TDK Corporation A supplementary data for the first quarter of fiscal year 2003 (April 1, 2002 - June 30, 2002) Contents P1. Note FY2002 P2. Consolidated results P3. Consolidated divisional sales P4. Consolidated field sales ratio (Electronic materials and components) P5. Sales by region (Geographic areas of the buyer) P6. Results and projections of Investment in facilities, Depreciation expenses, Research and development expenses P7. Consolidated results and projections P8. Projections of consolidated divisional sales P9. Managing index of inventory, fixed assets, trade receivables Forward-looking statements August 1, 2002 TDK Corporation Corporate Communications Dept. Note FY2002 Effective from the current fiscal year, TDK has adopted Emerging Issues Task Force (EITF) Issue 01-9, "Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor's Products)". Consequently, TDK has restated figures for the previous fiscal year. Please refer to the notes in TDK's earnings release for details of this standard. This change only affects the figures for net sale and selling, general and administrative expenses; there is no effect on operating income (loss). Figures before and after application of this standard are as follows: Restructuring costs are included in selling, general and administrative expenses. [Revised] FY2002 Net sales Electronic materials and components Electronic materials Electronic devices Recording devices Semiconductors and others Recording media and systems Cost of sales Gross profit SG&A expenses Operating income (loss) [Revised - Original] FY2002 Net sales Electronic materials and components Electronic materials Electronic devices Recording devices Semiconductors and others Recording media and systems Cost of sales Gross profit SG&A expenses Operating income (loss) Sales by Region [Revised] FY2002 Japan Americas Europe Asia and others Total [Revised - Original] FY2002 Japan Americas Europe Asia and others Total 1Q 2Q 1st half 3Q 4Q 140,244 130,542 270,786 148,036 151,689 110,321 99,286 209,607 107,583 115,696 43,900 37,467 81,367 39,384 41,095 28,550 25,714 54,264 26,048 25,625 32,834 31,188 64,022 38,259 44,723 5,037 4,917 9,954 3,892 4,253 29,923 31,256 61,179 40,453 35,993 106,202 107,107 213,309 123,721 127,590 34,042 23,435 57,477 24,315 24,099 31,453 28,835 60,288 38,486 50,839 2,589 -5,400 -2,811 -14,171 -26,740 1Q -756 -30 0 0 0 -30 -726 0 -756 -756 0 1Q 2Q -1,078 -13 0 0 0 -13 -1,065 0 -1,078 -1,078 0 2Q 1st half -1,834 -43 0 0 0 -43 -1,791 0 -1,834 -1,834 0 1st half 3Q 4Q -1,141 -9 0 0 0 -9 -1,132 0 -1,141 -1,141 0 -1,543 -13 0 0 0 -13 -1,530 0 -1,543 -1,543 0 3Q 4Q Unit:Yen millions 2nd half Full Year 299,725 223,279 80,479 51,673 82,982 8,145 76,446 251,311 48,414 89,325 -40,911 570,511 432,886 161,846 105,937 147,004 18,099 137,625 464,620 105,891 149,613 -43,722 -6 -662 -71 -17 -756 2Q -38 -894 -114 -32 -1,078 1st half -44 -1,556 -185 -49 -1,834 3Q 4Q -37 -978 -112 -14 -1,141 -27 -1,360 -91 -65 -1,543 Net sales Electronic materials and components Electronic materials Electronic devices Recording devices Semiconductors and others Recording media and systems Cost of sales Gross profit SG&A expenses Operating income (loss) 1Q 2Q 1st half 3Q 4Q Unit:Yen millions 2nd half Full Year 141,000 131,620 272,620 149,177 153,232 302,409 575,029 110,351 99,299 209,650 107,592 115,709 223,301 432,951 43,900 37,467 81,367 39,384 41,095 80,479 161,846 28,550 