Performance Briefings Fiscal Year March, 2012 TDK Corporation April. 27, 2012 Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -1- ◆Consolidated Full Year Results of FY March, 2012 Consolidated Full Year Projections of FY March, 2013 Takehiro Kamigama, President and CEO ◆Consolidated Results of FY March, 2012 Consolidated 4Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department ◆Recording Device Business Atsuo Kobayashi, Senior Vice President, General Manager of Data Storage & Thin Film Technology Components Business Group Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -2- TDK has changed the reporting segment in FY March 2012. Please see Page 15 for detail In accordance with the provisions of ASC No.205-20, “Presentation of Financial Statements-Discontinued Operations”, operating results relating to the display business are deducted. Also reclassifications are made to the consolidated statements of operations for the year ended March 31, 2011 to conform to the presentation used for the year ended March 31, 2012. Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -3- Consolidated Full Year Results of FY March, 2012 Consolidated Full Year Results of FY March, 2013 Takehiro Kamigama President and CEO Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -4- Consolidated Full Year Results of FY March, 2012 (JPY billion） FY March 2011 Full Year Results FY March 2012 Full Year Results Change JPY billion % 871.9 814.5 (57.4) -6.6 64.3 18.7 (45.6) -70.9 Operating Income Margin 7.4% 2.3% -5.1pt Net income from continuing operations before income taxes 60.6 12.2 (48.4) -79.8 Net Income 45.3 -2.5 (47.7) - 350.90 -19.06 Net Sales Operating Income Earning Per Share (JPY) - - US$ Yen 85.73 Yen 79.07 Appreciation by 7.8% EURO Yen 113.12 Yen 109.06 Appreication by 3.6% Ex-rate ※Discontinued operation (Display business) were deducted in above results ※Please see Page 27 for the details of temporary factors that affected consolidated full year results of FY March 2013 Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -5- Features in full year results of FY March 2013 ◆Consolidated sales decreased 6.6%, operating income decreased by 70.9% ・Slowdown in electronics market due to the Great East Japan Earthquake and flooding in Thailand ・JPY appreciation continued (over 80 yen / US$) ・Sales of IT home electronics area such as flat-screen TVs were weak mainly ・Production adjustment of certain major customer ◆Implemented restructuring measures for profitability improvement ・Reorganization of sites, optimization of workforces and implementation for measures focusing on unprofitable business and products ・To post restructuring cost of 18.0 billion yen totally in FY March 2012 through FY March 2013 ・Projected improvement will be 33.4 billion yen totally in FY March 2012 through FY March 2013 ◆TDK plans to pay a year-end dividend of 40 yen per common share ・Combined with the interim dividend of 40 yen, the planned full year dividend will be 80 yen ※Please see Page 27 for the details of temporary factors that affected consolidated full year results of FY March 2012 ※Please see Page 21 about detail for restructuring costs and the projected effect Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -6- Features in full year results –sales transition by applicationsSales exposure of communications, automobiles and other (industrial equipment etc) increased to 57.4% Sales ratio of automobiles rose to 15.6% with steady sales increase Sales ratio of IT home electronics decreased to 42.6% due to weak sales of passive components business for flat-screen TV and due to sales decrease in recording device business affected by flooding in Thailand 140.4 19.3% 65.7 9.0% 100 13.8% 421.3 306.1 Ratio 42.0% 57.9% (279.0) 179.1 95.9 114.9 418.9 22.1% 11.9% 14.2% 814.5 871.9 808.9 727.4 389.9 215.5 24.7% Ratio 48.2% 110.5 12.7% 143.6 402.3 201.2 469.6 24.7% 467.6 126.8 15.6% 16.5% 139.6 17.1% 46.1% 346.9 42.6% Ratio 53.9% Unit : JPY billion Ratio 57.4% 51.8% (280.0) (257.5) (208.7) Numbers writing in（）is sales amount of recording device business 2009/3 IT Home Electronics 2010/3 Communications 2011/3 Automobiles 2012/3 Others (including industrial equipment etc) ※Consolidation of EPCOS from the second half of 2009/3 ※Discontinued operation (Display business) are included in 2009/3 and 2010/3. ※Discontinued operation (Display business) were deducted in 2011/3 and 2012/3. Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -7- Full year projections and dividend projections of FY March 2013 FY March 2012 Full Year Results (JPY billion） FY March 2013 Full Year Projections Change JPY billion % 814.5 900.0 85.5 10.5 18.7 57.0 38.3 204.8 Operating Income Margin 2.3% 6.3% 4pt - Net income from continuing operations before income taxes 12.2 53.0 40.8 334.4 Net Income -2.5 40.0 42.5 - -19.06 317.75 - - - - Net Sales Operating Income Earning Per Share (JPY) Devidneds (JPY) Ex-rate 1st half :40 (results) 2nd half :40 (projections) Annual: 80 (projections) 1st half :40 (projections) 2nd half :50 (projections) Annual: 90 (projections) US$ Yen 79.07 Yen 77.00 EURO Yen 109.06 Yen 103.00 - ※Discontinued operation (Display business) were deducted in above results and projections Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -8- Business development from this fiscal year onward Establish solid earning base by implementation of restructuring measures) zReorganization of sites and optimization of workforce zCost reduction zImplement measures focusing on unprofitable business and products Sustainable growth with growth business strategy zAggressively accelerate business development for most focused market Next generation information and communications market Energy-related market Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -9- Growth strategy for focus areas - Next-generation and communications market Market Requirement for Hardware Requirement for Components What TDK should do Wireless Smaller, lower profile Multi-band Multi function Multi-function Higher function Offer smaller, higher performing Components to realize miniaturization and multi-function Small & Light Low power Larger data Energy-related market Efficient power Efficient energy Quick response high frequency module Higher data density Offer module solution by utilizing packaging technology Large capacity battery such as LTCC, SESUB etc Low power Efficient power supply Low fuel Higher magnetic force Dispersed power Higher capacitance Independent on fossil fuel Less rare-earth or rare earth free (HEV/EV/FCEV) Copyright© 2012 TDK Corporation. All rights reserved. Offer thin-film products utilizing magnetic technology and HDD head production process Offer HDD head with high recording density corresponding to increasing digital data Offer power electronics devices for generating, saving and Managing electricity Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 10 - Growth strategy -Next generation information and communications market - ●Human-originated digital data volumes continue to grow ●Cloud computing is accelerating both the concentration of digital data (data center expansion) and explosion of digital data (cloud-computing terminal diffusion such as smartphones, tablet PCs, etc.) HDD will continue to be main storage solution in data centers Data center HDD Slider Head Larger recording capacity of HDD and higher recording density will be essential factors for data centers to store big data and to reduce energy consumption at data centers ●Accelerate of development of HDD head suitable for data center ●To pursue high recording density of HDD head continuously Smart phone ●Strengthen development of distinctive products ・Expand lineup of thin-film products ・Semiconductor Embedded in SUBstrate (SESUB), etc. Next-generation HDD head : Thermal Assist Head Recording density to be increased by 100% compared with the most cutting edge head 1TB～/Platter (2.5 inch) ●Aggressive approach & strong support