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Consolidated Results
for 3Q of FY March 2015
Consolidated Full Year Projections
for FY March 2015
Takakazu Momozuka
Corporate Officer
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-1-
Highlights of the Operating Results
◆Net sales achieved a historical high in both the third quarter and
the nine-month period. In the third quarter, all business segments
consisting of passive components, magnetic application products and
film application products recorded the highest sales in the history of
the Company driven by the robust sales for the ICT (Information and
Communications Technology) market.
◆Operating income was 53.1 billion yen for the nine-month period,
a year-on-year increase of 52%. Well-balanced earning structure
has been stable in the major three business segments.
◆The full-year earnings projections were revised upward.
Year-end dividend will be increased by 10 yen per share.
◆In the magnet business, impairment loss was accounted for mainly
with respect to metal magnet-related facilities.
Impairment loss of goodwill was recorded in the power supply business.
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-2-
Consolidated Results for 3Q of FY March 2015
(Yen billions)
Change
FY March 2014
3Q Results
FY March 2015
3Q Results
258.2
300.4
42.2
16.3
17.9
25.2
7.3
40.8
Net Sales
Operating Income
8.4%
6.9%
Operating Income Margin
Yen billions
%
+1.5pt
-
Income from Continuing Operations
before Income Taxes
17.6
22.2
4.6
26.1
Income from continuing Operations
11.4
17.3
5.9
51.8
-1.3
-
Net income attributable to
noncontrolling interests
0.8
0.9
0.1
12.5
Net Income
9.3
16.4
7.1
76.3
Earning Per Share (JPY)
73.99
130.24
US$ (JPY)
100.38
136.56
114.25
142.79
Loss from discontinued operations
EURO (JPY)
Ex-rate impact to Net sales &
Operating Income
-
-
-
-
Depreciated by 13.8%
Depreciated by 4.6%
Net sales:Increased by about 29.6 billion Yen
Operating income:Increased by about 6.7 billion Yen
Note: The figures related to the data tape business and the blu-ray business, which became discontinued operations in
the year ended March 31, 2014, are restated.
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-3-
3Q Results - Passive Components Segment
Net Sales
(Yen billions)
146.1
117.1
14/3
◆ Ceramic Capacitors
・Sales increased year on year, particularly to the steady automobile market.
・Profit margins also improved due to increased productivity.
15/3
Operating Income
(OP margin)
(Yen billions)
11.9
8.1%
6.1
5.2%
14/3
Net Sales 146.1 billion yen (up 24.8% year on year)
Operating Income 11.9 billion yen (up 95.1% year on year)
15/3
◆ Inductive Devices
・Sales increased for the robust automobile market and the ICT market
centering on demands for North American and Chinese smartphone
customers.
・Profits increased due to high utilization.
◆ High-frequency Components
・Sales of discrete products were strong mainly due to buoyant demand
from the North American and Chinese smartphone customers.
・Profitability of the business improved year on year due to increased
productivity and improved product portfolio.
◆ Piezoelectric Material Products
・Both revenues and profits increased year on year mainly due to strong
sales of VCMs for camera modules and components for automobiles.
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-4-
3Q Results - Magnetic Application Segment
Net Sales
(Yen billions)
101.6
95.7
Net Sales 101.6 billion yen (up 6.2% year on year)
Operating income 7.3 billion yen (down 29.1% year on year)
◆ Recording Devices (HDD Heads)
・The volume of shipped products increased marginally on a year-on-year
basis.
・Profits increased year on year due to improved productivity and the
turnaround of product portfolio reflecting growing sales to data centers.
14/3
15/3
Operating Income
(OP margin)
(Yen billions)
10.3
7.3
10.8%
7.2%
14/3
◆Magnets
・Sales to the automobile market and ICT market decreased.
Impairment of metal magnet-related facilities was implemented.
◆Power Supplies
・Sales to the industrial equipment market of products such as
semiconductor production equipment, FA equipment and measuring
equipment were steady
・Impairment loss in goodwill was recorded.
15/3
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-5-
3Q Results - Film Application Segment
Net Sales
(Yen billions)
47.4
41.0
Net sales 47.4 billion yen (up 15.6% year on year)
Operating income 9.6 billion yen (up 41.2% year on year)
◆Energy Devices (Rechargeable Batteries)
14/3
15/3
Operating Income
(OP margin)
・Both sales and profits increased year on year due to a growth
in sales for new smartphones manufactured by our main customers
and the expanded customer portfolio mainly in the Chinese market.
