T D K C orporation C orporate C ommunic ations G roup A pril 27, 2018
P erfo rmanc e B riefing
●
C ons olidated R es ults for F Y Marc h 2018
T ets uji Y amanis hi, S enior V ic e P res ident
●
C ons olidated F ull Y ear P rojec tions for F Y Marc h 2019
C ons olidated R es ults for
F Y Marc h 2018
Tets uji Y amanis hi
K ey points c onc erning earning s for F Y Marc h 2018
●
Net s ales ac hiev ed a new rec ord for a fifth c ons ec utiv e fis c al y ear
●
O perating inc ome ros e in real-terms , abs orbing the impac t of the partial trans fer of the
Hig h-F requenc y C omponents bus ines s
¬
Net s ales ros e 7.9% year on year. O perating inc ome dec reas ed 59% year on year.
¬
In the P as s ive C omponents s egment, T D K c ontinued to expand the profit bas e of C apac itors by
addres s ing the s trong demand in the automotive and the indus trial equipment markets . S ales of
produc ts for automotive applic ations inc reas ed.
¬
In the S ens or A pplic ation P roduc ts s egment, T D K expanded its produc t and c us tomer portfolio
with a view to widening the target applic ations , s uc h as the IoT
market, and s trengthened the
foundation to expand its s olutions bus ines s .
¬
In the Magnetic A pplic ation P roduc ts s egment, T D K s ec ured higher profit des pite a dec reas e in
s ales volumes of HD D Heads . In P ower S upplies and Mag nets , T D K inc reas ed s ales and profits
by res ponding in time to growth in demand in the indus trial equipment market.
¬
In R ec harg eable B atteries , T D K ac hieved rec ord hig h net s ales and operating inc ome for a third
c ons ec utive year with a s teady res pons e to s trong demand fluc tuations in the s martphone market
C ons olidated full y ear res ults for F Y Marc h 2018
Y e n b illions %
Net s al es
1, 178.3
1,271.7
93.4
7.9
O p erati n g i n c o m e
208.7
85.6
( 123.1)
-59.0
Op e ra ting inc o me ma rg in
17.7%
6.7%
-Inc o me b efo re inc o me tax es
211.7
89.8
( 121.9)
-57.6
Net in c o m e
145.1
63.5
( 81.6)
-56.2
E a rning p e r s ha re (J P Y )
1, 150.16
502.80
-
-US $ (J P Y )
108.46
110.93
E UR O (J P Y )
118.92
129.64
E x -rate i mp ac t to net s ales &
o p eratin g i nc o me
Net s ales ：Inc reas ed by about 35.5 billion Y en
O perating inc ome：Inc reas ed by about 6.1 billion Y en
Depreciated by 2.3%
Depreciated by 9.0%
E
x
-r
a
t
e
C ha ng e
( Y en bi l l i ons )
F Y Ma rc h 2017
full y e a r re s ults
F Y Ma rc h 2018
55.9
46.3
F Y 17/3* F Y 18/3 528.2
437.6
F Y 17/3 F Y 18/3
F Y Marc h 2018 res ults
- P as s iv e C omponents s eg ment
Net s ales
437.6 billion yen (dow n 17.2% year on year)
O perating inc ome 46.3 billion yen (dow n 17.2% year on year)
●
C eramic C apac itors
¬S ales inc reas ed year on year.
¬S ales to the automotive market inc reas ed, while s ales to the IC T market
dec reas ed.
●
Induc tiv e Dev ic es
¬S ales inc reas ed year on year.
¬S ales to the automotive and the indus trial equipment markets inc reas ed,
while s ales to the IC T market dec reas ed.
●
Hig h-F requenc y C omponents
¬S ales and profit dec reas ed year on year due to the impac t of the partial
trans fer of bus ines s .
●
P iez oelec tric Material P roduc ts and C irc uit P rotec tion C omponents
¬S ales inc reas ed year on year.
¬S ales to the automotive and the indus trial equipment markets inc reas ed.
