Performance Briefings 3Q of Fiscal Year March, 2013 TDK Corporation January 31, 2013 Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -1- ◆Consolidated Results through 3Q of FY March, 2013 Consolidated Full Year Projections of FY March, 2013 President and CEO Takehiro Kamigama ◆Consolidated 3Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manger of Finance & Accounting Department ◆Recording Device Business Shigenao Ishiguro General Manager of Data Storage & Thin Film Technology Components BG Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -2- Consolidated Results through 3Q of FY March, 2013 Consolidated Full Year Projections of FY March, 2013 President and CEO, TDK Corporation Takehiro Kamigama Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -3- Consolidated Results through 3Q of FY March, 2013 (Yen billions） FY March 2012 Results through 3Q FY March 2013 Results through 3Q (2011.4.1-2011.12.31) (2012.4.1-2012.12.31) Change Yen billions % 607.5 631.0 23.6 3.9 21.9 25.5 3.6 16.4 Operating Income Margin 3.6% 4.0% 0.4 pt Income from Continuing Operations before Income Taxes 15.0 21.2 6.2 41.5 Net Income -4.9 10.1 15.1 - -38.15 80.59 Net Sales Operating Income Earning Per Share (JPY) Ex-rate US$ Yen 79.01 EURO Yen 110.76 Ex-rate impact to Net sales & Operating Income Yen 80.03 Yen 102.24 - - - Depreciated by 1.3% Appreciated by 7.7% Net sales：Increased about 2.5 billion Yen Operating income：Increased about 0.4 billion Yen ※Discontinued operation (Display business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -4- Features in 3Q results of FY March 2013 z Sales of HDD head was above our expectations, although HDD market was softer than in a typical year. Sales the communications market increased by 50% from second quarter. 9 Sales of secondary batteries and high frequency components. Magnet sales were much lower than expected, particularly to the automobile market z z (Magnet business is included in other magnetic applications segment) (Yen billions) 250 206.2 200 150 41.2 54.8 100 53.2 50 0 Forex $/¥ Quarterly sales by applications 209.9 191.4 44.9 52.8 49.6 39.3 41.5 207.0 208.7 207.0 36.8 40.3 43.6 57.8 59.5 43.3 42.8 29.8 42.6 55.3 42.0 215.4 37.0 60.0 Recording Devices (HDD heads & Suspensions) 38.6 Industrial Equipment and Others 31.8 47.6 Communication Products Automobiles 30.4 32.6 34.4 31.5 26.6 30 32.9 38.1 36.5 34.3 32.2 1Q 81.74 2Q 77.96 3Q 77.35 4Q 79.27 1Q 80.27 2Q 78.67 3Q 81.17 2012/3 Consumer Products 2013/3 ※Discontinued operation (Display business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -5- Full Year Projections of FY March 2013 We revised projected consolidated operating results based on changes in the business environment and foreign currency. Projections (As of Oct. 31) 9 months Results Projections (As of Jan. 31) Net sales 850.0 631.0 835.0 Operating Income 41.0 25.5 19.0 Income before income taxes 37.0 21.2 14.0 Net Income 20.0 10.1 2.0 (Yen billions) Average yen exchange rates forecast in 4Q of FY March 2013 US$: ¥85 (previous assumption : ¥77) EURO: ¥115 (previous assumption : ¥100) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -6- FY March 2013 Dividend Forecast Revision of projected dividends per share Interim dividend (results) 40 Yen Year-end dividend (forecast) 30 Yen (previous forecast : 40 Yen) Annual dividend (forecast) 70 Yen (previous forecast : 80 Yen) JPY Dividend 100 80 60 60 Payout ratio 80 % 80 57.2 Forecast 70 80 60 40 40 22.8 20 20 0 0 2010/3 Copyright© 2013 TDK Corporation. All rights reserved. 