Announcement of Establishment of Subsidiary
October 30, 2020
TDK Corporation (TSE: 6762, hereinafter “the Company”) announces that a meeting of its Board of Directors meeting held on October 30, 2020 decided to establish a subsidiary in Singapore. Details are as follows.
1. Purpose of establishing the subsidiary
While the Company positions the electronic components business based on magnetic materials technology as its core business, it is working hard to develop its businesses to enhance its corporate value sustainably, responding to new market trends centered on DX (Digital Transformation) and EX (Energy Transformation) that have emerged in recent years. Above all, demand for rechargeable batteries is expected to continue to increase, given global needs for renewable energy and greater energy efficiency. The Company has decided to establish a subsidiary in Singapore to expand the market in Asia, and in step with this further expand its business in Asia where the market for rechargeable batteries is expected to grow.
2. Profile of the subsidiary
| (1) | Name | Amperex Technology (Singapore) Pte. Ltd. | |
| (2) | Location | Singapore, Eunos | |
| (3) | Representative | Rick Thong | |
| (4) | Business | Financial center, procurement center, investment of ATL group in Asia | |
| (5) | Capital | 200 million U.S. dollars | |
| (6) | Date of Establishment | January 2021 (planned) | |
| (7) | Equity ratio | TDK: 100% | |
| (8) | Relationship with Amprex Technology (Singapore) Pte. Ltd. | Capital relationship | Amperex Technology (Singapore) Pte. Ltd. will become a wholly owned subsidiary of the Company. |
| Personnel Relationship | Officers and employees of Amperex Technology Limited, the subsidiary of the Company conducting battery business, will serve as directors. of Amperex Technology (Singapore) Pte. Ltd. | ||
| Business relationship | Nothing to report | ||
3. Outlook
The impact of the establishment of the subsidiary on the Company's consolidated financial results for the fiscal year ending March 31, 2021 is minor.
(Reference) Consolidated results forecast for the current fiscal year (announced on October 30, 2020) and consolidated financial results for the previous fiscal year
| (Yen millions) | Consolidated net sales |
Consolidated operating income | Income before income taxes | Net income attributable to TDK |
|---|---|---|---|---|
| Consolidated financial forecast for the current fiscal year (Year ending March 31, 2021) |
1,400,000 | 110,000 | 111,000 | 76,000 |
| Consolidated results for the previous fiscal year (Year ended March 31, 2020) |
1,363,037 | 97,870 | 95,876 | 57,780 |
About TDK Corporation
TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately “Attracting Tomorrow.” It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's comprehensive, innovation-driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in automotive, industrial and consumer electronics, and information and communication technology. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2020, TDK posted total sales of USD 12.5 billion and employed about 107,000 people worldwide.
Contacts for regional media
| Region | Contact | Phone | ||
|---|---|---|---|---|
| Global | Mr. Kazushige ATSUMI | TDK Corporation Tokyo, Japan |
+813 6778-1055 | TDK.PR@tdk.com |