Net s ales
(Y en billions )
Operating inc ome (O P marg in)
(Y en billions )
10.6% 10.6%
-6.5
-19.4
17/3 18/3
42.9
77.6
17/3 18/3
F Y Marc h 2018 res ults
- S ens or A pplic ation s eg ment
Net s ales 77.6 billion yen (up 80.9% year on year)
O perating inc ome -19.4 billion yen ( dow n ―% year on y ear)
●
S ens ors
¬S ales inc reas ed year on year due to the c ons olidation of s ales of
InvenS ens e, Inc ., following the c ompletion of its ac quis ition in May.
¬S ales of Mag netic S ens ors inc reas ed to the IC T market in s tep with
g rowth in applic ations .
¬T here was a larger operating los s due to the rec ording of ac quis
ition-related c os ts for InvenS ens e, Inc . etc .
¬E xpanded the produc t and c us tomer portfolio and s treng thened the
foundation to expand the s olutions bus ines s .
Net s ales
(Y en billions )
Operating inc ome (O P marg in)
(Y en billions )
9.7
20.9
F Y 17/3 F Y 18/3
329.9 333.2
F Y 17/3 F Y 18/3
F Y Marc h 2018 res ults
- Mag netic A pplic ation P roduc ts s eg ment
Net S ales 333.2 billion yen (up 1.0% year on year)
O perating inc ome 20.9 billion yen (up 115.5% y ear on year)
●
HD D Heads
¬S ales dec reas ed year on year.
¬S ales of HD D s us pens ions inc reas ed due to the ac quis ition of
Hutc hins on T ec hnology Inc orporated.
●
Mag nets
¬S ales inc reas ed year on year and profitability improved.
¬S ales inc reas ed for applic ations s uc h as wind power generators and
indus trial equipment.
●
P ow er S upplies
¬S ales and profit inc reas ed year on year, reflec ting s trong c ondition in
the indus trial equipment market.
¬S ales were s trong for applic ations s uc h as s emic onduc tor
manufac turing equipment and robotic s -related applications .
¬P rofitability improved due to the launc h of new produc ts in the market.
Net s ales
(Y en billions )
Operating inc ome (O P marg in)
(Y en billions )
2.9%
6.3%
41.2
70.4
F Y 17/3 F Y 18/3 247.7
371.0
F Y 17/3 F Y 18/3
F Y Marc h 2018 res ults
- F ilm A pplic ation P roduc ts s eg ment
Net s ales 371.0 billion yen
(up 49.8% year on year)
O perating inc ome 70.4 billion yen (up 70.9% year on year)
●
E nerg y D ev ic es (R ec harg eable B atteries )
¬S ales and profit inc reas ed year on year.
¬S ales to the IC T market were s trong .
¬S ales als o inc reas ed for new applic ations s uc h as drones and g ame
c ons oles .
Net s ales
(Y en billions )
Operating inc ome (O P marg in)
(Y en billions )
16.6%
19.0%
F Y Marc h 2018 res ults by s eg ment
Y en billio n ％ Y en b illio n ％ Y en b illio n %
C ap a c ito rs 136.8 11.6 157.0 12.3 20.2 14.8
Ind uc tiv e D e v ic e s 145.3 12.3 157.5 12.4 12.2 8.4
Othe r P a s s iv e C o mpo ne nts 246.1 20.9 123.1 9.7 ( 123.0) -50.0
P as s iv e C o mp o ne nts 528.2 44.8 437.6 34.4 (90.6) -17.2
S e ns or A pp lic a tio n P ro d uc ts 42.9 3.6 77.6 6.1 34.7 80.9
R e c o rding D e v ic e s 242.3 20.6 237.9 18.7 ( 4.4) -1.8
O th e r Ma g n e tic A p p lic a tio n P ro d uc ts 87.6 7.4 95.4 7.5 7.8 8.9
Mag n etic A p plic a tio n P rod u c ts 329.9 28.0 333.2 26.2 3.3 1.0
F ilm A p p lic a tio n P rod uc ts 247.7 21.0 371.0 29.2 123.3 49.8
Other 29.6 2.5 52.3 4.1 22.7 76.7
1, 178.3 100.0 1,271.7 100.0 93.4 7.9
200.3 37.9 46.3 10.6 ( 154.0) -76.9