9.6
(Yen billions)
6.8
20.3%
16.6%
14/3
15/3
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-6-
Breakdown of Operating Income Changes (3Q)
Operating Income
+ 7.3 billion yen
(Yen billions)
Changes in sales
+15.7
Sales price
Reduction
-16.4
Rationalization,
cost reduction
+6.9
Benefits from
Restructuring
+0.6
SG&A expenses
increase
-0.9
(including decrease in
sales of assets -1.3)
Impairment
-5.3
Exchange
fluctuation
25.2
(US$=Yen 114.25)
+6.7
17.9
3Q of
FY March 2014
Copyright© 2015 TDK Corporation. All rights reserved.
3Q of
FY March 2015
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-7-
Quarterly Results by Segment
(Yen billions)
Capacitors
Inductive Devices
Other Passive Components
Net Sales
Passive Components
Recording Devices
Other Magnetic Application Products
Magnetic Application Products
Film Application Products
Other
Total
Passive Components
Operating Income
Magnetic Application Products
Film Application Products
Other
Sub total
Corporate and Eliminations
Total
Operating Income margin
Ex- US$/Yen
rate EURO/Yen
Copyright© 2015 TDK Corporation. All rights reserved.
3Q of
FY March 2014
(A)
2Q of
FY March 2015
(B)
3Q of
FY March 2015
(C)
34.7
34.9
47.5
37.3
38.8
56.2
37.5
40.3
68.2
117.1
132.4
69.0
26.8
YoY Change
(C)-(A)
Yen billions
QoQ Change
(C)-(B)
%
Yen billions
%
2.8
8.1
0.2
0.5
5.4
15.5
1.5
3.9
20.7
43.6
12.0
21.4
146.1
29.0
24.8
13.7
10.3
63.7
26.7
75.1
26.5
6.1
8.8
11.4
17.9
(0.3)
-1.1
(0.2)
-0.7
95.7
41.0
4.3
258.2
90.4
37.2
4.8
264.8
101.6
47.4
5.3
300.4
5.9
6.4
6.2
15.6
11.2
10.2
12.4
27.4
1.0
23.3
0.5
10.4
42.2
16.3
35.6
13.4
6.1
10.3
6.8
-0.8
22.3
-4.4
9.8
8.2
5.2
0.1
23.3
-5.0
11.9
7.3
9.6
0.1
29.0
-3.8
5.8
95.1
2.1
21.4
(3.0)
-29.1
(0.9)
-11.0
2.8
41.2
4.4
84.6
0.9
6.7
30.0
0.0
5.7
0.0
24.5
0.6
-
1.2
-
17.9
18.3
25.2
6.9%
6.9%
100.38
136.56
103.86
137.77
Performance Briefing
3Q of Fiscal Year March, 2015
7.3
8.4% +1.5pt
40.8
6.9
- +1.5pt
37.7
-
114.25
142.79
January 30, 2015
-8-
Consolidated Results through 3Q of FY March 2015
(Yen billions)
FY March 2014
Results through 3Q
Net Sales
Operating Income
FY March 2015
Results through 3Q
Change
Yen billions
%
742.0
802.7
60.7
8.2
35.0
53.1
18.1
51.7
4.7%
Operating Income Margin
6.6%
+1.9pt
-
Income from Continuing Operations
before Income Taxes
35.7
49.6
13.9
38.9
Income from continuing Operations
22.2
36.9
14.7
66.2
Loss from discontinued operations
-5.1
-
1.5
2.3
0.8
53.3
15.7
34.5
18.8
119.7
124.90
274.43
99.38
132.22
106.78
140.24
Net income attributable to
noncontrolling interests
Net Income
Earning Per Share (JPY)
US$ (JPY)
EURO (JPY)
Ex-rate impact to Net sales &
Operating Income
-
-
-
-
Depreciated by 7.4%
Depreciated by 6.1%
Net sales:Increased by about 46.5 billion Yen
Operating income:Increased by about 9.9 billion Yen
Note: The figures related to the data tape business and the blu-ray business, which became discontinued operations in the
year ended March 31, 2014, are restated.
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
-9-
Sales Results by Priority Markets (through 3Q)
TDK Total
(Yen billions)
900
800
700
600
500
400
300
200
100
0
+8.2%
742.0
Automotive
(Yen billions)
802.7
150
123.2
+13.9%
140.3
100
50
0
FY March 2014 (9 months)
ICT
(Yen billions)
FY March 2014 (9 months)
Automotive
ICT*
FY March 2015 (9 months)
Industrial
Consumer
*Includes HDD Heads and HDD Suspensions
Automotive:
Strong sales of passive components
ICT:
Increase in sales of passive components and
rechargeable batteries
Industrial & Others:
Increase in sales of power supplies to the
industrial equipment market
Copyright© 2015 TDK Corporation. All rights reserved.