to market-leading customers Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 11 - Growth strategy -Energy related market The equipping of automobiles with electrical devices continues to gather pace against a backdrop of stricter fuel consumption and safety regulations around the world and soaring fuel prices. This leads to electrification of automobile and also this is promoting the development of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEV) and electric vehicles (EVs) Electrification of gasoline-powered vehicles Lower fuel consumption,・Safety・Multimedia Moving away from fossil fuels HEV/EV/PHEV/FCEV Power inductor for ECU Film Capacitors Ceramic Capacitor for ECU for DC-LINK circuit Common mode filters for CAN-BUS & Flex ray Battery Charger Ferrite magnets for power steering, oil pump, wiper, power window etc Current sensor Rare earth magnets for driving motor Temperature sensor Transponder coils for tire DC-DC converter The first year of a new era for magnets pressure monitoring Strengthen measures to create magnets that use less or no rare earth Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 12 - Growth strategy -Energy related market Due to the shift to renewable energy and adoption of smart grids, demands for power electronics devices are expected to expand steadily over the medium and long terms. Steady business expansion with wide range of products and good customer base Passive components Other 30% Passive components composed of about 30% of power conditioner indispensable for renewable energy system (IHS/iSupply research Dec’11) Synergy battery Film capacitor for High-voltage DC power transmission example） Cap:6500µF Vdc:2800 The best lineup in the passive components industry Aluminum capacitor Film capacitor Transformer Inductor EMC filter Ferrite core for noise removal Current sensor Bidirectional DC-DC convertor Inverter module Middle pressure Ceramic capacitor Neodymium magnet for motor for wind power Copyright© 2012 TDK Corporation. All rights reserved. Reactor Varistor/Arrester HVDC (High Voltage Direct Current transmission) The use of alternating-current transmission results in low power loss during transmission, and the impact of frequency fluctuation is minimal. At present, more intercontinental long-distance transmission lines and facilities are under construction in Europe. Construction is expected to increase in other parts of the world such as China going forward. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 13 - Consolidated Results of FY March, 2012 Consolidated 4Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 14 - About the change of reporting segment TDK newly has three reporting segments: “Passive Components” and “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 New 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© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 15 - Results of FY March 2012 by segment FY March 2011 Full Year Results Yen billion ％ FY March 2012 Full Year Results Yen billion ％ Change Yen billion % Net Sales Operating Income Capacitors 145.4 16.7 132.4 16.3 (13.0) -9.0 Inductive devices 130.2 14.9 121.2 14.9 (9.0) -6.9 Other Passive Components 150.0 17.2 128.0 15.7 (21.9) -14.6 425.5 48.8 381.6 46.9 (44.0) -10.3 257.5 29.5 208.7 25.6 (48.8) -18.9 99.0 11.4 107.7 13.2 8.7 356.5 40.9 316.4 38.8 (40.1) -11.2 Applied Film Products 58.6 6.7 92.7 11.4 34.1 58.2 Other 31.3 3.6 23.8 2.9 (7.5) -24.1 Total 871.9 100.0 814.5 100.0 (57.4) -6.6 Passive Components 24.5 5.8 -6.6 -1.7 (31.1) - Magnetic Application Products 51.4 14.4 39.0 12.3 (12.4) -24.1 Applied Film Products 1.2 2.1 6.3 6.7 5.0 416.5 Other 0.5 1.6 -4.8 -20.3 Passive Components Recording devices Other Magnetic Application Products Magnetic Application Products Sub total Corporate and eliminations Total (5.3) -56.4 77.6 33.8 (43.8) -13.3 -15.1 (1.8) 64.3 7.4 18.7 2.3 8.8 (45.6) -70.9 ※Discontinued operation (Display business) were deducted in above results Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 16 - Breakdown of Operating Income Changes FY March 2011 64.3 billion yen FY March 2012 18.7 billion yen Operating income : -45.6 SG&A expenses decrease （including sale of land) +3.8 Restructuring effect +9.7 Changes in sales (including utilization, products mix +3.8 Rationalization, Cost reduction, +8.0 64.3 Restructuring cost -8.4 Sales price reduction -37.5 billion yen Impact by earthquake Impact by -1.8 billion yen flooding in Thailand -4.9 billion yen Exchange fluctuation （US$=Yen 79.07) -15.2 Change of pension plan -3.1 FY March 2012 FY March 2011 Copyright© 2012 TDK Corporation. All rights reserved. 18.7 Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 17 - Financial position （JPY billion） March End, 2011 March End, 2012 Change 1,060.9 1,072.8 12.0 Total Liability 521.1 560.8 39.7 Interest-bearing Debt 245.0 272.8 27.8 Stockholders's Equity 534.3 498.2 -36.1 (comprehensive income) -218.0 -230.8 -12.9 Stockholders's Equity ratio 50.4% 46.4% -4.0pt Total Asset Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 18 - Segment Information (4Q of FY2011 vs. 4Q of FY2012, 3Q vs. 4Q JPY billion 4Q results of 3Q results of 4Q results of FY March 2011 FY March 2012 FY March 2012 Jan 1- Mar 31, 2011 Oct 1- Dec 31, 2011 Jan 1- Mar 31, 2012 (A) (B) (C) 30.6 28.6 30.4 31.6 28.4 30.5 105.0 89.5 57.5 24.4 JPY billion QoQ Change (C)-(B) JPY billion % % (2.9) -8.4 1.0 3.3 (3.5) -11.0 (0.2) -0.7 (8.1) -21.0 0.1 0.3 90.5 (14.5) -13.8 1.0 1.1 42.0 26.0 58.2 29.7 0.7 1.2 16.2 38.6 5.3 21.7 3.7 14.2 68.0 28.2 5.7 87.8 24.2 4.6 5.9 7.2 19.8 29.1 7.0 40.7 (4.0) -14.2 Other 81.9 17.2 8.9 (4.3) -48.3 (1.1) -19.3 Total 213.0 191.3 207.0 (6.0) -2.8 4.8 9.1 -0.6 -0.4 12.9 1.5 7.0 2.9 -0.7 10.7 -13.2 14.0 -0.5 -2.6 -2.3 (18.0) - -3.2 -3.4 -0.9 2.3 9.8 7.4 -3.2 (13.0) 4.6% 3.9% Capacitor Inductive Device Other Passive Comp Net Sales 34.5 31.9 38.6 YoY Change (C)-(A) Passive Components Recording Divices Other Magnetic Application Products Magnetic Application Products Film application Products Operating Income Passive Components Magnetic Application Products Film application Products other Sub total Corporate and Eliminations Total Operating Income margin Ex- US$ rate 82.31 112.66 77.35 104.30 EURO ※Discontinued operation (Display business) were deducted in above results Copyright© 2012 TDK Corporation. All rights reserved. 15.7 (14.7) - 4.9 53.8 0.1 - (3.4) - (2.2) - (1.9) - (15.2) - (13.0) - -1.5% (5.7pt) - 7.0 8.2 2.5 (10.6) 100.0 - (5.0pt) 79.27 103.94 Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 19 - Restructuring measures –current statusEach restructuring measure proceeding as planned Item Production site Jobs Current status Announced reorganization of 7 plants out of total 19 plants located in Tohoku region Changes in number of employees in TDK worldwide End of September in 2011: 88,449 jobs End of December in 2011 : 82,912 jobs End of March in 2012 : 79,175 jobs decreased by 9,274 employees Unprofitable business or products Sale of Organic EL display business (completed by April 1st in 2012) Unemployed assets In 3Q：Already sold unemployed assets (posted sales gain of 4.0 billion yen at OP level) In 4Q：Already sold unemployed assets (posted sales gain of 2.7 billion yen at OP level) Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 20 - Restructuring measures –current statusJPY billion Restructuring cost Announced on January 31 in 2012 ・First half results : 1.5 FY March ・Second half results : 12.3 2012 ・Full year projections : 13.8 ・First half results : 1.5 ・Second half results : 11.5 ・Full year projections : 13.0 FY March ・Full year projections : 5.0 2013 ・Full year projections : 5.0 Total 18.8 FY March ・Projected effect in second half : 13.5 2012 ※7.0+6.5(gain on sale of land) Effect (results and projections) Announcement on April 27 in 2012 18.0 ・Effect in second half : 16.9 ※10.2+6.7(gain on sales of land) FY March ・Full year projections : 22.0 ・Full year projections : 16.5 2013 (in comparison with results of FY March 2012) (in comparison with results of FY March 2012) Total Copyright© 2012 TDK Corporation. All rights reserved. 