( 6.5) - ( 19.4) - (12.9)
-9.7 2.9 20.9 6.3 11.2 115.5
41.2 16.6 70.4 19.0 29.2 70.9
( 7.3) - (2.4) - 4.9
-S ub total 237.4 20.1 115.8 9.1 ( 121.6) -51.2
(28.8) - ( 30.1) - (1.3)
-208.7 17.7 85.6 6.7 ( 123.1) -59.0
F Y Ma rc h 20 17 full y e a r re s u lts
F Y Ma rc h 2 018 fu ll y e a r re s u lts
C h an g e
C o rpo ra te a nd elimina tio n s
T otal
O p e r a t i n g i n c o m e N e t s a l e sF ilm A p p lic a tio n P rod u c ts P as s iv e C o mp o ne nts
S o ns o r A pp lic a tio n P ro du c ts
Othe r
T otal
B reak d ow n of operating inc ome c hang es
O perating inc ome
-123.1 billion y en
F Y Marc h 2017
208.7 billion yen
F Y Marc h 2018
85.6 billion yen
85.6
208.7
C hanges in s ales +3.7
S ales pric e reduc tion
(32.3)
E xc hang e fluc tuation (US $=Y en 110.93)
+6.1 R ationaliz ation,
c os t reduc tion +34.0
B enefits from res truc turing
+4.3
S G &A expens es inc reas e
(3.7) (Y en billions )
One-time expens es related to M&A
(10.9)
R es truc turing c os t +20.1 G ain on
F Y Marc h 2018 quarterly res ults by s eg ment
Y e n bi l l i o ns % Y e n bi l l i ons %
C apac itors 35.0 40.1 41.4 6.4 18.3 1.3 3.2
Induc tive Devic es 37.6 40.3 39.2 1.6 4.3 (1.1) -2.7
O ther P as s ive C omponents 40.7 32.3 29.3 (11.4) -28.0 (3.0) -9.3
P as s iv e C o m p o n en ts 113.3 112.7 109.9 (3.4) -3.0 (2.8) -2.5
S en s o r A p p li c atio n P ro d u c ts 11.5 21.6 19.4 7.9 68.7 (2.2) -10.2
R ec ording Devic es 63.0 62.3 57.0 (6.0) -9.5 (5.3) -8.5
Othe r Ma gne tic Applic a tion P roduc ts 22.9 24.6 23.7 0.8 3.5 (0.9) -3.7
Mag n eti c A p p lic atio n P ro d uc ts 85.9 86.9 80.7 (5.2) -6.1 (6.2) -7.1 F i lm A p p li c atio n P ro d u c ts 54.4 105.9 81.9 27.5 50.6 (24.0) -22.7
O th er 9.2 14.1 15.1 5.9 64.1 1.0 7.1
274.3 341.1 307.1 32.8 12.0 (34.0) -10.0
146.7 12.3 11.3 (135.4) -92.3 ( 1.0) -8.1
( 2.2) ( 3.9) ( 4.8) (2.6) - (0.9)
-( 7.3) 8.3 1.6 8.9 - (6.7)
-5.0 23.6 12.8 7.8 156.0 ( 10.8) -45.8
( 2.2) ( 0.4) ( 1.1) 1.1 - (0.7)
-140.0 39.9 19.8 (120.2) -85.9 (20.1) -50.4
( 8.2) ( 7.5) ( 8.9) (0.7) - (1.4)
-131.8 32.4 10.9 (120.9) - (21.5) -66.4
O perating inc ome marg in 48.0% 9.5% 3.5% -44.5pt - -6.0pt
-113.85 112.97 108.49
121.25 133.00 133.25
N e t s a l e s
S ens or A pplic ation P roduc ts
Qo Q c h ang e (C )-(B )
(Y en b i l li o n s )
4Q o f F Y Ma rc h 2017
(A )
3Q o f F Y Ma rc h 2018
(B )
4Q o f F Y Marc h 2018
(C )
Y o Y c h ang e (C )-(A )
T ota l
US $ ( J P Y )
E UR O (J P Y )
F i lm A p p li c atio n P ro d u c ts
O th er
S u b to tal
C o rp o rate an d eli m i n ati o n s
T ota l
O p e r a t i n g i n c o m e
P as s i v e C o m p o n en ts
Mag netic A pplic ation P roduc ts
A bout the c hang e of reporting s eg ment
T D K ’
s reporting s egments will c hange from the previous four s egments : P as s ive C omponents ,
S ens or A pplic ation P roduc ts , Mag netic A pplic ation P roduc ts , and F ilm A pplic ation P roduc ts ; to
P as s ive C omponents , S ens or A pplic ation P roduc ts , Mag netic A pplic ation P roduc ts , and E nergy
A pplic ation P roduc ts . T D K ’
s bus ines s es will be c las s ified into thes e reporting s eg ments and O ther,
whic h c ompris es bus ines s es that do not belong to the reporting s eg ment.