2011/3 2012/3 Performance Briefings 3Q of Fiscal Year March, 2013 2013/3 January 31, 2013 -7- Acceleration of restructuring measures Promote business portfolio review ・Exit non-core businesses integrate bases worldwide Optimize production bases ・Further (Targeting bases not already announced for integration) Improve management efficiency ・Establish solid business structure for executing strategy rapidly To implement in FY March 2014 Execute business strategy very rapidly Prioritize the allocation of business resources to core businesses that needed to be strengthened Improve cost structure Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -8- Consolidated 3Q Results of FY March, 2013 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 -9- Consolidated 3Q Results of FY March, 2013 (Yen billions） Net Sales FY March 2012 3Q Results FY March 2013 3Q Results (2011.10.1-2011.12.31) (2012.10.1-2012.12.31) 191.3 215.4 7.4 Operating Income Margin Income from Continuing Operations before Income Taxes Change Yen billions % 24.1 12.6 5.1 (2.3) -31.3 3.9% 2.4% -1.5 pt - 3.6 2.9 (0.7) -18.9 Net Income -11.6 0.4 12.1 Earning Per Share (JPY) -90.24 3.33 Operating Income Ex-rate US$ Yen 77.35 EURO Yen 104.30 Ex-rate impact to Net sales & Operating Income Yen 81.17 Yen 105.28 - - Deppreciated by 4.9% Deppreciated by 0.9% Net sales：Increased about 8.7 billion yen Operating income：Increased about 1.3 billion yen ※Discontinued operation (Display business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 10 - Breakdown of Operating Income Changes (Yen billions) Operating income : -2.3 Decrease in negative impact from Thai flooding +3.9 Changes in sales (including utilization, products mix +0.5 7.4 Insurance gain (Thai flooding) +0.4 Rationalization, cost reduction +2.8 Restructuring effect +3.8 Exchange fluctuation （US$=Yen 81.17) +1.3 Sales price reduction -5.9 5.1 Decrease in gain of land sales -4.0 Rare earth material price fluctuation -3.7 SG&A expenses increase -1.4 3Q of FY March 2012 Copyright© 2013 TDK Corporation. All rights reserved. 3Q of FY March 2013 Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 11 - Segment Information JPY billion (FY2012 3Q vs. FY2013 3Q, FY2013 2Q vs.FY2013 3Q) 3Q of FY 2012 Oct 1- Dec 31, 2011 （Ａ） 2Q of FY 2013 July 1- Sep 30, 2012 （B） 3Q of FY 2013 Oct 1- Dec 31, 2012 （C） YoY Change （Ｃ）－（Ａ） Yen billions QoQ Change （Ｃ）－（Ｂ） % Yen billions % Net Sales Capacitor 30.6 29.2 26.6 (4.0) Inductive Device 28.6 29.6 30.6 2.0 Other Passive Comp 30.4 31.7 36.0 89.5 90.6 42.0 26.0 55.8 27.6 68.0 28.2 83.4 27.7 5.7 191.3 5.2 207.0 215.4 Passive Components 1.5 -2.5 -1.8 Magnetic Application Products 7.0 2.9 13.2 5.0 7.5 0.5 7.5 (5.7) -43.2 0.7 23.8 (1.4) -28.0 -0.7 10.8 -0.5 15.2 3.6 -0.6 0.1 - (0.1) - (1.9) -18.1 (6.4) -42.1 -3.4 7.4 -4.1 11.2 8.8 -3.7 (0.4) - 5.1 (2.3) -31.3 (6.1) -54.5 3.9% 5.4% - - - - Passive Components Recording Divices Other Magnetic Application Products Magnetic Application Products Film Application Products Other Total Operating Income Film Application Products Other Sub total Corporate and Eliminations Total Operating Income margin Ex- US$ rate EURO Copyright© 2013 TDK Corporation. All rights reserved. (2.6) -8.9 7.0 1.0 3.4 5.6 18.4 4.3 13.6 93.1 3.6 4.1 2.5 2.8 60.2 18.2 43.3 4.4 7.9 24.0 84.2 (2.0) -7.7 (3.6) 16.2 23.8 0.8 1.0 4.9 17.3 5.3 19.1 (0.7) -11.7 (0.2) -3.8 24.1 12.6 8.4 4.1 - 0.7 - 33.0 5.0 (3.3) 2.4% Yen 77.35 Yen 78.67 Yen 81.17 Yen 104.03 Yen 98.28 Yen 105.28 -13.1 -13.0 0.4 - ※Discontinued operation (Display business) were deducted in above results Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 12 - Change in operating income projections for FY March 2013 (Yen billions) Forex assumption for second half US$：77 Yen EURO：100 Yen Operating income : -22.0 Forex fluctuation +5.1 Forex assumption in forth quarter US$：85 Yen EURO：115 Yen Forex in third quarter： US$：81.17 Yen EURO：105.28 Yen 41.0 Quantity change (Including lower cost improvement than expected) -18.4 19.0 Loss from lower capacity Negative impact Restructuring utilization from rare earth cost material market -5.2 -1.0 price -2.5 Previous projections (Oct. 2012) Copyright© 2013 TDK Corporation. All rights reserved. Current projections (Jan. 2013) Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 13 - Projections for FY March 2013 – Image of change in sales Segment 1Q Results 2Q Results 3Q Results 4Q Projections (versus 3Q) Passive components 91.5 90.6 93.1 +2～4% Magnetic application products 88.2 83.4 84.2 -8～-10% 23.2 27.7 33.0 Other 5.8 5.2 5.0 -5～-10% Total 208.7 207.0 215.4 -5% 80.27 Copyright© 2013 TDK Corporation. All rights reserved. 