35.5 Performance Briefings Fiscal Year March, 2012 33.4 April 27, 2012 - 21 - Recording Device Business Atsuo Kobayashi Senior Vice President General Manager of Data Storage & Thin Film Technology Components Business Group Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 22 - Recording device business ●HDD market FY March 2012 (TDK’s estimation) : About 600 million units FY March 2013 (TDK’s forecast) : About 700 million units ●HDD Market is being recovered from flooding in Thailand as TDK expected Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention) HDD Head Shipment Index (Right) (shipment index) (JPY billion) Flooding in Thailand 80.0 60.0 40.0 100 71.7 102 100 65.3 63.0 104 95 99 57.9 55.2 53.3 42.0 4Q 1Q 2Q 3Q 95 20.0 80 118 130 Projection 58.2 0.0 1Q Forex $/¥ 92.01 2Q 85.88 3Q 82.65 2011/3 Copyright© 2012 TDK Corporation. All rights reserved. 82.31 81.74 77.96 77.35 2012/3 Performance Briefings Fiscal Year March, 2012 4Q 1Q 79.27 77.00 120 110 100 90 80 70 60 50 2013/3 April 27, 2012 - 23 - Supplementary Data Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 24 - Quarterly sales and operating income Sales (left) 250.0 Operating income (right) 220.8 9.2% 219.3 218.8 7.8% 200.0 OP margin 10.0% 213.0 206.2 209.9 191.3 7.9% 207.0 8.0% 150.0 4.6% 20.3 17.0 4.0% 17.2 2.0% 150 8.5 9.8 50.0 3.9% 2.9% 100.0 4.0% 200 -1.5% 0.0 Forex ¥/US$ 0.0% 100 7.4 6.0 -3.2 １Q ２Q ３Q ４Q １Q ２Q ３Q 92.01 85.88 82.65 82.31 81.74 77.96 77.35 (%) (JPY billion) 6.0% -2.0% 50 0-4.0% ４Q 79.27 2012/3 2011/3 ※Discontinued operation (Display business) were deducted in above results Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 25 - Quarterly sales and operating income by segment FY March 2011 Yen billions Net Sales Capacitors 38.0 37.7 35.2 34.5 145.4 36.1 34.2 3Q 30.6 Inductive Devices 32.1 33.6 32.6 31.9 130.2 32.9 31.4 28.6 28.4 121.2 Other Passive Components 34.6 37.5 39.3 38.6 150.0 32.8 34.4 30.4 30.5 128.0 104.7 108.7 107.1 105.0 425.5 101.7 99.9 89.5 90.5 381.6 Recording Devices 71.7 65.3 63.0 57.5 257.5 55.2 53.3 42.0 58.2 208.7 Other Magnetic Application Products 25.1 24.3 25.2 24.4 99.0 24.4 27.7 26.0 29.7 107.7 Magnetic Application Products 96.8 89.6 88.2 81.9 356.5 79.6 81.0 68.0 87.8 316.4 Film application Prodcuts 11.6 13.7 16.1 17.2 58.6 18.0 22.4 28.2 24.2 92.7 7.8 7.2 7.4 8.9 31.3 6.7 6.6 5.7 4.6 23.8 220.8 219.3 218.8 213.0 871.9 206.2 209.9 191.3 207.0 814.5 Passive Components 6.3 7.3 6.2 4.8 24.5 3.8 1.3 1.5 (13.2) (6.6) Magnetic Application Products 16.7 13.3 12.2 9.1 51.4 8.6 9.5 7.0 14.0 39.0 film application Prodcuts 0.0 0.6 1.2 (0.6) 1.2 1.2 2.6 2.9 (0.5) 6.3 Other 0.4 0.3 0.1 (0.4) 0.5 (0.4) (1.2) (0.7) (2.6) (4.8) Sub-total 23.4 21.5 19.7 12.9 77.6 13.2 12.2 10.7 (2.3) 33.8 (3.1) (4.5) (2.5) (3.2) (13.3) (7.2) (3.7) (3.4) (0.9) (15.1) 9.8 64.3 6.0 8.5 7.4 (3.2) 18.7 Passive Components Other Total Operating Income Corporate and Eliminations Total Ex-rate ￥/USD ￥/EURO 1Q 20.3 2Q 17.0 3Q FY March 2012 4Q 17.2 Total 1Q 2Q 4Q 31.6 Total 132.4 92.01 85.88 82.65 82.31 85.73 81.74 77.96 77.35 79.27 79.07 117.03 110.67 112.20 112.66 113.12 117.62 110.42 104.30 103.94 109.06 ※Discontinued operation (Display business) were deducted in above results Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 26 - Temporary factors affecting FY March 2012 (JPY billion) Forex impact ・Sales :-about 50.9 ・Operating income :-about 15.1 Earthquake impact ・Sales ：-about 5.4 ・Operating income：-about 3.5 ・Sales ：-about 14.7 ・Operating income：-about 4.9 Thailand flooding impact One off charge associated with the change of the pension plan (Only 1st quarter) Restructuring cost ・Operating income：-about 3.1 Impact of a corporate tax reduction and the special corporation tax for reconstruction, as well as the reassessment of the recoverability of deferred tax assets ・Booked