Passive Components business Mr. Shinichi Araya Director, Senior Vice President FY March,2011(October 28,2010) 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 management strategies, targets, schedules, understandings and evaluations, about TDK or its group companies strategies, targets, schedules, understandings and evaluations, about TDK or its group companies (TDK (TDKGroup). Group). These Theseforward-looking forward-lookingstatements statementsare arebased basedon onthe thecurrent currentforecasts, forecasts,estimates, estimates, assumptions, assumptions,plans, plans,beliefs beliefsand andevaluations evaluationsofofTDK TDKGroup Groupininlight lightofofinformation informationcurrently currentlyavailable availabletotoit,it, and andcontain containknown knownand andunknown unknownrisks, risks,uncertainties uncertaintiesand andother otherfactors. factors.TDK TDKGroup Grouptherefore thereforewishes wishestoto caution cautionreaders readersthat, that,being beingsubject subjecttotorisks, risks,uncertainties uncertaintiesand andother otherfactors, factors,TDK TDKGroup’s Group’sactual actualresults, results, performance, achievements or financial position could be materially different from any future results, performance, achievements or financial position could be materially different from any future results, performance, performance,achievements achievementsororfinancial financialposition positionexpressed expressedororimplied impliedby bythese theseforward-looking forward-looking statements, statements,and andTDK TDKGroup Groupundertakes undertakesno noobligation obligationtotopublicly publiclyupdate updateororrevise reviseany anyforward-looking forward-looking statements statementsafter afterthe theissue issueofofthis thismaterial materialexcept exceptas asprovided providedfor forininlaws lawsand andordinances. 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 butare arenot not limited limitedto, to,shifts shiftsinintechnology, technology,fluctuations fluctuationsinindemand, demand,prices, prices,interest interestand andforeign foreignexchange exchangerates, rates,and and changes changesinineconomic economicenvironments, environments,conditions conditionsofofcompetition, competition,laws lawsand andregulations. regulations. FY March,2011(October 28,2010) 2 Net sales comparison in Passive components 2Q’ FY Mar11 vs 2Q’ FY Mar10 2Q of FY2010 2Q of FY2011 (July 1.2009 - Sep 3 0.2009) (July 1.2010 - Sep 30.2010) Yen billion Capacitors Inductive devices Other passive components Total Passive components ％ 33.6 28.9 31.3 93.8 Yen billion 35.8 30.8 33.2 100.0 37.7 34.3 37.5 109.0 ％ 34.5 31.3 34.2 100.0 Change Yen billion 4.2 5.4 6.2 15.7 ％ 12.4 18.6 19.8 16.8 1Q’ FY Mar11 vs 2Q’ FY Mar11 1Q of FY2010 2Q of FY2011 (April 1.2010 - June 30.2010) (July 1.2010 - Sep 30.2010) Yen billion Capacitors Inductive devices Other passive components Total Passive components FY March,2011(October 28,2010) 38.0 32.5 34.6 105.1 ％ Yen billion 36.2 30.9 32.9 100.0 3 37.7 34.3 37.5 109.0 Change ％ 34.5 31.3 34.2 100.0 Yen billion (0.2) 1.8 2.9 4.4 ％ (0.6) 5 .5 8 .3 4 .2 Business overview in Passive components（1Q vs 2Q) Sector 1Q’FY Mar11 vs 2Q’FY Mar11 Sales status Ceramic capacitors Steady sales in automobile and communication markets. Capacitors Inductive devices Other passive components △0.6％ ＋5.5％ Aluminum & Film capacitors Net sales slightly down despite steady sales in automobile and industrial, renewable energy equipment due to Japanese Yen appreciation. Higher sales of EMI filters and power choke coils and other products in mobile phones centered on smart phones, tablet PCs. Higher sales of noise filters in industrial and renewable energy equipment. High-frequency components Higher sales in WiFi modules, RF modules, RF filters attributable to EPCOS synergy. ＋8.3％ FY March,2011(October 28,2010) Piezoelectric, circuit protection components & Sensor Steady sales of actuators and circuit protection components in communication field, centered on smart phones. Steady sales of sensor, piezoelectric components in automobile and industrial equipment field. 4 FY March,2011(October 28,2010) 5