78.67 81.17 Sales of HDD head and Magnet will decrease Sales of secondary battery will decrease due to production -17～-19% adjustment in a certain customer Film application products Forex $/¥ Remarks 85.00 (Assumption in 4Q) Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 14 - Recording Device Business Shigenao Ishiguro General Manager of Data Storage & Thin Film Technology Components BG Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 15 - Recording Device Business ●HDD market FY March 2013 (TDK’s forecast as of October-end) : About 575 million units FY March 2013 (TDK’s forecast as of January-end) : About 566 million units ●Shipment index Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention) HDD Head Shipment Index (Right) Projection (Yen billions) 60.0 40.0 55.2 53.3 100 104 42.0 58.2 110 59.9 109 84 20.0 55.8 60.2 53.0 107 98 83 0.0 Forex $/¥ 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 81.74 77.96 77.35 79.27 80.27 78.67 81.17 85.00 FY March 2012 Copyright© 2013 TDK Corporation. All rights reserved. (shipment index) 120 110 100 90 80 70 60 50 Forex assumption FY March 2013 Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 16 - Supplementary Data Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 17 - Quarterly sales and operating income by segment FY March 2013 FY March 2012 Yen billions Net Sales Capacitors 36.1 34.2 3Q 30.6 31.4 29.2 3Q 26.6 Inductive Devices 32.9 31.4 28.6 28.4 121.2 28.2 29.6 30.6 Other Passive Components 32.8 34.4 30.4 30.5 128.0 31.8 31.7 36.0 101.7 99.9 89.5 90.5 381.6 91.5 90.6 93.1 Recording Devices 55.2 53.3 42.0 58.2 208.7 59.9 55.8 60.2 Other Magnetic Application Products 24.4 27.7 26.0 29.7 107.7 28.3 27.6 24.0 Magnetic Application Products 79.6 81.0 68.0 87.8 316.4 88.2 83.4 84.2 Film Application Products 18.0 22.4 28.2 24.2 92.7 23.2 27.7 33.0 6.7 6.6 5.7 4.6 23.8 5.8 5.2 5.0 206.2 209.9 191.3 207.0 814.5 208.7 207.0 215.4 Passive Components 3.8 1.3 1.5 -13.2 -6.6 -2.9 -2.5 -1.8 Magnetic Application Products 8.6 9.5 7.0 14.0 39.0 14.6 13.2 7.5 Film Application Products 1.2 2.6 2.9 -0.5 6.3 2.1 5.0 3.6 Other -0.4 -1.2 -0.7 -2.6 -4.8 -0.4 -0.5 -0.6 Sub-total 13.2 12.2 10.8 -2.3 33.8 13.4 15.2 8.8 Corporate and Eliminations -7.2 -3.7 -3.4 -0.9 -15.1 -4.2 -4.1 -3.7 6.0 8.5 7.4 -3.2 18.7 9.2 11.2 5.1 81.74 77.96 77.35 79.27 79.07 80.27 78.67 81.17 117.62 110.42 104.30 103.94 109.06 103.18 98.28 105.28 Passive Components Other Total Operating Income Total Ex-rate ￥/USD ￥/EURO 1Q 2Q 4Q 31.6 Total 132.4 1Q 2Q 4Q Total ※Discontinued operation (Display business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 18 - Annual Sales by applications 100% ¥727bn 90% 23.9% (FY2009/Mar – FY2012/Mar) ¥809bn ¥872bn 17.3% 16.8% ¥815bn 17.2% Consumer Products 80% 70% 34.0% 60% 25.4% 29.3% 34.5% 50% 40% 19.3% 30% 20% 13.7% 42% 10% 48% 14.2% 54% 17.1% 16.5% 11.9% 12.7% FY09/Mar FY10/Mar FY11/Mar 450 Industrial Equipment and others 400 Communications Automobile Communications Automobiles FY12/Mar (Yen billions) 350 57% 15.6% 9.0% 0% Industrial Equipment and others 24.7% 24.7% 22.1% Recording Devices (HDD heads & Suspensions) 421.3 418.9 174.1 140.2 402.3 146.5 140.0 300 250 200 150 100 65.7 95.9 110.5 126.8 100.0 114.9 143.6 179.1 139.6 215.5 201.2 FY09/Mar FY10/Mar FY11/Mar FY12/Mar FY09/Mar FY10/Mar 278.7 247.2 140.4 255.8 206.9 Consumer Products and Recording Devices 50 0 346.9 FY11/Mar FY12/Mar FY09/Mar FY10/Mar FY11/Mar FY12/Mar FY09/Mar FY10/Mar FY11/Mar FY12/Mar ※Consolidation of EPCOS from the second half of 2009/3 ※Discontinued operation (Display business) are included in 2009/3 and 2010/3. Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 19 - Passive Components Business Annual sales by applications (FY2009/Mar –FY2012/Mar) 100% ¥286bn 31.0% 80% 60% ¥365bn ¥426bn ¥382bn 22.3% 19.1% 15.8% Consumer Products 35.1% Industrial Equipment and others 34.9% 35.6% 29.7% 40% 21.9% 69% 78% 20.9% 25.4% 81% 24.5% 84% Communications 20% 17.4% 21.3% 20.7% 24.6% FY09/Mar FY10/Mar FY11/Mar FY12/Mar Automobiles 0% (Yen billions) 160 140 148.3 Communications Automobile 120 Consumer Products 107.9 88.0 100 93.7 93.4 77.6 80 76.1 88.7 85.2 62.7 81.2 81.3 60.4 Industrial Equipment and others 49.8 60 134.1 129.9 40 20 0 FY09/Mar FY10/Mar FY11/Mar FY12/Mar FY09/Mar FY10/Mar FY11/Mar FY12/Mar ※Consolidation of EPCOS from the second half of 2009/3 ※Discontinued operation (Display business) are included in 2009/3 and 2010/3. Copyright© 2013 TDK Corporation. All rights reserved. FY09/Mar FY10/Mar FY11/Mar FY12/Mar Performance Briefings 3Q of Fiscal Year March, 2013 FY09/Mar FY10/Mar FY11/Mar January 31, 2013 FY12/Mar - 20 - Quarterly sales by applications ¥206bn 100% 90% ¥210bn (1Q/FY2012/Mar –3Q/FY2013/Mar) ¥191bn ¥207bn ¥209bn ¥207bn ¥215bn 17.2% 20.0% 21.4% 20.5% 17.8% 19.3% 21.1% 26.6% 25.2% 21.7% 27.9% 28.5% 26.7% 25.8% 23.6% 22.6% 20.7% 20.4% 20.3% Consumer Products 80% 70% 60% 50% 40% 30% 14.7% 20% 10% 0% 53% 53% 15.5% 18.0% 58% 15.2% 14.3% 54% 52% Industrial Equipment and Others 22.1% 17.2% 18.4% 17.5% 16.6% 14.9% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 38.1 30.0 32.9 Automobiles Communications (Yen billions) 36.5 Communication Products 55% FY2013/Mar Automobile 26.6 17.9% 14.3% (Yen billions) 30.0 52% Recording Devices (HDD heads & Suspensions) 12.9% FY2012/Mar 40.0 15.4% 27.9% 34.3 47.6 50.0 32.2 40.0 30.4 32.6 34.4 2Q 3Q 31.5 29.8 4Q 1Q 31.8 30.0 20.0 20.0 10.0 10.0 0.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 1Q 3Q 2Q 3Q Consumer Products and Recording devices (Yen billions) Industrial Equipment and others (Yen billions) 53.2 49.6 50.0 43.3 42.8 42.6 100.0 42.0 40.0 38.6 80.0 96.0 97.7 41.2 44.9 99.8 98.9 97.0 36.8 40.3 43.6 37.0 57.8 59.5 55.3 60.0 4Q 1Q 2Q 3Q 94.6 80.8 39.3 60.0 30.0 20.0 40.0 10.0 20.0 54.8 52.8 1Q 2Q 41.5 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q ※Discontinued operation (Display business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. 0.0 3Q Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 21 - Passive Components Business quarterly sales by applications (1Q/FY2012/Mar –3Q/FY2013/Mar) 100% ¥102bn ¥100bn ¥90bn ¥90bn ¥92bn ¥91bn ¥93bn 19.4% 19.1% 18.3% 17.0% 17.7% 17.0% 15.7% 35.5% 33.0% 30.2% 30.9% 31.7% 30.4% 27.3% 81% 25.4% 82% 24.6% Consumer Products 80% 60% 81% 40% 83% 23.5% 82% 25.9% 83% 31.7% 23.3% 24.3% 21.8% 23.5% 26.1% 27.5% 27.2% 26.7% 25.3% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 20% Industrial Equipment and others 83% Communications Automobile 0% FY2013/Mar FY2012/Mar Automobile Communications (Yen billions) (Yen billions) 22.2 23.5 23.4 24.9 24.9 24.2 30.0 23.6 20.0 24.3 1Q 2Q 29.5 22.7 22.2 21.5 3Q 4Q 1Q 23.5 20.0 10.0 10.0 0.0 0.0 1Q 2Q (Yen billions) 40.0 23.7 3Q 4Q 1Q 2Q 3Q Industrial Equipment and others 36.1 27.0 30.0 27.9 29.0 27.6 20.0 25.4 20.0 3Q Consumer Products (Yen billions) 33.0 2Q 19.7 19.1 16.4 15.4 16.2 15.4 4Q 1Q 2Q 14.6 15.0 10.0 10.0 5.0 0.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q ※Discontinued operation (Display business) were deducted in above results Copyright© 2013 TDK Corporation. All rights reserved. 