Greetings

Last year, TDK set out a Long-term Vision "TDK Transformation," aiming to become who we are in ten years’ time. This vision reflects our commitment to contribute to societal change while continuously transforming TDK to help create a sustainable future. We've focused on identifying high-impact applications within our key areas of Automotive, ICT, and Industrial & Energy. With societal trends such as Green Transformation (GX) in decarbonization, energy efficiency, and energy storage, and Digital Transformation (DX) in AI, automation, and labor-saving, we see growing opportunities for TDK to make a difference.

This year, as we enter the second year of our "Medium-term Business Plan," we are prioritizing cash flow management, strengthening our business portfolio, and enhancing our non-financial capital.

In today's rapidly changing world, uncertainties around geopolitical risks and economic trends such as currency fluctuations are increasing. However, we believe that even in such challenging environments, our "Own Capability" can further enhance our internal management, including product quality, production lead times, technology development, IT infrastructure, and risk management.

TDK has grown into a global company with over 250 locations in more than 30 countries and regions, with employing over 100,000 team members, with more than 90% of our sales generated outside Japan. For us, diversity means more than just having people with different personalities and skills; it’s about fostering "connections," "harmony," and "integration." TDK’s biggest strength is “TDK United”, a unique blend of diverse individuals creating value through collaboration. We aim to take TDK to a new level of growth through the collective power of our "Own Capability."

This year marks TDK's 90th anniversary. Founded in 1935 to industrialize the magnetic material "ferrite" invented at the Tokyo Institute of Technology**, we continue to accelerate technological evolution and societal transformation, contributing to a sustainable future in line with our corporate motto, "Contribute to culture and industry through creativity."

*TDK considers “pre-financial capital” to be capital that will generate cash flow in the future, and refers to it in this manner, rather than as “non-financial capital.”
** Currently renamed as Institute of Science Tokyo