Presentation Material (PDF: 142KB)

Consolidated 3Q Results
of FY March, 2014
Consolidated Full Year Projections of
FY March, 2014
Takakazu Momozuka
Corporate Officer
Copyright© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-1-
Consolidated 3Q Results of FY March, 2014
(Yen billions)
Net Sales
Operating Income
FY March 2013
3Q Results
FY March 2014
3Q Results
(2012.10.1-2012.12.31)
(2013.10.1-2013.12.31)
Change
Yen billions
%
213.3
258.6
45.3
21.2
5.0
17.6
12.6
252.0
2.3%
Operating Income Margin
6.8%
+4.5pt
-
Income from Continuing
Operations before Income Taxes
3.0
17.2
14.2
473.3
Income from continuing
Operations
1.4
11.1
9.7
692.9
Loss from discontinued
operations
0.0
-1.0
(1.0)
-
Net income (loss) attributable to
noncontrolling interests
1.0
0.8
(0.2)
-20.0
Net Income
0.4
9.3
8.9
3.33
73.99
81.17
105.28
100.38
136.56
Earning Per Share (JPY)
US$ (JPY)
EURO (JPY)
Ex-rate impact to Net sales &
Operating Income
2225.0
-
-
Deppreciated by 23.7%
Deppreciated by 29.7%
Net sales:Increased by about 43.0 billion Yen
Operating income:Increased by about 8.1 billion Yen
Note: Data tape business is presented as discontinued operation in above results
Copyright© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-2-
FY March 2014 3Q Segment Highlights
◆Passive Components:
Brackets show year-on-year change
Net sales 117.1 billion yen (up 25.8%), operating income 6.1 billion yen
(compared with 1.8 billion yen operating loss in FY March 2013 3Q)
-Ceramic capacitors returned to profitability after a loss in FY March 2013 3Q
(has remained profitable since 1Q)
-Inductive devices saw earnings rise sharply year on year on the back of an improved product mix
-High-frequency components reduced their loss year on year due to productivity improvements, etc.
-Piezoelectric material products posted higher sales and earnings year on year due to higher sales
of products for automotive applications
-Sale gain of overseas assets (2.0 billion yen)
◆Magnetic Application Products: Net sales 95.7 billion yen (up 13.7%),
operating income 10.3 billion yen (up 36.3%)
-Recording devices (HDD heads) generated operating income on a par with FY March 2013 3Q
due to improved productivity, despite a year-on-year drop in shipments
-In magnets, the operating loss narrowed sharply from FY March 2013 3Q thanks to progress on
improving productivity at a consolidated site in China
-Power supplies saw improved profitability year on year due to improving sales to the industrial
equipment market
◆Film Application Products: Net sales 41.4 billion yen (up 34.0%),
operating income 6.5 billion yen (up 82.0%)
-Energy device (rechargeable battery) sales remained strong for use in smartphones and
tablet devices, underpinning a sharp year-on-year rise in both sales and earnings
-Completed exit from data tape business (*)
*LTO tape business for data centers
Copyright© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-3-
Breakdown of Operating Income Changes (3Q)
(Yen billions)
Operating income : +12.6
Rationalization,
cost reduction
+5.3
SG&A expenses
decrease
(including gain from
sales of assets 2.0)
+0.4
Benefits from
Restructuring
+0.9
Changes in sales
+6.5
Sales price
Reduction
-9.5
17.6
Proceed from
insurance
of Thai flooding
-0.4
Rare earth material
price fluctuation
Exchange
+1.3
fluctuation
(US$=Yen 100.38)
+8.1
5.0
FY March 2014
3Q
FY March 2013
3Q
※Discontinued operation (Data tape business) were deducted in above results
Copyright© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-4-
Segment Information
(Yen billions)
3Q of FY 2013
Oct 1- Dec 31, 2012
(A)
2Q of FY 2014
Jul 1- Sep 30, 2013
(B)
3Q of FY 2014
Oct 1- Dec 31, 2013
( C)
YoY Change
(C)-(A)
Yen billions
QoQ Change
(C)-(B)
%
Yen billions
%
Net Sales
Capacitor
26.6
35.1
34.7
8.1
30.5
(0.4)
-1.1
Inductive Device
30.6
35.5
34.9
4.3
14.1
(0.6)
-1.7
Other Passive Comp
36.0
48.8
47.5
11.5
31.9
(1.3)
-2.7
93.1
119.4
117.1
24.0
25.8
(2.3)
-1.9
60.2
24.0
66.3
26.6
69.0
8.8
14.6
2.7
4.1
26.8
2.8
11.7
0.2
0.8
84.2
30.9
5.0
213.3
(1.8)
7.5
3.6
(0.6)
8.8
(3.7)
5.0
92.9
33.1
4.4
249.8
6.2
7.8
3.2
(0.8)
16.4
(4.0)
12.4
95.7
41.4
4.3
258.6
6.1
10.3
6.5
(0.8)
22.0
(4.4)
17.6
11.5
13.7
2.8
3.0
10.5
34.0
8.3
25.1
(0.7)
-14.0
(0.1)
-2.3
45.3
21.2
8.8
3.5
7.9
-
(0.1)
-1.6
2.8
37.3
2.5
32.1
2.9
80.6
3.3
103.1
-
0.0
-
150.0
5.6
34.1
2.3%
5.0%
6.8%
Passive Components
Recording Divices
Other Magnetic Application Products
Magnetic Application Products
Film Application Products
Other
Total
Passive Components
Operating Income
Magnetic Application Products
Film Application Products
Other
Sub total
Corporate and Eliminations
Total
Operating Income margin
Ex- US$
rate
EURO
Copyright© 2014 TDK Corporation. All rights reserved.
