Consolidated 1Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department 1 Consolidated 1Q Results of FY March, 2012 (Yen billions） Net Sales FY March 2011 1Q Results FY March 2012 1Q Results Change Yen billions % 221.9 206.8 (15.2) -6.8 20.2 5.6 (14.6) -72.1 9.1% 2.7% -6.4pt - Income before Income Taxes 18.8 3.3 (15.5) -82.3 Net Income 14.5 2.4 (12.1) -83.3 112.59 18.78 Operating Income Operating Income Margin Earning Per Share (JPY) Ex-rate US$ Yen 92.01 Yen 81.74 EURO Yen 117.03 Yen 117.62 - Appreciation by 11.2% Depreciation by 0.5% Ex-rate impact to Net sales & Operating Income Net sales：Lowered about 18.5 billion Yen Operating income：Lowered about 5.9 billion Yen Earthquake impact to Net sales & Operating Income Net sales：Lowered about 4.6 billion Yen Operating income：Lowered about 3.0 billion Yen A one-off charge of approximately ¥3.1 billion at the operating income level associated with the change of the pension plan is incurred in the first quarter. 2 Features in 1Q results of FY March, 2012 ◆Electronics market trend ●Output of smartphones and tablet devices increased ●Output of flat-screen TVs, notebook PCs and HDDs was around the same level as the corresponding period of the previous fiscal year ●Recovery of the Japanese automotive market accelerated after 2Q onward ◆TDK’s business overview ●Sales of passive components decreased 2.9% year on year ・Steady sales of inductive devices for use in communications and automotive market ・Higher sales of aluminum electrolytic capacitors and film capacitors for use in renewable energy and industrial equipment ・Lower sales of high-frequency components for use in smartphones ・Lower sales of ceramic capacitors for use in IT home electronics applications ●Sales of magnetic application products decreased 17.5% year on year ・Recording devices sales declined, affected by production cutbacks in the HDD market, the yen’s appreciation and the sales price decline (decreased 22.9% year on year) ●Other businesses increased 32.0% year on year ・Sales of rechargeable batteries significantly increased for mainly tablet devices ●Impact by one-off charge ・Operating income decreased about 6.1 billion yen totally -The Great East Japan Earthquake, the subsequent aftershocks and blackouts : about 3.0 billion yen -Charge associated with the change of the pension plan : about 3.1 billion yen 3 Quarterly Results (1Q of FY 2011 vs. 1Q of FY 2012) FY March 2011 1Q Results Yen billions FY March 2012 1Q Results ％ Yen billions Change ％ Yen billions % Net Sales Capacitors 38.0 17.1 36.1 17.5 (1.9) -5.0 Inductive devices 32.1 14.5 32.9 15.9 0.7 2.3 Other Passive Components 34.6 15.6 32.8 15.8 (1.8) -5.3 (3.0) -2.9 Passive Components 104.7 47.2 101.7 49.2 Recording devices 71.7 32.3 55.2 26.7 (16.4) -22.9 Other Magnetic Application Products 28.6 12.9 27.4 13.3 (1.2) -4.1 Magnetic Application Products 100.3 45.2 82.7 40.0 (17.6) -17.5 Other 17.0 7.6 22.4 10.8 Total 221.9 206.8 100.0 Operating Income Passive Components Magnetic Application Products Other Corporate and eliminations Total 100.0 5.4 32.0 (15.2) -6.8 6.3 6.0 3.8 3.7 (2.5) -39.6 16.1 16.0 7.6 9.1 (8.5) -53.0 1.0 5.8 1.5 6.7 0.5 53.1 (7.2) (3.1) 20.2 9.1 5.6 2.7 (4.1) - (14.6) -72.1 4 Breakdown of Operating Income Changes Operating Income : - 14.6 billion yen Rationalization, Cost reduction・ Purchased materials savings +3.7 billion yen Changes in sales and Products mix +8.5 billion yen SG&A expenses increase （including decrease in restructuring cost by 400 million yen) -2.3 billion yen 20.2 billion yen Sales price reduction （-5.5%) -12.5 billion yen Impact by big earthquake -3.0 billion yen Impact by change of pension plan -3.1 billion yen 5.6 billion yen Exchange fluctuation （US$=Yen 81.74) -5.9 billion yen 1Q of FY 2011 1Q of FY 2012 5 Quarterly Results (4Q of FY 2011 vs. 1Q of FY 2012) 4Q results of FY 2011 1Q results of FY 2012 （2011.1.1～2011.3.31） （2011.4.1～2011.6.30） Yen billions ％ Yen billions ％ Q on Q change Yen billions % 105.0 49.1 101.7 49.2 (3.3) -3.1 Magnetic Applicatons Products 85.2 39.9 82.7 40.0 (2.5) -2.9 Other Passive Components 23.4 11.0 22.4 10.8 (1.0) -4.3 Total 213.6 100.0 206.8 100.0 (6.8) -3.2 Passive Components 4.8 4.6 3.8 3.7 (1.0) -20.8 Magnetic Application Products 6.8 8.0 7.6 9.1 0.8 11.8 Other Magnetic Application Products 1.0 4.4 1.5 6.7 0.5 50.0 Passive Components Net sales Operating Income Corporate and eliminations Total (3.2) 9.4 (7.2) 4.4 5.6 2.7 (4.0) - (3.8) -40.4 6 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 TDKor orits its group groupcompanies companies(TDK (TDKGroup). Group). These Theseforward-looking forward-lookingstatements statementsare arebased basedon onthe thecurrent current forecasts, estimates, assumptions, plans, beliefs and evaluations of TDK Group in light forecasts, estimates, assumptions, plans, beliefs and evaluations of TDK Group in lightofof information informationcurrently currentlyavailable availabletotoit,it,and andcontain containknown knownand andunknown unknownrisks, risks,uncertainties uncertaintiesand and other factors. TDK Group therefore wishes to caution readers that, being subject to risks, other factors. TDK Group therefore wishes to caution readers that, being subject to risks, uncertainties uncertaintiesand andother otherfactors, factors,TDK TDKGroup’s Group’sactual actualresults, results,performance, performance,achievements achievementsor or financial financialposition positioncould couldbe bematerially materiallydifferent differentfrom fromany anyfuture futureresults, results,performance, performance, achievements or financial position expressed or implied by these forward-looking achievements or financial position expressed or implied by these forward-lookingstatements, statements, and TDK Group undertakes no obligation to publicly update or revise any forward-looking and TDK Group undertakes no obligation to publicly update or revise any forward-looking statements statementsafter afterthe theissue issueofofthis thismaterial materialexcept exceptas asprovided providedfor forininlaws lawsand andordinances. ordinances. The electronics markets in which TDK Group operates are highly susceptible to The electronics markets in which TDK Group operates are highly susceptible torapid 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 rates, and changes in economic environments, conditions of competition, exchange rates, and changes in economic environments, conditions of competition,laws lawsand and regulations. Also, since the purpose of these materials is only to give readers a general outline regulations. Also, since the purpose of these materials is only to give readers a general outlineofof business businessperformance, performance,many manynumerical numericalvalues valuesare areshown shownininunits unitsofofaabillion billionyen. yen.Because Because original originalvalues, values,which whichare aremanaged managedininunits unitsofofaamillion millionyen, yen,are arerounded roundedoff, off,the thetotals, totals, differences, differences,etc. etc.shown shownininthese thesematerials materialsmay mayappear appearinaccurate. inaccurate.IfIfdetailed detailedfigures figuresare are necessary, please refer to our financial statements and supplementary materials. necessary, please refer to our financial statements and supplementary materials. 7