500
400
300
200
100
0
422.8
FY March 2015 (9 months)
Industrial
(Yen billions)
150
454.0
+7.4%
FY March 2014 (9 months)
200
FY March 2015 (9 months)
143.1
+7.7%
154.1
100
50
0
Performance Briefing
3Q of Fiscal Year March, 2015
FY March 2014 (9 months)
FY March 2015 (9 months)
January 30, 2015
- 10 -
Recording Device Business
●HDD market in FY March 2015 *TDK’s estimation
About 535 million units (end of April)
About 560 million units (Current estimation)
●Shipment index
Recording Device Sales (Left, including HDD Head (HGA) and HDD Suspention)
HDD Head Shipment Index (Right)
(shipment index)
(Yen billions)
80
60.2
66.3
116
60
40
100
75.1
69.0
61.2
59.1
111
98
20
117
Index
projection
95
63.7
104
95
0
$/¥
1Q
2Q
98.74
99.02
3Q
4Q
1Q
2Q
3Q
4Q
100.38
102.97
102.17
103.86
114.25
115.00
FY March 2014
Copyright© 2015 TDK Corporation. All rights reserved.
120
110
100
90
80
70
FY March 2015
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
- 11 -
FY March 2015 Full Year Projections
Upward revision from previous announcement figures (October 31)
(Yen billions)
Net Sales
FY March 2014
Full Year Results
FY March 2015
Full Year Projections
(revised)
Y o Y Change
%
Yen billions
1,050.0
1,050.0
1,080.0
95.5
9.7%
36.6
57.0
63.0
70.0
33.4
91.3%
3.7%
5.4%
6.0%
6.5%
+2.8pt
-
39.8
56.0
62.0
68.0
28.2
70.9%
16.3
34.0
37.0
42.0
25.7
157.7%
129.47
270.23
293.98
333.51
-
-
Operating Income Margin
Income from continuing
operations before income taxes
Earning Per Share (JPY)
FY March 2015
Full Year Projections
(announced Oct. 31)
984.5
Operating Income
Net Income
FY March 2015
Full Year Projections
(announced Apr. 28)
US$
Yen 100.26
Yen 100.00
EURO
Yen 134.42
Yen 135.00
Ex-rate
Copyright© 2015 TDK Corporation. All rights reserved.
Yen 105.00
(Second half)
Yen 135.00
(Second half)
Performance Briefing
3Q of Fiscal Year March, 2015
Yen 115.00
(4Q)
Yen 135.00
(4Q)
January 30, 2015
-
- 12 -
FY March 2015 Dividend Projections
Year-end dividend will be increased by 10 yen per share, based on
the upward revision of the full year projections for FY March 2015.
Projected dividend per share
Previous
projections
(October 31)
Interim dividend
Year-end
dividend
Annual dividend
Copyright© 2015 TDK Corporation. All rights reserved.
Revised
projections
40 yen
40 yen
40 yen
50 yen
(projections)
80 yen
90 yen
(projections)
2015年3月期
第3四半期決算説明会
TDK株式会社 2015年1月30日
- 13 -
Financial Position
(Yen billions)
March End,
2014
Sep End,
2014
Dec End,
2014
Change from
Sep End, 2014
1,239.6
1,312.3
1,425.8
113.5
Total Liability
587.3
620.2
661.8
41.6
Stockholders' Equity
635.3
673.7
745.8
72.1
(comprehensive income)
-87.1
-51.9
16.2
68.1
Stockholders' Equity ratio
51.3%
51.3%
52.3%
+1.0pt
Cash and Cash equivalents (*1)
259.5
258.3
283.8
25.5
Interest-bearing Debt (*2)
267.0
267.3
285.7
18.4
-7.5
-9.0
-1.9
7.1
Total Asset
Net Cash (*3)
*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
Copyright© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
- 14 -
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 the TDK Group in light of the information currently available to it, and
contain known and unknown risks, uncertainties, and other factors. The TDK Group therefore wishes to
caution readers that, being subject to risks, uncertainties, and other factors, the 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 the TDK Group undertakes no obligation to publicly update or revise any forwardlooking statements after the issue of this material except as provided for in laws and ordinances.
The electronics markets in which the TDK Group operates are highly susceptible to rapid changes, risks,
uncertainties, and other factors that can have significant effects on the TDK Group including, but 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© 2015 TDK Corporation. All rights reserved.
Performance Briefing
3Q of Fiscal Year March, 2015
January 30, 2015
- 15 -
Text data including Q&A of performance briefing will be uploaded on following site
http://www.global.tdk.com/ir/ir_events/conference/2015/3q_1.htm