Yen 81.17
Yen 99.02
Yen 100.38
Yen 105.28
Yen 131.11
Yen 136.56
(0.2)
13.2
(0.7)
12.6
+4.5pt
252.0
-
(0.4)
5.2
41.9
+1.8pt
-
※Discontinued operation (Data tape business)
were deducted in above results
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-5-
Consolidated Results through 3Q of FY March, 2014
(Yen billions)
FY March 2013
Results through 3Q
FY March 2014
Results through 3Q
(2012.4.1-2012.12.31)
(2013.4.1-2013.12.31)
Net Sales
Operating Income
Change
Yen billions
%
625.4
743.4
118.0
18.9
25.3
34.4
9.1
36.0
4.0%
Operating Income Margin
4.6%
+0.6pt
-
Income from Continuing
Operations before Income Taxes
21.3
34.9
13.6
63.8
Income from continuing
Operations
13.0
21.7
8.7
66.9
Loss from discontinued
operations
-0.1
-4.5
(4.4)
-
2.8
1.5
(1.3)
-46.4
10.1
15.7
5.6
55.4
80.59
124.90
80.03
102.24
99.38
132.22
Net income (loss) attributable to
noncontrolling interests
Net Income
Earning Per Share (JPY)
US$ (JPY)
EURO (JPY)
Ex-rate impact to Net sales &
Operating Income
-
-
Deppreciated by 24.2%
Deppreciated by 29.3%
Net sales:Increased by about 126.0 billion Yen
Operating income:Increased by about 21.1 billion Yen
Note: Data tape business is presented as discontinued operation in above results
Copyright© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-6-
Full Year Projections of FY March 2014
(Yen billions)
FY March 2013
Full Year Results
FY March 2014
Previous Full Year
Projections
FY March 2014
Revised Full Year
Projections
Y o Y Change
%
Yen billions
844.2
930.0
985.0
140.8
16.7%
21.7
30.0
37.0
15.3
70.5%
2.6%
3.2%
3.8%
1.2pt
-
19.2
28.0
38.0
18.8
97.9%
Net Income
1.2
13.0
16.0
14.8
1233.3%
Earning Per Share (JPY)
9.50
103.34
127.18
-
-
Net Sales
Operating Income
Operating Income Margin
Income before income
taxes
●Average yen exchange rates forecast from 4Q of FY March 2014
US$: ¥102 (previous assumption : ¥90)
EURO: ¥135 (previous assumption : ¥118)
Copyright© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-7-
Dividends Forecast of FY March 2014
TDK keeps initial dividends forecast (on April 26) unchanged.
Dividend forecast per a common share
Interim dividend
30 yen
Year-end dividend 40 yen (forecast)
Annual dividend
Copyright© 2014 TDK Corporation. All rights reserved.
70 yen (forecast)
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-8-
Restructuring Progress
■FY March 2014 Planned Restructuring
Promote business
portfolio review
Optimize
production bases
◇Exit non-core businesses
・Withdraw from LTO business
(Production ended in 3Q and planned for 4Q)
・Withdraw from Blu-ray Disc business
(Planned for 4Q)
◇Further integrate bases worldwide
(Targeting bases not already announced
for integration)
■Expected benefits
■Restructuring costs
Continuing operations
1st half (results)
3Q (results)
4Q (projections)
2nd half (projections)
Total
(projections)
(Yen billions)
Discontinued opearations
Total
Review of business portfolio
Optimazation of production bases
Review of business portfolio
0.9
0.4
4.8
5.2
6.1
2.8
0.3
0.6
0.9
3.7
Copyright© 2014 TDK Corporation. All rights reserved.
(Yen billions)
FY March 2014:2.8
FY March 2015:4.0
3.7
0.7
5.4
6.1
9.8
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
-9-
Financial Position
(Yen billions)
March End,
2013
Sep End,
2013
Dec End,
2013
Change from
Sep End
1,169.6
1,220.7
1,311.8
91.1
Total Liability
589.0
617.2
648.7
31.5
Stockholders's Equity
561.2
588.6
645.9
57.3
(comprehensive income)
(159.0)
(126.1)
(75.3)
50.8
Stockholders's Equity ratio
48.0%
48.2%
49.2%
+1.0pt
Cash and Cash equivalents(*1)
223.5
242.5
276.1
33.6
Interest-bearing Debt(*2)
295.6
294.5
305.3
10.8
Net Cash(*3)
(72.1)
(52.0)
(29.2)
22.8
Total Asset
*1: Cash and Cash equivalents + Short-term investments
*2: Short-term debt + Current installments of long-term debt + Long-term debt, excluding current installments
*3: Cash and Cash equivalents - Interest-bearing Debt
(Yen billions)
FY March 2013
Results through 3Q
FY March 2014
Results through 3Q
Change
Capital Expenditures
63.3
47.9
(15.4)
Depreciation and amotization
55.9
61.6
5.7
Copyright© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
- 10 -
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© 2014 TDK Corporation. All rights reserved.
Performance Briefings 3Q of Fiscal Year March, 2014
January 31, 2014
- 11 -
Text data including Q&A of performance briefing will be uploaded on following site
http://www.global.tdk.com/ir/ir_events/conference/2014/3q_1.htm