Investor Relations | IR Events | Performance Briefing

[ 2nd Quarter of fiscal 2011 Performance Briefing ]Recording Device Business

Mr. Atsuo Kobayashi Senior Vice President General Manager Data Storage   & Thin Film Technology Components Business Group

Mr. Atsuo Kobayashi
Senior Vice President
General Manager
Data Storage & Thin Film Technology Components Business Group

I'm Atsuo Kobayashi, General Manager of TDK's Recording Device business. Let me outline our fiscal 2011 interim sales and second-half and full-year sales forecasts.

Fiscal 2011 Recording Device Sales and Forecasts

Looking first at interim sales for fiscal 2011, second-quarter sales were ¥65.3 billion, down 8% on the second quarter of fiscal 2010. The main reasons for the year-on-year drop in HDD head sales were forex effects and discounts. Overall, first-half sales were ¥137.0 billion, ¥3.0 billion less than our previous forecast.

Next, I would like to report on our second-half and full-year forecasts for fiscal 2011 in terms of indexed HDD head volume, as usual. Assuming HDD head volume to be 100 in the first quarter of fiscal 2010, HDD head volume was 122 in both the first and second quarters of fiscal 2011. In the third and fourth quarters, we are projecting HDD head volume of 113 and 119, respectively. HDD sales volume was flat in the first half of fiscal 2011, but is projected to decline in the second half because of inventory adjustments at customers and weak projected demand in Europe and the U.S., the sources of end demand for HDDs. In light of these conditions, we have revised our previous forecast for second-half net sales to ¥110.9 billion. This second-half forecast assumes a yen-U.S. dollar exchange rate of ¥80. Based on this, we have reduced our previous full-year net sales forecast to ¥247.9 billion, an 11% year-on-year decrease from fiscal 2010. This forecast reflects an equally negative impact on net sales from forex effects and discounts.

In terms of HDD demand and market share, we are currently forecasting total HDD demand of around 640 million units. We expect an average of 3 heads per HDD, and an HGA share of 31% at the end of March 2011.

That concludes my presentation. Thank you for your attention.