Net Sales
(Yen billions)
68.5
Net sales 68.5 billion yen (up 44.5% year on year)
Operating income 14.6 billion yen (up 52.1% year on year)
47.4
15/3
16/3
◆ Energy Devices (Rechargeable Batteries)
・ Sales and profits increased year on year.
・ Increased share among major customers and expanded customer
portfolio.
・ Expanded applications beyond smartphones to include drones, etc.
Operating Income
(OP margin)
14.6
(Yen billions)
9.6
21.3%
20.3%
15/3
16/3
15/3 : FY March 2015
Copyright© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-6-
Breakdown of Operating Income Changes (3Q)
Operating Income
(Yen billions)
Changes in sales
+15.1
+ 5.1 billion yen
Sales price
Reduction
-21.3
Rationalization,
cost reduction
+10.1
25.2
Benefits from
Restructuring
+0.7
SG&A expenses
increase
-3.6
(including impairment
+5.3)
30.3
Exchange
fluctuation
(US$=Yen 121.41)
+4.1
3Q of
FY March 2015
Copyright© 2016 TDK Corporation. All rights reserved.
3Q of
FY March 2016
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-7-
Quarterly Results by Segment
(Yen billions)
3Q of
FY March 2015
(A)
2Q of
FY March 2016
(B)
3Q of
FY March 2016
(C)
YoY Change
(C)-(A)
Yen billions
QoQ Change
(C)-(B)
%
Yen billions
%
Net Sales
Capacitors
37.5
39.5
36.4
(1.1)
-2.9
(3.1)
-7.8
Inductive Devices
38.1
38.6
37.4
(0.7)
-1.8
(1.2)
-3.1
Other Passive Components
67.6
72.1
67.7
0.1
0.1
(4.4)
-6.1
143.2
150.2
141.5
(1.7)
-1.2
(8.7)
-5.8
75.1
25.3
60.7
24.6
58.5
23.3
(16.6)
-22.1
(2.2)
-3.6
(2.0)
-7.9
(1.3)
-5.3
100.4
47.4
9.4
300.4
85.3
64.1
8.6
308.1
81.8
68.5
10.0
301.7
(18.6)
-18.5
(3.5)
-4.1
21.1
44.5
4.4
6.9
0.6
6.4
1.4
16.3
1.3
0.4
(6.4)
-2.1
11.4
17.4
17.5
6.1
53.5
0.1
0.6
7.7
9.6
0.2
28.9
(3.8)
4.5
11.6
0.2
33.7
(6.3)
4.7
14.6
(0.1)
36.7
(6.4)
(3.0)
-39.0
0.2
4.4
5.0
52.1
3.0
25.9
27.4
30.3
Passive Components
Recording Devices
Other Magnetic Application Products
Magnetic Application Products
Film Application Products
Other
Total
Passive Components
Operating Income
Magnetic Application Products
Film Application Products
Other
Sub total
Corporate and Eliminations
Total
Operating Income margin
Ex- US$/Yen
rate EURO/Yen
Copyright© 2016 TDK Corporation. All rights reserved.
25.1
8.4%
114.25
142.79
8.9%
122.31
136.06
Performance Briefing
3Q of Fiscal Year March, 2016
(0.3)
7.8
(2.6)
5.2
10.0% +1.6pt
27.0
20.7
(0.3)
3.0
(0.1)
2.9
- +1.1pt
8.9
10.6
-
121.41
133.05
January 29, 2016
-8-
Consolidated Results through 3Q of FY March 2016
(Yen billions)
FY March 2015
Results through 3Q
Net Sales
Operating Income
FY March 2016
Results through 3Q
Change
Yen billions
%
802.7
889.3
86.6
10.8
53.1
75.9
22.8
42.9
6.6%
Operating Income Margin
8.5%
+1.9 pt
-
Income before Income Taxes
49.6
73.9
24.3
49.0
Net Income
34.5
56.4
21.9
63.5
274.43
447.54
106.78
140.24
121.67
134.42
Earning Per Share (JPY)
US$ (JPY)
EURO (JPY)
Ex-rate impact to Net sales &
Operating Income
Copyright© 2016 TDK Corporation. All rights reserved.
-
-
Depreciated by 13.9%
Appreciated by 4.2%
Net sales:Increased by about 94.0 billion Yen
Operating income:Increased by about 18.3 billion Yen
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
-9-
FY March 2016 Full Year Projections
TDK keeps initial projections (announced on April 28) unchanged.
(Yen billions)
Net sales
FY March 2015
Full Year Results
%
Yen billions
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 margin
Earning per share (JPY)
YoY Change
1,082.6
Operating income
Net income
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© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
- 10 -
FY March 2015 Projections -Capex, Depreciation, R&D-
Capital expenditure
Depreciation
R&D
(Yen billions)
160
150.0
140
130.0
120
102.5
100
85.6
77.4
80
82.9
90.0
80.2
86.0
68.6
63.4
70.6
77.0
85.0
53.5
60
40
20
0
3/13
3/16
3/16
3/16
3/16
Initial
Projections
Projections
at Jan-end
Initial
Projections
Projections
at Jan-end
Copyright© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
3/14
3/15
3/13
3/14
3/15
3/13
3/14
3/15
3/16
3/16
Projections
Initial
Projections at Jan-end
3/13 : FY March 2013
January 29, 2016
- 11 -
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© 2016 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2016
January 29, 2016
- 12 -
Text data including Q&A of performance briefing will be uploaded on following site
http://www.global.tdk.com/ir/ir_events/conference/2016/3q_1.htm