Earning Conference for Consolidated Projections of the Fiscal Year March 2012 President and CEO, TDK Corporation Takehiro Kamigama 1 Consolidated Full Year Projections of FY March, 2012 (JPY billion） Net Sales FY March 2011 Full Year Results FY March 2012 Full Year Projections Change JPY billion % 875.7 890.0 14.3 1.6 63.8 67.0 3.2 5.0 7.3% 7.5% +0.2pt Income before Income Taxes 60.1 65.0 4.9 8.2 Net Income 45.3 50.0 4.7 10.4 350.90 387.61 36.71 Operating Income Operating Income Margin Earning Per Share (JPY) US$ Yen 85.73 Yen 80.00 Yen 113.12 Yen 110.00 - - Ex-rate EURO Temporary expense of about ¥3.0 billion associated with transition of approved pension scheme is included in the projections. 2 Consolidated Full Year Projections of FY March, 2012 ◆Projections for the electronics product market ・Output of smartphones and tablet devices will continuously surge ・Output in the industrial equipment markets will be stable ・Production cutbacks for flat-screen TVs, notebook PCs and HDDs will continue ・The automobile market related to Japanese automotive manufacturer will temporarily shrink, but market of non-Japanese auto makers will be stable ◆Impact of the Great East Japan Earthquake ①Impact on financial results for FY March 2012 ・Blackout of production sites in Tohoku district under the service by Tohoku Electric Power Company occurred again in April ・Net sales declined about 10 billion yen ②Measures in response to limitation of power supply ・Brownout, installation of private power generator : to be completed by the end of June →Expect to avoid negative impact on production activities 3 Consolidated Full Year Projections of FY March, 2012 ◆Focused points in this fiscal year ①Passive Components Business ・To strengthen customer interface and product line up enabling grasp demands from growing market areas ②Magnetic Application Products ・To take business opportunities without fail by keeping technical advantage in the market in recording device business 4 Projections of Fiscal Year March 2012 (JPY billion） FY2011 Full Year Results FY2012 Full Year Projections Change Yen billion % Capital expenditures 78.6 85.0 6.4 8.1 Depreciation and amortization 77.6 85.0 7.4 9.5 Research and development 53.0 53.0 0.0 0.0 5 Dividends Projections of Fiscal Year March 2012 （ Yen） Interim dividend Year-end dividend Annual dividend FY March 2011 Results FY March 2012 Forecast 40 40 40 (forecast) 80 (forecast) 50 90 *TDK plans to pay a year-end dividend of ¥40 per common share for previous fiscal year, subject to approval at the ordinary general meeting of shareholders scheduled for June 29, 2011. 6 Supplementary Data 7 8 9 Quarterly Sales and Operating Income by Segment FY March 2010 （ JPY billion） FY March 2011 １Q ２Q ３Q ４Q 181.5 204.3 211.7 211.3 Passive Components 80.2 93.8 94.3 Magnetic Applications 86.9 96.3 Others 14.4 Operating Income Passive Components Magnetic Applications Net Sales Breakdown Breakdown ２Q ３Q ４Q 808.8 221.9 220.3 219.9 213.6 875.7 96.5 364.8 105.1 109.5 108.4 108.1 102.0 98.6 383.7 100.3 92.2 90.8 85.2 431.1 368.5 14.3 15.4 16.3 60.3 16.6 18.6 20.7 20.3 76.1 -3.6 9.0 12.1 8.3 25.8 20.2 17.0 17.2 9.4 63.8 -9.2 5.9 0.2 11.3 0.3 14.6 -1.5 15.0 -10.3 46.7 6.2 16.1 7.3 12.5 6.3 11.5 5.0 6.8 24.7 46.9 0.8 1.2 1.1 2.1 5.2 1.1 1.7 2.0 0.8 5.5 -2.4 -1.2 12.7 -3.7 15.9 -3.8 15.6 -7.3 41.6 -15.9 23.3 -3.1 21.5 -4.5 19.7 -2.5 12.6 -3.2 77.1 -13.3 97.36 93.73 89.73 90.69 92.89 92.01 85.88 82.65 82.31 132.66 133.75 132.66 125.49 131.18 117.03 110.67 112.20 112.66 85.73 113.12 Others Sub-total Corporate and Eliminations Ex-rate １Q ￥/USD ￥/EURO Total Total JPY billion 250.0 16.6 18.6 20.7 20.3 100.3 92.2 90.8 85.2 96.5 105.1 109.5 108.4 108.1 ４Q １Q ２Q ３Q ４Q 14.3 15.4 16.3 96.3 102.0 98.6 80.2 93.8 94.3 １Q ２Q ３Q 200.0 14.4 150.0 86.9 100.0 50.0 Others Magnetic Applications Products Passive Components 0.0 10 Quarterly Sales by Segment FY March 2010 （JPY billion） FY March 2011 １Q 181.5 ２Q 204.3 ３Q 211.7 ４Q 211.3 Total 808.8 １Q 221.9 ２Q 220.3 ３Q 219.9 ４Q 213.6 80.2 93.8 94.3 96.5 364.8 105.1 109.5 108.4 108.1 431.1 Capacitors 28.8 33.6 34.6 36.1 133.1 38 37.7 35.2 34.5 145.4 Inductive Devices 24.8 28.9 28.9 29.3 112.0 32.5 34.3 33.9 35.0 135.8 Other Passive Components 26.7 31.3 30.7 31.1 119.7 34.6 37.5 39.3 38.6 150.0 86.9 96.3 102 98.6 383.7 100.3 92.2 90.8 85.2 368.5 Recording Devices 62.9 71 73.8 72.3 280.0 71.7 65.3 63 57.5 257.5 Other Magnetic Applications Products 24.1 25.2 28.2 26.3 103.7 28.6 26.9 27.7 27.7 111.0 14.4 14.3 15.4 16.3 60.3 16.6 18.6 20.7 20.3 76.1 97.36 93.73 89.73 90.69 92.89 92.01 85.88 82.65 82.31 85.73 132.66 133.75 132.66 125.49 131.18 117.03 110.67 112.20 112.66 113.12 Net Sales Passive Components Breakdown Magnetic Applications Products Breakdow Other Sales Ex-rate ￥ /USD ￥/EURO Total 875.7 JPY billion 250 200 150 100 50 0 16.6 18.6 20.7 28.6 26.9 20.3 27.7 27.7 71.7 65.3 63.0 57.5 31.1 34.6 37.5 39.3 38.6 28.9 29.3 32.5 34.3 33.9 35.0 33.6 34.6 36.1 38 37.7 35.2 34.5 ２Q ３Q ４Q １Q ２Q ３Q ４Q 15.4 16.3 14.3 25.2 28.2 26.3 71.0 73.8 72.3 31.3 30.7 24.8 28.9 28.8 １Q 14.4 24.1 62.9 26.7 Others Other Magnetic Application Products Recording Devices Oher Passive Components Inductive Devices Capacitors 11 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 TDKororits 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 achievementsoror 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 butare 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, laws exchange rates, and changes in economic environments, conditions of competition, 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 outline ofofbusiness 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 inaccurateininhundred hundredmillion millionyen yendigits. digits. IfIfdetailed figures are necessary, please refer to our financial statements and supplementary detailed figures are necessary, please refer to our financial statements and supplementary materials. materials. 12