25,714 54,264 26,048 25,625 51,673 105,937 32,834 31,188 64,022 38,259 44,723 82,982 147,004 5,067 4,930 9,997 3,901 4,266 8,167 18,164 30,649 32,321 62,970 41,585 37,523 79,108 142,078 106,202 107,107 213,309 123,721 127,590 251,311 464,620 34,798 24,513 59,311 25,456 25,642 51,098 110,409 32,209 29,913 62,122 39,627 52,382 92,009 154,131 2,589 -5,400 -2,811 -14,171 -26,740 -40,911 -43,722 Unit:Yen millions 2nd half Full Year -2,684 -22 0 0 0 -22 -2,662 0 -2,684 -2,684 0 -4,518 -65 0 0 0 -65 -4,453 0 -4,518 -4,518 0 Unit:Yen millions 2nd half Full Year 43,499 41,671 85,170 40,857 38,777 79,634 164,804 26,970 23,493 50,463 28,526 30,463 58,989 109,452 19,765 18,052 37,817 21,384 20,438 41,822 79,639 50,010 47,326 97,336 57,269 62,011 119,280 216,616 140,244 130,542 270,786 148,036 151,689 299,725 570,511 1Q [Original] FY2002 Unit:Yen millions 2nd half Full Year -64 -2,338 -203 -79 -2,684 -108 -3,894 -388 -128 -4,518 [Original] FY2002 Japan Americas Europe Asia and others Total 1Q 2Q 1st half 3Q 4Q Unit:Yen millions 2nd half Full Year 43,505 41,709 85,214 40,894 38,804 79,698 164,912 27,632 24,387 52,019 29,504 31,823 61,327 113,346 19,836 18,166 38,002 21,496 20,529 42,025 80,027 50,027 47,358 97,385 57,283 62,076 119,359 216,744 141,000 131,620 272,620 149,177 153,232 302,409 575,029 1. Consolidated results Y on Y growth (Yen billions) Quarterly trends Net sales,Operating income/Net sales, Net income/Net sales FY2002 1Q FY2003 1Q FY2002 1Q (%) (Yen billions) 5 150 100 FY2002 2Q 1.5 1.5 -4.1 5 0 -5 -6.6 -10 -9.6 1 -11.8 50 0 (%) 0.9 2 0.9 FY2003 1Q 0.5 100 1.8 FY2002 4Q 1.8 4 3 50 FY2002 3Q 4.0 150 4.0 Net sales, Operating income/Net sales, Net income/Net sales 0 -15 -17.6 0 Net sales -20 Operating income/Net sales Net income/Net sales Unit:Yen millions Net sales FY2002 FY2003 1Q 1Q Y on Y growth Diff. Unit:Yen millions Change Operating income/Net sales Net income/Net sales FY2002 FY2002 FY2002 FY2002 FY2003 1Q 2Q 3Q 4Q 1Q Q on Q growth Diff. Change Net sales 140,244 148,708 8,464 6.0% Net sales 140,244 130,542 148,036 151,689 148,708 -2,981 -2.0% Cost of sales 106,202 112,197 5,995 5.6% Cost of sales 106,202 107,107 123,721 127,590 112,197 -15,393 -12.1% Share of net sales (%) 75.7 75.4 31,453 29,713 -1,740 Restructuring cost - 812 812 Operating income 2,589 5,986 3,397 1.8 4.0 1,207 2,161 0.9 1.5 123 127 Selling,general and administrative expenses Operating income /Net sales(%) Net income Net income/Net sales(%) Exchange rate(U.S.$=Yen) Share of net sales (%) -5.5% Selling,general and administrative expenses - Restructuring cost 131.2% Operating income (loss) Operating income /Net sales(%) 954 79.0% Net income (loss) Net income/Net sales(%) Exchange rate(U.S.$=Yen) 75.7 82.0 83.6 84.1 75.4 0.0 0.0 31,453 27,721 31,204 33,363 29,713 -3,650 -10.9% - 1,114 7,282 17,476 812 -16,664 -95.4% 2,589 -5,400 -14,171 -26,740 -9.6 5,986 1.8 -4.1 -17.6 4.0 1,207 625 0.9 0.5 -9,759 -17,844 -6.6 -11.8 2,161 1.5 123 122 123 133 127 32,726 - 20,005 - 2. Consolidated divisional sales Y on Y growth Quarterly trends Consolidated divisional sales Consolidated divisional sales (Yen billions) (Yen billions) 150 150 Electronic materials Electronic materials 100 100 Electronic devices Electronic devices Recording devices 50 Recording devices 50 Recording media & systems Recording media & systems 0 0 FY2002 1Q FY2003 1Q FY2002 1Q Recording media & systems Semiconductors & others Recording