Consolidated Results of FY March, 2012 Consolidated 4Q Results of FY March, 2012 Takakazu Momozuka Corporate Officer, General Manager of Finance & Accounting Department Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -1- About the change of reporting segment TDK newly has three reporting segments: “Passive Components” and “Magnetic Application Products” and “Film Application Products”, as well as “Other”, which includes products not included in these three reporting segments. Previous segment Previous Classification Constituent Main Business Passive Components Ceramic capacitors, Aluminum electrolytic capacitors, Film capacitors, Inductive devices (Coils/Ferrite cores/Transformers), High-frequency devices, Piezoelectric material products, Circuit protection components, Sensors Magnetic Application Recording devices, Power supplies, Magnets, Recording media Products Other Energy devices (rechargeable batteries), Mechatronics (production equipments), other Reporting segement ＋ Other New segment New Classification Passive Components* Constituent Main Business Ceramic capacitors, Aluminum electrolytic capacitors, Film capacitors, Inductive devices (Coils/Ferrite cores/Transformers), High-frequency devices, Piezoelectric material products, Circuit protection components, Sensors Recording devices, Power supplies, Magnets Magnetic Application Products Film Application Products Energy devices (rechargeable batteries), Applied films (former recording media) Other Mechatronics (production equipments), other Reporting segment ＋ Other Recording media, which belonged to the Magnetic Application Products Segment, has been renamed applied films due to the termination of some products and acquisition of a battery separators business, which has resulted in the main products being functional film products. This is now shown as a new reporting segment Film Application Products effective from fiscal 2012, and also includes energy devices which have similar core technologies and markets. Energy devices previously belonged to Other. Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -2- Results of FY March 2012 by segment FY March 2011 Full Year Results Yen billion Capacitors Inductive devices Other Passive Components Net Sales Passive Components Recording devices Other Magnetic Application Products Magnetic Application Products Applied Film Products Other Total Passive Components Operating Income Magnetic Application Products Applied Film Products ％ Yen billion % 16.7 132.4 16.3 (13.0) -9.0 14.9 14.9 (9.0) -6.9 150.0 425.5 17.2 121.2 128.0 15.7 (21.9) -14.6 46.9 (44.0) -10.3 257.5 99.0 29.5 381.6 208.7 25.6 (48.8) -18.9 13.2 8.7 356.5 58.6 40.9 107.7 316.4 38.8 (40.1) -11.2 11.4 34.1 58.2 31.3 871.9 3.6 92.7 23.8 2.9 (7.5) -24.1 814.5 -6.6 100.0 (57.4) -6.6 -1.7 (31.1) - 39.0 6.3 12.3 (12.4) -24.1 6.7 5.0 416.5 -4.8 33.8 -20.3 24.5 51.4 Other Corporate and eliminations 77.6 -13.3 Total Yen billion Change 145.4 130.2 1.2 0.5 Sub total ％ FY March 2012 Full Year Results 64.3 48.8 11.4 6.7 100.0 5.8 14.4 2.1 1.6 -15.1 7.4 18.7 8.8 (5.3) - (43.8) -56.4 (1.8) 2.3 (45.6) -70.9 ※Discontinued operation (Display business) were deducted in above results Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -3- Breakdown of Operating Income Changes FY March 2011 64.3 billion yen FY March 2012 18.7 billion yen Operating income : -45.6 SG&A expenses decrease （including sale of land) +3.8 Restructuring effect +9.7 Changes in sales (including utilization, products mix +3.8 Rationalization, Cost reduction, +8.0 64.3 Restructuring cost -8.4 Sales price reduction -37.5 billion yen Impact by earthquake Impact by -1.8 billion yen flooding in Thailand -4.9 billion yen Exchange fluctuation （US$=Yen 79.07) -15.2 Change of pension plan -3.1 FY March 2011 Copyright© 2012 TDK Corporation. All rights reserved. 18.7 FY March 2012 Performance Briefings Fiscal Year March, 2012 April 27, 2012 -4- Financial position （JPY billion） March End, 2011 March End, 2012 Change 1,060.9 1,072.8 12.0 Total Liability 521.1 560.8 39.7 Interest-bearing Debt 245.0 272.8 27.8 Stockholders's Equity 534.3 498.2 -36.1 (comprehensive income) -218.0 -230.8 -12.9 Stockholders's Equity ratio 50.4% 46.4% -4.0pt Total Asset Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -5- Segment Information JPY billion (4Q of FY2011 vs. 4Q of FY2012, 3Q vs. 4Q 3Q results of 4Q results of 4Q results of FY March 2012 FY March 2011 FY March 2012 Jan 1- Mar 31, 2011 Oct 1- Dec 31, 2011 Jan 1- Mar 31, 2012 (C) (B) (A) YoY Change (C)-(A) JPY billion QoQ Change (C)-(B) JPY billion % % 34.5 31.9 38.6 30.6 28.6 30.4 31.6 28.4 30.5 (2.9) -8.4 1.0 3.3 (3.5) -11.0 (0.2) -0.7 (8.1) -21.0 0.1 0.3 105.0 89.5 90.5 (14.5) -13.8 1.0 1.1 57.5 24.4 42.0 26.0 58.2 29.7 0.7 1.2 16.2 38.6 5.3 21.7 3.7 14.2 68.0 28.2 5.7 87.8 24.2 4.6 5.9 7.2 19.8 29.1 7.0 40.7 (4.0) -14.2 Other 81.9 17.2 8.9 (4.3) -48.3 (1.1) -19.3 Total 213.0 191.3 207.0 (6.0) -2.8 4.8 9.1 -0.6 -0.4 12.9 1.5 7.0 2.9 -0.7 10.7 -13.2 14.0 -0.5 -2.6 -2.3 (18.0) - -3.2 -3.4 -0.9 9.8 7.4 -3.2 4.6% 3.9% Capacitor Inductive Device Other Passive Comp Net Sales Passive Components Recording Divices Other Magnetic Application Products Magnetic Application Products Film application Products Operating Income Passive Components Magnetic Application Products Film application Products other Sub total Corporate and Eliminations Total Operating Income margin Ex- US$ rate 82.31 112.66 77.35 104.30 EURO ※Discontinued operation (Display business) were deducted in above results Copyright© 2012 TDK Corporation. All rights reserved. 15.7 (14.7) - 4.9 53.8 0.1 - (3.4) - (2.2) - (1.9) - (15.2) - (13.0) - 2.3 (13.0) -1.5% (5.7pt) - 7.0 8.2 2.5 (10.6) 100.0 - (5.0pt) 79.27 103.94 Performance Briefings Fiscal Year March, 2012 April 27, 2012 -6- Restructuring measures –current statusEach restructuring measure proceeding as planned Item Current status Production site Announced reorganization of 7 plants out of total 19 plants located in Tohoku region Number of employees Changes in number of employees in TDK worldwide End of September in 2011: 88,449 End of December in 2011 : 82,912 End of March in 2012 : 79,175 decreased by 9,274 Unprofitable business or products Sale of Organic EL display business (completed by April 1st in 2012) Unemployed assets In 3Q：Already sold unemployed assets (posted sales gain of 4.0 billion yen at OP level) In 4Q：Already sold unemployed assets (posted sales gain of 2.7 billion yen at OP level) Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -7- Restructuring measures –current statusJPY billion Restructuring cost Announced on January 31 in 2012 ・First half results : 1.5 FY March ・Second half results : 12.3 2012 ・Full year projections : 13.8 ・First half results : 1.5 ・Second half results : 11.5 ・Full year projections : 13.0 FY March ・Full year projections : 5.0 2013 ・Full year projections : 5.0 Total 18.8 FY March ・Projected effect in second half : 13.5 ※7.0+6.5(gain on sale of land) 2012 Effect (results and projections) Announcement on April 27 in 2012 18.0 ・Effect in second half : 16.9 ※10.2+6.7(gain on sales of land) ・Full year projections : 16.5 FY March ・Full year projections : 22.0 2013 (in comparison with results of FY March 2012) (in comparison with results of FY March 2012) Total Copyright© 2012 TDK Corporation. All rights reserved. 35.5 Performance Briefings Fiscal Year March, 2012 33.4 April 27, 2012 -8- Cautionary Statements with Respect to Forward-Looking Statements This material contains forward-looking statements, including projections, plans, policies, management strategies, targets, schedules, understandings and evaluations, about TDK or its group companies (TDK Group). These forward-looking statements are based on the current forecasts, estimates, assumptions, plans, beliefs and evaluations of TDK Group in light of information currently available to it, and contain known and unknown risks, uncertainties and other factors. TDK Group therefore wishes to caution readers that, being subject to risks, uncertainties and other factors, TDK Group’s actual results, performance, achievements or financial position could be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements, and TDK Group undertakes no obligation to publicly update or revise any forward-looking statements after the issue of this material except as provided for in laws and ordinances. The electronics markets in which TDK Group operates are highly susceptible to rapid changes. Risks, uncertainties and other factors that can have significant effects on TDK Group include, but are not limited to, shifts in technology, fluctuations in demand, prices, interest and foreign exchange rates, and changes in economic environments, conditions of competition, laws and regulations. Also, since the purpose of these materials is only to give readers a general outline of business performance, many numerical values are shown in units of a billion yen. Because original values, which are managed in units of a million yen, are rounded off, the totals, differences, etc. shown in these materials may appear inaccurate. If detailed figures are necessary, please refer to our financial statements and supplementary materials. Copyright© 2012 TDK Corporation. All rights reserved. Performance Briefings Fiscal Year March, 2012 April 27, 2012 -9-