TDK Corporation (6762) FY 2012 First Quarter Financial Results (U.S. GAAP) (4) Notes Concerning Going Concern Assumptions Nothing to report. (5) Segment Information TDK classifies its businesses into two segments: 1) Passive Components, 2) Magnetic Application Products, and Other. Net sales by industry segment 1Q of FY2011 (April 1, 2010 June 30, 2010) (Yen millions) External customers Intersegment Passive Components Total External customers Magnetic Application Products Intersegment Total External customers Other Intersegment Total Intersegment eliminations Consolidated total 104,702 546 105,248 100,262 1,490 101,752 16,961 2,817 19,778 (4,853) 221,925 1Q of FY2012 (April 1, 2011 - June 30, 2011) % 47.2 45.2 7.6 100.0 (Yen millions) % 101,710 49.2 826 102,536 82,668 40.0 1,100 83,768 22,393 10.8 5,847 28,240 (7,773) 206,771 100.0 Change (U.S.$ thousands) (Yen millions) Change(%) 1,255,679 (2,992) -2.9 280 51.3 10,197 1,265,876 (2,712) -2.6 1,020,592 (17,594) -17.5 (390) -26.2 13,581 1,034,173 (17,984) -17.7 5,432 32.0 276,457 3,030 107.6 72,185 348,642 8,462 42.8 (95,963) (2,920) 2,552,728 (15,154) -6.8 Segment profit (loss) by industry segment 1Q of FY2011 (April 1, 2010 June 30, 2010) (Yen millions) Passive Components Magnetic Application Products Other Sub total Corporate and Eliminations Operating income 1Q of FY2012 (April 1, 2011 - June 30, 2011) % 6,255 16,077 979 23,311 (3,102) 20,209 6.0 16.0 5.8 10.5 9.1 (Yen millions) 3,775 7,555 1,499 12,829 (7,186) 5,643 % 3.7 9.1 6.7 6.2 2.7 Change (U.S.$ thousands) (Yen millions) Change(%) 46,605 93,272 18,506 158,383 (88,716) 69,667 (2,480) (8,522) 520 (10,482) (4,084) (14,566) -39.6 -53.0 53.1 -45.0 -72.1 Note: U.S.$1=Yen 81, for convenience only. Certain products are reclassified from "Passive Components Segment" to "Other (other than 2 reportable segments)" from April 1, 2011. The prior year's sales and profit (loss) are also reclassified to conform to the new segmentation. (6) Notes Concerning Significant Changes in Stockholders’ Equity Nothing to report. (7) Consolidated Supplementary Information 1. Exchange rates used for conversion Term Item The end of the period As of June 30, 2010 US$=Yen Euro=Yen 88.48 107.81 14 As of June 30, 2011 US$=Yen Euro=Yen 80.73 116.84 TDK Corporation (6762) FY 2012 First Quarter Financial Results (U.S. GAAP) 2. Sales by region Term 1Q of FY2011 (April 1, 2010 June 30, 2010) 1Q of FY2012 Change (April 1, 2011 June 30, 2011) (Yen millions) % (U.S.$ thousands) (Yen millions) Change(%) (2,333) 21,405 10.3 264,259 -9.8 3,083 34,856 16.9 430,321 9.7 125,888 60.9 -9.4 1,554,173 (13,120) 182,149 88.1 -6.4 2,248,753 (12,370) 11.9 24,622 303,975 (2,784) -10.2 206,771 100.0 -6.8 2,552,728 (15,154) (Yen millions) Region % 23,738 Americas 10.7 31,773 14.3 Europe 139,008 62.7 Asia and others 194,519 87.7 Overseas sales total 27,406 12.3 Japan 221,925 100.0 Net sales Notes: 1 Overseas sales are based on the location of the customers. 2 U.S.$1=Yen 81, for convenience only. 3. Company group As of June 30, 2011, TDK had 125 consolidated subsidiaries (14 in Japan and 111 overseas). TDK also had 8 affiliates (5 in Japan and 3 overseas), the financial statements for which are accounted for by the equity method. 4. Overview of net sales by product Term Product Capacitors Inductive devices Other Passive Components Recording devices Other Magnetic Application Products Other Consolidated total Term 1Q of FY2011 (April 1, 2010 June 30, 2010) (Yen millions) % 37,985 32,134 34,583 104,702 71,668 28,594 17.1 14.5 15.6 47.2 32.3 12.9 100,262 45.2 16,961 7.6 221,925 100.0 2Q of FY2011 (July 1, 2010 September 30, 2010) (Yen millions) % 37,745 33,553 37,450 108,748 65,332 26,912 92,244 17.1 15.2 17.0 49.3 29.7 12.2 41.9 8.8 19,317 220,309 100.0 3Q of FY2011 (Oct 1, 2010 December 31, 2010) (Yen millions) % 35,150 32,631 39,329 107,110 63,039 27,746 90,785 16.0 14.8 17.9 48.7 28.7 12.6 41.3 22,042 10.0 219,937 100.0 4Q of FY2011 (January 1, 2011 March 31, 2011) (Yen millions) % 34,513 31,865 38,594 104,972 57,483 27,707 85,190 16.1 14.9 18.1 49.1 26.9 13.0 39.9 23,404 11.0 213,566 100.0 1Q of FY2012 (April 1, 2011 June 30, 2011) (Yen millions) (U.S.$ thousands) % Product Capacitors 36,080 17.5 32,879 15.9 Inductive devices 32,751 15.8 Other 101,710 49.2 Passive Components 26.7 55,235 Recording devices 27,433 13.3 Other Magnetic Application 82,668 40.0 Products 22,393 10.8 Other 206,771 100.0 Consolidated total Note: U.S.$1=Yen 81, for convenience only. 445,432 405,914 404,333 1,255,679 681,913 338,679 1,020,592 276,457 2,552,728 Certain products are reclassified from "Inductive devices" to "Other (other than 2 reportable segments)" from April 1, 2011. The prior year's sales are also reclassified to conform to the new segmentation. 15