devices Electronic devices Electronic materials Unit:Yen millions Electronic materials and components FY2002 FY2003 1Q 1Q 110,321 118,170 Y on Y growth Diff. FY2002 2Q FY2002 3Q Recording media & systems Semiconductors & others Electronic devices Electronic materials Unit:Yen millions Change 7,849 Electronic materials and 7.1% components FY2002 4Q Recording devices FY2002 FY2002 FY2002 FY2002 FY2003 1Q 2Q 3Q 4Q 1Q 110,321 FY2003 1Q Q on Q growth Diff. Change 99,286 107,583 115,696 118,170 2,474 2.1% Electronic materials 43,900 45,860 1,960 4.5% Electronic materials 43,900 37,467 39,384 41,095 45,860 4,765 11.6% Electronic devices 28,550 29,844 1,294 4.5% Electronic devices 28,550 25,714 26,048 25,625 29,844 4,219 16.5% Recording devices 32,834 38,341 5,507 16.8% Recording devices 32,834 31,188 38,259 44,723 38,341 -6,382 -14.3% Semiconductors & others 5,037 4,125 -912 -18.1% Semiconductors & others 5,037 4,917 3,892 4,253 4,125 -128 -3.0% Recording media & systems 29,923 30,538 615 2.1% Recording media & systems 29,923 31,256 40,453 35,993 30,538 -5,455 -15.2% 140,244 148,708 8,464 140,244 130,542 148,036 151,689 148,708 -2,981 -2.0% Total 6.0% Total 3. Consolidated field sales ratio (Electronic materials and components) Y on Y growth Quarterly trends Consolidated field sales ratio (Electronic materials and components) Consolidated field sales ratio (Electronic materials and components) AV AV Automobile Automobile Office equip. Office equip. Communication equip. Parts FY2002 1Q Others Industrial machinery Office equip. Home appliance Unit: % Communication equip. Parts FY2003 1Q Parts Communication equip. Automobile AV FY2002 1Q FY2002 FY2003 Y on Y growth 1Q 1Q Change AV 17% 17% 3.1% Home appliance 3% 3% Automobile 9% Office equip. FY2002 2Q FY2002 3Q FY2002 4Q FY2003 1Q Others Parts Industrial machinery Communication equip. Office equip. Automobile Home appliance AV Unit: % FY2002 FY2002 FY2002 FY2002 FY2003 Q on Q growth 1Q 2Q 3Q 4Q 1Q Change AV 17% 18% 17% 15% 17% 11.6% -16.4% Home appliance 3% 3% 3% 2% 3% 18.1% 10% 20.0% Automobile 9% 9% 8% 9% 10% 9.9% 43% 47% 17.9% Office equip. 43% 48% 50% 52% 47% -7.2% 13% 9% -27.0% Communication equip. 13% 11% 10% 8% 9% 7.8% Industrial machinery 2% 1% -28.9% Industrial machinery 2% 1% 1% 1% 1% 40.5% Parts 6% 7% 26.4% Parts 6% 6% 5% 5% 7% 36.5% Others 7% 6% 2.9% Others 7% 4% 6% 8% 6% -7.4% Communication equip. 4. Sales by region (Geographic areas of the buyer) Y on Y growth Quarterly trends Sales by region and share of overseas sales (Yen billions) FY2002 1Q FY2003 1Q 200 150 FY2002 1Q (Yen billions) 80% FY2002 2Q FY2002 3Q 69.0% 150 Japan 74.4% 72.4% 68.1% 71.4% 60% Japan 40% Americas 100 Europe Europe 0 20% 50 0% Asia Japan Americas 0 Europe Share of overseas sales FY2002 FY2003 1Q 1Q Y on Y growth Diff. Japan 43,499 42,517 -982 Americas 26,970 29,197 2,227 Europe 19,765 16,634 -3,131 Asia (excluding Japan) and others 50,010 60,360 10,350 140,244 148,708 8,464 Share of overseas sales 69.0% 71.4% 0% Asia (excluding Japan) and others Americas Share of overseas sales Asia (excluding Japan) and others Total 40% Americas 20% Asia Unit:Yen millions FY2003 1Q 80% 60% 50 FY2002 4Q 200 71.4% 69.0% 100 Sales by region and share of overseas sales Unit:Yen millions Change -2.3% Japan 8.3% Americas -15.8% Europe 20.7% Asia (excluding Japan) and others 6.0% Total Share of overseas sales Europe Japan FY2002 FY2002 FY2002 FY2002 FY2003 1Q 