TDK Corporation (6762) FY 2016 Second 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. [1st half results] Sales by industry segment 1H of FY2015 (April 1, 2014 September 30, 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: 251,844 1,466 253,310 174,444 86 174,530 59,719 1,468 61,187 16,268 4,953 21,221 (7,973) 502,275 % 50.1 34.7 11.9 3.3 100.0 1H of FY2016 (April 1, 2015 September 30, 2015) (Yen millions) % 297,967 50.7 1,511 299,478 164,624 28.0 110 164,734 107,297 18.3 1,502 108,799 17,726 3.0 7,244 24,970 (10,367) 587,614 100.0 Change (U.S.$ thousands) (Yen millions) Change(%) 2,483,058 12,592 2,495,650 1,371,867 917 1,372,784 894,142 12,516 906,658 147,716 60,367 208,083 (86,392) 4,896,783 46,123 45 46,168 (9,820) 24 (9,796) 47,578 34 47,612 1,458 2,291 3,749 (2,394) 85,339 18.3 3.1 18.2 -5.6 27.9 -5.6 79.7 2.3 77.8 9.0 46.3 17.7 17.0 U.S.$1=Yen 120, for convenience only. Segment profit (loss) by industry segment 1H of FY2015 (April 1, 2014 September 30, 2014) (Yen millions) Passive Components Magnetic Application Products Film Application Products Other Sub total Corporate and Eliminations Operating income 17,172 15,714 5,512 (285) 38,113 (10,191) 27,922 Notes: 1. U.S.$1=Yen 120, for convenience only. 2. % to sales of each corresponding segment 15 % 6.8 9.0 9.2 -1.8 7.6 5.6 1H of FY2016 (April 1, 2015 September 30, 2015) (Yen millions) 32,412 8,245 16,375 584 57,616 (12,041) 45,575 % 10.9 5.0 15.3 3.3 9.8 7.8 Change (U.S.$ thousands) (Yen millions) Change(%) 270,100 68,708 136,458 4,867 480,133 (100,341) 379,792 15,240 88.7 (7,469) -47.5 10,863 197.1 869 19,503 51.2 (1,850) 17,653 63.2 TDK Corporation (6762) FY 2016 Second Quarter Financial Results (U.S. GAAP) [2nd quarter results] Sales by industry segment 2Q of FY2015 (July 1, 2014 September 30, 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: 129,922 651 130,573 89,195 65 89,260 37,235 755 37,990 8,461 3,005 11,466 (4,476) 264,813 % 49.0 33.7 14.1 3.2 100.0 2Q of FY2016 (July 1, 2015 September 30, 2015) (Yen millions) % Change (U.S.$ thousands) (Yen millions) Change(%) 150,151 48.7 1,251,258 20,229 95 746 6,217 150,897 1,257,475 20,324 85,266 27.7 710,550 (3,929) 47 392 (18) 85,313 710,942 (3,947) 64,065 20.8 533,875 26,830 766 6,383 11 64,831 540,258 26,841 8,576 2.8 71,467 115 4,162 34,683 1,157 12,738 106,150 1,272 (5,721) (47,675) (1,245) 308,058 100.0 2,567,150 43,245 15.6 14.6 15.6 -4.4 -27.7 -4.4 72.1 1.5 70.7 1.4 38.5 11.1 16.3 U.S.$1=Yen 120, for convenience only. Segment profit (loss) by industry segment 2Q of FY2015 (July 1, 2014 September 30, 2014) (Yen millions) Passive Components Magnetic Application Products Film Application Products Other Sub total Corporate and Eliminations Operating income 9,415 8,453 5,226 209 23,303 (4,976) 18,327 % 7.2 9.5 14.0 2.5 8.8 6.9 2Q of FY2016 (July 1, 2015 September 30, 2015) (Yen millions) 17,382 4,458 11,643 211 33,694 (6,259) 27,435 % 11.6 5.2 18.2 2.5 10.9 8.9 Notes: 1. U.S.$1=Yen 120, for convenience only. 2. % to sales of each corresponding segment (6) Notes Concerning Significant Changes in Stockholders’ Equity Nothing to report. 16 Change (U.S.$ thousands) (Yen millions) Change(%) 144,850 7,967 84.6 37,150 (3,995) -47.3 97,025 6,417 122.8 1,758 2 1.0 280,783 10,391 44.6 (52,158) (1,283) 228,625 9,108 49.7