TDK Corporation (6762) FY 2016 Third Quarter Financial Results (U.S. GAAP) (4) Notes Concerning Going Concern Assumptions Nothing to report. (5) Segment Information TDK has three reporting segments: Passive Components, Magnetic Application Products and Film Application Products, as well as Other, which includes products not included in these three reporting segments. In accordance with the reorganization in 1Q of FY2016, certain products of Passive Components and Magnetic Application Products were reclassified into Other. The prior year's figures are also reclassified to conform to the new segmentation. [9-month-period results] Sales by industry segment The 9-month-period of The 9-month-period of FY2016 FY2015 (April 1, 2014 (April 1, 2015 December 31, 2014) December 31, 2015) (Yen millions) External customers Passive Components Intersegment Total External customers Magnetic Application Products Intersegment Total External customers Film Application Products Intersegment Total External customers Other Intersegment Total Intersegment eliminations Total Note: 395,078 2,261 397,339 274,813 162 274,975 107,136 2,204 109,340 25,625 8,497 34,122 (13,124) 802,652 % 49.2 34.3 13.3 3.2 100.0 (Yen millions) % 439,482 49.4 2,110 441,592 246,417 27.7 275 246,692 175,760 19.8 2,273 178,033 3.1 27,683 11,492 39,175 (16,150) 889,342 100.0 Change (U.S.$ thousands) (Yen millions) Change(%) 3,632,083 17,438 3,649,521 2,036,504 2,273 2,038,777 1,452,562 18,785 1,471,347 228,785 94,975 323,760 (133,471) 7,349,934 44,404 (151) 44,253 (28,396) 113 (28,283) 68,624 69 68,693 2,058 2,995 5,053 (3,026) 86,690 11.2 -6.7 11.1 -10.3 69.8 -10.3 64.1 3.1 62.8 8.0 35.2 14.8 10.8 U.S.$1=Yen 121, for convenience only. Segment profit (loss) by industry segment The 9-month-period of The 9-month-period of FY2016 FY2015 (April 1, 2014 (April 1, 2015 December 31, 2014) December 31, 2015) (Yen millions) Passive Components Magnetic Application Products Film Application Products Other Sub total Corporate and Eliminations Operating income 28,607 23,371 15,154 (42) 67,090 (13,986) 53,104 Notes: 1. U.S.$1=Yen 121, for convenience only. 2. % to sales of each corresponding segment 15 % 7.2 8.5 14.1 -0.2 8.4 6.6 (Yen millions) 49,906 12,990 30,933 498 94,327 (18,455) 75,872 % 11.4 5.3 17.6 1.8 10.6 8.5 Change (U.S.$ thousands) (Yen millions) Change(%) 412,446 107,355 255,645 4,116 779,562 (152,521) 627,041 21,299 74.5 (10,381) -44.4 15,779 104.1 540 27,237 40.6 (4,469) 22,768 42.9 TDK Corporation (6762) FY 2016 Third Quarter Financial Results (U.S. GAAP) [3rd quarter results] Sales by industry segment 3Q of FY2015 (October 1, 2014 December 31, 2014) (Yen millions) External customers Passive Components Intersegment Total External customers Magnetic Application Products Intersegment Total External customers Film Application Products Intersegment Total External customers Other Intersegment Total Intersegment eliminations Total Note: 143,234 795 144,029 100,369 76 100,445 47,417 736 48,153 9,357 3,544 12,901 (5,151) 300,377 % 47.7 33.4 15.8 3.1 100.0 3Q of FY2016 (October 1, 2015 December 31, 2015) (Yen millions) % Change (U.S.$ thousands) (Yen millions) Change(%) 141,515 46.9 1,169,546 (1,719) -1.2 (196) -24.7 599 4,950 -1.3 142,114 1,174,496 (1,915) 81,793 27.1 675,975 (18,576) -18.5 165 1,364 89 117.1 81,958 677,339 (18,487) -18.4 68,463 22.7 565,810 21,046 44.4 771 6,372 35 4.8 69,234 572,182 21,081 43.8 9,957 3.3 82,289 600 6.4 4,248 35,108 704 19.9 14,205 117,397 1,304 10.1 (632) (5,783) (47,794) 301,728 100.0 2,493,620 1,351 0.4 U.S.$1=Yen 121, for convenience only. Segment profit (loss) by industry segment 3Q of FY2015 (October 1, 2014 December 31, 2014) (Yen millions) Passive Components Magnetic Application Products Film Application Products Other Sub total Corporate and Eliminations Operating income 11,435 7,657 9,642 243 28,977 (3,795) 25,182 % 8.0 7.6 20.3 2.6 9.6 8.4 3Q of FY2016 (October 1, 2015 December 31, 2015) (Yen millions) 17,494 4,745 14,558 (86) 36,711 (6,414) 30,297 % 12.4 5.8 21.3 -0.9 12.2 10.0 Notes: 1. U.S.$1=Yen 121, for convenience only. 2. % to sales of each corresponding segment (6) Notes Concerning Significant Changes in Stockholders’ Equity Nothing to report. 16 Change (U.S.$ thousands) (Yen millions) Change(%) 144,578 39,215 120,314 (711) 303,396 (53,008) 250,388 6,059 (2,912) 4,916 (329) 7,734 (2,619) 5,115 53.0 -38.0 51.0 26.7 20.3