income taxes of about 12.0 ・Operating income：-about 13.0 ※Discontinued operation (Display business) were deducted in above results Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 27 - FY March 2013 Projections (JPY billion) Sales (left) Operating income (right) OP margin 1,000 871.9 808.9 800 7.4% 727.4 10.0% 900.0 814.5 6.3% 5.0% 600 3.2% 64.3 (JPY billion) 2.3% 60.0 57.0 400 0.0% 40.0 200 25.8 20.0 -5.0% 18.7 0 -200 Forex ¥/US$ 0 -7.5% -54.3 2009/3 100.71 -10.0% -50.0 2010/3 2011/3 2012/3 2013/3 Projections 92.89 85.73 79.07 77.00 ※Discontinued operation (Display business) are included in 2009/3 and 2010/3. ※Discontinued operation (Display business) were deducted in 2011/3 and 2012/3. Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 28 - FY March2013 Projections –Capex, Depreciation, R&D(JPY billion) Capital expenditure Depreciation R&D 120 99.7 100 85.0 78.6 80 83.8 77.6 79.9 82.0 64.4 53.9 60 53 52.6 53.0 40 20 0 10/3 11/3 12/3 13/3 Projections Copyright© 2012 TDK Corporation. All rights reserved. 10/3 11/3 12/3 13/3 Projections Performance Briefings Fiscal Year March, 2012 10/3 11/3 12/3 April 27, 2012 13/3 Projections - 29 - FY March 2013 projections - Dividend JPY Dividend 100 % Payout ratio 90 57.2 80 80 80 60 Projections Projections 60 40 60 28.3 40 22.8 20 20 0 0 2010/3 Copyright© 2012 TDK Corporation. All rights reserved. 2011/3 2012/3 Performance Briefings Fiscal Year March, 2012 2013/3 April 27, 2012 - 30 - Sales by applications (FY March 2009 –FY March 2012) JPY billion 140.4 19.3% 65.7 9.0% 100 13.8% 421.3 57.9% 179.1 22.1% 215.5 24.7% 201.2 24.7% 95.9 11.9% 110.5 126.8 15.6% 139.6 17.1% 346.9 42.6% 114.9 14.2% 418.9 2009/3 143.6 16.5% 51.8% 402.3 2010/3 IT Home Electronics Communications 12.7% 46.1% 2011/3 Automobiles 2012/3 Others (including industrial equipment etc) IT Home Electronics JPY billion 421.3 450 418.9 402.3 400 346.9 Communications 350 Other Automobile (including industrial equipment etc) 300 215.5 250 179.1 200 150 100 114.9 143.6 139.6 65.7 100 95.9 110.5 126.8 201.2 140.4 50 0 09/3 10/3 11/3 12/3 09/3 10/3 11/3 12/3 09/3 10/3 11/3 12/3 09/3 10/3 11/3 12/3 ※Consolidation of EPCOS from the second half of 2009/3 ※Discontinued operation (Display business) are included in 2009/3 and 2010/3. Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 31 - Quarterly sales by applications (FY March 20 –FY March 2012) ＜Quarterly sales by applications＞ 23.1% 24.0% 25.2% 27.8% 26.7% 25.6% 24.8% 23.1% 12.7% 12.0% 12.5% 12.7% 14.1% 16.9% 19.9% 15.4% 17.0% 13.3% 17.6% 16.9% 16.0% 16.8% 19.6% 17.9% 43.6% 38.7% 46.3% 2Q of FY2012 3Q of FY2012 4Q of FY2012 48.7% 1Q of FY2011 47.0% 44.6% 44.6% 42.0% 2Q of FY 2011 3Q of FY2011 4Q of FY 2011 1Q of FY2012 Other (including inductrial equipment) Automobiles Communications IT Home Electronics ＜Quarterly sales by applications＞ FY March 2013 Breakdown by applications IT Home Electronics Communications JPY billion 108.1 103.6 98.1 億円 89.7 92.2 91.6 89.4 74.6 JPY billion 201.2 25% 126.8 16% JPY billion 37.4 38.7 37.9 36.1 34.3 35.2 34.6 1Q of 2Q of 3Q of FY2012 FY2012 FY2012 4Q of FY2012 33.0 346.9 42% 1Q of 2Q of 3Q of 4Q of 1Q of 2Q of 3Q of 4Q of FY2011 FY2011 FY2011 FY2011 FY2012 FY2012 FY2012 FY2012 139.6 17% IT Home Electronics 2Q of 3Q of 4Q of FY2011 FY2011 FY2011 Other (including industrial equipment) Automobile 38.4 59.4 32.6 JPY billion 28.2 Communications 1Q of FY2011 26.4 27.6 29.7 28.4 JPY billion 51.4 52.9 55.5 55.3 53.9 48.0 44.6 26.2 Automobiles Others (including industrial equipment etc) 1Q of 2Q of 3Q of 4Q of 1Q of 2Q of 3Q of 4Q of FY2011 FY2011 FY2011 FY2011 FY2012 FY2012 FY2012 FY2012 1Q of FY2011 2Q of FY2011 3Q of FY2011 4Q of FY2011 1Q of FY2012 2Q of FY2012 3Q of FY2012 4Q of FY2012 ※Discontinued operation (Display business) were deducted in 2011/3 and 2012/3. Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 32 - 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© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 - 33 -