1Q 2Q 3Q Performance Briefings 3Q of Fiscal Year March, 2013 3Q January 31, 2013 - 22 - Financial Position （JPY billion） March End, 2012 Sep End, 2012 Dec End, 2012 Q on Q Change 1,072.8 1,048.1 1,125.0 76.9 Total Liability 560.8 563.4 581.0 17.6 Interest-bearing Debt 272.8 284.1 288.5 4.4 Stockholders's Equity 498.2 469.6 526.5 56.9 (comprehensive income) -230.8 -264.3 -202.6 61.7 Stockholders's Equity ratio 46.4% 44.8% 46.8% 2.0pt Total Asset Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 23 - Full Year Projections of FY March 2013 – Capex, Depreciation, R&D Projections (As of Oct. 31) Results through 3Q Projections (As of Jan. 31) Capital expenditures 80.0 63.3 80.0 Depreciation and amortization 78.0 56.2 78.0 Research and development 51.0 39.3 51.0 (Yen billions) Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 24 - Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 25 - Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 26 - Reference information regarding segment reclassification Since FY March 2012 (=previous fiscal year), TDK has had 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. Previous segment Previous Classification Constituent Main Business Passive Components Ceramic capacitors, Aluminum electrolytic capacitors, Film capacitors, Inductive devices (Coils/Ferrite cores/Transformers), High-frequency devices, Piezoelectric material products, Circuit protection components, Sensors Magnetic Application Recording devices, Power supplies, Magnets, Recording media Products Other Energy devices (rechargeable batteries), Mechatronics (production equipments), other Reporting segement ＋ Other Current segment New Classification Passive Components* Constituent Main Business Ceramic capacitors, Aluminum electrolytic capacitors, Film capacitors, Inductive devices (Coils/Ferrite cores/Transformers), High-frequency devices, Piezoelectric material products, Circuit protection components, Sensors Recording devices, Power supplies, Magnets Magnetic Application Products Film Application Products Energy devices (rechargeable batteries), Applied films (former recording media) Other Mechatronics (production equipments), other Reporting segment ＋ Other Recording media, which belonged to the Magnetic Application Products Segment, has been renamed applied films due to the termination of some products and acquisition of a battery separators business, which has resulted in the main products being functional film products. This is now shown as a new reporting segment Film Application Products effective from fiscal 2012, and also includes energy devices which have similar core technologies and markets. Energy devices previously belonged to Other. Copyright© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 27 - 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 TDK Group in light of information currently available to it, and contain known and unknown risks, uncertainties and other factors. TDK Group therefore wishes to caution readers that, being subject to risks, uncertainties and other factors, 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 TDK Group undertakes no obligation to publicly update or revise any forward-looking statements after the issue of this material except as provided for in laws and ordinances. The electronics markets in which TDK Group operates are highly susceptible to rapid changes. Risks, uncertainties and other factors that can have significant effects on TDK Group include, but are 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© 2013 TDK Corporation. All rights reserved. Performance Briefings 3Q of Fiscal Year March, 2013 January 31, 2013 - 28 - Text data including Q&A of performance briefing will be uploaded on following site http://www.global.tdk.com/ir/ir_events/conference/2013/3q_1.htm