Enhancing Financial Strength Corporate Officer Takakazu Momozuka Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 1 - Enhancing financial strength ① Improve profitability by expanding priority businesses ② Improve efficiency in general and administrative expenses and R&D expenses ③ Financial strategy Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 2 - 2 Improve profitability by expanding priority businesses ■Priority Five Businesses Priority businesses Business size expansion (sales breakdown) 8% 1% ■New Businesses ■Others Improved profitability (operating profit margin) 73 % 70 % 0% Projections for FY March 2015 Projections for FY March 2015 Target Company-wide Target Operating Profit Margin 10% OP margin Projections for FY March 2015 Target 5% 6.0% Over 10% 0% 6.0% Projections for FY March 2015 Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation Target December 8, 2014 - 3 - Improve efficiency in general and administrative expenses and R&D expenses Measures Projections for FY March 2015 Sales percentage SGA expenses (excluding R&D 12.5% expenses) R&D expenses SGA expenses Total 6.5% 9 Promote reforms for Head Office functions ¾ Speedy business operations enabled by delegation. ¾ Efficiency improvements by consolidating service divisions 9 Review the R&D system at Head Office ¾ Shifting toward a global R&D system 19.0% ¾ Enhancing business strength by making development efforts within local divisions ¾ Medium- to long-term development themes promoted by Head office Improve profitability by reducing the percentage of general management expenses and improving development efficiency Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 4 - Financial strategy Net Debt Cash build-up Net Cash Growth Return to shareholders investment Dividend policy Strive to achieve stable dividend increases through growth in the earnings per share figure Invest funds into the development of new products and new businesses Consider the acquisition of own share, in addition to dividends, as an option to provide returns to stockholders ROE ROE Projections for FY March 2015 Target 5.6% Over 10% 10% 5% 5.6% 0% Projections for FY March 2015 Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation Target 5 December 8, 2014 - 5 - Cautionary Statements with Respect to Forward-Looking Statements Copyright© 2014 TDK Corporation. All rights reserved. FY March 2015 Business Strategy Meeting TDK Corporation December 8, 2014 - 6 -