C urrent reporting s eg ments
P as s ive
C omponents
S ens or
A pplic ation
P roduc ts
New reporting s eg ments
P as s ive
C omponents
Mag netic
A pplic ation
P roduc ts
S ens or
A pplic ation
P roduc ts
＋
E nergy
A pplic ation
P roduc ts
P ower S ys tems (Mag netic A pplic ation P roduc ts ) E nerg y D evic es ( F ilm A pplic ation P roduc ts ) E nerg y S ys tems(O ther)
Mag netic
A pplic ation
P roduc ts
F ilm
A pplic ation
P roduc ts
O ther
＋
C ons olidated F ull Y ear P rojec tio ns
fo r F Y Marc h 2019
S hig enao Is higuro
F Y Marc h 2019 full y ear / div id end projec tions
Y e n b illio ns %
1,271.7 1,340.0 68.3 5.4
85.6 100.0 14.4 16.8
6.7% 7.5% + 0.8 pt
-89.8 98.0 8.2 9.1
63.5 70.0 6.5 10.2
502.80 554.48 -
-1s t half : 60 2nd half : 70 A nnual: 130
1s t half : 70 2nd half : 70 A n nual : 140
-
-US $ ( J P Y ) 110.93 105.00
E UR O ( J P Y ) 129.64 129.00
178.6 210.0 31.4 17.6
92.2 110.0 17.8 19.3
103.5 110.0 6.5 6.3
F Y Ma rc h 201 9 full ye a r p rojec tio ns
(a n n o un c e d o n A p r. 27, 2 018)
Y o Y c ha ng e
Net s ales
Op erating inc o me
(Y e n b illions )
F Y Ma rc h 201 8 full yea r re s u lts
-Op eratin g in c o me marg in Inc o me b efo re inc o me tax es
Net inc o me
E arnin g p er s h are (J P Y )
Di v i dends ( J P Y )
E x -r a t e
C ap ital ex p en d iture
D ep rec iatio n and amortiz atio n
P rojec tions for F Y Marc h 2019
- Imag e o f c hang es in s ales
S eg ment
F Y Marc h 2018
full y ear res ults
F Y Marc h 2019
full y ear projec tions
( Y oY
c hang e)
P as s iv e C omponents
417.8
+ 3～+ 6%
S ens or A pplic ation
P roduc ts
77.4
+ 29～+ 32%
Mag netic A pplic ation
P roduc ts
277.5
-4～-7%
E nerg y A pplic ation
P roduc ts
442.8
+8～+ 11%
O ther
56.3
―
Total
1,271.7
1,340.0
US $(J P Y )
110.93
105.00
E UR O (J P Y )
129.64
129.00
F orex as s umptions
F inanc ial pos ition
(Y en billions )
Marc h end, 2016 Marc h end, 2017 Marc h end, 2018
C hang e 2017-2018
Total as s ets 1,450.6 1,664.3 1,905.2 240.9
Total liabilities 765.9 862.2 1,074.0 211.8
S toc kholder’s equity 675.4 793.6 824.6 31.0
(c omprehens ive inc ome) -102.3 -108.6 -119.5 -10.9 S toc kholder’s equity ratio 46.6% 47.7% 43.3% -4.4pt
C as h and c as h equivalents , s hort-term inves tments
307.4 386.5 323.3 -63.2
Interes t-bearing debt 335.7 334.1 483.0 148.9
Net c as h -28.3 52.4 -159.7 -212.1
307.4
386.5
323.3
335.7 334.1
483.0
( 28.3)
52.4
( 159.7)
(200) (100) 0 100 200 300 400 500
Marc h end, 2016 Marc h end, 2017 Marc h end, 2018
C as h flow s
(Y en billions )
(Y en billions )
Marc h end, 2016 Marc h end , 2017 Marc h end , 2018
C hang e 2017-2018
C apital expenditures 160.7 167.6 178.6 11.0
D eprec iation and amortiz ation
83.2 87.5 92.2 4.7
151.6
160.1
91.3
(140.6)
(71.1)
(246.1)
11.0
89.0
( 154.8)
(250) (200) (150) (100) (50) 0 50 100 150 200
Marc h end, 2016 Marc h end, 2017 Marc h end, 2018
Q uarterly s ales and operating inc ome by s eg ment
1Q 2Q 3Q 4Q T ota l 1Q 2Q 3Q 4Q T o ta l
C apac itors 34.4 33.7 33.6 35.0 136.8 36.3 39.2 40.1 41.4 157.0
