[ 2nd Quarter of fiscal 2010 Performance Briefing ]Consolidated Results of the 1st Half FY March 2010

Mr. Takehiro Kamigama
President & CEO

Thank you for attending today's presentation in large numbers despite your busy schedules. I would like to summarize our consolidated performance for the first half of fiscal 2010, the fiscal year ending March 31, 2010, and provide forecasts for the full fiscal year.

Overview of Consolidated Results for the First Half of Fiscal 2010

Let me begin with an overview of our first-half consolidated performance. We posted net sales of ¥385,851 million, compared with ¥396,537 million in the first half of fiscal 2009. Operating income was ¥5,402 million, compared with ¥14,381 million in the same period a year earlier. Income before income taxes was a mere ¥953 million, compared with ¥14,826 million. And net income attributable to TDK Corp. was ¥1,140 million, compared with ¥11,868 million.

The average first-half yen exchange rate for the U.S. dollar was ¥95.5, compared with ¥106.1 in the first half of fiscal 2009. For the euro, it was ¥133.2, compared with ¥162.8. These exchange rates lowered net sales by approximately ¥30.5 billion and operating income by approximately ¥8.7 billion.

Overview of Consolidated Results for the First Half of Fiscal 2010

Now for a word on our consolidated projections for fiscal 2010. I believe that we reported a consolidated net sales forecast for the full year of ¥717.8 billion when we announced our first-quarter results. We have now raised our projection to ¥733.7 billion, solely in light of our first-half sales. With operating income, we previously forecast ¥13.5 billion. This forecast has also been raised because of our first-half result. We are now projecting operating income of ¥15.4 billion. Income before income taxes is now projected at ¥7.4 billion, compared to our previous forecast of ¥6.9 billion. However, there is no change to our previous projection for net income of ¥5.2 billion. Our projections assume average yen-U.S. dollar and yen-euro exchange rates of ¥90 and ¥120, respectively, for the second half of fiscal 2010.

Dividend Forecast for Fiscal 2010

Regarding dividends, we plan to pay an annual dividend of ¥60 per share. This is made up of an interim dividend of ¥30 and a planned year-end dividend of ¥30. The proposed annual dividend is based on the current fiscal year as well as medium-term forecasts.

Business Combination With EPCOS AG

I'd also like to say a brief word on the business combination with EPCOS AG. We are now moving into the stage of taking actions to generate synergies from the business combination. Each business group is steadily implementing actions. Furthermore, the business combination is proceeding largely as planned. TDK-EPC Corporation was incorporated on October 1, 2009 and made a smooth start. Synergies are beginning to emerge as each business group gears up. At this stage, everything is going well.

That completes my presentation. I will hand you over to Seiji Enami, who will explain our results in detail.

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    Consolidated Results of the 1st Half FY March 2010 & Projections for FY March 2010 - Presentation Material (PDF: 160KB)