For the consolidated performance of TDK, net sales came to ¥851,575 million, an increase of 4.6% from the ¥814,497 million reported in fiscal 2012, and operating income was ¥21,648 million, a 15.8% increase from ¥18,687 million in fiscal 2012. In mobile phones production, while that of conventional mobile phones declined, smartphone production grew, resulting in a slight rise over fiscal 2012 production levels for the total mobile phone market. Similarly, automobile production saw a marginal year-on-year increase for the market as a whole. This was due largely to the brisk sales performance of automobiles in the U.S., which offset the greaterthan-expected sluggishness in the sales performance of hybrid cars and other visible declining factors. Meanwhile, in PC production, while that of tablet devices exceeded levels exhibited during fiscal 2012, notebook and desktop PC production fell below fiscal 2012 levels. Hard disk drive (HDD) production also fell below fiscal 2012 levels as a consequence of fluctuations in demand for PCs and certain other products. 19 Copyright © 2013 TDK Corporation. All rights reserved. 20 Copyright © 2013 TDK Corporation. All rights reserved. Years ended March 31 or as of March 31 2003 (millions of yen) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Net sales 604,865 655,792 657,853 795,180 862,025 866,285 727,400 805,194 871,943 814,497 851,575 (Overseas sales) 439,381 487,169 473,828 621,522 690,673 714,172 610,944 703,190 763,046 702,469 747,062 Cost of sales 459,552 476,407 484,323 585,780 622,819 635,529 605,943 614,341 654,180 634,257 676,079 Selling, general, and administrative expenses 115,569 122,875 119,886 142,052 159,106 158,921 159,878 158,976 153,442 161,715 152,287 Transfer to the government of the substitutional portion of the Employees’ Pension Fund: Subsidy from the government (33,533) Loss on settlement 27,347 Gain on sales of business to Imation Corp. Restructuring cost (15,340) 5,197 ― ― 6,825 510 ― 15,884 4,922 ― Production realignment cost Realignment-related gain; Sale of properties Operating income (loss) 24,547 56,510 59,830 60,523 Income (loss) before income taxes Income (loss) from continuing operations before income taxes Income taxes Income (loss) from continuing operations Loss (income) from discontinued operations Net income (loss) attributable to TDK 79,590 87,175 (54,305) 88,665 91,505 (81,630) ― ― 6,570 1,561 (6,732) ― 26,955 64,321 18,687 21,648 23,088 60,620 12,245 18,858 9,401 15,105 11,486 14,328 20,552 55,847 60,728 66,103 6,193 12,133 23,284 21,057 13,593 43,355 36,965 44,411 13,687 45,515 759 4,530 1,574 1,254 3,665 310 (805) (511) (2,460) ― 12,019 42,101 33,300 44,101 13,520 45,264 (2,454) 1,195 21 16,985 70,125 19,948 (17,041) 71,461 (63,160) Copyright © 2013 TDK Corporation. All rights reserved. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Per common share (Yen): Net income (loss) attribute to TDK basic 90.56 317.80 251.71 333.50 529.88 551.72 (489.71) 104.82 350.90 (19.06) 9.50 Net income (loss) attributable to TDK diluted 90.56 317.69 251.56 333.20 529.29 551.19 (489.71) 104.74 350.57 (21.42) 5.36 521.05 700.46 650.47 775.50 1,022.45 1,101.11 204.75 750.77 948.98 600.96 627.89 Net assets 4,176 4,352 4,832 5,311 5,759 5,557 4,297 4,215 4,142 3,957 4,460 Dividends per common share (Yen) 50.00 55.00 70.00 90.00 110.00 130.00 130.00 60.00 80.00 80.00 70.00 Payout ratio (%) 55.2 17.3 27.8 27.0 20.8 23.4 ― 57.2 22.8 — 736.8 Net cash flow Total assets 747,337 770,319 808,001 923,503 989,304 935,533 1,101,036 1,091,458 1,060,853 1,072,829 1,169,642 Stockholders’ equity 553,885 576,219 639,067 702,419 762,712 716,577 554,218 543,756 534,273 498,159 561,169 Working capital 315,948 360,555 379,746 397,131 449,830 300,859 281,536 286,370 199,186 219,918 232,693 Capital expenditures 41,026 44,471 61,005 73,911 70,440 84,312 98,425 64,370 78,638 99,653 85,606 Depreciation and amortization 57,132 50,726 52,806 58,540 65,337 71,297 89,567 83,392 77,264 79,918 77,938 Research and development 30,099 32,948 36,348 45,528 50,058 57,387 57,645 53,874 52,608 52,551 53,943 55.8 58.6 59.0 61.7 62.2 70.1 74.0 80.5 83.7 80.2 81.8 31,705 36,804 37,115 53,923 51,614 60,212 66,429 80,590 87,809 79,175 79,863 Ratio of overseas production to net sales (%) Number of employees 22 Copyright © 2013 TDK Corporation. All rights reserved.