Induc tive Devic es 35.7 35.5 36.6 37.6 145.3 37.6 40.5 40.3 39.2 157.5
Other P assive C omponents 62.6 70.0 72.8 40.7 246.1 29.6 31.8 32.3 29.3 123.1
P a s s iv e C o mp o n e n ts 132.7 139.2 143.0 113.3 528.2 103.5 111.5 112.7 109.9 437.6
S e n s o r A p p lic a tio n P ro d u c ts 10.4 10.5 10.5 11.5 42.9 16.4 20.2 21.6 19.4 77.6
R ec ording Devic es 55.9 57.3 66.0 63.0 242.3 56.7 61.8 62.3 57.0 237.9
Other Magnetic Applic ation P roduc ts 21.4 21.6 21.6 22.9 87.6 23.3 23.7 24.6 23.7 95.4
Ma g n e tic A p p lic a tio n P ro d uc ts 77.3 78.9 87.7 85.9 329.9 80.0 85.6 86.9 80.7 333.2
F ilm A p p lic a tio n P ro d u c ts 51.8 65.2 76.4 54.4 247.7 79.7 103.5 105.9 81.9 371.0
6.6 6.6 7.2 9.2 29.6 9.9 13.3 14.1 15.1 52.3
278.8 300.4 324.8 274.3 1,178.3 289.5 334.0 341.1 307.1 1, 271.7
14.8 19.7 19.1 146.7 200.3 10.2 12.4 12.3 11.3 46.3
( 1.0) ( 1.8) (1.5) ( 2.2) ( 6.5) (4.6) ( 6.1) ( 3.9) (4.8) (19.4)
4.1 5.8 7.0 (7.3) 9.7 4.8 6.1 8.3 1.6 20.9
F ilm A p p lic a tio n P ro d uc ts 7.1 13.0 16.2 5.0 41.2 12.7 21.3 23.6 12.8 70.4
( 1.5) ( 2.6) (1.0) ( 2.2) ( 7.3) 0.3 ( 1.2) ( 0.4) (1.1) ( 2.4)
23.4 34.1 39.8 140.0 237.4 23.5 32.5 39.9 19.8 115.8
( 6.9) ( 6.3) (7.3) ( 8.2) ( 28.8) (7.9) ( 5.9) ( 7.5) (8.9) (30.1)
16.5 27.8 32.5 131.8 208.7 15.6 26.6 32.4 10.9 85.6
108.37 102.47 109.19 113.85 108.46 111.16 111.01 112.97 108.49 110. 93 122.41 114.36 117.74 121.25 118.92 122.02 130.26 133.00 133.25 129. 64
F Y Ma rc h 2017 F Y Ma rc h 2018
N e t s a l e s
O th e r
(Y e n b illio n s )
T o tal
O p e r a t i n g i n c o m e
P a s s iv e C o mp o n e n ts
S e n s o r A p p lic a tio n P ro d u c ts
Ma g n e tic A p p lic a tio n P ro d uc ts
O th e r
S u b to ta l
C orporate and eliminations
T o tal
E x -r a t e
US $ (J P Y )
102.5
80.2
70.6 160.7
83.2 84.9
167.6
87.5 91.3
178.6
92.2
103.5 210.0
110.0 110.0
0 50 100 150 200 250
F Y Marc h 2019 projec tions and forex s ens itiv ity
(Y en billions )
C apital ex penditure D eprec iation R &D
F Y 15/3 F Y 16/3 F Y 17/3 F Y 18/3
E x pens es
F orex s ens itiv ity (impac t by 1 ( one) y en c hang e)
・
US $ : S ales 7.0 billion y en, O perating inc ome 1.2 billion y en
・
E UR O : S ales 1.5 billion y en, O perating inc ome 0.2 billion y en
F Y 19/3 P rojec tions
F Y 15/3 F Y 16/3 F Y 17/3 F Y 18/3 F Y 19/3 P rojec tions
A nnual s ales by applic ations
P as s iv e C omponents bus ines s annual s ales
C autionary s tatements w ith res pec t to
forw ard-lo ok ing s tatements
T his material c ontains forward-looking s tatements , inc luding projec tions , plans , polic ies , management s trategies , targets , s c hedules , unders tanding s , and evaluations about T D K , or its group c ompanies (T D K G roup) . T hes e forward-looking s tatements are bas ed on the c urrent forec as ts , es timates , as s umptions , plans , beliefs , and evaluations of the T D K G roup in lig ht of the information c urrently available to it, and c ontain known and unknown ris ks , unc ertainties , and other fac tors . T he T DK G roup therefore wis hes to c aution readers that, being s ubjec t to ris ks , unc ertainties , and other fac tors , the T D K G roup’s ac tual res ults , performanc e,
