Consolidated Results 1Q of FY March 2009 July 31, 2008 Mr. Seiji Enami Director & Executive Vice President FY March 2009 (July 31, 2008) 1 Cautionary Statements with Respect to 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 anditsits group groupcompanies companies(TDK (TDKGroup). Group). These Theseforward-looking forward-lookingstatements statementsare arebased basedon onthe thecurrent current forecasts, forecasts,estimates, estimates,assumptions, assumptions,plans, plans,beliefs beliefsand andevaluations evaluationsofofTDK TDKGroup Groupininlight lightofof information informationcurrently currentlyavailable availabletotoit,it,and andcontain containknown knownand andunknown unknownrisks, risks,uncertainties uncertaintiesand andother other factors. TDK Group therefore wishes to caution readers that, being subject to risks, uncertainties factors. TDK Group therefore wishes to caution readers that, being subject to risks, uncertainties and andother otherfactors, factors,TDK TDKGroup’s Group’sactual actualresults, results,performance, performance,achievements achievementsororfinancial financialposition position could couldbe bematerially materiallydifferent differentfrom fromany anyfuture futureresults, results,performance, performance,achievements achievementsororfinancial financial position positionexpressed expressedororimplied impliedby bythese theseforward-looking forward-lookingstatements, statements,and andTDK TDKGroup Groupundertakes undertakes no noobligation obligationtotopublicly publiclyupdate updateororrevise reviseany anyforward-looking forward-lookingstatements statementsafter afterthe theissue issueofofthis this material except as provided for in laws and ordinances. material except as provided for in laws and ordinances. The Theelectronics electronicsmarkets marketsininwhich whichTDK TDKGroup Groupoperates operatesare arehighly highlysusceptible susceptibletotorapid rapidchanges. changes. Risks, Risks,uncertainties uncertaintiesand andother otherfactors factorsthat thatcan canhave havesignificant significanteffects effectson onTDK TDKGroup Groupinclude, include,but but are arenot notlimited limitedto, to,shifts shiftsinintechnology, technology,fluctuations fluctuationsinindemand, demand,prices, prices,interest interestand andforeign foreign exchange exchangerates, rates,and andchanges changesinineconomic economicenvironments, environments,conditions conditionsofofcompetition, competition,laws lawsand and regulations. regulations. FY March 2009 (July 31, 2008) 2 Consolidated results Term Item Net sales Operating income Income before income taxes Net income Per common share : Net income / Basic Net income / Diluted Stockholders' equity 1Q of FY2008 (April 1, 2007 - June 30, 2007) (Yen millions) % 206,699 16,129 20,181 16,022 100.0 7.8 9.8 7.8 Yen 122.07 Yen 121.90 Yen 5,810.72 1Q of FY2009 (April 1, 2008 - June 30, 2008) (Yen millions) 190,623 5,393 5,577 4,446 Change % (U.S.$ thousands) (Yen millions) Change(%) 100.0 1,798,330 (16,076) -7.8 -66.6 50,877 2.8 (10,736) (14,604) 52,613 -72.4 2.9 2.3 41,943 (11,576) -72.3 Yen 34.48 Yen 34.46 Yen 5,693.10 U.S.$ 0.33 U.S.$ 0.33 U.S.$ 53.71 U.S.$1=Yen 106, for convenience only. FY March 2009 (July 31, 2008) 3 Forex Impact Average rate for the period US$ = Yen Euro = Yen 1Q of FY08 120.82 162.75 1Q of FY 09 104.56 163.44 Net sales Operating income FY March 2009 (July 31, 2008) Change Appreciation by 13.5% Depreciation by 0.4% Negative Yen 21.5 billion Negative Yen 6.6 billion 4 Main features 1Q of FY Mar. 09 ●HDD heads # TDK was unable to compensate fully for lower sales due to price falls and foreign exchange movements through increased sales volume and improvements to its product mix. ●Electronic components except HDD heads # Capacitor sales fell due to larger-than-expected price falls and foreign exchange movements. # Sales of inductive devices were flat, with demand strong for some products but weak for others. # Power supplies were impacted by falling semiconductor-related investment. # Rare earth magnets, ferrite magnets and ferrite cores were affected by soaring materials prices. # Energy device sales rose on the back of higher demand. ●From 2 segments to 1 segment due to the business transfer of recording media FY March 2009 (July 31, 2008) 5 Sales Breakdown Term Product Electronic materials Electronic devices Recording devices Others Total sales Overseas sales Note: 1Q of FY2008 1Q of FY2009 (April 1, 2008 - June 30, 2008) Amount Amount Ratio to (April 1, 2007 - June 30, 2007) Amount Ratio to (Yen millions) sales (%) (Yen millions) sales (%) (U.S.