2Q 3Q 4Q 1Q Q on Q growth Diff. Change 43,499 41,671 40,857 38,777 42,517 3,740 9.6% 26,970 23,493 28,526 30,463 29,197 -1,266 -4.2% 19,765 18,052 21,384 20,438 16,634 -3,804 -18.6% 50,010 47,326 57,269 62,011 60,360 -1,651 -2.7% 140,244 130,542 148,036 151,689 148,708 -2,981 -2.0% 69.0% 68.1% 72.4% 74.4% 71.4% 5. Results and projections of Investment in facilities, Depreciation expenses, Research and development expenses August 1, 2002 Unit:Yen millions FY 2001 [Results] FY 2002 [Results] FY 2003 Projections on May 8 Projections on Aug. 1 Investment in facilities 99,452 58,777 50,000 50,000 Depreciation expenses 63,579 61,920 60,000 60,000 Research and development expenses 36,970 38,630 32,000 32,000 (Share of net sales) <Net sales> 5.4% 689,911 * 6.8% 570,511 5.5% 580,000 * Net sales for the year ended March 31, 2001 (FY2001) do not reflect application of EITF 01-9. 5.5% 580,000 6. Consolidated results and projections August 1, 2002 Unit:Yen millions,% FY 2002 [Results] (Yen mill.) Net sales Electronic materials and components Electronic materials Electronic devices Recording devices Semiconductors and others Recording media and systems FY 2003 Projections on May 8 Projections on Aug. 1 Y on Y growth (%) (Yen mill.) (%) (Yen mill.) (%) 570,511 100.0% 580,000 100.0% 580,000 100.0% 1.7% 432,886 75.9% 436,100 75.2% 447,300 77.1% 3.3% 161,846 105,937 147,004 18,099 28.4% 28.2% 2.7% 171,700 113,000 150,000 12,600 29.6% 3.2% 163,300 110,400 146,900 15,500 2.2% 6.1% 6.7% 2.0% -30.4% 137,625 24.1% 143,900 24.8% 132,700 22.9% -3.6% 18.6% 25.8% 19.0% 25.3% 19.5% 25.9% Operating income (loss) -43,722 -7.7% 20,000 3.4% 20,000 3.4% Income (loss) before income taxes -43,697 -7.7% 17,000 2.9% 17,000 2.9% Net income (loss) -25,771 -4.5% 13,000 2.2% 13,000 2.2% Exchange rate (U.S.$=Yen) (%) 125 120 122 7. Projections of consolidated divisional sales August 1, 2002 FY 2003 Unit:Yen 0.1billions , % Electronic materials and components 1Q 2Q 1st half 2nd half Full year Results Y on Y growth Change Projections Y on Y growth Change Projections Y on Y growth Change Projections Y on Y growth Change Projections Y on Y growth Change (Yen 0.1bill.) (%) (Yen 0.1bill.) (%) (Yen 0.1bill.) (%) (Yen 0.1bill.) (%) (Yen 0.1bill.) (%) 1,182 7.1% 1,073 8.1% 2,255 7.6% 2,218 -0.7% 4,473 3.3% Electronic materials 459 4.5% 419 11.9% 878 7.9% 839 4.3% 1,717 6.1% Electronic devices 298 4.5% 269 4.4% 567 4.5% 563 9.0% 1,130 6.7% Recording devices 383 16.8% 361 15.6% 744 16.2% 756 -8.9% 1,500 2.0% 41 -18.1% 25 -49.7% 66 -33.7% 60 -26.3% 126 -30.4% 305 2.1% 327 4.5% 632 3.3% 695 -9.1% 1,327 -3.6% 1,487 6.0% 1,400 7.2% 2,887 6.6% 2,913 -2.8% 5,800 1.7% Semiconductors & others Recording media & systems Total net sales P8 8. Managing index of inventory, fixed asset, trade receivables Unit:Yen millions FY 2001 1Q 2Q 3Q 4Q FY 2002 Retain month of inventory,Fixed asset turnover,Retain of trade receivables FY 2002 FY 2003 FY 2001 1Q 2Q 3Q FY 4Q 2002 1Q Inventory 2Q 3Q 3.5 Retain month of inventory 4Q Fixed asset 3.5 Fixed asset turnover 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 FY 2003 0.0 0.0 Total assets Fixed asset turnover Retain month Total assets Retain month of inventory Retain month of trade receivables Fixed asset turnover Trade receivables Retain month of trade receivables Quarter:Inventory in the end of each quarter / Average monthly sales in the quarter Full Year:Inventory in the end of FY / Average monthly sales in the FY 2.0 2.6 2.7 91,149 2.2 1.8 278,625 283,377 277,477 280,198 265,590 2.7 2.0 1.9 2.1 2.2 156,585 132,123 129,004 143,054 142,827 2.7 2.8 3.0 2.9 2.8 689,911 140,244 130,542 148,036 151,689 Unit:Yen millions FY 2002 Inventory Retain month of inventory Fixed asset Trade receivables Retain month of trade receivables Net sales # Fixed asset turnover Quarter:(Sales in the each quarter) * 4 / Average fixed asset in the each quarter Full Year:Net sales / Average fixed asset # Retain month of trade receivable Quarter:Trade receivable in the end of each quarter / Average monthly sales in the quarter Full Year:Trade receivable in the end of FY / Average monthly sales in the FY 116,423 123,531 117,409 110,879 Net sales Fixed asset turnover # Retain month of inventory 820,177 790,946 748,935 768,230 749,910 1Q 2Q 749,910 720,376 91,149 83,734 1.9 1.7 265,590 249,884 2.1 2.3 142,827 134,155 3.0 2.7 570,511 148,708 3Q 4Q Cautionary Statements with Respect of Forward-Looking Statements This Thismaterial materialcontains containsforward-looking forward-lookingstatements, statements,including includingprojections, projections,plans, plans,policies, policies, management managementstrategies, strategies,targets, targets,schedules, schedules,understandings understandingsand andevaluations, evaluations,about aboutTDK TDKand and itsitsgroup groupcompanies companiesthat thatare arenot nothistorical historicalfacts. facts.These Theseforward-looking forward-lookingstatements statementsare arebased based on oncurrent currentforecasts, forecasts,estimates, estimates,assumptions, assumptions,plans, plans,beliefs beliefsand andevaluations evaluationsininlight lightofof information informationcurrently currentlyavailable availabletotomanagement. management. InInpreparing preparingforecasts forecastsand andestimates, estimates,TDK TDKand anditsitsgroup groupcompanies companieshave haveused usedas astheir theirbasis, basis, certain certainassumptions assumptionsas asnecessary, necessary,ininaddition additiontotoconfirmed confirmedhistorical historicalfacts. facts.However, However,due duetoto their theirnature, nature,there thereisisno noguarantee guaranteethat thatthese thesestatements statementsand andassumptions assumptionswill willprove provetotobe be accurate accurateininthe thefuture future. .TDK TDKtherefore thereforewishes wishestotocaution cautionreaders readersthat thatthese thesestatements, statements,facts facts and certain assumptions are subject to a number of risks and uncertainties and may prove and certain assumptions are subject to a number of risks and uncertainties and may provetoto be beinaccurate. inaccurate. The Theelectronics electronicsmarkets marketsininwhich whichTDK TDKand anditsitsgroup groupcompanies companiesoperate operateare arehighly highly susceptible susceptibletotorapid rapidchanges. changes.Furthermore, Furthermore,TDK TDKand anditsitsgroup groupcompanies companiesoperate operatenot notonly onlyinin Japan, Japan,but butininmany manyother othercountries. countries.As Assuch, such,factors factorsthat thatcan canhave havesignificant significanteffects effectson onitsits results resultsinclude, include,but butare arenot notlimited limitedto, to,shifts shiftsinintechnology, technology,demand, demand,prices, prices,competition, competition, economic economicenvironments environmentsand andforeign foreignexchange exchangerates. rates.