ac hievements , or financ ial pos ition c ould be materially different from any future res ults , performanc e,
ac hievements , or financ ial pos ition expres s ed or implied by thes e forward-looking s tatements , and the T D K G roup undertakes no oblig ation to public ly update or revis e any forward-looking s tatements after the is s ue of this material exc ept as provided for in laws and ordinanc es .
T he elec tronic s markets in whic h the T D K G roup operates are highly s us c eptible to rapid c hanges , ris ks ,
unc ertainties , and other fac tors that c an have s ignific ant effec ts on the T D K G roup inc luding, but not limited to, s hifts in tec hnology, fluc tuations in demand, pric es , interes t and foreign exc hange rates , and c hanges in
ec onomic environments , c onditions of c ompetition, laws and regulations . A ls o, s inc e the purpos e of thes e materials is only to give readers a general outline of bus ines s performanc e, many numeric al values are s hown in units of a billion yen. B ec aus e original values , whic h are managed in units of a million yen, are rounded off, the totals , differenc es , etc . s hown in thes e materials may appear inac c urate. If detailed figures are nec es s ary, pleas e refer to our financ ial s tatements and s upplementary materials .
T his material c ontains forward-looking s tatements , inc luding projec tions , plans , polic ies , management s trategies , targets , s c hedules , unders tanding s , and evaluations about T D K , or its group c ompanies (T D K G roup) . T hes e forward-looking s tatements are bas ed on the c urrent forec as ts , es timates , as s umptions , plans , beliefs , and evaluations of the T D K G roup in lig ht of the information c urrently available to it, and c ontain known and unknown ris ks , unc ertainties , and other fac tors . T he T DK G roup therefore wis hes to c aution readers that, being s ubjec t to ris ks , unc ertainties , and other fac tors , the T D K G roup’s ac tual res ults , performanc e,
ac hievements , or financ ial pos ition c ould be materially different from any future res ults , performanc e,
ac hievements , or financ ial pos ition expres s ed or implied by thes e forward-looking s tatements , and the T D K G roup undertakes no oblig ation to public ly update or revis e any forward-looking s tatements after the is s ue of this material exc ept as provided for in laws and ordinanc es .
T he elec tronic s markets in whic h the T D K G roup operates are highly s us c eptible to rapid c hanges , ris ks ,
unc ertainties , and other fac tors that c an have s ignific ant effec ts on the T D K G roup inc luding, but not limited to, s hifts in tec hnology, fluc tuations in demand, pric es , interes t and foreign exc hange rates , and c hanges in