$ thousands) 49,703 49,981 70,416 36,599 206,699 167,756 24.0 24.2 34.1 17.7 100.0 81.2 45,671 48,675 72,445 23,832 190,623 158,158 24.0 430,859 25.5 459,198 38.0 683,443 12.5 224,830 100.0 1,798,330 83.0 1,492,057 Change (Yen millions) Change(%) (4,032) (1,306) 2,029 (12,767) (16,076) (9,598) -8.1 -2.6 2.9 -34.9 -7.8 -5.7 Recording media results are now included in the “others” sector. U.S.$1=Yen 106, for convenience only. FY March 2009 (July 31, 2008) 6 Statements of income Term Item Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Other income (deductions): Interest and dividend income Interest expense Foreign exchange gain (loss) Other-net Total other income (deductions) Income before income taxes Income taxes Income before minority interests 1Q of FY2008 (April 1, 2007 June 30, 2007) (Yen millions) 206,699 150,632 56,067 39,938 16,129 100.0 72.9 27.1 19.3 7.8 (Yen millions) 190,623 148,415 42,208 36,815 5,393 % Change (U.S.$ thousands) 100.0 1,798,330 77.9 1,400,142 22.1 398,188 347,311 19.3 2.8 50,877 (Yen millions) Change(%) (16,076) (2,217) (13,859) (3,123) (10,736) -7.8 -1.5 -24.7 -7.8 -66.6 (1,322) (51) (2,333) (162) (3,868) -95.5 2.0 1,118 (79) (698) (157) 184 0.1 10,547 (745) (6,585) (1,481) 1,736 20,181 9.8 5,577 2.9 52,613 (14,604) -72.4 4,051 2.0 1,340 0.7 12,642 (2,711) -66.9 16,130 7.8 4,237 2.2 39,971 (11,893) -73.7 108 0.0 -0.1 (1,972) (317) - 16,022 7.8 2.3 41,943 (11,576) -72.3 2,440 (28) 1,635 5 4,052 Minority interests Net income % 1Q of FY2009 (April 1,2008 June 30,2008) (209) 4,446 Note: U.S.$1=Yen 106, for convenience only. FY March 2009 (July 31, 2008) 7 Breakdown of Operating Income Changes 1st Quarter of FY March 2009 (Unit:Yen billions) -10.7 [ Changes in operating income Total] Changes in sales and product mix 1.2 Rationalization and cost reductions and Purchased materials saving 4.6 Exchange fluctuations(1U.S.$=Yen 120.82 -> 104.56) -6.6 -10.1 Sales price discounts(5.0%) SG & A expenses decrease 0.0 FY March 2009 (July 31, 2008) 8 FY2009 1Q Improvement Initiatives Concrete Initiatives # Mass production of capacitors began ahead of the late-August scheduled commencement. TDK will work urgently to recoup its investment by quickly improving production efficiency in the business as a whole. # Improve profitability in HDD heads via increased production efficiency by putting into effect initiatives planned in fiscal 2008. # Work to improve product mix in inductive devices # Accelerate steps to fully integrate power supply operations with DenseiLambda KK. FY March 2009 (July 31, 2008) 9 Comparison of 4Q & 1Q (Unit : Yen billions) Sales Electronic Materials Electronic Devices Recording Devices Others Total sales Operating Income 4Q of FY08 1Q of FY09 Change 46 51 88 23 208 46 49 72 24 191 △0 △3 △ 15 1 △ 17 13 5 △8 FY March 2009 (July 31, 2008) 10 Projections for 1H of FY March 2009 Consolidated (Unit:Yen billions) Net sales 1H of FY09 Apr. 28, 2008 1H of FY09 Jul.31, 2008 July 31, 2008 Change from Apr. 28 420.0 402.0 (18.0) Operating income 33.0 22.0 (11.0) Income before income taxes 35.0 23.0 (12.0) Net income 27.0 17.5 (9.5) Exchange rate (U.S.$=Yen) 100 102 * * An average yen-U.S. dollar exchange rate of Yen100 is assumed from the second quarter of fiscal 2009. TDK has revised its projections for the first half of fiscal 2009, based on actual results for the first quarter and second-quarter projections. FY March 2009 (July 31, 2008) 11 Projections for FY March 2009 Consolidated July 31, 2008 (Unit:Yen billions) FY 2009 Apr. 28, 2008 1H of FY09 Jul.31, 2008 2H of FY09 No change FY 2009 Jul.31, 2008 Change from Apr. 28 880.0 402.0 460.0 862.0 △ 18.0 Operating income 80.0 22.0 47.0 69.0 △ 11.0 Income before income taxes 85.5 23.0 50.5 73.5 △ 12.0 Net income 65.0 17.5 38.0 55.5 △ 9.5 100 102 * 100 101 * Net sales Exchange rate (U.S.$=Yen) * An average yen-U.S. dollar exchange rate of Yen100 is assumed from the second quarter of fiscal 2009. There has been no change to second-half projections because of an uncertain outlook for the operating environment. FY March 2009 (July 31, 2008) 12