Investor Relations | IR Events | Performance Briefing

[ Financial Results of fiscal 2002 Performance Briefing ]HDD Head Business Outlook

Takehiro Kamigama

Takehiro Kamigama
General Manager
Data Storage Components Business Group

[ Slide 1 ]

I would now like to report on the HDD head business.

[ Slide 2 ]

Let me begin with net sales for fiscal 2002. Because there may be some overlap with previous presentations, let me just explain the results briefly.

In the first half of fiscal 2002, this business recorded net sales of ¥64.0 billion, down sharply by 30% year on year. Sales, however, picked up in the second half as we posted a 7% year-on-year rise to ¥83.0 billion. But this upturn was not enough to stop a 13% decline in sales for the full year to ¥147.0 billion.

[ Slide 3 ]

Next, I will briefly explain aggregate HDD head demand and TDK's market share. Aggregate HGA demand is expected to edge down slightly, falling to 514 million heads in fiscal 2003 from 521 million. As President Sawabe explained earlier in his presentation, the number of heads per HDD is expected to fall considerably, especially as 80-gigabyte/disk HDD heads come on stream.

As President Sawabe also explained earlier, our market share recovered to 27% in the fourth quarter. On average, our market share in fiscal 2002 was 23%. In the current fiscal year, we are aiming for a market share of 29%.

[ Slide 4 ]

Next, I would like to look at our product launch schedule. Please think in terms of capacity per 3.5-inch platter for the purposes of this presentation. Firstly, mass production of 60-gigabyte/disk HDD heads has just started and shipments have been made to two companies. 80-gigabyte/disk HDD heads are under evaluation for verification. Plans call for the commencement of mass production in September this year. Regarding 120-gigabyte/disk HDD heads, we plan to begin shipping samples that use TMR in August this year.

[ Slide 5 ]

Finally, our projections for this year call for net sales of ¥146.9 billion, which would represent a 0.1% decrease year on year.

That concludes my brief presentation. Thank you.